Resolution CMN No. 397 - Regulation of Senate Federal Resolution 93 of October 11, 1976 - Amendment of Resolution 346 of November 13, 1975 of the National Monetary Council

RESOLUTION NO. 000397

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 this date, having regard to the provisions of Resolutions Nos. 62 and 93, respectively of October 28, 1975 and October 11, 1976, of the Federal Senate,

RESOLVES:

I - To determine that, for the calculation of the monthly correction of the net revenue provided for in § 3 of Article 2 of Resolution No. 62/75 of the Federal Senate, indices identical to those fixed for the Treasury National Readjustable Obligations - Readjustable Type shall be used, with the value effective in the month of December of the previous year taken as the reference value.

II - To establish that requests for authorization for credit operations with resources from the National Fund for Urban Development Support (FNDU), the Social Development Support Fund (FAS), and the National Housing Bank (BNH), to be submitted to the National Monetary Council, shall be forwarded to the Central Bank by the entity channeling the resources, accompanied by the appropriate study regarding the technical-financial viability of the undertaking or the multiannual program.

III - To clarify that the formalization of the requests mentioned in the preceding item may encompass:

a) multiannual programs of States and Municipalities, subject to individualized agreements; or

b) contracts relating to specific operations.

IV - To amend the items "c" and "d" of item II of Resolution No. 346, of November 13, 1975, which shall henceforth read as follows:

"c) the annual expenditure with the respective liquidation, comprising principal and accessories, shall not exceed 15% (fifteen percent) of the revenue realized in the previous financial year;"

"d) in the calculation of the limits fixed in items "a", "b" and "c" of this item, the value corresponding to credit operations shall be deducted from the revenue;"

V - To add the following items to item II of the aforementioned Resolution No. 346:

"e) the net revenue calculated in accordance with the previous item "d" shall be corrected monthly, by using indices identical to those fixed for the Treasury National Obligations - Readjustable Type, with the value effective in the month of December of the previous year taken as the reference value;"

"f) the limits referred to in items "a", "b" and "c" of this item do not apply to credit operations carried out by States and Municipalities with resources from the National Fund for Urban Development Support (FNDU), the Social Development Support Fund (FAS), and the National Housing Bank (BNH), which, however, in the case of new operations, may only be agreed upon with prior authorization from the Federal Senate."

Brasília-DF, November 17, 1976

Paulo H. Pereira Lira
President