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Law nº 6024, of March 13, 1974

LAW Nº  6024, OF MARCH 13, 1974

Disciplines the intervention and the extra-judicial liquidation of financial institutions, and takes other measures.

 

 

              The President of the Republic

              I notify that the National Congress decrees and I ratify the following Law:

CHAPTER I

Preliminary Disposition

Article 1 ‑ Private and non-federal public financial institutions as well as credit cooperatives are subject, according to this Law, to intervention or extra-judicial liquidation, in both cases carried out and decreed by the Banco Central do Brasil, without prejudice to the provisions of articles 206 and 209 of the Law nº 6404 of December 15, 1976, or to the bankruptcy, in accordance with the current legislation.

CHAPTER II
The Intervention and its Process

Section I
The Intervention

Article 2 ‑ The intervention will be adopted when the following abnormalities are found, concerning the business of the institution:

I ‑ the entity submits to a loss, resulting from bad management, which exposes its creditors to a risk;

II ‑ repeated infractions to the terms of banking legislation are found and not adjusted after the determinations of the Banco Central do Brasil, using its power of supervision;

III ‑ when occurred any of the facts mentioned in the articles 1 and 2 of the Decree-law nº 7661, of June 21, 1945 (Bankruptcy Act), and there is the possibility of avoiding the extra-judicial liquidation.

Article 3 ‑ The intervention shall be decreed "ex‑officio" by the Banco Central do Brasil, or upon the request of the managers of the institution, if the respective bylaws grants them this authority, appointing the causes supporting the request, without prejudice to the civil and criminal responsibility incurred by these same managers, for false or fraudulent information.

Article 4 ‑ The intervention period shall not exceed six (6) months, which, by decision of the Banco Central do Brasil, may be extended, only once, for at most another period of six (6) months.

Article  5 ‑ The intervention shall be carried out by the intervenor, appointed by the Banco Central do Brasil, with full powers of management.

Sole Paragraph ‑ The actions set by the intervenor involving disposal or burdening the of the company's assets shall depend on the prior and express authorization of the Banco Central do Brasil, as well as the acts involving personnel admission or dismissal.

Article 6 ‑ The intervention will produce the following effects, as from the date on which it is decreed:

a) the suspension of the matured liabilities enforcement;

b) the suspension of the flux of the maturity term of previously contracted liabilities;

c) the deposits already existing on the date on which the intervention is decreed will be unenforceable.

Article 7 ‑ The intervention shall cease:

a) if the interested parties, submitting the necessary warranties to be judged at the discretion of the Banco Central do Brasil, assume the continuance of the company's activities;

b) whenever the situation of the company is normalized, according to the Banco Central do Brasil criteria;

c) if the extra-judicial liquidation or the bankruptcy of the entity is decreed.


Section II
The Intervention Process

Article 8 ‑ The intervenor is immediately empowered in his functions, regardless the publication of the nomination's act, by settling a "taking office statement" in the Diary of the entity, or, in the absence thereof, in the book that replaces it, with the transcription of the decree of intervention and nomination.

Article  9 ‑ On being empowered in his functions the intervenor shall:

a) collect, by registering a written statement, all the books of the entity and the documents regarding to its management;

b) shall state the consolidated balance sheet and an inventory of all the books, documents, cash values and any other assets of the entity, even if they are held by third parties, by any reason.

Sole Paragraph ‑ The collecting statement, the consolidated balance sheet and the inventory shall also be signed by the managers who were in office on the day preceding the date of assumption of the intervenor. These managers may present separate declarations and remarks which they consider convenient for their interests.

Article 10 ‑ The ex-managers shall deliver to the intervenor, within a period of five days as from the date of his assumption, a statement, signed jointly by all of them, containing the following information:

a) the name, nationality, marital status and address of the managers and members of the Audit Committee, who were in office during the last 12 months before the intervention was decreed;

b) the powers of attorney possibly granted in the name of the institution, mentioning their objectives and the name and address of the attorney-in-fact;

c) the real estate and personal properties not located in the establishment;

d) the participation which each manager and members of the Audit Committee may have in other companies, with the respective indication.

Article 11 ‑ Within a period of sixty (60) days as from his assumption, which period may be extended, if necessary, the intervenor shall present a report to the Banco Central do Brasil, containing the following information:

a) an analysis concerning the balance sheets, the application of funds and availabilities, and the economic and financial situation of the institution;

b) a report, duly evidenced, about the fraudulent acts and omissions he may have verified;

c) a justified proposal of any kind of measures he judges convenient to the entity.

Sole Paragraph ‑ The provisions of this article shall not obstruct the intervenor from proposing to the Banco Central do Brasil the adoption of any other measure that he judges  necessary and urgent, before the submission of the report.

Article 12 ‑ Taking into consideration the report or the proposition presented by the intervenor, the Banco Central do Brasil may adopt the following alternatives:

a) to determine the cessation of the intervention, in which case the intervenor will be authorized to perform the acts necessary for such purpose;

b) to maintain the institution under intervention, until all the irregularities which caused it are removed, observing what is determined in the Article 4;

c) to decree the extra-judicial liquidation of the entity;

d) to authorize the intervenor to require the bankruptcy of the entity, when all its assets are not sufficient to cover even the half of the value of non-privileged credits, or when the extra-judicial liquidation is considered inconvenient, or when the complexity of the institution's business, or the seriousness of the infractions, recommend such a measure.

Article 13 ‑ The decisions of the intervenor shall be subject to appeal, with no suspensive effect, proposed to the Banco Central do Brasil in one sole instance, within a period of ten (10) days as from its respective acknowledgement.

Paragraph 1 ‑ The decision shall be considered as definite if, upon termination of that period, no appeal has been filed.

Paragraph 2 ‑ The appeal shall be presented against receipt to the intervenor, who will transmit it, with information and within a period of five days, to the Banco Central do Brasil.

Article 14 ‑ Regardless of any requirement, the intervenor shall render account to the Banco Central do Brasil when leaving his functions, or at any time, at request, and will be liable for his acts, according to civil and criminal law.

CHAPTER III
The Extra-judicial Liquidation

Section I
The Enforcement and its Effects

Article 15 ‑ The extra-judicial liquidation of the financial institution shall be decreed:

I ‑ "ex‑officio":

a) whenever the financial and economic situation is endangered, particularly when some commitment is not punctually satisfied, or upon verification of any of the reasons which could authorize the declaration of bankruptcy;

b) whenever the management seriously violate legal and statutory rules which disciplines the activities of the institution, as well as the norms set by the National Monetary Council or by the Banco Central do Brasil, according to their legal attributions;

c) whenever the institution submits to losses which exposes its non-privileged creditors to abnormal risk of  loss;

 d)  whenever,  after  cancellation  of  authorization  to operate,  the  institution  fails  to start the ordinary liquidation process during the following 90 (ninety days), or when, once started such liquidation, the Banco Central do Brasil considers that the slowness of its management may result in losses to the creditors.

II ‑ at the request of the institution's managers, if the respective bylaws grants them this power, or by proposal of the intervenor, exposing the reasons supporting the request.

Paragraph 1 ‑ The Banco  Central do Brasil shall decide about the seriousness of the facts conducting to the extra-judicial liquidation, considering its consequences on the financial and capital markets, and may adopt the intervention, in lieu of the liquidation, if such a measure is considered appropriate to normalize the business of the institution and to preserve those markets.

Paragraph 2 ‑ The extra-judicial liquidation act, set by the Banco Central do Brasil, shall mention the date on which this status was verified, fixing the legal retroactive term, which shall not exceed 60 (sixty) days as from the first formal protest for lack of payment or, in the absence thereof, as from the act which decreed the intervention or liquidation.

Article 16 ‑ The extra-judicial liquidation shall be conducted by a liquidator, appointed by the Banco Central do Brasil, with ample powers of management and liquidation, particularly  those to verify and classify credits, as well as any act involving personnel admission and dismissal, fixing their remuneration, granting and cancelling powers of attorney,  proposing judicial demands and representing the entity  in and out of the Courts.

Paragraph 1 ‑ Upon prior and express authorization of Banco Central do Brasil, the liquidator may conclude, to the sake of the institution, the pending business  and at any time encumber or dispose of the society's assets, in the latter hypothesis through public auction.

Paragraph 2 ‑ The liquidator's honorary shall be fixed by the Banco Central do Brasil and supported by the institution being liquidated.

Article  17 ‑ In all formal act, document or publication made in connection with the liquidation process, the expression "in extra-judicial liquidation"  shall follow the name of the entity.

Article 18 ‑ The decrement of the extra-judicial liquidation will cause the following immediate effects:

a) the suspension of the demands and enforcement brought on rights and interests concerning the institution properties, while no other demand may be proposed, during the liquidation period;

b) the anticipated maturity of all the obligations of the institution being liquidated;

c) the non-compliance of all the penal fees established in unilateral contracts, which shall be considered as matured due to the decrement of the extra-judicial liquidation;

d) the non-fluency of interest against the institution, even when established by contract, for as long as all the liabilities are not satisfied;

e) the interruption of the fluency of prescriptive terms with regard to any obligation assumed by the institution;

f) the non-application of monetary correction on any institution's liabilities or of pecuniary fines for infractions to criminal or administrative rules.

Article  19 ‑ The extrajudicial liquidation shall cease:

a) if the interested parties, submiting the necessary warranties to be judged at the discretion of the Banco Central do Brasil, assume the continuance of the institution's activities.

b) by means of transformation into an ordinary liquidation;

c) when the final report presented by the liquidator is approved and the appropriate public registry is cancelled;

d) with the decrement of the entity's bankruptcy.


Section II
The Process of Extra-judicial Liquidation

Article  20 ‑ The dispositions applicable to the intervention process, as contained in Articles 8, 9, 10 and 11 of this Law, shall also apply to the process of extra-judicial liquidation.

Article 21 ‑ Taking into consideration the report or the proposal mentioned in the Article 11, presented by the liquidator in accordance with the preceding article, the Banco Central do Brasil may authorize him:

a) to proceed with the extra-judicial liquidation;

b) to require the bankruptcy of  the entity, when all its assets are not sufficient to cover at least half of the value of the non-privileged credits, or when there are confirmed traces of bankruptcy crimes.

Sole Paragraph - Without prejudice of  the provisions of this article, the Banco Central do Brasil may, at any time, examine requests presented by interested parties for the cessation of  the extra-judicial liquidation, accepting or refusing such requests in accordance with the guarantees offered and other general convenience criteria.

Article 22 ‑ Whenever determined that the extra-judicial liquidation is to continue, the liquidator shall publish a notice to the creditors in the federal gazette "Diário Oficial da União", and in another  newspaper of broad circulation in the city where the entity has its head office, so that they may declare their respective credits. Creditors by bank deposits or by bill of exchange accepted by the institution being liquidated are not required to accomplish this formality.

Paragraph 1 ‑ The notice mentioned here above shall contain the term day for the  declaration of credits, which may not be less to twenty nor more than forty days, depending on the magnitude of the liquidation and the interest involved therein.

Paragraph 2 ‑ With regard to the credits which are exempt from declaration, the liquidator shall maintain a nominal list in the institution head office, containing the name of the depositors and the respective balances, as well as a list of the bills of exchange accepted by the entity.

Paragraph 3 ‑ The creditors obliged to declare their credits shall have access to any information, account statement, balances and any other elements necessary to defend their interests and to prove their credits.

Paragraph 4 ‑ The liquidator shall receive the credit declarations and other annexed documents under receipt.

Article 23 ‑ The liquidator shall attach to each declaration of credit the complete information he may have access during the investigations made in the books of accounts, papers and documents of the institution, concerning the declared credit, as well as his decision about its legitimacy, value and classification.

Sole Paragraph ‑  The liquidator may require the ex-managers of the entity to render information about any of the declared credits.

Article  24 ‑ The decision of the liquidator shall be transmitted to the creditors by written notice, and within a period of ten days as from the receipt of this notice, the creditors may appeal to the Banco Central do Brasil, regarding the decision which they consider unfavorable.

Article 25 ‑ Once the period for credit declarations has expired and after the credits have been judged, the liquidator shall organize a general chart of creditors and shall make publish a notice, in the manner referred to in the Article 22, that this chart and the consolidated balance sheet are affixed at the head office and other branches of the institution, for acknowledgement by interested parties.

Sole paragraph ‑ After the proclamation mentioned in this Article, any interested party may oppose the legitimacy, value or classification of the credits contained in the chart.

Article 26 ‑ The opposition shall be presented in writing, duly justified by probation documents, within a period of ten days as from the proclamation mentioned in the preceding Article.

Paragraph 1 ‑ The presentation of the opposition shall be made against a receipt issued by the liquidator, and a copy of this receipt shall be attached to the process.

Paragraph 2 ‑ The holder of the contested credit shall be notified by the liquidator and shall present, within a period of five days as from the date of receipt of this notification, the allegations and evidences considered convenient to defend his rights.

Paragraph 3 ‑ The liquidator shall submit the contests, together with his own opinion, and the evidential elements, to the decision of the Banco Central do Brasil.

Paragraph 4 ‑ After all the contests are judged, the liquidator shall make publish, in the manner referred to in Article 22, notices regarding the possible changing in the general chart of creditors which, as from that moment, shall be considered as definitive.

Article  27 ‑ The creditors who consider themselves damaged by the refusal of their appeals or by the decision given in the contest, may proceed with the demands which were suspended under Article 18, or may propose new demands they judge appropriate, upon notice to the liquidator, so that he may provide the reservation of sufficient funds for the possible satisfaction of the respective demands.

Sole Paragraph ‑ The right mentioned in this Article shall be exercised within a period of thirty days as from the date on which the general chart of credits was considered definitive, with the publication mentioned in the Paragraph 4 of the preceding article.

Article 28 ‑ Whenever is discovered the occurrence of false declaration, fraudulent intent, simulation, fraud, essential error, or the existence of documents ignored at the time of the credits classification, the liquidator or any qualified creditor may request the Banco Central do Brasil, up to the conclusion of the liquidation process, to exclude, to classify otherwise or simply correct any credit.

Sole Paragraph ‑ The holder of such a credit shall be notified of the request and, as from the date of receipt of the notice, will have a period of five days to present the allegations and evidences he judges convenient, being assured the same right mentioned in the preceding Article whenever considering himself damaged by the decision taken on his arguments, which shall be notified to him by written way. This right shall be exercised within the same delay mentioned in the Sole Paragraph of the preceding Article, counted as from the date of receipt of such notification.

Article 29 ‑ The amounts supplied to the institution being liquidated by the creditors, by the liquidator or by the Banco Central do Brasil shall be included among its liabilities, with  absolute priority.

Article  30 ‑ Except in cases when this law expresses to the contrary, any decision of the liquidator shall be subject to appeal proposed to the Banco Central do Brasil in one sole resort, within a period of ten days as from the respective acknowledgement and without suspension effect.

Paragraph 1 ‑ The decision shall assume definitiveness if no appeal is brought by the end of that term.

Paragraph 2 ‑ The appeal shall be presented to the liquidator, against receipt, and shall be delivered, with information and within a period of five days, to the Banco Central do Brasil.

Article 31 ‑ For the purposes of protecting public economy, private savings and national security, whenever the activity of the institution being liquidated may conflict with  the interests of those areas, the liquidator, with the previous and express authorization of the Banco Central do Brasil, is allowed to adopt any special or qualified form of alienation of the institution's properties or to settle its liabilities, to assign the assets to a third parties, to organize or to reorganize a society in order to the general or partial continuance of the business of the institution being liquidated.

Paragraph 1 ‑ The acts mentioned in this article shall produce immediate legal effects, regardless of any formality and registration.

Paragraph  2 ‑ The respective registrations shall be made within a period of 15 days by the officers of the Real Estate Registries and Commerce Registries, as well as by any other public administration division, when necessary, pursuant to a formal notice presented by the liquidator.

Article 32 ‑ Whenever verified, during the liquidation process, sure evidential elements, or even by solid traces, regarding the practice of penal contravention or crimes committed by any of the former managers or members of the Audit Committee, the liquidator shall present these information to the public prosecutor, in order to support a criminal prosecution.

Article 33 ‑ The liquidator shall render accounts to the Banco Central do Brasil, regardless of any requirement, when he leaves his functions, or at any time upon request, and shall be responsible for his acts according to civil and criminal law.

Article 34 ‑ The provisions of the Bankruptcy Law (Decree Law nº 7661, of June 21, 1945), shall be applied to the extra-judicial liquidation, whenever they are appropriate and do not conflict with the provision of this law, the liquidator being compared to the bankruptcy manager, and the Banco Central do Brasil being considered as the bankruptcy judge. The competent Court to judge the bankruptcy process of the institution being liquidated is also competent to judge the revocatory action foreseen in Article 55 of the mentioned Decree-law.

Article 35 ‑ The acts mentioned in Articles 52 and 53 of the Bankruptcy Law (Decree Law nº 7661, of 1945), performed by the former managers of the institution being liquidated may be voided or revoked, complying with the provisions of the Articles 54 and 58 of the mentioned law.

Sole Paragraph ‑ The revocatory  demand shall be brought by the liquidator, observing the provisions of Articles 55, 56 and 57  of the Bankruptcy Law.


CHAPTER IV
The Managers and the Members of the Audit Committee

Section I
The Inalienability of Properties

Article 36 ‑ The managers of financial institution subject to intervention, extra-judicial liquidation or bankruptcy shall have all their properties inalienable and may not, in any way, directly or indirectly, alienate or burden them, before the final investigation and liquidation of  their liabilities.

Paragraph 1 ‑ This inalienability results from the act which decreed the intervention, extra-judicial liquidation or bankruptcy, and affects all those who exercised their functions during the last twelve months prior to the mentioned act.

Paragraph 2 ‑ By proposal presented by the Banco Central do Brasil, approved by the National Monetary Council, the inalienability mentioned in this article may be extended on the following terms:

a) to the properties of the managers, audit committee and of all those persons who  have contributed to the advent of the intervention or extra-judicial liquidation during the last twelve months prior to its decrement, limited to the estimated responsibility of each;

b) to the properties of the persons who, in the lasts twelve months, have acquired such assets from the managers or from the persons mentioned above, provided that there are sure conviction elements that such acquisition was made with a simulation intent, in order to avoid the effects of this law.

Paragraph  3 ‑ The provisions of this article shall not affect the properties exempt, by current law, to be alienated or burdened.

Paragraph 4 ‑ The inalienability shall also not affect the assets subject to a contract of alienation, of commitment to purchase and sell, of assignment or commitment to assign rights, provided the respective contract have been registered by the appropriate public registry, previously to the decrement of intervention, extra-judicial liquidation or  bankruptcy.

Article 37 ‑ Those persons affected by the alienability of assets mentioned in the preceding article, are not allowed to leave the jurisdiction of the intervention, extra-judicial liquidation or bankruptcy without the prior and express authorization of the Banco Central do Brasil or of the bankruptcy judge.

Article 38 ‑ Upon decrement of intervention, extra-judicial liquidation or  bankruptcy, the intervenor, the liquidator or the bankruptcy clerk shall notify the competent public registry and the Stock Exchange about the asset inalienability commanded by Article 36.

Sole Paragraph ‑ Once this communications has been received, the competent registration authority will be forbidden to take the following actions with regard to those assets:

(a) registering, amending or approving public or private documents;

(b) recording acts or contacts concerning transfer of corporate quotas, company shares or beneficiary parts;

(c) transacting or registering market operations and any kind of securities;

(d) registering the transference of automotive vehicles.


Section II
The Responsibility of the Managers and Audit Committee Members

Article 39 ‑ The managers and the members of the Audit Committee members of financial institutions shall at any time be responsible, except for an extinctive prescription, for the acts they have performed or the omissions they have incurred.

Article 40 ‑ The managers of financial institutions shall be jointly responsible for the obligations they have assumed during their term of office, up to the fulfillment of such obligations.

Sole Paragraph  ‑ The joint responsibility shall be limited to the total amount of  losses caused.

Article 41 ‑ Upon decrement of intervention, extra-judicial liquidation or bankruptcy of a financial institution, the Banco Central do Brasil shall proceed with an inquest, in order to ascertain the causes which led the institution into that status and the responsibility of its managers and Audit Committee members.

Paragraph 1 ‑ For the matter of the present article, after decrement of the bankruptcy, the clerk shall send a notice to the Banco Central do Brasil, within a period of twenty four hours.

Paragraph 2 ‑ The inquest shall be opened immediately after the decrement of intervention or extra-judicial liquidation, or after the receipt of the bankruptcy communication, and shall be concluded within a period of hundred and twenty days which, if absolutely necessary, may be extended for another equal period.

Paragraph 3 ‑ For the investigation purposes, the Banco Central do Brasil may:

a) verify, whenever and as often as considered necessary, the accounting books, archives, documents, values and any other information concerning the institutions;

b) request testimonies, even by requesting police assistance, if necessary;

c) request information from any public authority or government organ, from the bankruptcy judge, the public prosecutor, the bankruptcy manager, the liquidator or the intervenor;

d) examine, through an appointed attorney, the bankruptcy writs, and to obtain, upon written request, copies or certificates on this writs;

e) examine the accounting books and the archives of third parties with which the financial institution did business, with regard to such business, as well as the accounting books and archives of the ex-managers who have an individual commercial or industrial business, and also their respective accounts next to other financial institutions.

Paragraph  4 ‑ The ex-managers may accompany the investigation, to present documents and to indicate any measure.

Article 42 ‑ Upon conclusion of the inquest, the ex-managers shall be invoiced to present, by written form and within a common term of five days, their pleadings and information.

Article 43 ‑ After the expiry of the term mentioned in the preceding article, with or without defense, the inquest shall be considered as definite, with the presentation of a final report giving a brief description of the situation of the entity, the reasons of  its fall, the name, the identification and the roll of private properties of those who managed the entity during the last five years, as well as the amount or estimated value of losses verified in each period of office.

Article 44 ‑ If the inquest comes to a decision based on the non-existence of losses, in the case of intervention or extra-judicial liquidation, the conclusions shall be archived at the Banco Central do Brasil or, in the case of bankruptcy, to the bankruptcy Court, in order to be attached to the respective writs.

Sole Paragraph ‑ In the hypothesis mentioned in this article, the Banco Central do Brasil, in the cases of intervention and liquidation, or the bankruptcy Court, in cases of bankruptcy, shall cancel, ex-officio or upon request by any interested party, the inalienability mentioned in Article 36.

Article  45 ‑  If the inquest concludes for the existence of losses, the investigation shall be sent, together with the respective final report, by the Banco Central do Brasil to the competent judge to the bankruptcy process, who will decree such bankruptcy in view of the public prosecutor which, within a period of eight days, subject to liability, will request  the arrest of properties of  the ex-managers, who were not concerned by the inalienability mentioned in article 36, in an amount sufficient to cover the respective responsibilities.

Paragraph 1 ‑ In the case of intervention or extra-judicial liquidation, the presentation of the inquest report shall avert the jurisdiction of the Court where it is presented, in the event of  overcoming a bankruptcy decrement.

Paragraph 2 ‑ After determined the arrest, the properties shall be deposited under custody of the intervenor, liquidator or bankruptcy manager, depending on each case, and the depositary will be in charge of their management, collecting remuneration and render final account.

Article 46 ‑ The responsibility of the ex-managers as defined in this Law, shall be verified through the proper process, brought at the bankruptcy Court or at the Court competent for it.

Sole Paragraph ‑ The public prosecutor, in the cases of intervention and extra-judicial liquidation, shall obligatorily present the demand for responsibility, within a period of thirty days as from the arrest decree. After this term, the inquest and the final report shall be kept at the Court office at the disposal of fortuitous creditors, who can propose the demand, within the following fifteen days. If this last term is overpass  and no demand is presented, the arrest shall be cancelled, and the documents mentioned above shall be annexed to the bankruptcy process, when possible.

Article 47 ‑ Whenever the bankruptcy decree follows the arrest decree or the presentation of the demand for responsibility, the manager shall take, from that time on, the measures determined by this Law. The manager shall also, within a period of thirty days as from the date of his taking office statement, to promote the substitution of the party on the judicial process.

Article 48 ‑ Regardless of the inquest and of the arrest, any of the parties referred to in the sole paragraph of Article 46 may, within the same term defined therein, present the demand for responsibility of the ex-managers, in accordance with this law.

Article  49 ‑ After the sentence declaring the responsibility of ex-managers becomes definite, the arrest and inalienability of assets shall be changed into seizure, followed by the writ of execution.

Paragraph 1 ‑ After verified the amount of properties under seizure and after payment of the judicial costs, the net result shall be available to the intervenor, to the liquidator or to the bankruptcy manager, depending on the case, for distributions among the creditors of the institution.

Paragraph 2 ‑ Whenever if, during the course of the demand for responsibility or the writ of execution, the intervention or the extra-judicial liquidation is concluded, the intervenor or liquidator shall, by written notice, inform about the fact to the judge, requesting his replacement as depositary of the arrested or seized properties, and supplying a nominal roll and respective balances of the creditors who in such case will be directly contemplated by the distribution mentioned in the preceding paragraph.


CHAPTER V
General Dispositions

Article 50 ‑ The intervention causes the suspension, and the extra-judicial liquidation causes the cancellation of  office of the managers and the Audit Committee members and of the members of any other bodies created by the bylaws. Only the intervenor and the liquidator are competent to call for a general meeting, when they consider convenient to do so.

Article 51 ‑ For the purpose of protecting the popular savings and the patrimonial integrity of the institutions submitted to intervention or extra-judicial liquidation, the Banco Central do Brasil may adopt identical regime to the legal entities involved in integrated activities with those institutions, or attached to them by common interests, their managers being subject to the effects of this law.

Sole paragraph - For the purposes of this article, integrated activities or common interests occurs when the legal entities mentioned in this article are debtors of the entity under intervention or extra-judicial liquidation, or when their partners or shareholders participate in its capital with more than 10% (ten per cent), or when they are spouses or relatives up to the second degree, related by blood or akin, with the managers or with the members of the consultative, administrative or Audit Committee members and the like.

Article 52 ‑ The dispositions of this law shall be applicable to the societies and companies which compose the system of securities brokerage in the capital market (article 15, Law nº 6385, December  07, 1976), as well as the currency exchange brokerage companies.

Paragraph 1 ‑ The intervention or the extra-judicial  liquidation of these societies shall be decreed by the Banco Central do Brasil, on its own initiative or at the request of the Stock Exchange, with regard to the brokers associated to this entity, by means of a justified request.

Paragraph 2 ‑ By delegation of the competence of the Banco Central do Brasil and without prejudice to its attributions, the intervention and the extra-judicial liquidation of brokerage companies which are members of the Stock Exchange may be processed by the same Stock Exchange, being competent to that function the one located in the area where the company has its head office.

Article 53 ‑ The societies or companies that compose the system of securities brokerage in the capital market (article 15, of Law nº 6385, December  07, 1976), as well as the currency exchange brokerage companies or corporations, as well as the other financial institution, may not request an arrangement with creditors.

Article 54 ‑ The dispositions of this law shall be applicable to the pending  interventions and extra-judicial liquidations, whenever applicable.

Article 55 ‑ The Banco Central do Brasil is authorized to grant financial support to the Stock  Exchange, according to the conditions prescribed by the National Monetary Council, whenever, according to its criteria, it is necessary so as they may adapt entirely to the requirements of the capital market.

Sole Paragraph ‑ The financial support referred to in this article may be extended to the Stock Markets, in cases of intervention or extra-judicial liquidation decreed on societies that compose the system of securities distribution in the capital market and companies dealing with the currency exchange market, in order to protect the legitimated interests of investors.

(*) Article  56 ‑ The following paragraph is added to the article 129 of the Decree-law nº 2627, of September 26, 1940, in addition to that added by Law nº 5589, of July 03, 1970:

"Paragraph 3 ‑ The National Monetary Council shall determine the standard characteristics of the documents referred to in Paragraph 2, and may authorize the Banco Central do Brasil to extend the term fixed therein, by establishing the conditions to be observed by the societies beneficiary from that extension."

Article. 57 ‑ This Law takes effect on the date of its publication, being revoked the Law nº 1808 of January  07, 1953, the Decree-laws nºs 9228, of May 03, 1946; 9328, of June 10, 1946; 9346, of June 10, 1946; 48, of November 18, 1966; 462, of February 11, 1969; and 685, of July 17, 1969, and all the general and special dispositions to the contrary.

Brasilia, March 13, 1974; 153rd year of the Independence and 86th year of the Republic.

Antônio Delfim Neto

 

(*) Revoked by the disposition of the article 177 of the Law nº 6.404, December 15, 1976.

This is not an official translation. For information purposes only.

BANCO CENTRAL DO BRASIL