Provisional Measure No. 1,972-17, August 28 2000

Original Language Title: Medida Provisória nº 1.972-17, de 28 de Agosto de 2000

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Provisional measure no. 1,972-17, of 28 August 2000.
Rules on the student financing fund for higher education and other matters.
The PRESIDENT of the REPUBLIC, in the use of the role that gives the art. 62 of the Constitution, adopts the following provisional measure, with force of law: chapter I of HIGHER EDUCATION STUDENT FINANCE-FIES Art. 1st Is established under this provisional measure, the background of higher education student finance-accounting nature FIES for the granting of funding to students enrolled in courses not free and with positive evaluation, in accordance with its own rules, in proceedings conducted by the Ministry of education.
Sole paragraph. The participation of the Union in the financing of higher education student not free will, exclusively, through contributions to the Trust Fund established for this interim measure, subject to the provisions of art. 14. Section I of the revenue of the FIES Art. 2nd Constitute revenue of the FIES: I-oraçamentárias appropriations allocated to the Ministry of education, except for the provisions of art. 14;
II-30% of net income of forecasting competitions administered by the Caixa Econômica Federal, as well as all of the awards not wanted by resources included within the limitation period, provided the provisions in art. 14;
III-charges and penalties collected in the financing contract amparo this provisional measure;
IV-fees and charges collected from the participants of the selection processes for funding;
V-charges and penalties contractually charged in funding under the program of Educational Credit, of law No. 8436, of 25 June 1992, provided the provisions of art. 14;
I saw income from financial investments on their availability; and VII-heritage recipes.
paragraph 1 shall be allowed: I-hiring, by the official operator of the FIES, internal and external credit operations in the manner regulated by the national monetary Council CMN;
II-the transfer to the TRUST of the debt balances of flotations granted under the program of Educational Credit that it is law No. 8436, 1992;
III-the sale, in whole or in part, to financial institutions accredited for this purpose by the CMN, the assets of the previous paragraph and the assets represented by funding under the terms of this provisional measure.
§ 2 the availabilities of FIES box should be kept on deposit in national Treasury single account.
(3) administrative expenses FIES, according to regulations of the CMN, will correspond to: I-to zero comma 2% year to Agent operator, the management of the Fund, calculated on their availability;
II-to zero comma 3% year to Agent operator, the management of the Fund, calculated on the outstanding balance of transfers to financial institutions;
III-even a comma 5% year financial agents, calculated on the outstanding balance, the administration of the credits granted and absorption of credit risk effectively characterized, the percentage set out in item V of the art. 5.
§ 4 payment of obligations arising out of the operations contemplated in subparagraph I of paragraph 1 takes precedence over all other expenses.
Section II of the DSS management Art. 3 the management of FIES will fit: I-the Ministry of education, as a formulator of policy and funding and overseeing the implementation of the operations of the Fund; and II-Caixa Econômica Federal, Agent operator and administrator of assets and liabilities, as regulation and standards downloaded by CMN.
(1) the Ministry of education have regulation, including edits, on: i. the rules of selection of students to be funded by the TRUST;
II-the cases of temporary supersão and termination of contracts of financing;
III-academic performance requirements for the maintenance of the funding.
(2) the Ministry of education will be able to rely on the advice of an Advisory Council, whose members shall be appointed by the Minister of State.
(3) in accordance with the credit limits established by the operator, financial institutions can, acting as financial agent, grant funding with DSS resource.
CHAPTER II Art OPERATIONS. 4 are capable of financing by FIES to 70% educational costs charged by the students ' higher education institutions duly registered for this purpose by the Ministry of education, in consideration to the degree courses in which they are regularly registered.
(1) the registration of the caput of this article is to course offered, being prohibited the granting of financing the courses with negative rating in the process conducted by the Ministry of education.
(2) the Ministry of education, in exceptional character, register for the financing of this provisional measure, courses for which there is no complete assessment processes.
§ 3 each student can enable only one funding, intended to cover expenditure relating to a single undergraduate course being prohibited to grant the student that there are participated in the Educational credit program that deals with law No. 8436, of 1992.
Art. 5 The financing granted with DSS resource should observe the following: (I)-deadline: may not be higher than the regular duration of the course;
II-interest: to be stipulated by the CMN, for each academic semester, since the date of conclusion by the end of the student's participation in financing;
III-providing adequate guarantee for student funded;
IV-amortization: will start in the month immediately subsequent to the completion of the course, or in advance, the student initiative funded by calculating the benefits in any case:) the twelve first months of depreciation in value equal to the portion paid directly by the student funded higher education institution in the immediately preceding semester;
b) loans-if the remaining balance due in period equivalent of up to one and a half times the duration of stay in condition of student funded;
V-risk: financial agents and the higher education institutions participate in financing risk percentages of 20% and five per 100, respectively, being considered solidary debtors within the limits specified.
(1) over the period of use of the funding, the funded student is required to pay, on a quarterly basis, interest on financing, limited to the amount of $ 50.00 (50 dollars).
§ 2 is allowed to the student funded at any time, observed the rules of CMN, perform extraordinary amortization of financing.
(3) in exceptional cases, at the initiative of the higher education institution to which it is linked, can the student dilate in up to one year the period contemplated in item I of the caput of this article, in which chance the maximum period of payment of moralizing will be limited to one and a half times the regular duration of the course.
Art. 6 In case of default of the benefits funded by the student, the institution referred to in § 3 of art. 3 promote the enforcement of contractual guarantees, as established by the institution of the item II of the caput of this article, going over to FIES and the institution of higher education the part regarding to your risk.
CHAPTER III of the GOVERNMENT BONDS Art. 7 Is the Union authorized to issue, in favour of the FIES, title of public debt up to the limit of R$ .00 300,000,000 (300 million dollars).
§ 1 is even allowed the Union to issue additional portion of bonds, up to the limit of R$ .00 100,000,000 (100 million dollars), to the amount corresponding to the option in the sole paragraph of art. 14. (2) the qualifications referred to in the caput and paragraph 1 shall be represented by certificates issued by the National Treasury, with defined characteristics in Act of the Executive branch.
§ 3 the certificates referred to in the preceding paragraph shall be issued in the form of a direct placement, at par, upon request to the Secretary of the FIES express national treasure.
§ 4 currency resources delivered by FIES in contrast to direct placement of the certificates will be used exclusively for debt reduction the responsibility of national treasure.
Art. 8 in contrast to direct placement of the certificates, the TRUST authorized to use in securitized credit payments received in the form of art. 12. Art. 9 certificates of the previous article will be allocated by the TRUST exclusively to the payment of higher education institutions of educational charges relating to financing operations undertaken with DSS resource.
Art. 10. The certificates received by institutions of higher education in the form of the previous article will be used exclusively for the payment of pension obligations with the National Social Security Institute-INSS, getting this authorized to receive them.
Art. 11. The National Treasury secretariat will rescue, formal request of the INSS, the certificates intended to that Office in the form of the previous article.

Art. 12. For the purposes of the sale of the item III of §1 of art. Second, is the TRUST authorized to receive in payment credits securitized the responsibility of national treasure, originating from the debt securitization operations as provided for in (a)? b? of item II of § 2 of article. 1 of provisional measure no. 1,981-50, this date.
Sole paragraph. For the purpose of receiving the loans securitized in the form provided for in the caput shall be subject to the criterion of economic equivalence between the assets involved.
Art. 13. The operations referred to in arts. 8 to 11 shall be carried out at par.
CHAPTER IV GENERAL and transitional PROVISIONS Art. 14. In 1999 and following, the revenues referred to in subparagraphs I, II and V of the art. 2 the resources needed will be deducted to pay educational costs contracted under the program of Educational Credit that it is law No. 8436, of 1992.
Sole paragraph. Students are permitted to beneficiaries of the programme referred to in the caput of this article, until June 30, 2000 for the financing of this provisional measure, subject to provisions of the final part of the art. 1st in §1 of art. 4.
Art. 15. Exceptionally, in the 1999 financial year, will do justice to the financing of this provisional measure, with effect from 1 May 1999, the students proved that no longer needy benefit from integral or partial scholarships granted by the institutions referred to in art. 4 of law No. 9732, 1998, value corresponding to the previously received scholarship.
Sole paragraph. The financing of the caput of this article shall not apply the provisions of the final part of the art. 1 and in paragraph 1 of art. 4.
Art. 16. Is sealed, from the publication of this provisional measure, the inclusion of new beneficiaries in the Education credit program that deals with law No. 8436, of 1992.
Art. 17. Get convalidados the acts performed on the basis of provisional measure no. 1,972-16, of 28 July 2000.
Art. 18. This provisional measure shall enter into force on the date of its publication.
Brasília, 28 August 2000; 179 of independence and 112 of the Republic.
Fernando henrique cardoso, Pedro Malan Paulo Renato Souza Waldeck Ornélas Martus Tavares

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