Riggs National Corporation & Subsidiaries, f.k.a. Riggs National Bank and Subsidiaries - Page 11

                                       - 11 -                                         
          domiciled abroad or (2) grant pecuniary benefits to Brazilian               
          borrowers receiving loans in foreign currency.                              
               Pursuant to that authority, borrowers taking out foreign               
          loans duly registered with the Central Bank were granted a                  
          pecuniary benefit equal to 85 percent of the tax paid on the                
          interest, commissions, and expenses due on those loans.                     
               Circular 266, issued by the Central Bank, set forth the                
          regulations governing the procedure for payment of the pecuniary            
          benefit:                                                                    
               (1) A DARF was to be used for the payment of the income tax            
          on interest paid on foreign currency loans;                                 
               (2) on the date of payment of the tax, the collecting                  
          banking receiving the tax payment would, by means of a credit to            
          the borrower’s account, pay to the borrower the equivalent of 85            
          percent of the income tax;                                                  
               (3) in the case of a Resolution 63 repass loan, on the date            
          of payment the borrowing bank would be obligated to transfer the            
          total value of the pecuniary benefit to the repass borrowers; and           
               (4) the collecting bank would debit the amount of the                  
          pecuniary benefit to an account of the collecting bank entitled             
          “Pecuniary Benefit -- D.L. 1,411” (the pecuniary benefit                    
          account), and on the same day as the payment of the tax to Banco            
          do Brazil the collecting bank would charge the pecuniary benefit            
          account against Banco do Brazil.                                            






Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  14  15  16  17  18  19  20  Next

Last modified: May 25, 2011