I make it known that the Federal Senate has approved, and I, Garibaldi Alves Filho, President, in the terms of art. 48, inciso XXVIII, of the Rules of Procedure, promulgated the following

R E S O L U UNK UNK No. 39, DE 2007

Authorizes the Municipality de Uberaba (MG) to hire external credit operation, with Union guarantee, together with the International Bank for Reconstruction and Development (Bird), worth up to US$ 17,270,000.00 (seventeen million and two hundred and seventh thousand dollars Americans), from principal, for partial funding of the Environmental Recovery Project of the Uberaba River Basin and Revitalization of the Water Supply System? Project Water Viva (Municipal Lending Program I: Uberaba Water Viva Project).

The Federal Senate resolves:

Art. 1º It is the Municipality of Uberaba (MG) authorized to hire external credit operation, with guarantee from the Union, with the International Bank for Reconstruction and Development (Bird), worth up to US$ 17,270,000.00 (seventeen million and two hundred and seventy-thousand U.S. dollars).

Single Paragraph. The features advent of the external credit operation referred to in the caputare intended for the partial funding of the Environmental Recovery Project of the Uberaba River Basin and Revitalization of the Water Supply System? Project Water Viva (Municipal Lending Program I: Uberaba Water Viva Project).

Art. 2º The credit operation referred to in art. 1º should be carried out under the following conditions:

I-devedor: Municipality of Uberaba (MG) ;

II-credor: International Bank for Reconstruction and Development (Bird) ;

III-guarantor: Federative Republic of Brazil ;

IV-value: up to US$ 17,270,000.00 (seventeen million and two hundred and seventy-thousand dollars Americans) ;

V-modality: Fixed Spread Loan (Fixed Margin) ;

VI-deadline of disbursement: 5 (five) years ;

VII-amortization: in 24 (twenty-four) semiannual, consecutive installments, due to each 15 of March and September 15 between September 15, 2012 and March 15, 2024 ;

VIII-interest: semestrally required, on March 15 and September 15, calculated on the balance periodic debtor of the loan, at an annual fee composed of the semi-annual Libor for U.S. dollar, plus a spread to be determined by the Bird to each fiscal year and set at the date of signing of the contract ;

IX-commission of engagement: 0.75% a.a. (seventy five hundredths per cent a year) on undisbursed debtor balances, required semester, on the same interest payment dates, entering into force 60 (sixty) days after signing of the contract ;

X-commission on view (front-end fee): 1% (one percent) on the value of the loan, to be debited on the date on which the contract comes into effect, with this fee being subject to a waiver (decrease of the percentage charged).

§ 1º The modality of the loan allows for the conversion of interest rate applicable to partial amount or total loan, from float to fixed and vice-versal ; the establishment of ceilings and bands for interest rate fluctuation ; the change in the reference currency of the credit operation for already disbursed amount ; and change of the reference currency of the credit operation for amount to be disbursed.

§ 2º The exercise of the options referred to in § 1º implies the collection of the costs eventually incurred by Bird in the realization of the options, and of transaction commission (transaction fee), which ranges from 0.125% (one hundred and twenty-five thousandths per cent) up to 0.25% (twenty-five hundredths per cent).

Art. 3º It is the Union authorized to grant warranty to the Municipality of Uberaba (MG) in the operation of external credit as referred to in this

Single Paragraph. The authorization provided for in the caput is conditional upon the Municipality of Uberaba (MG) to enter into contract with the Union for the concession of contravention, in the form of binding of the rights and claims relating to the quotas and tax revenue predicted in the arts. 156, 158 and 159, combined with art. 167, § 4º, all of the Federal Constitution, and other guarantees in accepted law, and the Federal Government may retain the necessary resources for coverage of the honoured commitments, directly from constitutional transfers or accounts Municipality fundraising centralizers.

Art. 4º The authorisation granted by this Resolution should be exercised within the maximum period of 540 (five hundred and forty) days, relied on from its publication.

Art. 5º This Resolution comes into force on the date of its publication.

Federal Senate, on December 20, 2007.

Senator Garibaldi Alves Filho

President of the Federal Senate