Resolution CMN No. 2573 — Provisions on the Assignment of Real Estate Credits to Real Estate Credit Securitization Companies

RESOLUTION NO. 002573

Dispenses on the assignment of real estate credits to real estate credit securitization companies.

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 December 17, 1998, based on Article 4, items VI and VIII, of the aforementioned Law, and considering the provisions of Law No. 9,514 of November 20, 1997,

RESOLVED:

Article 1. Establish that assignments of real estate credits carried out by financial institutions to real estate credit securitization companies, constituted in accordance with Law No. 9,514 of November 20, 1997, may be effected with co-obligation, regardless of the conditions and restrictions provided in Article 7 of Resolution No. 2,561 of November 5, 1998.

Article 2. Credits of abnormal course assigned with co-obligation to real estate credit securitization companies must, while in this condition, continue to be computed in the calculation of the provision for doubtful liquidation credits, observing the same criteria applicable to the provisioning of credits held by the assignor.

Sole Paragraph. The provisions of this article cover credits that may be characterized as abnormal after the assignment, with the assigning institution responsible for monitoring the status of these credits.

Article 3. The Central Bank of Brazil may adopt the measures and issue the norms deemed necessary for the execution of this Resolution.

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

Brasília, December 17, 1998

Gustavo H. B. Franco
President