Resolution CMN No. 1825 — Establishes Conditions for the Issuance of Debenture Pledge Certificates Under Article 72 of Law No. 6,404 of December 15, 1976

RESOLUTION NO. 001825

ESTABLISHES CONDITIONS FOR THE ISSUANCE OF
DEBENTURE PLEDGE CERTIFICATES UNDER
ARTICLE 72 OF LAW NO. 6,404, OF
15.12.76.

THE CENTRAL BANK OF BRAZIL, IN ACCORDANCE WITH ARTICLE 9 OF LAW NO. 4,595, OF 31.12.64, MAKES PUBLIC THAT THE MONETARY COUNCIL, IN A SESSION HELD ON 28.05.91, HAVING REGARD TO THE PROVISIONS OF
ARTICLE 4, ITEM VI, OF THE MENTIONED LAW,

RESOLVED:

ART. 1. TO ESTABLISH THE FOLLOWING CONDITIONS TO BE OBSERVED IN THE ISSUANCE OF DEBENTURE PLEDGE CERTIFICATES UNDER ARTICLE 72 OF LAW NO. 6,404, OF 15.12.76, IN ADDITION TO THOSE ESTABLISHED IN THE MENTIONED PROVISION AND IN ARTICLES 293, SINGLE PARAGRAPH, OF THE SAME LEGAL INSTRUMENT, 19 OF LAW NO. 8,088, OF 31.10.90, AND 3 OF RESOLUTION NO. 1,777, OF 19.12.90:

I - MATURITY PERIOD COMPRISING A MINIMUM OF 60 (SIXTY) DAYS COUNTED FROM THE DATE OF ITS ISSUANCE, AND A MAXIMUM EQUIVALENT TO THAT OF THE PLEDGED DEBENTURES;

II - VALUE EQUAL TO OR LESS THAN 90% (NINETY PERCENT) OF THE FACE VALUE OF THE PLEDGED DEBENTURES;

III - BLOCKING OF TRADING OF THE PLEDGED DEBENTURES IN THE CORRESPONDING SYSTEM ADMINISTERED BY THE CLEARING AND SETTLEMENT CENTRAL FOR SECURITIES (CETIP), OR THEIR CUSTODY IN AN INSTITUTION AUTHORIZED TO PROVIDE THIS SERVICE BY THE SECURITIES AND EXCHANGE COMMISSION OR IN A STOCK EXCHANGE, SUCH PRACTICE BEING PROHIBITED BY THE ISSUING INSTITUTION ITSELF.

SINGLE PARAGRAPH. THE ISSUANCE OF CERTIFICATES SECURED BY THE PLEDGE OF DEBENTURES OF A COMPANY AFFILIATED WITH THE ISSUING INSTITUTION IS PROHIBITED, REASON WHY ARTICLE 34 OF LAW NO. 4,595, OF 31.12.64 PROVIDES.

ART. 2. THE CENTRAL BANK OF BRAZIL, IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE 72 OF LAW NO. 6,404, OF 15.12.76, WILL INDICATE THE INSTITUTIONS THAT MAY ISSUE THE CERTIFICATES IN QUESTION, BEING AUTHORIZED TO ADOPT THE MEASURES AND ISSUE THE NORMS IT DEEMS NECESSARY FOR THE EXECUTION OF THE PROVISIONS OF THIS RESOLUTION.

ART. 3. THIS RESOLUTION ENTERS INTO FORCE ON THE DATE OF ITS PUBLICATION.

BRASILIA (DF), MAY 28, 1991

FRANCISCO ROBERTO ANDRE GROS
PRESIDENT