Resolution CMN No. 163 — Raises the Limit for Consumer Financing Operations

RESOLUTION NO. 000163

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 this date, having regard to the provisions of Article 4, item VI, of the aforementioned Law, and Article 2, item V, of Law No. 4.728, of July 14, 1965,

RESOLVES:

I - To raise to 15% (fifteen percent) of the total investments of the financing company the limit for financing operations to the consumer or end-user of services, as set forth in item II of Resolution No. 103, of December 10, 1968.

II - To allow the financing company to dispense, on an occasional basis and at its discretion, the requirement for co-obligation by the service-providing company, referred to in item II, letter "c" of Resolution No. 103, of December 10, 1968, provided that:

a) there is the constitution of substitute guarantees that safeguard the liquidity of the operation; and

b) the direction and use of the credit are perfectly proven.

III - The bill acceptance contracts, relating to service provision operations, must specify the name of the company and link the document proving the effective provision of services.

IV - To allow mixed operations - comprising financing of service operations and acquisition of goods - to be classified according to the type of financing represented by the larger portion.

Rio de Janeiro-GB, November 24, 1970

CENTRAL BANK OF BRAZIL

Ernane Galvêas
President