Resolution CMN No. 1143 Authorizes Financial Institutions to Conduct Credit Operations at Floating Rates with Minimum 180-Day Terms

RESOLUTION NO. 001143

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, in a session held on June 26, 1986, having regard to the provisions of Article 4, items VI and IX, of the aforementioned Law, Article 1 of Law No. 4,728 of July 14, 1965, Article 23 of Law No. 6,099 of September 12, 1974, Article 7, Paragraph 2, of Decree-Law No. 1,641 of December 7, 1978, and Article 43, item I, of Law No. 7,450 of December 23, 1985,

HAS DECIDED:

I - To authorize financial institutions to conduct active and passive operations at floating (variable) rates, which may be adjusted at fixed intervals, provided that such operations have a term equal to or greater than 180 (one hundred and eighty) days.

II - Operations at floating rates shall be conducted in accordance with the provisions of this Resolution and complementary norms issued by the Central Bank.

III - The provisions of item I of this regulation may be applicable:

a) to debentures of any nature;

b) to mercantile leasing operations, provided that the minimum term established in specific regulation for their execution is respected.

IV - The Central Bank of Brazil is authorized to adopt the following measures:

a) establish a minimum period for periodic rate adjustments;

b) set a parameter for the base of periodic rate adjustments referred to in item I of this Resolution;

c) alter the term referred to in item I of this Resolution;

d) establish other measures necessary for the execution of the provisions of this Resolution.

V - The capture of resources, as provided in this Resolution, shall be subject to the provisions of items I and II of Resolution No. 1,105 of March 4, 1986.

VI - This Resolution shall enter into force on the date of its publication.

Brasília-DF, June 26, 1986

Fernão Carlos Botelho Bracher
President