RESOLUTION No. 002118

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Sets a maximum term for advance, loan and financing operations and prohibits working capital financing to credit card administrators and to companies whose corporate purpose, exclusive or not, is the practice of purchasing receivables.

THE CENTRAL BANK OF BRAZIL, in the form of art. 9 of Law No. 4,595, of 12.31.64, makes public that the NATIONAL MONETARY COUNCIL, in a session held on 10.19.94, having regard to the provisions of art. 4, item VI, of the aforementioned Law,

H A S R E S O L V E D:

Art. 1 To set at 3 (three) months the maximum term for advance, loan and financing operations carried out by multiple banks, commercial banks, investment banks, savings banks and credit, financing and investment companies.

Art. 2 To prohibit, to the institutions referred to in the previous article:

I - the carrying out of credit operations contracted with companies whose corporate purpose, exclusive or not, is the practice of purchasing receivables ("factoring");

II - the carrying out of financing operations for the acquisition of goods and the provision of services through the use of a credit card, including those linked to commercial establishment(s).

Art. 3 To delegate competence to the Central Bank of Brazil to:

I - exclude from the limitations of this Resolution the operations it determines;

II - change the term set in art. 1;

III - issue the rules and adopt the measures deemed necessary for the execution of the provisions of this Resolution.

Art. 4 This Resolution enters into force on the date of its publication.

Brasília, October 19, 1994

Pedro Sampaio Malan
President

Note: Republished because there was an inaccuracy in item II of art. 2.