Resolution CMN No. 1693 — Authorizes the Issuance of Central Bank of Brazil Letters (LBC) in Cruzeiros

RESOLUTION NO. 001693

AUTHORIZES THE ISSUANCE OF CENTRAL BANK OF BRAZIL LETTERS (LBC) IN CRUZEIROS.

THE CENTRAL BANK OF BRAZIL, IN ACCORDANCE WITH ARTICLE 9 OF LAW NO. 4,595, OF 12/31/64, MAKES PUBLIC THAT THE PRESIDENT OF THE MONETARY COUNCIL, BY ACT OF 03/26/90, BASED ON ARTICLE 2 OF DECREE NO. 94,303, OF 05/01/87, "AD REFERENDUM" OF THAT COUNCIL, AND TAKING INTO ACCOUNT THE PROVISIONS OF ITEM V OF ARTICLE 11 OF THE MENTIONED LAW,

RESOLVES:

ART. 1. AUTHORIZE THE CENTRAL BANK OF BRAZIL TO ISSUE TITLES OF ITS OWN LIABILITY, WITH THE FOLLOWING CHARACTERISTICS:

I - DESIGNATION: CENTRAL BANK OF BRAZIL LETTER (LBC);

II - NOMINAL VALUE: MULTIPLE OF CR$ 1,000.00 (ONE THOUSAND CRUZEIROS);

III - TERM: MAXIMUM OF 30 (THIRTY) MONTHS;

IV - PLACEMENT METHOD: PUBLIC OFFERINGS, WHOSE CONDITIONS WILL BE DISCLOSED THROUGH NOTICES PUBLISHED IN THE PRESS OR DIRECTLY TO INSTITUTIONS THAT ARE PART OF THE NATIONAL FINANCIAL SYSTEM IN CASES PROVIDED FOR IN SPECIFIC REGULATIONS;

V - MODALITY: REGISTERED;

VI - YIELD: DEFINED BY THE AVERAGE ADJUSTED RATE OF FINANCING ASSESSED IN THE SPECIAL SYSTEM OF SETTLEMENT AND CUSTODY (SELIC) FOR FEDERAL TITLES OF SIMILAR CHARACTERISTICS, DISCLOSED BY THE CENTRAL BANK OF BRAZIL, CALCULATED ON THE NOMINAL VALUE AND PAID AT REDEMPTION OF THE TITLE;

VII - REDEMPTION: AT NOMINAL VALUE, PLUS THE RESPECTIVE YIELD.

ART. 2. THE ISSUANCE OF CENTRAL BANK OF BRAZIL LETTERS (LBC) SHALL BE PROCESSED EXCLUSIVELY IN BOOK-ENTRY FORM, THROUGH REGISTRATION OF THE RESPECTIVE CREDIT RIGHTS, AS WELL AS THE ASSIGNMENTS OF THESE RIGHTS, IN THE SYSTEM FOR REGISTRATION AND FINANCIAL SETTLEMENT OF TITLES, ADMINISTERED BY THE CENTRAL FOR CUSTODY AND FINANCIAL SETTLEMENT OF TITLES (CETIP).

ART. 3. THE TRADING OF LBCs SHALL TAKE PLACE OUTSIDE STOCK EXCHANGES, IN THE OPEN MARKET, THROUGH INSTITUTIONS AUTHORIZED TO OPERATE IN THE FINANCIAL AND CAPITAL MARKETS, IN ACCORDANCE WITH LAWS NO. 4,595, OF 12/31/64, AND NO. 4,728, OF 07/14/65.

ART. 4. THE TRANSFERS OF LBCs SHALL BE PROCESSED EXCLUSIVELY THROUGH THE REGISTRATION OF THE RESPECTIVE TRANSACTIONS IN THE SYSTEM FOR REGISTRATION AND FINANCIAL SETTLEMENT OF TITLES, ADMINISTERED BY CETIP.

ART. 5. THE REDEMPTION OF THE PRINCIPAL AND YIELDS OF LBCs SHALL BE PROCESSED THROUGH CREDIT OF THE RESPECTIVE VALUES INTO THE ACCOUNTS OF THEIR HOLDERS, MAINTAINED IN THE SYSTEM FOR REGISTRATION AND FINANCIAL SETTLEMENT OF TITLES, ADMINISTERED BY CETIP.

ART. 6. FOR THE PURPOSES OF RESOLUTION NO. 1,088, OF 01/30/86, LBCs SHALL BE CONSIDERED WITHIN THE LIMITS FIXED IN ITEMS III OF ALINÉAS "A" AND "B" OF ITEM 1 OF CIRCULAR NO. 1,485, OF 05/17/89.

ART. 7. THE CENTRAL BANK MAY ISSUE THE RULES DEEMED NECESSARY FOR THE EXECUTION OF THIS RESOLUTION.

ART. 8. THIS RESOLUTION SHALL ENTER INTO FORCE ON THE DATE OF ITS PUBLICATION.

ART. 9. RESOLUTION NO. 1,124, OF 05/15/86, IS HEREBY REPEALED.

BRASÍLIA (DF), MARCH 26, 1990

IBRAHIM ERIS
PRESIDENT