Circular Letter No. 4046 - Procedures for Updating and Requesting Release of Liens on Financial Assets and Securities for LTEL-LFG

The Head of the Department of Financial System Monitoring (Desig), in exercise of the authority conferred by Article 23, item I, letter 'a', of the Internal Regulations of the Central Bank of Brazil, annexed to Ordinance No. 84,287, of February 27, 2015, based on Article 77, item III, and in view of the provisions of Resolutions Nos. 4,571, of May 26, 2017, and 4,795, of April 2, 2020, Circulars Nos. 3,870, of December 19, 2017, 3,996, of April 6, 2020, and 4,004, of April 16, 2020, and Circular Letter No. 3,869, of March 19, 2018,

RESOLVES:

Article 1. The financial institutions referred to in Article 2 of Resolution No. 4,795, of April 2, 2020, must observe the provisions of this Circular Letter for the updating and for the request of release of liens on financial assets and securities with the registrar entity, as referred to in Articles 15 and 18 of Circular No. 3,996, of April 2, 2020.

Article 2. The updating of data relating to financial assets and securities referred to in Article 15 of Circular No. 3,996, of 2020, must be carried out:

I - within 2 (two) business days, counted from the moment the alteration that may imply a modification of classification relative to debtors whose operations represent more than 5% (five percent) of the financial assets and securities offered as collateral is identified:

a) for the assets referred to in items I, II, and III of Article 5 of Resolution No. 4,795, of 2020 - according to the file alteration procedure provided by the registrar;

b) for the securities referred to in items IV and V of Article 5 of Resolution No. 4,795, of 2020 - through communication to the Department of Financial System Monitoring (Desig), via the BC Correio application, available for access on the Central Bank's website at the electronic address https://www.bcb.gov.br/acessoinformacao/bccorreio, in accordance with Annex 1 to this Circular Letter.

II - monthly, with reference to the last day of the month, until the 9th business day of the following month, updating all characteristics and respective values of the financial assets referred to in items I, II, and III of Article 5 of Resolution No. 4,795, of 2020, through the creation of a new file that consolidates all existing files in the registrar until the day prior to the update date.

§ 1. Exclusively on the date on which the file referred to in item II is created, if it is necessary to carry out updates referred to in letter 'a' of item I, these must, mandatorily, be carried out in the new file, with no alteration admitted in existing files.

§ 2. If it is necessary to include new operations on the date on which the update referred to in item II is carried out, these operations must be included in the new file, with no separate file submission admitted.

Article 3. For the request of release of liens on financial assets and securities referred to in Article 18 of Circular No. 3,996, of 2020, the financial institution must, regarding:

I - the assets referred to in items I, II, and III of Article 5 of Resolution No. 4,795, of 2020 - not include these assets in the update file referred to in item II of Article 2. The non-inclusion of these operations in the update file characterizes the request for release of liens on them;

II - the securities referred to in items IV and V of Article 5 of Resolution No. 4,795, of 2020 - send a request to Desig, via the BC Correio application, in accordance with Annex 2 to this Circular Letter.

Article 4. This Circular Letter enters into force on the date of its publication.

Gilneu Francisco Astolfi Vivan

Annex to Circular Letter No. 4,046, of May 6, 2020.

Annex 1 - Model for communication of update of securities

COMMUNICATION OF UPDATE OF GUARANTEE SECURITIES RELATIVE TO DEBTORS WHOSE OPERATIONS REPRESENT MORE THAN 5% OF GUARANTEED ASSETS (LTEL-LFG)

Legal Name of the Financial Institution:

Full Address:

CNPJ (Tax ID):

To the Central Bank of Brazil

Department of Financial System Monitoring (Desig)

Subject: Communication of update of guarantee securities – representative debtors (LTEL-LFG)

Dear Sirs,

In compliance with the provisions of § 2 of Article 15 of Circular No. 3,996/2020, we communicate the alteration of the following characteristics of the guarantee securities registered in (inform the name of the registrar) listed below:

Security Code

Updated Value (active portfolio)

Value maturing in the next 60 days1

Constituted Provision2

Discount Factor before alteration3

New Discount Factor3

Characteristic(s) altered

Values in Brazilian Reais (R$)

1 Value reported for domains 110 and 120 of "Annex 1: Maturity Code" of the SCR Layout, available at https://www.bcb.gov.br/estabilidadefinanceira/scrdoc3040

2 Value reported for the field "ProvConsttd" in the table "BASIC Information of the operation" of the SCR Layout

3 As provided in Article 6 of Resolution 4,795, of April 2, 2020 (format XXX%)

Sincerely,

Name of the responsible person:

E-mail:

CPF (Individual Taxpayer Registry):

Phone:

Annex 2 - Model for request of release of liens on securities

REQUEST FOR RELEASE OF LIENS ON GUARANTEE SECURITIES OF LOAN OPERATIONS THROUGH THE TEMPORARY SPECIAL LIQUIDITY LINE (LTEL-LFG)

Legal Name of the Financial Institution:

Full Address:

CNPJ (Tax ID):

To the Central Bank of Brazil

Department of Financial System Monitoring (Desig)

Subject: Request for release of liens on securities referred to in items IV and V of Article 5 of Resolution 4,795/20 (LTEL-LFG)

Dear Sirs,

In compliance with the provisions of Article 18 of Circular No. 3,996/2020, we request the release of liens on the securities listed below, guaranteeing LTEL-LFG, registered in (inform the name of the registrar).

Security Code

Issuer

Quantity

Value (active portfolio)

Date of Lien

Sincerely,

Name of the responsible person:

E-mail:

CPF (Individual Taxpayer Registry):

Phone: