Resolution CMN No. 1129 - Financial Institutions - Permits Charging of Stay Commission

RESOLUTION NO. 001129

THE CENTRAL BANK OF BRAZIL, in accordance with Article 9 of Law No. 4,595 of December 31, 1964, makes public that the MONETARY COUNCIL NATIONAL, in a session held on this date, having regard to the provisions of Article 4, paragraphs VI and IX, of said Law,

HAS DECIDED:

I - To permit commercial banks, development banks, investment banks, savings banks, credit cooperatives, credit, financing and investment companies and leasing companies to charge their debtors for each day of delay in payment or settlement of their debts, in addition to default interest as per current legislation, a "stay commission", which shall be calculated at the same rates agreed upon in the original contract or at the market rate of the day of payment.

II - In addition to the charges provided for in the previous item, it shall not be permitted to charge any other compensatory amounts for the delay in payment of overdue debts.

III - When it concerns an operation contracted until February 27, 1986, the "stay commission" shall be charged:

a) in operations with monetary correction clauses or exchange rate variation - at the same bases of the original contract or at the market rate of the day of payment;

b) in operations with fixed charges and due until February 27, 1986 - up to that date, at the same bases agreed upon in the original contract or at the market rate practiced on that date, when the provisions of Article 4 of Decree-Law No. 2,284/86 will apply, and from February 28, 1986 until its payment or settlement, based on the market rate of the day of payment; and

c) in operations with fixed charges and due after February 27, 1986 - based on the market rate of the day of payment.

IV - The Central Bank may adopt the measures deemed necessary for the execution of this Resolution.

V - This Resolution shall enter into force on the date of its publication, being revoked Item XIV of Resolution No. 15 of January 28, 1966, Item V of Circular No. 77 of February 23, 1967, Letters-Circular Nos. 197 of October 28, 1976, and 1,368 of March 5, 1986.

Brasília-DF, May 15, 1986

Fernão Carlos Botelho Bracher
President