Brazilian Leasing Law – amendments

ORDINANCE #2,465

Amends the Regulation attached to Ordinance # 2,309, dated Aug. 28th, 1996.

THE CENTRAL BANK OF BRAZIL, pursuant to art. 9 of Law #4,595, dated Dec. 12th, 1964, reports that the NATIONAL MONETARY COUNCIL, in its session held on Feb. 19th, 1998, based on the rules of art. 23 of Law #6,099, dated Sep. 12th, 1974, as amended by Law # 7,132, dated Oct 26th, 1983,

HAS DECIDED:

Art. 1 To amend art 6 of the Regulation attached to Ordinance #2,309, dated Aug. 28th, 1996, which shall hereafter read:

"Art. 6 Operating Lease shall be the mode in which:

I – the payments to be made by the lessee include the cost of the lease of the good and services inherent to its placement, the present worth of such payments not to exceed ninety percent (90%) of the cost of the good;

II – the term of the contract is shorter than seventy five percent (75%) of the life of the good;

III – the price for exercising the option to buy is the market worth of the good let;

IV – no guaranteed payment of outstanding value is prescribed.

"Paragraph 1 The operations regarded by this article are exclusive to universal banks with lease portfolios and leasing societies.

"Paragraph 2 A rate equivalent to the financial burdens set in contract shall be used for the calculation of the present worth of payments.

"Paragraph 3 Maintenance, technical support and services connection to the operability of the good let may be the lessor's or the lessee's responsibility."

Art. 2 This Ordinance shall enter into force of the date of its publication.

Brasilia, Feb. 19th, 1998

Gustavo H. B. Franco

President"

Published in the Official Gazette of the Union on 02.20.98