Resolution CMN No. 2423 — Disposes on the application of the financial resources of the Worker Protection Fund (FAT), the Coffee Economy Defense Fund (FUNCAFÉ), and the National Fund for the Development of Education (FNDE)

RESOLUTION No. 002423

Disposes on the application of the financial resources of the Worker Protection Fund (FAT), the Coffee Economy Defense Fund (FUNCAFÉ), and the National Fund for the Development of Education (FNDE).

The CENTRAL BANK OF BRAZIL, in accordance with Article 9 of Law No. 4.595, of December 31, 1964, makes public that the MONETARY COUNCIL NATIONAL, in a session held on August 28, 1997, in view of the provisions of Provisional Measure No. 1.553-18, of August 7, 1997,

RESOLVES:

Art. 1 Establish that the applications of the financial resources of the Worker Protection Fund (FAT), the Coffee Economy Defense Fund (FUNCAFÉ), and the National Fund for the Development of Education (FNDE) may only be made through Banco do Brasil S.A. or an institution that is part of the financial conglomerate led by it.

Paragraph 1 For the specific purpose of accommodating the applications referred to in the "caput", the constitution of an investment fund is authorized, which must observe the following conditions:

I - it shall be governed, insofar as applicable, by the norms established by the Central Bank of Brazil regarding financial investment funds;

II - its denomination must include the expression "Over-the-Counter - FAT/FUNCAFÉ/FNDE";

III - its portfolio must be composed obligatorily of securities issued by the National Treasury and/or the Central Bank of Brazil.

Paragraph 2 The institution administering the investment fund referred to in paragraph 1 shall receive, for the provision of respective management and administration services, remuneration not exceeding 0.5% p.a. (five tenths of a percent per year).

Art. 2 Delegate competence to the Central Bank of Brazil to issue complementary norms that may be necessary for the compliance with the provisions of this Resolution.

Art. 3 This Resolution enters into force on the date of its publication.

Brasília, September 23, 1997

Francisco Lafaiete de Pádua Lopes
President, in exercise