Resolution CMN No. 105 - Commercial Banks - Receipt of Fixed-Term Deposits with Monetary Correction Clause for Individuals and Legal Entities - Certificates of Deposit Cannot Be Issued in Favor of Financial Institutions

RESOLUTION NO. 000105

THE CENTRAL BANK OF BRAZIL, in accordance with the deliberation of the Monetary Council, in a session held on 10.12.68, in accordance with the provisions of Art. 4, item VI, and Art. 9 of Law No. 4.595, of 12.31.64, and Art. 28 of Law No. 4.728, of 07.14.65,

RESOLVES:

I - The faculty attributed to commercial banks, subject to prior approval by the Central Bank of Brazil, to receive - from individuals or legal entities - fixed-term deposits, with a monetary correction clause, and to issue deposit certificates, nominative, is revived, observing the following conditions:

a) deposits of this kind shall be governed by the conditions established in items III and IV of Resolution No. 31, of 07.30.1966;

b) the respective certificates may not have a value lower than NCr$1,000.00 (one thousand new cruzeiros), nor a term lower than 12 (twelve) months, however, the payment of interest and monetary correction is admitted for minimum periods of 3 (three) months.

II - Depository establishments may not attribute the payment of commission or the granting of a prize of any nature to depositors, employees, or third parties, due to the deposits collected.

III - The provisions of the preceding items apply only to banks that fully comply with the provisions of items I to III of Resolution No. 86, of 01.12.68, and whose immobilization index does not exceed 70% (seventy percent).

IV - Deposit certificates may not be issued in favor of financial institutions, distributing companies, brokerage firms, and autonomous brokers.

V - The norms contained in Resolution No. 31, of 07.30.1966, that conflict with those of the present, are revoked.

Rio de Janeiro-GB, December 10, 1968

CENTRAL BANK OF BRAZIL

Ernane Galvêas
President