Resolution CMN No. 1861 - Establishes the Regulation of the Deposit and Real Estate Letter Guarantee Fund (FGDLI), Fixes the Guarantee Limit, Contribution Percentage, Guarantee Update, and Late Payment Fine

RESOLUTION NO. 001861

ESTABLISHES THE REGULATION OF THE DEPOSIT AND REAL ESTATE LETTER GUARANTEE FUND (FGDLI), FIXES THE GUARANTEE LIMIT, THE CONTRIBUTION PERCENTAGE, THE GUARANTEE UPDATE, AND THE FINE FOR LATE PAYMENTS.

THE CENTRAL BANK OF BRAZIL, IN ACCORDANCE WITH ART. 9 OF LAW NO. 4,595, OF 12/31/64, MAKES PUBLIC THAT THE MONETARY NATIONAL COUNCIL, IN A SESSION HELD ON 08/28/91, HAVING REGARD TO THE PROVISIONS OF ART. 7 OF DECREE-LAW NO. 2,291, OF 11/21/86,

RESOLVES:

ART. 1. APPROVE THE ANNEXED REGULATION, WHICH DISCIPLINES THE OPERATION OF THE DEPOSIT AND REAL ESTATE LETTER GUARANTEE FUND (FGDLI), CREATED BY RESOLUTION NO. 3, OF THE BOARD OF DIRECTORS OF THE DEFUNCT NATIONAL BANK OF HOUSING (BNH), ON 01/25/67, AND TRANSFERRED TO THE CENTRAL BANK OF BRAZIL, BY FORCE OF DECREE-LAW NO. 2,291, OF 11/21/86, AND RESOLUTION NO. 1,219, OF 11/24/86.

SINGLE PARAGRAPH. THE CENTRAL BANK OF BRAZIL IS AUTHORIZED TO MAKE THE NECESSARY CHANGES TO THE SAID REGULATION, WITH A VIEW TO THE COMPLIANCE WITH THE PURPOSES OF THE DEPOSIT AND REAL ESTATE LETTER GUARANTEE FUND (FGDLI).

ART. 2. FIX AT CR$ 5,834,570.00 (FIVE MILLION, EIGHT HUNDRED AND THIRTY-FOUR THOUSAND, FIVE HUNDRED AND SEVENTY CRUZEIROS) THE GUARANTEE LIMIT OF THE DEPOSIT AND REAL ESTATE LETTER GUARANTEE FUND (FGDLI) FOR THE SUM OF BALANCES OF SAVINGS ACCOUNTS, INDIVIDUAL OR COLLECTIVE, AND REAL ESTATE LETTERS, HELD IN THE SAME FINANCIAL AGENT.

PARAGRAPH 1. THE GUARANTEE LIMIT REFERRED TO IN THIS ARTICLE WILL BE UPDATED BY THE SAME APPLICABLE INDICES TO SAVINGS DEPOSITS.

PARAGRAPH 2. THE GUARANTEE REFERRED TO IN THIS ARTICLE IS NOT EXTENSIVE TO THE RURAL SAVINGS BOOKLET.

ART. 3. MAINTAIN THE CONTRIBUTION OF FINANCIAL AGENTS TO THE FGDLI AT 0.07% (SEVEN HUNDREDTHS PER CENT) PER MONTH, APPLICABLE TO THE BALANCES IN CRUZEIROS OF SAVINGS ACCOUNTS AND REAL ESTATE LETTERS EXISTING ON THE LAST DAY OF THE PREVIOUS MONTH.

PARAGRAPH 1. THE PAYMENT OF THE CONTRIBUTION REFERRED TO IN THIS ARTICLE MUST BE MADE BY THE 10TH (TEN) DAY OF THE SUBSEQUENT MONTH TO THE DUE DATE, OR ON THE NEXT BUSINESS DAY IMMEDIATELY FOLLOWING, IF THE 10TH (TEN) DAY IS NOT A BUSINESS DAY.

PARAGRAPH 2. CONTRIBUTIONS OR ANY DIFFERENCES PAID LATE WILL BE UPDATED BY THE DAILY REFERENCE RATE (TRD), CALCULATED FROM THE DUE DATE UNTIL THE DAY PRECEDING PAYMENT, INCREASED BY A FINE OF 2% (TWO PER CENT) PER DECADE OR FRACTION LATE.

ART. 4. THIS RESOLUTION ENTERS INTO FORCE ON THE DATE OF ITS PUBLICATION.

PARAGRAPH 1. THE ANNEXED REGULATION TO THIS RESOLUTION WILL ONLY PRODUCE EFFECTS FROM 10/31/91.

PARAGRAPH 2. FEDERAL SAVINGS BANK WILL CARRY OUT THE PREPARATION OF THE CLOSING BALANCE SHEET OF THE DEPOSIT AND REAL ESTATE LETTER GUARANTEE FUND (FGDLI), HAVING AS THE BASE DATE 10/31/91, WHICH MUST BE AUDITED BY AN EXTERNAL AUDITOR, AND WILL PROVIDE FOR THE TRANSFER OF THE DOCUMENTARY ARCHIVE OF THAT FUND TO THE CENTRAL BANK OF BRAZIL.

ART. 5. RESOLUTION NO. 1,758, OF 10/31/90, AND OTHER RELEVANT NORMS REGARDING THE DEPOSIT AND REAL ESTATE LETTER GUARANTEE FUND (FGDLI) ARE REVOKED.

BRASÍLIA (DF), AUGUST 28, 1991

FRANCISCO ROBERTO ANDRÉ GROS
PRESIDENT

ANNEXED REGULATION TO RESOLUTION NO. 1,861, OF 08/28/91, WHICH DISCIPLINES THE OPERATION AND ADMINISTRATION OF THE DEPOSIT AND REAL ESTATE LETTER GUARANTEE FUND (FGDLI)

CHAPTER I
OF THE NATURE, CONSTITUTION AND PURPOSE

ART. 1. THE DEPOSIT AND REAL ESTATE LETTER GUARANTEE FUND (FGDLI) IS A FUND OF ACCOUNTING NATURE, CREATED BY RESOLUTION NO. 3, OF THE BOARD OF DIRECTORS OF THE DEFUNCT NATIONAL BANK OF HOUSING (BNH), ON 01/25/67, WHICH, BY FORCE OF DECREE-LAW NO. 2,291, OF 11/21/86, AND RESOLUTION NO. 1,219, OF 11/24/86, WAS TRANSFERRED TO THE CENTRAL BANK OF BRAZIL, ITS DURATION BEING INDETERMINATE.

ART. 2. THE PURPOSE OF THE DEPOSIT AND REAL ESTATE LETTER GUARANTEE FUND (FGDLI) IS TO GUARANTEE SAVINGS DEPOSITS AND REAL ESTATE LETTERS IN THE MODALITIES, CONDITIONS AND VALUES FIXED BY THE MONETARY NATIONAL COUNCIL.

PARAGRAPH 1. ONLY DEPOSITORS IN SAVINGS BOOKLETS AND HOLDERS OF REAL ESTATE LETTERS FROM THE INSTITUTIONS CONTRIBUTING TO THE DEPOSIT AND REAL ESTATE LETTER GUARANTEE FUND (FGDLI) WILL BE ENTITLED TO THE GUARANTEE REFERRED TO IN THIS ARTICLE.

PARAGRAPH 2. THE GUARANTEE REFERRED TO IN THIS ARTICLE IS NOT EXTENSIVE TO THE RURAL SAVINGS BOOKLET.

ART. 3. THE DEPOSIT AND REAL ESTATE LETTER GUARANTEE FUND (FGDLI), IN COMPLIANCE WITH ITS PURPOSES OF GUARANTEEING SAVINGS DEPOSITS AND REAL ESTATE LETTERS, IS A CREDITOR OF THE GUARANTEED VALUES WITH THE INSTITUTION IN EXTRAJUDICIAL LIQUIDATION, BY SUBROGATION OF RIGHTS.

CHAPTER II
OF ADMINISTRATION AND COMPETENCE

ART. 4. THE ADMINISTRATION OF THE DEPOSIT AND REAL ESTATE LETTER GUARANTEE FUND (FGDLI) IS THE COMPETENCE AND RESPONSIBILITY OF THE CENTRAL BANK OF BRAZIL, IN ACCORDANCE WITH THE PROVISIONS OF RESOLUTION NO. 1,219, OF 11/24/86.

ART. 5. IT IS THE COMPETENCE OF THE CENTRAL BANK OF BRAZIL, IN THE CAPACITY OF ADMINISTRATOR OF THE DEPOSIT AND REAL ESTATE LETTER GUARANTEE FUND (FGDLI):
I - THE PROVISION OF THE GUARANTEE OF SAVINGS DEPOSITS AND REAL ESTATE LETTERS, UNDER THE CONDITIONS DEFINED BY THE MONETARY NATIONAL COUNCIL; II - THE EXECUTION OF CONTRACTUAL GUARANTEES; III - THE ESTABLISHMENT OF NORMS AND OPERATIONAL ROUTINES RELEVANT TO THE COMPLIANCE WITH ITS PURPOSES; IV - THE APPLICATION OF FINANCIAL AVAILABILITIES; V - THE APPRAISAL OF APPEALS FILED BY FINANCIAL AGENTS AGAINST THE DEPOSIT AND REAL ESTATE LETTER GUARANTEE FUND (FGDLI); VI - THE APPLICATION OF FINES, UNDER THE CONDITIONS FIXED BY THE MONETARY NATIONAL COUNCIL; VII - THE ANALYSIS AND DECISION ON CONSULTATIONS RELATING TO THE OPERATION OF THE DEPOSIT AND REAL ESTATE LETTER GUARANTEE FUND (FGDLI); VIII - THE PREPARATION OF THE BUDGET OF THE DEPOSIT AND REAL ESTATE LETTER GUARANTEE FUND (FGDLI); IX - THE COLLECTION OF CONTRIBUTIONS TO THE DEPOSIT AND REAL ESTATE LETTER GUARANTEE FUND (FGDLI); X - THE PAYMENTS TO FINANCIAL AGENTS ARISING FROM THE PROVISION OF GUARANTEES, OBSERVING THE RELEVANT PROVISIONS; XI - THE PREPARATION OF MONTHLY BALANCE SHEETS AND THE ANNUAL BALANCE SHEET; XII - THE PREPARATION OF THE ACCOUNTS TO THE FEDERAL COURT OF ACCOUNTS; XIII - OTHER ATTRIBUTES DEFINED BY THE MONETARY NATIONAL COUNCIL.

CHAPTER III
OF RESOURCES

ART. 6. THE ASSETS OF THE DEPOSIT AND REAL ESTATE LETTER GUARANTEE FUND (FGDLI) ARE THE RESULT OF THE INITIAL CAPITAL ALLOCATION OF CR$ 1,000,000,000.00 (ONE BILLION CRUZEIROS), OCCURRED ON 01/25/67, INCREASED BY THE CONTRIBUTIONS RECEIVED AND THE YIELDS ARISING FROM THE APPLICATION OF ITS AVAILABILITIES, DEDUCTING THE PAYMENTS MADE BY THE FUND AND NOT RECOVERED.

ART. 7. THE DEPOSIT AND REAL ESTATE LETTER GUARANTEE FUND (FGDLI) HAS THE FOLLOWING SOURCES OF RESOURCES:
I - CONTRIBUTIONS FROM PARTICIPATING INSTITUTIONS; II - YIELDS FROM ITS APPLICATIONS; III - OTHERS, OF AN EVENTUAL NATURE.

ART. 8. MANDATORY CONTRIBUTORS TO THE DEPOSIT AND REAL ESTATE LETTER GUARANTEE FUND (FGDLI) ARE:
I - MULTIPLE BANKS WITH REAL ESTATE CREDIT PORTFOLIO; II - SAVINGS AND LOAN ASSOCIATIONS; III - REAL ESTATE CREDIT COMPANIES.

ART. 9. THE DEPOSIT AND REAL ESTATE LETTER GUARANTEE FUND (FGDLI) MUST HAVE ITS FINANCIAL AVAILABILITIES APPLIED IN FEDERAL PUBLIC BONDS AND/OR ISSUED BY THE CENTRAL BANK OF BRAZIL.

CHAPTER IV
OF OPERATIONAL NORMS

ART. 10. THE PAYMENT OF CONTRIBUTIONS WILL BE MADE BY THE INSTITUTION, THROUGH DEBIT IN THE "BANKING RESERVES" ACCOUNT OF THE FINANCIAL AGENT, HELD AT THE CENTRAL BANK OF BRAZIL, BY THE 10TH (TEN) DAY OF THE SUBSEQUENT MONTH TO THE DUE DATE, OR ON THE NEXT BUSINESS DAY IMMEDIATELY FOLLOWING, IF THE 10TH (TEN) DAY IS NOT A BUSINESS DAY.

PARAGRAPH 1. FINANCIAL AGENTS THAT MAY NOT HAVE A "BANKING RESERVES" ACCOUNT MUST ENTER INTO AN AGREEMENT WITH ANOTHER FINANCIAL AGENT FOR THE PAYMENT OF THEIR CONTRIBUTIONS.

PARAGRAPH 2. THE CENTRAL BANK OF BRAZIL, AS ADMINISTRATOR OF THE DEPOSIT AND REAL ESTATE LETTER GUARANTEE FUND (FGDLI), MAY ADMIT, AT ITS DISCRETION, OTHER FORMS FOR THE PAYMENT OF THE CONTRIBUTION.

ART. 11. CONTRIBUTIONS OR ANY DIFFERENCES PAID LATE WILL BE INCREASED BY FINANCIAL CHARGES AND FINES, AT THE LEVELS FIXED BY THE MONETARY NATIONAL COUNCIL.

ART. 12. THE GUARANTEE OF SAVINGS DEPOSITS AND REAL ESTATE LETTERS WILL ONLY BE DUE ON THE OCCASION OF THE DECLARATION OF EXTRAJUDICIAL LIQUIDATION OF THE FINANCIAL AGENT.

SINGLE PARAGRAPH. THE CENTRAL BANK OF BRAZIL, AS ADMINISTRATOR OF THE DEPOSIT AND REAL ESTATE LETTER GUARANTEE FUND (FGDLI), MUST DETERMINE, ON THE DATE OF EXTRAJUDICIAL LIQUIDATION, THE BALANCE OF SAVINGS ACCOUNTS AND REAL ESTATE LETTERS ISSUED AND PROVIDE FOR THE TRANSFER OF ACCOUNTS, PROPERLY UPDATED, UP TO THE GUARANTEED LIMIT, AND THE REDEMPTION OF DUE REAL ESTATE LETTERS.

ART. 13. THE OPERATIONALIZATION OF THE GUARANTEE OF THE DEPOSIT AND REAL ESTATE LETTER GUARANTEE FUND (FGDLI) WILL OCCUR, PREFERABLY, THROUGH THE TRANSFER OF SAVINGS ACCOUNTS TO ANOTHER CONTRIBUTING FINANCIAL AGENT OF THE DEPOSIT AND REAL ESTATE LETTER GUARANTEE FUND (FGDLI).

PARAGRAPH 1. THE RECEIVING FINANCIAL AGENT OF SAVINGS ACCOUNTS MUST INFORM THE CENTRAL BANK OF BRAZIL, AS ADMINISTRATOR OF THE DEPOSIT AND REAL ESTATE LETTER GUARANTEE FUND (FGDLI), OF ANY CHANGES REGARDING THE TRANSFERRED BALANCE, THROUGH JUSTIFICATION.

PARAGRAPH 2. THE GUARANTEE RELATING TO REAL ESTATE LETTERS WILL BE EXERCISED THROUGH THE PRESENTATION OF THE TITLE, AT ITS MATURITY, FOR REDEMPTION, WITH THE DEPOSIT AND REAL ESTATE LETTER GUARANTEE FUND (FGDLI), OR AT A FINANCIAL AGENT ACCREDITED FOR SUCH PURPOSE.

ART. 14. PARTICIPATING INSTITUTIONS IN THE DEPOSIT AND REAL ESTATE LETTER GUARANTEE FUND (FGDLI) WILL INFORM THE PUBLIC, IN THEIR PREMISES, ABOUT THE GUARANTEE REFERRED TO IN THIS REGULATION.