Resolution CMN No. 2678 — Alters deadlines and conditions relating to the minimum limits of paid‑in capital and net worth set in Annex II Regulation to Resolution No. 2,099, 1994, as amended by art. 1 of Resolution No. 2,607, 1999

RESOLUTION No. 002678

Alters deadlines and conditions relating to the minimum limits of paid‑in capital and net worth set in Annex II Regulation to Resolution No. 2,099, 1994, as amended by art. 1 of Resolution No. 2,607, 1999.

The CENTRAL BANK OF BRAZIL, pursuant to art. 9 of Law No. 4,595 of 31 December 1964, makes public that the NATIONAL MONETARY COUNCIL, in a session held on 21 December 1999, considering the provisions of art. 4, items VIII and XIII, of the said Law, Law No. 4,728 of 14 July 1965, art. 20, paragraph 1, of Law No. 4,864 of 29 November 1965, art. 6 of Decree‑Law No. 759 of 12 August 1969, and Law No. 6,099 of 12 September 1974, with the amendments introduced by Law No. 7,132 of 26 October 1983,

RESOLVES:

Art. 1. Amend articles 3 and 4 of Annex II Regulation to Resolution No. 2,099 of 17 August 1994, as modified by Resolution No. 2,607 of 27 May 1999, which shall now read as follows:

"Art. 3. For the purpose of verifying compliance with the minimum limits established in this Regulation, the amounts corresponding to the paid‑in capital and minimum net worth fixed for the institutions referred to in art. 1 shall be deducted from the adjusted net worth in accordance with the regulations in force, proportionally to the percentage of each participation.

Art. 4. The adaptation of the institutions referred to in art. 1 to the paid‑in capital and minimum net‑worth values fixed in this Regulation shall occur by 31 August 2001, with 50 % (fifty percent) by 31 August 2000.

Paragraph 1. The following situations will require immediate compliance with the limits fixed in this Regulation:

I – the granting of any authorization provided for in Annex I, except those dealt with in items IV and V of its art. 4;

II – the establishment of branches for which paid‑in capital and net‑worth are required;

III – the qualification or habilitation to exercise an activity for which paid‑in capital and net‑worth are foreseen.

Paragraph 2. The provision of the preceding paragraph does not apply to requests filed with the Central Bank of Brazil up to 27 May 1999.

Paragraph 3. For the purpose of calculating and verifying compliance with the minimum paid‑in capital and net‑worth limits set in this Regulation, for the period between 31 August 2000 and 30 August 2001, the following formula shall be used:

LI = LA + [ (LME - LA) / 2 ]

where:

LI = minimum limits to be observed in the referred period; LA = minimum limits in force until 27 May 1999; LME = minimum limits required under this Regulation.

Paragraph 4. For institutions operating as of 27 May 1999, the requirement to observe the minimum paid‑in capital and net‑worth limits in force up to that date remains, subject to the provision of the preceding paragraph."

Art. 2. This Resolution enters into force on the date of its publication.

Art. 3. Circular No. 2,500 of 26 October 1994 and Circular Letter No. 2,872 of 29 September 1999 are revoked.

Brasília, 21 December 1999

Arminio Fraga Neto
President