Resolution CMN No. 2828 — Establishes the constitution and operation of development agencies

RESOLUTION NO. 2828

Establishes the constitution and operation of development agencies.

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 March 29, 2001, based on Article 4, item VIII, of the aforementioned law and on Article 1, paragraph 2, of Provisional Measure No. 2.139-64 of March 27, 2001,

RESOLVES:

Article 1. It is established that the constitution and operation of development agencies under shareholding control of a State or Federal District entity, whose corporate purpose is to finance fixed and working capital associated with projects in the State or Federal District where they are headquartered, depend on authorization from the Central Bank of Brazil.

Paragraph 1. For the purposes of this Resolution, the States and the Federal District are considered the States and Federal District entities.

Paragraph 2. Development agencies must be constituted as closed-capital corporations, in accordance with Law No. 6,404 of December 15, 1976.

Paragraph 3. The expression "Development Agency," followed by the indication of the controlling State or Federal District entity, must mandatorily appear in the corporate name of the institution referred to in this article.

Paragraph 4. The granting, by the Central Bank of Brazil, of authorization for the operation of a development agency is conditioned upon compliance with the provisions contained in Annex I Regulation to Resolution No. 2,099 of August 17, 1994, and complementary regulation.

Paragraph 5. Development agencies are part of the National Rural Credit System (SNCR) as linked auxiliary bodies.

Paragraph 6. Development agencies cannot be transformed into any other type of institution authorized to operate by the Central Bank of Brazil.

Paragraph 7. The Central Bank of Brazil will authorize the constitution of only one development agency per State or Federal District entity.

Article 2. Development agencies may only conduct operations with own resources and resources from transfers originating from:

I - constitutional funds;

II - federal, state, and municipal budgets;

III - national and international development organizations and financial institutions.

Article 3. Development agencies are permitted:

I - to carry out financing operations for fixed and working capital associated with projects in the State or Federal District entity where they are headquartered;

II - to provide guarantees, in accordance with current regulation;

III - to provide consulting and financial agent services;

IV - to provide services as administrator of development funds, observing the provisions of Article 35 of Complementary Law No. 101 of May 4, 2000.

Article 4. Development agencies are prohibited:

I - from accessing the Central Bank of Brazil's financial assistance and rediscount lines;

II - from accessing the Bank Reserves account at the Central Bank of Brazil;

III - from raising resources from the public, including external resources, except as provided in item III of Article 2;

IV - from contracting interbank deposits, as depositor or depository;

V - from holding shareholding participation, directly or indirectly, in the country or abroad, in other financial institutions and in other affiliated or controlled companies, directly or indirectly, by the State or Federal District entity that holds its control.

Article 5. Development agencies must observe minimum limits of paid-in capital and Reference Equity (RE) of R$4,000,000.00 (four million reais).

Article 6. Development agencies must constitute and maintain, permanently, a liquidity fund equivalent to at least 10% (ten percent) of the value of their obligations, to be fully invested in federal public securities.

Article 7. With a view to calculating the Required Net Equity (PLE), as referred to in Annex IV Regulation to Resolution No. 2,099 of 1994, amended by Resolution No. 2,692 of February 24, 2000, and complementary regulation, the following values for the factor "F" applicable to the risk-weighted asset (Apr) must be observed:

I - 0.20 (twenty hundredths), from the effective date of this Resolution;

II - 0.25 (twenty-five hundredths), from April 1, 2002;

III - 0.30 (thirty hundredths), from January 2, 2003.

Article 8. The same operational conditions and limits established for the operation of financial institutions in Law No. 4,595 of December 31, 1964, and in subsequent legislation and regulation relating to the National Financial System, apply to development agencies, insofar as they do not conflict with the provisions of this Resolution.

Article 9. The Central Bank of Brazil is authorized to adopt measures and issue norms deemed necessary for the execution of the provisions of this Resolution, including the power to alter the values established in Articles 6 and 7.

Sole Paragraph. The Central Bank of Brazil must communicate to the National Monetary Council any changes to the values referred to in the main text.

Article 10. Development agencies in operation on the effective date of this Resolution will have a period until December 31, 2002, to adapt to the provisions of Article 1, paragraph 3, Article 4, item V, and Article 8, in the latter case, solely with respect to operational limits.

Article 11. This Resolution enters into force on the date of its publication.

Article 12. Resolution No. 2,574 of December 17, 1998, and Circular No. 2,818 of April 24, 1998, are hereby repealed.

Brasilia, March 30, 2001

Arminio Fraga Neto
President

Note: Re-transmitted due to correction in the Introduction.