Resolution CMN No. 2027 on the Use of Treasury or Central Bank Securities for Capital Subscriptions

RESOLUTION NO. 002027

Dispenses with the use of securities issued by the National Treasury or the Central Bank for the purpose of remitting the amounts received in the initial subscription and in capital increases in kind of institutions authorized to operate by the Central Bank of Brazil.

THE CENTRAL BANK OF BRAZIL, in accordance with Article 9 of Law No. 4.595, of December 31, 1964, makes public that the MONETARY NATIONAL COUNCIL, in a session held on November 24, 1993, considering the provisions of Articles 26 and 27, "caput" and paragraph 1, of the aforementioned Law,

RESOLVES:

Art. 1. Admit that the remittance of the amounts received in the initial subscription and in capital increases in kind of multiple banks, commercial banks, investment banks, development banks, savings banks, credit, financing and investment companies, real estate credit companies, leasing companies, securities and securities brokerage companies, securities distribution companies and currency brokerage companies be made in current currency and/or in securities issued by the National Treasury or the Central Bank of Brazil.

Paragraph 1. For the purposes of this article, the securities may be acquired:

I - from institutions of the National Financial System;

II - via public offering promoted by the Central Bank of Brazil/Open Market Operations Department (DEMAB), observing the general conditions established for public offerings;

III - from the Central Bank of Brazil's own portfolio.

Paragraph 2. In the case of acquisition of securities in the manner provided for in paragraph 1, item III, the operation:

I - must be carried out through the assumption of a resale commitment by the acquiring institution, combined with a repurchase commitment assumed by the Central Bank of Brazil/Open Market Operations Department (DEMAB), for settlement on the date of resolution of the respective process;

II - will have yield equivalent to 90% (ninety percent) of the Reference Rate for Federal Public Securities.

Paragraph 3. The securities referred to in this article must be registered in the Special Settlement and Custody System (SELIC), noting that the respective acquisition directly at the Central Bank of Brazil will result in the opening of a sub-custody account in the name of the acquiring institution in the mentioned System.

Paragraph 4. The option provided for in this article applies to the amounts received in the subscription of the initial capital of credit cooperatives referred to in Law No. 5.764, of December 16, 1971.

Art. 2. The amounts received from subscribers shall be remitted to the Central Bank of Brazil, individually or jointly, within a period of up to 5 (five) days from their receipt.

Art. 3. The following procedures shall apply to remittances made in securities:

I - they must be acquired after the receipt of resources related to capital subscription and accounted for in a specific asset account, at the acquisition value;

II - they must be kept in a specific custody account at the Central Bank of Brazil and listed in a specific map;

III - the securities may be replaced upon authorization of the Central Bank of Brazil/Department of Organization of the Financial System (DEORF) or Regional Delegation where the respective process is pending, provided that this measure is adopted until the first business day preceding the maturity date;

IV - in the case of replacement, the net value of the securities to be linked must be, at minimum, equal to the value of the replaced securities, plus the yield earned during the period;

V - upon redemption of the securities, the Central Bank of Brazil will proceed with the transfer of the corresponding value to the institution's remittance account, in cash;

VI - the securities and/or resources referred to in the previous item will be released upon authorization of the Central Bank of Brazil/Department of Organization of the Financial System (DEORF) or Regional Delegation that has resolved the respective process;

VII - in the event that the return of the amounts remitted in securities is due, the corresponding amounts will be released to subscribers with the addition of any earnings:

a) by the institution itself, in the case of securities acquired in the manner provided for in Article 1, paragraph 1, items I and II of this Resolution;

b) by the Central Bank of Brazil/Department of Financial Administration (DEAFI) or Regional Delegation that has resolved the respective process, in the case of securities acquired in the manner provided for in Article 1, paragraph 1, item III of this Resolution.

Art. 4. The Central Bank of Brazil is authorized to issue norms and adopt measures necessary for the execution of the provisions of this Resolution, including the possibility of altering the percentage referred to in Article 1, paragraph 2, item II.

Art. 5. This Resolution enters into force on the date of its publication.

Art. 6. Resolutions Nos. 1,287, of March 20, 1987, and 1,458, of January 27, 1988, item III of Article 1 of Circular No. 1,876, of December 27, 1990, and item II of Article 1 of Circular No. 2,084, of November 8, 1991, are hereby revoked.

Brasília, November 24, 1993

Pedro Sampaio Malan
President