Law No. 11887, December 24 2008

Original Language Title: Lei nº 11.887, de 24 de Dezembro de 2008

Read the untranslated law here: https://www.global-regulation.com/law/brazil/2894934/lei-n-11.887%252c-de-24-de-dezembro-de-2008.html

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Get a Day Pass for only USD$19.99.
Law No. 11887, of 24 DECEMBER 2008.
Creates the sovereign Fund of Brazil-FSB, has on its structure, resources and applications and other matters.
The PRESIDENT of the REPUBLIC do I know that the National Congress decrees and I sanction the following law: Art. 1 Is created the sovereign Fund of Brazil-FSB, special fund accounting and financial nature, linked to the Ministry of finance, with the aims of promoting investments in assets in Brazil and abroad, form public savings, mitigating the effects of economic cycles and boost the country's strategic interest projects located abroad.
Art. 2nd FSB resources will be used exclusively for investments and financial investments in the purposes provided for in art. 1 of the Act, as follows: I-acquisition of foreign financial assets: a) by applying special remunerated deposits in federal financial institution; or b) directly, by the Ministry of finance; or II-through the creation of units of the private fund as referred to in art. 7 of this law.
§ 1 is sealed to the FSB, directly or indirectly, provide guarantees.
§ 2 The expenditure relating to operationalization of the FSB will be borne by him.
§ 3 the applications in financial assets the FSB will have minimum profitability estimated by operation, weighted by risk, equivalent to Libor (London Interbank Offered Rate) of 6 (six) months.
Art. 3 the FSB will be regulated by decree establishing including: I-application guidelines, criteria and levels of profitability and of risk;
II-guidelines on administrative management, financial and budget;
III-prudential supervision rules, in compliance with the best international practices;
IV-conditions and requirements for the payment of Union dues at the bottom as referred to in art. 7 of this law; and V-other devices aimed at the proper functioning of the Fund.
Art. 4 May be features of FSB: I-national Treasury resources corresponding to the appropriations which are contained in the annual budget, including those arising from the issue of government bonds;
II-mixed actions federal surplus is necessary to maintain its control by the Union or other rights with heritage value; and III-results of financial applications to your account.
§ 1 the capabilities of FSB, while not intended for the purposes provided for in art. 1 of this law, shall be deposited in the National Treasury single account.
§ 2 is fenced to payment of units of the Fund referred to in art. 7 of this law with resources arising from the issuance of government bonds, including those arising from the return of their investments.
Art. 5 the resources arising from redemptions of the FSP will meet the goal of mitigating the effects of economic cycles and will be allocated as provided for in the annual budget law.
§ 1 For the attainment of the objective which deals with the caput of this article, the Board of Directors of the FSB will draft technical report demonstrating the relevance of the rescue before the current macroeconomic scenario.
§ 2 is forbidden resource binding in the caput of this article, as well as its application in compulsory expenditure continued character.
Art. 6th Executive Decree shall establish the deliberative Council of the FSB, composed of the Minister of finance, the Minister of State for planning, budget and management and the President of the Central Bank of Brazil, and will have about its mission, structure and competencies.
§ 1 subject to the provisions of art. 3 of this Act, the Board of Directors, without prejudice to the provisions of the caput of this article, adopt the form, the term and the nature of the investments of the FSB.
§ 2 the Union may, at the discretion of the Board of Directors, hire federal financial institutions to act as agents of the FSB, which operators will do justice to the remuneration for services rendered.
Art. 7 the Union with the FSB, you can participate as a shareholder only of Fiscal investment and Stabilization Fund-FFIE, consist of federal financial institution, in compliance with the standards referred to in section XXII of the art. 4 of law No. 4595 of 31 December 1964.
§ 1 the FFIE will have private nature, own patrimony separate from the wealth of the shareholder and will be subject to rights and obligations themselves.
§ 2 the payment of the quotas will be authorized by Decree FFIE upon proposal by the Minister of finance.
§ 3 the FFIE purpose will be to promote the application in assets in Brazil and abroad, with views on the formation of public savings, mitigating the effects of economic cycles and promote the Country's strategic interest projects located abroad.
§ 4 the FFIE vouch for its obligations with all property and rights of their heritage, not responding the shareholder for any obligation of the FFIE, saved by the payment of quotas that subscribe.
§ 5 the dissolution of FFIE shall be in the form of their status and their resources will return to the FSB.
§ 6 On credit operations, foreign exchange and insurance and on income and profits of the Fund referred to in the caput of this article shall be no tax or social contribution of Union competence.
Art. 8. FFIE's status must be approved by the shareholder, through the Ministry of finance.
Sole paragraph. The Statute shall define, including application policies, and criteria of profitability and risk levels, operational matters of administrative and financial management and prudential supervision rules the FFIE.
Art. 9. The financial statements and the results of the applications of the FSB will be prepared and calculated semi-annually, as foreseen by the central accounting agency that handles the item I of art. 17 of law No. 10180, of 6 February 2001.
Art. 10. The Ministry of finance will forward quarterly performance report to the National Congress, as provided in regulation of the FSB.
Art. 11. The FFIE shall prepare the accounting statements in accordance with the legislation in force and as set out in statute.
Art. 12. This law shall enter into force on the date of its publication.
Brasília, 24 December 2008; 187o of independence and 120(1) of the Republic.

LUIZ INACIO LULA DA SILVA Guido Mantega