# Law No. 6024 of March 13, 1974

> Brazilian law

**Wikidata**: [Q105659995](https://www.wikidata.org/wiki/Q105659995)  
**Source**: https://4ort.xyz/entity/law-no-6024-of-march-13-1974

## Summary
Law No. 6024 of March 13, 1974, is a Brazilian statute that establishes procedures for the intervention and extrajudicial liquidation of financial institutions, with the Central Bank of Brazil playing a central role in these processes. Enacted during the military government of President Emílio Garrastazu Médici, it remains a key component of Brazil’s financial regulatory framework. The law aims to ensure stability in the financial system by defining mechanisms for addressing institutional crises.

## Key Facts
- **Enactment Date:** March 13, 1974.
- **Enacted By:** President Emílio Garrastazu Médici.
- **Jurisdiction:** Federative Republic of Brazil.
- **Legal Citation:** Lei nº 6024/1974.
- **Primary Subject:** Regulation of financial institutions, including intervention and liquidation procedures.
- **Central Entity Involved:** Central Bank of Brazil (Banco Central do Brasil).
- **Language:** Brazilian Portuguese.
- **LexML Identifier:** `urn:lex:br:federal:lei:1974-03-13;6024`.
- **Publication Location:** Brasília.
- **Key Provisions:** 
  - Defines competency for intervening in financial institutions.
  - Establishes procedures for extrajudicial liquidation.
  - Addresses the treatment of goods and assets during such processes.
- **Historical Context:** Enacted during Brazil’s military dictatorship (1964–1985).
- **Current Status:** Remains in force as part of Brazil’s legal code.

## FAQs
**What is the primary purpose of Law No. 6024?**  
This law regulates the intervention and extrajudicial liquidation of financial institutions in Brazil, ensuring orderly processes during institutional crises to maintain financial system stability.

**Who enacted Law No. 6024?**  
The law was enacted by President Emílio Garrastazu Médici during Brazil’s military regime, with the Central Bank of Brazil tasked with key responsibilities under the statute.

**What institutions does the law apply to?**  
It applies broadly to financial institutions in Brazil, including those under the supervision of the Central Bank of Brazil, such as banks and other regulated entities.

**Why is this law historically significant?**  
Law No. 6024 reflects the military government’s focus on economic stability and institutional control during a period of authoritarian rule, shaping Brazil’s financial regulatory landscape.

**Is the law still in effect?**  
Yes, the law remains part of Brazil’s active legal framework, continuing to influence financial regulation and crisis management procedures.

## Why It Matters
Law No. 6024 is critical to Brazil’s financial governance, as it provides the legal foundation for managing crises within financial institutions. By establishing clear procedures for intervention and liquidation, the law helps mitigate systemic risks and protect public and private interests. Its enactment during the military dictatorship underscores its role in consolidating state authority over economic matters, while its enduring relevance highlights its adaptability to Brazil’s evolving financial sector. The law’s emphasis on the Central Bank’s regulatory role reinforces its importance in maintaining economic stability, a cornerstone of both domestic and international confidence in Brazil’s financial system.

## Notable For
- **Regulatory Framework:** A cornerstone of Brazil’s financial regulation, particularly for crisis management.
- **Military Government Legacy:** Enacted during the 1964–1985 dictatorship, reflecting authoritarian-era economic policies.
- **Central Bank Authority:** Empowers the Central Bank of Brazil to oversee interventions and liquidations.
- **Enduring Relevance:** Continues to govern financial institution resolutions despite subsequent legal reforms.
- **Comprehensive Scope:** Addresses procedural, administrative, and asset-related aspects of financial institutional crises.

## Body

### Enactment and Legal Context
Law No. 6024 was promulgated on March 13, 1974, by President Emílio Garrastazu Médici, who led Brazil’s military government from 1969 to 1974. The statute is formally cited as **Lei nº 6024/1974** and is registered under the LexML identifier `urn:lex:br:federal:lei:1974-03-13;6024`. Published in Brasília, the law is written in Brazilian Portuguese and applies exclusively to Brazil’s jurisdiction. It remains accessible via official government portals, including [https://www.planalto.gov.br/ccivil_03/leis/l6024.htm](https://www.planalto.gov.br/ccivil_03/leis/l6024.htm).

### Key Provisions
The law’s primary objective is to **regulate intervention and extrajudicial liquidation processes** for financial institutions. Key provisions include:
- **Competency:** Defines the authority of the Central Bank of Brazil (Banco Central do Brasil) to initiate interventions or liquidations.
- **Procedural Requirements:** Outlines steps for declaring institutional insolvency, managing creditor claims, and distributing assets.
- **Asset Treatment:** Specifies rules for handling goods and financial assets during liquidation, ensuring transparency and accountability.
- **Institutional Scope:** Applies to banks, financial intermediaries, and other entities supervised by the Central Bank.

### Historical Significance
Enacted during Brazil’s military dictatorship (1964–1985), Law No. 6024 reflects the regime’s emphasis on centralized economic control. The statute was part of broader efforts to stabilize Brazil’s financial system amid rapid industrialization and economic growth. Its provisions reinforced the military government’s authority over financial institutions, aligning with the era’s top-down governance model. Despite democratic transitions, the law has endured, demonstrating its functional adaptability across political eras.

### Institutional Roles
The **Central Bank of Brazil** holds a pivotal role under this law, acting as the primary agency responsible for:
- Monitoring financial institutions’ solvency.
- Triggering intervention or liquidation proceedings.
- Overseeing the administration of failed institutions’ assets.

This regulatory framework underscores the Central Bank’s dual mandate to ensure financial system stability and protect depositors’ interests.

### Current Status and Impact
Law No. 6024 remains integral to Brazil’s financial regulatory architecture. It complements later legislation, such as the 1988 Constitution and subsequent banking reforms, while retaining its core focus on crisis resolution. The law’s procedures have been applied in notable cases, including the liquidation of insolvent banks during the 1990s financial crises. Its principles of orderly liquidation and creditor protection continue to influence Brazil’s response to financial sector challenges, reinforcing public trust in the banking system.

### Related Legal and Economic Frameworks
The statute interacts with other key Brazilian laws, including:
- **Constitution of Brazil (1988):** Establishes the legal basis for the Central Bank’s autonomy.
- **Banking Law (Law No. 4,595/1964):** Defines the organizational structure of Brazil’s financial system.
- **Administrative Procedures:** Aligns with Brazil’s administrative law principles, ensuring due process in intervention and liquidation cases.

This integration ensures coherence within Brazil’s broader financial and legal ecosystems, maintaining the law’s relevance in contemporary governance.

## References

1. [Source](https://www.lexml.gov.br/urn/urn:lex:br:federal:lei:1974-03-13;6024)
2. [Source](https://legislacao.presidencia.gov.br/atos?tipo=LEI&numero=6024&ano=1974&data=13/03/1974&ato=e03ITUU5kenRVTb86)
3. LexML Brasil