Provisional Measure No. 1985, 06 April 2000

Original Language Title: Medida Provisória nº 1.985, de 06 de abril de 2000

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Get a Day Pass for only USD$19.99.
## #MPV-001985-0-026-06-04-2000 @ @ @ provisional measure no. 1,985-26, of 6 April 2000.
Rules on financial transactions between the National Treasury and the entities that mentions, and other matters.
The Vice-President of the REPUBLIC, the Office of the President of the REPUBLIC, using the allocation that gives the art. 62 of the Constitution, adopts the following provisional measure, with force of law: Art. First Union is authorized to issue, in the form of a direct placement, in favor of the Banco Nacional de Desenvolvimento Econômico e Social-BNDES, Federal Securities debt securities, the characteristics of which shall be established by the Minister of State for finance.
§1 in contrast to securities issued in the form of this article, the BNDES, may be used at the discretion of the Minister of State of finance and, except as regards subparagraphs (II) and (III) of this paragraph, at the present value: I-securitized credits issued by National Treasury, registered with the Custody and financial settlement of securities-CETIP, for its present value , to be defined by the National Treasury Secretariat of the Ministry of finance;
II-credits held against the Itaipu Binacional against BNDES Participações S.A.-BNDESPAR;
III-National Treasury notes-NTN-P P-series;
IV-credits held against the Union in decorência: a) refinancing agreements concluded on the basis of law No. 8727, of 5 November 1993, by the BNDES;
b) agreement of purchase and sale of shares of Brazilian steel industry S.A.-SIDERBRÁS between the Union and BNDESPAR;
c) assumption, by the Union of debts of the Federal rail network S.A.-next to BNDES RFFSA, in accordance with the provisions of this provisional measure;
d) claims relating to lease agreements or public service grant awarded under the national privatization Program;
e) obligations of price equalization for the securitization process of agricultural law No. 9138, of 29 November 1995.
(2) in the event of use of credits referred to in item (II) of the preceding paragraph shall be ensured the Union minimum monthly remuneration equivalent to the Treasury account with the National Central Bank of Brazil, to be paid by the BNDES, on the last working day of each month.
§ 3 the BNDES can buy back the Union, at any time, the credits referred to in item II of § 1, assuming the restitution payment of goods and rights to your property, subject to the provisions of subsection 1 of § 1 in fine.
Art. 2 The assets and rights received by the Union, in accordance with paragraph 3 of the preceding article, may be object of barter with property and rights of entities included in the SNES or observed the relevant legislation be used to increase capital in these entities.
Art. 3 will be fully used for Federal Securities debt amortization payments made: I-by Itaipu Binacional and BNDESPAR, relating to credits received at BNDES;
II-by BNDES: a) the compliance with the provisions of paragraph 2 of art. 1;
b) repurchase operation provided for in § 3 of art. First, when in kind.
Art. 4th National Development Fund Is authorized to pay, at the sole discretion of the Ministry of finance, National Fund development bonds in physical form by the Union, with shareholdings of your property, deposited in the National Privatization Fund-DNF, which will be unlinked at the time of transfer.
Art. 5 Is the Union allowed to Exchange shareholdings owned by shareholdings held by BNDESPAR, provided that the operation does not affect the ownership of the Union in the companies involved in the Exchange.
Art. 6. The price of the shareholdings to be exchanged in the form of the previous articles shall not be more than, in the case of open society, the average price in week prior to drawing up the swap instrument or, in the case of shares without quotation on stock markets, the value of assets contained in the last balance sheet or special balance.
Art. 7 dealing with operations the previous articles, other than those provided for in art. 4, shall not exceed, in aggregate, the R$ limit 10.000.000.000 .00 (10 billion dollars).
Art. 8 Is the Union allowed to refinance the operation contemplated in art. 8 of law No. 9639, of 25 May 1998, observing the following conditions: (I)-deadline: 10 years;
II-payment: in a lump sum at the end of ten years from the date of conclusion of the contract of refinancing;
III-monetary update: updated and charged monthly based on the variation of the general price index-Internal Availability (IGP-DI), calculated by the Getúlio Vargas Foundation, or other content that comes to replace it.
§1 the INSS is authorized to offer collateral to refinancing operation floating in this article, represented by assets and rights members of its active, in particular claims against local authorities, foundations and public enterprises and federal entities whose actions have been deposited in the FND, to be defined jointly by the ministries of finance and welfare and Social Assistance.
(2) the operation of this article, can the Union, at the discretion of the Minister of State for finance, for partial repayment or debt settlement, receive in payment goods and asset rights of INSS, responding to SOCIAL SECURITY, in the case of claims against third parties, by the existence of the credit and solvency of the debtor.
(3) can the INSS contain representative of the Union for the receipt of the data credits in payment.
§ 4 The Federal and foundations may pay the obligations transferred to the Union, as a result of the provisions of paragraph 2, with assets and rights of their assets, leaving the Union Alternatively authorized to promote, at the sole discretion of the Minister of State of finance, low credit either in full or in part, if necessary to maintain the financial health of the institution.
§ 5 The federal public companies and entities whose actions have been deposited in DNF may, at the sole discretion of the Minister of State of finance, pay the duties transferred to the Union, as a result of the provisions of paragraph 2, with securitized loans, Agrarian debt securities registered with the COMPANY DOES or claims arising from lease agreements or public service grant awarded under the PND , maintained, at a minimum, if applicable, the economic equivalence of reciprocal claims.
§ 6 the Union can use their credits arising from the operation of this article credit for capital increase of the respective debtor entity.
Art. 9 Is the Union allowed, at the discretion of the Minister of finance, to the limit of R$ .00 19.000.000.000 (nineteen billion reais), to: I-acquire credits that the Brazilian power plants S.A.-ELETROBRÁS holds against the Itaipu Binacional for the refinancing contracts signed on 2 September 1997 and may be used for payment: a) property and rights members of the Global Reversion reserve (RGR) of law No. 5655 , 20 May 1971;
b) resources collected by way of payment for the use of public art is about. 7 of law No. 9648, of 27 May 1998;
c) Federal Securities debt securities, whose characteristics are defined in Act of the Minister of finance;
II-receive credit for dealing with the item I of this article, in restitution in Union's credit payment arising from: a) the refinancing of debt owed by ELETROBRÁS and by companies of ELETROBRÁS system;
b) participation in the capital stock of ELETROBRÁS;
c) other obligations of ELETROBRÁS system companies and ELETROBRÁS.
(1) the operations referred to in this article shall be made by the present value of the claims and obligations involved in them.
§ 2 The credits acquired by the Union in terms of the caput of this article may be transferred to BNDES, through sale or barter for goods and rights.
Art. 10. the Union Is authorized to assume the obligations of the Federal rail network S.A.-RFFSA, represented by balances of financing contracts with BNDES, to the amount of R$ .00 210,000,000 (210 million dollars).
(1) the obligations referred to in the caput shall audit object by the Federal Secretary of the Finance Ministry's Control.
§ 2 If you have already been the assumption, any difference found by the Federal Secretariat of control will be paid to the Union, in kind or in goods, by the RFFSA, within thirty days.
(3) the Union Is authorized to issue Public Federal Securities debt securities in payment of the obligations referred to in the caput or securitize the obligations assumed, in both cases with features to be defined in Act of the Minister of finance.
Art. 11. In contrast to the assumption of the debts of the previous article, the RFFSA will transfer to the Union, at face value, claims relating to contracts or lease of public service concession contracts concluded within the framework of the PND.
Art. 12. Is authorised the appointment of Auditors between BNDES credits referred to in the caput of the art. 10 and credits held by the Union against the BNDES, including those transferred to the Union under this provisional measure.

Art. 13. Is the Union allowed to acquire the RFFSA credits relating to lease agreements or public service grant awarded under the PND, at face value, up to the limit of R$ .00 2,097,956,000 (two billion, 97 million, 956,000 dollars), using in payment, up to the amount of R$ .00 1,789,956,000 (one billion, 789 million , 956,000 dollars), financial Treasury bills-LFT, and, up to the amount of R$ .00 308,000,000 (308 million dollars), certificates issued by the National Treasury.
(1) the characteristics of financial Treasury bills-LFT and certificates to be issued in compliance with the provisions in the caput shall be defined in Act of the Minister of finance.
(2) for the purposes of the formalization of the contract with Union to perform the operation referred to in the caput of this article shall not apply to the RFFSA, in settlement and legal impediments requirement regarding proof of defaulting again with organs or entities of the Federal public administration, directly or indirectly, except with the social security system.
Art. 14. Is the Union authorized to receive certificates in the previous article in total or partial payment of the public debt of responsibility of States and the Federal District before the Union concerning contracts awarded under the terms of law No. 9496, of 11 September 1997, and of provisional measure no. 1,983-48, this date.
Sole paragraph. The application of the provisions in the caput shall observe the following criteria: I-50% about the flow of benefits of the refinancing and to amortization of debt balance graphic account;
II-50% on the total stock of debt.
Art. 15. Is the Union allowed to acquire credits from Companhia Docas do Rio de Janeiro-CDRJ relating to lease agreements or public service grant awarded in the framework of the SNE, using in payment financial Treasury? LFT: I-at face value, up to the limit of R$ .00 162,000,000 (162 million dollars);
II-by aquivalência, up to the limit of R$ .00 80,000,000 (80 million dollars).
Sole paragraph. The characteristics of financial Treasury bills-LFT to be issued in compliance with the provisions of this article, as well as the conditions of operation, shall be defined in Act of the Minister of finance.
Art. 16. Is the Union authorized until 31 December 2000, the purchase of the States and the Federal District Government participation-related credits mandatory in terms of royalties, cameos and financial compensation for the exploitation of water resources for electric power, oil and natural gas.
(1) the authorization referred to in the caput is limited to the amount properly designed by the national petroleum Agency-ANP or by the National Electric Energy Agency (ANEEL), as the case may be, against any binding or compulsory transfer budget.
§ 2 will purchase only the values distributed through regulatory agencies mentioned in the previous paragraph.
§ 3 the Union will use in payment Financial Treasury Certificates-CFT with features defined in Act of the Minister of finance.
§ 4 The CFT received by Units of the Federation, as a result of the operation of the caput, shall, obligatorily, be used for the payment of debt to the Union and its entities or on pension fund capitalization, at the discretion of the Minister of finance.
§ 5 the acquisition of the caput may only be performed once for each State and the Federal District.
Art. 17. Is the Union allowed to register, in centralized system of custody acquired receivables in the form of the law, which can be securitized to third parties transfer purposes.
Sole paragraph. Unworthy of credit entities object of caput shall be qualified, by the centralized system of custody, such as registers of assets in favor of the Union.
Art. 18. The resources in kind received by the Union as a result of the provisions of arts. 9 to 16 of this provisional measure must be used fully in Federal Securities debt amortization.
Art. 19. The debit balance of the account of oil derivatives and Alcohol, established by law No. 4452, from 5 November 1964, includes monthly remuneration, calculated: I-for the period of January 1, 1992 to June 30, 1996 based on the index of reference Unit;
II-from July 1, 1996, by applying the monthly Taxa Referencial-TR, disclosed by the Central Bank of Brazil.
Art. 20. the Union Is authorized to issue, in favor of Petróleo Brasileiro S.A.-Petrobras, Federal Securities debt securities, the characteristics of which shall be established by the Minister of finance, to guarantee the payment of any outstanding balance of the account of oil, derivatives and Alcohol, found in June 30 2003.
(1) the total value of the securities referred to in the caput is limited to R$ 5.819.364.988 .37 (five billion dollars, 819 million 364,000, real and 988 37 cents), equivalent to the debit balance of the account of oil derivatives and Alcohol, on 30 June 1998.
§ 2 it shall be adjusted monthly according to the reduction of the debit balance of the account.
Art. 21. Is the Union authorized to settle the debit balance of the account of oil, derivatives and Alcohol through securitization of debt, as defined by the Minister of State of finance, in this case, cancelled, automatically, the securities issued as collateral in the form of art. 20. Art. 22. The debit balance of the account of oil derivatives and Alcohol, on 30 June 1998, will be the subject of audit by the Federal Secretariat of control, from the amounts already approved by the defunct National Department of fuels, for the period prior to April 1, 1992.
Sole paragraph. Completion of the audit, the amount of the securities used as collateral pursuant to art. 20, or securitized receivables in the form of art. 21, will be set to the new value.
Art. 23. Any credit balance of the account of oil derivatives and Alcohol will be collected on a monthly basis to the National Treasury single account.
Art. 24. the Union Is authorised at the discretion of the Ministry of finance, to promote meeting of accounts between the debit balance of the account of oil derivatives and Alcohol and obligations of Petrobras to the Union, including tax nature.
Art. 25. Is the Union allowed to securitize, under conditions to be defined by the Minister of State of finance, the following debts with Caixa Economica Federal-CEF: I-the debit balance of the financing agreements signed between the extinct National Bank of Housing-BNH and the National Department of works and sanitation-DNOS, up to the amount of R$ .00 396,000,000 (396 million dollars) , 30 October 1998;
II-the value compensated, unless, by the Union, the CEF, as a successor of the BNH for the bonuses granted under Decree-Law No. 2164, of 19 September 1984, up to the amount of R$ .00 72,200,000 (72 million and 200,000 dollars), position of 30 November 1998.
(1) the Ministry of finance, through the Federal Secretariat, will assess the accuracy of the values relating to the obligations of this article.
§ 2 The securitization contracts should contain prediction that any difference arising from the evaluation of the preceding subparagraph: (I) in favor of the CEF, will be the subject of new securitization under the conditions laid down by the Minister of State of finance;
II in favor of the Union, will be debited to the account of? Bank Reserves? the EFC, through the Central Bank of Brazil, through the financial institution's prior notificão with the subsequent transfer to the National Treasury of the corresponding value, which should be fully used in Federal Securities debt amortization.
Art. 26. the Union Is authorised to take responsibility, in the face of the CEF, the obligations arising from the migration of participants of pension Association of employees of the defunct BNH-PREVHAB, to the Foundation of the Federal Economiários-FUNCEF or to the National General Insurance Company-SASSE, until the amount of R$ .00 1,136,000,000 (one billion, 136 million dollars), 30 November 1998 , including through securitization, under conditions to be defined by the Minister of State for finance.
(1) the transfer to the EU of the patrimonial assets ceded to the EFC shall be the end of the migration process, concerning individual bookings of PREVHAB participants who adhered to the regulation benefit plans-REPLAN the Foundation of Federal Economiários-FUNCEF or who opted for special Benefits Plan established by the CPMP by the Companhia Nacional de Seguros Gerais-SASSE.
(2) the implementation of the provisions of the main clause will be preceded the approval of corresponding value upon opinions to be drawn up by at least two notorious companies specializing in actuarial advice, to be hired by the CEF, whose conclusion must be confirmed by the Secretary of the Ministry of social security Pension and Social Assistance and private insurance Superintendence of the Ministry of finance within the framework of their respective competences.

Art. 27. the Union Is authorized to issue, in the form of a direct placement, in favor of the CEF, up to the limit of R$ .00 13.000.000.000 (thirteen billion reais), Federal Securities debt securities, the characteristics of which shall be established by the Minister of State for finance.
Sole paragraph. In contrast to securities issued in the form of caput, the CEF may use claims arising from contracts concluded based on law No. 8727, of 5 November 1993.
Art. 28. Is the Union authorized to assume and securitize, even the amount of R$ .00 250,000,000 (250 million dollars), under conditions to be defined by the Minister of State of finance, the financial obligations laid down in the financing agreement signed, on 24 September 1996, between the Companhia Docas do Rio de Janeiro and the BNDES in order to implement the project of enlargement and modernization of the port of Sepetiba.
Sole paragraph. The Credit Union, arising from the assumption referred to in the caput of this article, shall be paid with the binding of receivables of the Companhia Docas do Rio de Janeiro, in anticipation of these, or with future increases of its capital.
Art. 29. The arts. 1 and 6 of law no 9364, of 16 December 1996, shall take effect as follows:? Art. 1................................................................................................................................................................................................................................................................................................ § 1 the debts referred to in this article shall be object of the Federal Secretariat audit control of the Ministry of finance.
§ 2 the amount set out in item II of this article will be updated until the date of effective payment, to the variation of general price index-Internal Availability-IGP-DI, plus interest of 6% per year.? (NR)
? Art. 6 the settlement of the debts referred to in item II of art. 1 of this Act shall be through securitized claims of responsibility from national treasure, with defined characteristics the sole discretion of Minister of State for finance.
Sole paragraph. The REFERENCE should give full, rasa and total discharge of all obligations of the RFFSA corresponding to the value mentioned in art. 1, item II, of this law, and must express withdrawal of all actions filed for debits of the RFFSA.? (NR)
Art. 30. Is the Union authorized to assume and the Caixa Econômica Federal, to the amount of R$ .00 80,000,000 (80 million dollars), under conditions to be defined by the Minister of State of finance, the financial obligations of the Indústria de Material Bélico do Brazil-IMBEL before the National Social Security Institute-INSS.
Art. 31. It is authorized to reimburse the Union Centrais Elétricas Brasileiras S.A.-ELETROBRÁS, up to the amount of R$ .00 8.861.000.000 (eight billion, 861 million reais), position on 30 November 1999, corresponding values: I-the cost of surplus power generation nucleoelétrica for the Angra I plant, particular with respect to the cost of hydroelectric power generation for similar capacity plant;
II-additional investments made in the Angra I Plant, from January 1, 1985;
III-the expenses incurred, with own resources in the construction of power plants Angra II electric Centre and III, until 31 December 1980;
IV-the excess cost of building the Angra II plant, this surplus determined in relation to the cost of a hydroelectric power plant of the same generating capacity.
Art. 32. The refund referred to in the preceding article shall be effected by: I-disclaimers of responsibility commitments of FURNAS Centrais Elétricas S.A.,-recorded at the registry of the national treasure, arising from debt refinancing agreements signed by the Federative Republic of Brazil;
II-securitization of the remaining balance, as defined by the Minister of State of finance; and III-cancellation of the Credit Union has against FURNAS as a successor of the defunct Nuclear Companies Brasileiras S.A.-NUCLEBRÁS, pursuant to art. 1 of law No. 7862, of 30 October 1989.
Art. 33. Is authorised to acquire the ELETROBRAS share control of Companhia Energética do Amazonas-CEAM.
(1) For the purpose laid down in this article, ELETROBRÁS will broaden their participation in the share capital of CEAM, through the acquisition of voting common shares and preferred shares owned by the State of Amazonas, or by process of the company's capital increase, with the acquisition of rights of first refusal on subscription of shares corresponding to the participation of the State.
(2) for the purchase authorized in this article, ELETROBRÁS will use the Reserve Fund Global reversion, pursuant to paragraph 4 of art. 4 of law No. 5655, of 20 May 1971, as amended by law No. 8631, 4 March 1993, as amended by law No. 9496, of 11 September 1997.
Art. 34. Effective acquisition of the controlling interest, as provided for in the preceding article, the CEAM will be included in the SNES, and the ELETROBRÁS implement economic character adjustments-financial, administrative and operational that are necessary for the privatization of the company, according to the norms of law No. 9491, of 9 September 1997.
Art. 35. The resources derived from the sale of the equity interest of ELETROBRÁS in CEAM, do not apply the provisions of the art. 13 of law No. 9491, of 1997, and shall be deposited at the bottom of the Global rollback, even the amount used to purchase authorized by art. 33. Art. 36. Is authorized under the ELETROBRAS SNE, to promote the corporate restructuring of its subsidiaries directly or indirectly working in Amazonas State, by Division operations, merger, incorporation, capital reduction or establishment of wholly-owned subsidiaries, including the creation of new companies, in order to segregate the business activities of generation, transmission, distribution and sale of electricity.
Art. 37. The arts. 12 and 13 of law No. 3890-April 25, 1961, amended by law No. 4400, of August 31 1964, shall take effect as follows:? Art. 12.................................................................................................................................... (1) the Board of Directors shall be composed of nine members, elected by the General Assembly, which shall designate one of them the President, all with management that may not exceed three years, admitted the re-election, so constituted: I-seven Councillors chosen from among notable Brazilian knowledge and experience, moral integrity and flawless reputation, appointed by the Minister of State for mines and energy;
II-a Councillors appointed by the Minister of State for planning, budgeting and management, in the form of art. 61 of law nº 9649, of 27 May 1998;
III-a Councillor elected by minority shareholders, individuals and legal entities of private law.
(2) the President of ELETROBRÁS will be chosen among the members of the Board of Directors.
(3) the Executive Board shall be composed of the President and directors.
§ 4 the President and the directors may not exercise functions of direction, management or consulting in private utilities economy of electric energy, or private-law undertakings operate connected anyway to the electricity sector, except in the subsidiaries and concessionary companies under control of the States in which the ELETROBRÁS has equity interest, where can exercise positions in Board of Directors , in compliance with the provisions of law No. 9292, 12 July 1996, when the perceiving of remuneration? (NR)
? Art. 13. The Audit Committee, permanent consists of five members and their alternates, elected by the annual general meeting, all Brazilians and domiciled in the country, observed the requirements and impediments laid down by the Brazilian corporate law, shareholders or not, one of which will be elected by the holders of common shares and another by the minority holders of preferred shares in separate votes.
(1) Among the members of the Supervisory Board, one will be appointed by the Minister of State of finance, as a representative of the national treasure.
(2) In the event of a vacancy, waiver, estoppel or unjustified absence at two consecutive meetings, will be the Member of the Supervisory Board replaced, until the end of the mandate, by the respective Deputy.
(3) the term of Office of the members of the Audit Committee is a year allowed re-election? (NR)
Art. 38. Is authorised to promote Union through the Ministry of finance, credit accounts date from operations carried out with funds from the defunct export financing fund-FINEX with obligations of Export credit insurance-SCE, in reais equivalent to US $893,414, 735.32 (893 million, 414,000, 735 dollars and 32 cents) , determined by the National Treasury Secretary, by Banco do Brazil S.A. and the IRB Reinsurance S.A., Brazil in November 30 1997.
Art. 39. Is the Union allowed to acquire credits from Companhia Docas do Sao Paulo State-CODESP relating to leases or contracts of public service concession contracts concluded within the framework of the SNE, observed the economic equivalence, using in payment financial Treasury bills-LFT, up to the limit of R$ .00 40,000,000 (40 million dollars).

§ 1 the characteristics of the financial Treasury bills-LFT to be issued in compliance with the provisions in the caput of this article, as well as the conditions of operation, shall be defined in Act Minister of State of finance.
Art. 40. Is the Union allowed to acquire credits from Companhia Docas do Espirito Santo-"relating to the lease or granting public service contracts concluded within the framework of the SNE, observed the economic equivalence, using in payment financial Treasury bills-LFT, up to the limit of R$ .00 6,100,000 (six million and 100,000 reais).
(1) The amount referred to in the caput of this article, to the extent R$ .00 2,000,000 (two million dollars) should be used in the negotiation of debt "by the National Social Security Institute-INSS, for payment of the initial installment.
(2) the characteristics of financial Treasury bills-LFT to be issued in compliance with the provisions in the caput of this article, as well as the conditions of the operation will be defined in Act of the Minister of State of finance.
Art. 41. the Union Is authorized to hire, at its sole discretion, internal loans with the DNDES, up to the amount equivalent to US $ 11,000, 000.00 (11 million dollars) for the purchase of imported equipment in the scope of Consolidation and modernization program of the Academic infrastructure of higher education institutions and its university hospitals, of interest to the Ministry of education.
Art. 42. Get convalidados the acts performed on the basis of provisional measure no. 1985-25, of 9 March 2000.
Art. 43. This provisional measure shall enter into force on the date of its publication.
Art. 44. Is repealed law No. 9358, 12 December 1996.
Brasília, 6 April 2000; 179 of independence and 112 of the Republic.
Marco antÔnio de oliveira maciel Vanamamalai Cruz Quintão Pedro Malan Eliseu Padilha Waldeck Ornélas Helium Vitor Ramos Filho Guilherme Gomes Days

Related Laws