Resolution CMN No. 3635 on Credit Risk Coverage for Working Capital Loans to Construction Companies under Provisional Measure No. 445 of 2008

Resolution No. 3635, of November 13, 2008.

RESOLUTION NO. 3635

Provides for the credit risk coverage for working capital loan operations destined for construction companies, as provided for in Provisional Measure No. 445, of November 6, 2008.

The Central Bank of Brazil, in accordance with Article 9 of Law No. 4.595, of December 31, 1964, makes it public that the National Monetary Council, in an extraordinary session held on November 13, 2008, based on Section 3 of Article 1 of Provisional Measure No. 445, of November 6, 2008, and on item VI of Article 4 of Law No. 4.595, of 1964,

HAS RESOLVED:

Article 1. Working capital loan operations destined for civil construction companies, in accordance with Section 1 of Article 1 of Provisional Measure 445, of November 6, 2008, may be contracted by Caixa Econômica Federal up to the limit of R$3,000,000,000.00 (three billion reais).

Article 2. The credit risk coverage using the amount defined in the terms of the caput of Article 1 of Provisional Measure No. 445, of 2008, shall be thirty-five percent of the value of the principal of the operations referred to in Article 1 of this resolution, in case of default exceeding one hundred and eighty days.

Sole Paragraph. The risk coverage referred to in the caput shall apply to operations that meet the following characteristics:

I - have as their object residential construction;

II - are contracted between the date of publication of this Resolution and March 31, 2009;

III - have registered the real estate development with the competent real estate registry office on a date prior to October 1, 2008;

IV - are destined for real estate developments:

a) subject to the affected asset regime, as provided for in Articles 31-A to 31-F of Law No. 4.591, of December 16, 1964; or

b) carried out by companies constituted with the specific purpose of administering risks, benefits, assets, and obligations arising from activities aimed at promoting and carrying out the construction, for total or partial alienation, of buildings or sets of buildings composed of autonomous units; and

V - present the following financial conditions:

Resolution No. 3635, of November 13, 2008.

a) nominal interest rate not higher than the Reference Rate (TR) plus eleven percent per annum; and

b) maximum term of sixty months.

Article 3. The amount defined in accordance with the caput of Article 1 of Provisional Measure No. 445, of 2008, shall be accounted for in the equity reserve of Caixa Econômica Federal.

Sole Paragraph. Once the value of the reserve referred to in this article is exhausted, Caixa Econômica Federal shall bear the credit risk arising from the operations in full.

Article 4. In the event of the execution of the guarantees offered in the loan operations mentioned in Article 1, the recovered values shall only replenish the reserve referred to in Article 3 after the deduction of losses incurred by Caixa Econômica Federal.

Article 5. This resolution enters into force on the date of its publication.

Brasília, November 13, 2008.

Henrique de Campos Meirelles
President

This text does not replace the published version in the DOU and Sisbacen.