Resolution CMN No. 2558 — Provides for the acquisition of public debt securities issued by States, the Federal District, and Municipalities

RESOLUTION NO. 2558

Provides for the acquisition of public debt securities, by the entities it mentions, issued by States, the Federal District, and Municipalities.

The CENTRAL BANK OF BRAZIL, in accordance with Article 9 of Law No. 4.595 of December 31, 1964, makes public that the NATIONAL MONETARY COUNCIL, in a session held on November 5, 1998, based on Article 4, items VI and VIII of the aforementioned Law, and considering the provisions of Laws No. 4.728 of July 14, 1965, and No. 6.385 of December 7, 1976, Decree-Laws No. 1.986 of December 28, 1982, and No. 2.285 of July 23, 1986, and Articles 28 of Decree-Law No. 73 of November 21, 1966, Article 4 of Decree-Law No. 261 of February 28, 1967, and Articles 15 and 40 of Law No. 6.435 of July 15, 1977,

RESOLVES:

Article 1. It is determined that institutions of the National Financial System, open and closed private pension entities, insurance companies, capitalization societies, investment funds constituted in the modalities regulated by the Central Bank of Brazil and the Securities and Exchange Commission, and in the investment modalities regulated under the terms of Resolution No. 1.289 of March 20, 1987, that the acquisitions of public debt securities issued by States, the Federal District, and Municipalities, in primary issuances or in the secondary market for securities held in treasury or the issuer's debt fund, shall only be carried out through electronic auctions conducted by entities for financial liquidation and custody of securities or Stock Exchanges authorized to operate by the Central Bank of Brazil or the Securities and Exchange Commission.

Article 2. Failure to observe the provisions of this Resolution will subject offenders to the penalties provided for in Article 44 of Law No. 4.595 of December 31, 1964, and in Article 11 of Law No. 6.385 of December 7, 1976, as applicable.

Article 3. The Central Bank of Brazil is authorized to adopt the necessary measures to ensure compliance with this Resolution.

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

Brasília, November 5, 1998

Gustavo H. B. Franco
President