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

RESOLUTION # 48, DE 2007

Disposes on global limits for credit operations external and internal of the Union, its municipalities and other entities controlled by the federal public power and sets limits and conditions for the granting of Union guarantee in external and internal credit operations.

The Federal Senate resolves:

Art. 1º Subordinate to the standards set out in this Resolution the internal credit operations and external to the Union, including the granting of guarantees.

CHAPTER I

DAS DEFINITIONS

Art. 2º Consider, for the purposes of this Resolution, the following definitions:

I-Union: the respective direct administration, the funds, the authorities, the foundations and the companies dependent state ;

II-dependent state company: Union-controlled company, which it has received, in exercise previous, financial resources of its controller intended for the payment of expenses with personnel, of cost in general or of capital, excluded, in the latter case, those arising from increased shareholding, and have, in the exercise of current, budgetary authorization to receive financial resources with identical purpose ;

III-consolidated debt: total amount, ascertained without duplicity, of the financial obligations of the Union, including those arising from the issuance of securities, assumed by virtue of laws, contracts, arrangements or treaties, of carrying out credit operations for amortization within a period of more than 12 (twelve) months, of the judicial precatories issued to from May 5, 2000 and unpaid during the implementation of the budget in which they were included and of the credit operations which, although of a maturity of less than 12 (twelve) months, have found as revenue in the budget.

§ 1º From the financial obligations of the Central Bank of Brazil, only be included in the debt consolidated Union those arising from the issuance of securities of their responsibility in the market.

§ 2º Consolidated debt does not include the existing obligations between the Union, here considered to be direct administration, and their respective funds, municipalities, foundations and dependent state enterprises or between these, except the National Treasury securities in the portfolio of the Central Bank of Brazil.

Art. 3º Constitution credit operation, for the purposes of this Resolution, commitments taken with creditors located in the country or abroad, on the grounds of mutual benefit, opening of credit, issuance and accepted title, financed acquisition of goods, advance receipt of values from sale to term of goods and services, lease mercantile and other similar operations, including with the use of financial derivatives.

Single Paragraph. They equiped themselves with credit operations:

I-early receipt of company values in which the Public Power detain, direct or indirectly, the majority of the social capital entitled to vote, save profits and dividends, in the form of the legislation ;

II-direct assumption of commitment, debt confession or assorted operation, with supplier of goods, goods or services, upon issuance, accepted or aval of credit securities ;

III-obligation assumption, without budgetary authorization, with suppliers for payment to posteriori of goods and services.

Art. 4º Understand for net current revenue, for the effects of this Resolution, the sum of tax revenue, contributions, heritage, industrial, agrolivestock, services, current transfers and other revenue also currents, deducted:

I-the values transferred to the States and Municipalities by constitutional or legal determination, and the contributions mentioned in point to of the inciso I and the inciso II of the art. 195 and at art. 239 of the Constitution ;

II-the contribution of the servers to the cost of your welfare system and social assistance and the revenue from the financial compensation cited in § 9º of the art. 201 of the Constitution

§ 1º Will be computed in the calculation of net current revenue the values paid and received in due to the Supplementary Act No. 87 of September 13, 1996 and of the fund provided for by the art. 60 of the Act of Transitional Constitutional Provisions.

§ 2º The net current revenue will be ascertained by adding the revenues raised in the reference month and in the 11 (eleven) previous months, excluded the duplicities.

CHAPTER II

DAS VEDATIONS

Art. 5º It is vetoed to the Union:

I-the anticipated receipt of company values in which the Public Power detain, direct or indirectly, the majority of the social capital entitled to vote, save profits and dividends, in the form of the legislation ;

II-the direct assumption of commitment, debt confession or assemelated operation, with supplier of goods, goods or services, upon issuance, accepted or aval of credit securities, not by applying this fence to dependent state-owned enterprises ;

III-the assumption of obligation, without budgetary authorization, with suppliers for payment to posteriori of goods and services ;

IV-the granting of any subsidy or exemption, reduction of the basis of calculation, granting of credit presumed, incentives, amnesties, remission, reductions in aliquots and any other tax, tax or financial benefits, not authorized in the specific form of law governing exclusively the retrolisted materials or the corresponding tribute or contribution.

Single Paragraph. Finding itself infringing upon the provisions of the caput, and while not promoting the cancellation or full amortization of the debit, the debts will be considered overdue for the effect of the comic of the arts boundaries. 6º and 7º and the Union shall be prevented from carrying out operation subject to this Resolution.

CHAPTER III

OF LIMITS AND CONDITIONS FOR REALIZATION OF CREDIT OPERATIONS

Art. 6º The fulfillment of the limit referred to in the inciso III of the art. 167 of the Constitution is to be proven by ascertaining credit operations and capital expenditure as per the criteria set out in art. 32, § 3º, of Supplementary Law No. 101 of May 4, 2000.

§ 1º For the purposes of this Article, you will separately check the previous year and the current exercise, taking place on the basis of:

I-in the previous financial year, the revenue from credit operations in it and the expenses of capital in it performed ; and

II-in current financial year, revenue from credit operations and constant capital expenditure of the budget law.

§ 2º It will not be computed as capital expenditure, for the purposes of this article:

I-the amount relating to the expenses incurred, or constants of the budget law, as per the case, in fulfillment of the return to which you refer to art. 33 of the Supplementary Law No. 101, 2000 ;

II-the expenses incurred and those provided for representing loan or financing to contributor, with a view to promoting tax incentive, having on the basis of competence of the competence of the ente of the Federation, if it results in the decrease, directly or indirect, of the burden of this ; and

III-the expenses incurred and those provided for representing financial inversions in the form of shareholding in companies that are not controlled, directly or indirectly, by the Union or by the rest of the Federation, in excess of those arising from participation in international financial bodies.

§ 3º The loan or financing referred to in the inciso II, § 2º, of this article, if granted by financial institution controlled by the Union, will have its value deducted from the capital expenditure.

§ 4º The revenue from credit operations effected in the context of public debt management federal furnishings will only be considered in the financial year in which the respective expense is carried out.

§ 5º The provisions of § 4º only apply if, up to the realization of the respective expenditure, the revenue of the credit operations to be deposited in sub-account of the Union Single Account at the Central Bank of Brazil.

§ 6º The anticipation operations of budget revenue will not be computed for the purposes of this article, provided that settled in the same financial year in which they are contracted.

Art. 7º The Union's internal and external credit operations will observe the following limits:

I-the global amount of credit operations carried out in a financial year may not be higher than 60% (sixty per cent) of the net current revenue, defined in art. 4º;

II-the amount of consolidated debt will not be able to exceed the ceiling set by the Federal Senate, as per specific resolution.

§ 1º The limit of which treats inciso I, for the case of credit operations with anticipated release for more than one financial year, it will be calculated taking into consideration the annual ticket schedule, projecting net current revenue according to the criteria set out in § 3º of this article.

§ 2º The provisions of this Article shall not apply to the refinancing operations of the principal of debts and to collateral operations, with the limit for the latter being defined by the art. 9º.

§ 3º The projections of net current revenue will be obtained by applying for factor of update, to be fixed by the Ministry of Finance, on the net current revenue of the period 12 (twelve) months finder in the reference month.

Art. 8º The contracts for external credit operations may not contain any clause:

I-of a political nature ;

II-an attack on national sovereignty and public order ;

III-contrary to the Constitution and Brazilian laws ; and

IV-which involves automatic compensation of debits and credits.

Single Paragraph. Any disputes between the Union or its authorities, on one side, and the creditor or leader of another, arising from the contract, shall be settled before the Brazilian court or submitted to arbitration.

CHAPTER IV

OF LIMITS AND CONDITIONS FOR GRANTING OF GUARANTEES

Art. 9º The amount of guarantees granted by the Union shall not exceed 60% (sixty per million) of net current revenue.

§ 1º Consideration shall be given, for the purposes of this article, the guaranty and aval granted directly or indirectly by the Union, in credit operations, including with aval fund resources, the assumption of credit risk on credit lines, export credit insurance and other guarantees of a similar nature that they represent commitment to financial obligation or contractual obligation.

§ 2º For the purposes of verification of the limit service, the ascertaining of the amount of guarantees granted will be effected at the end of each financial year on the basis of the debtor balance of the secured financial obligations.

§ 3º Outdated the limit, will be the Union prevented from granting guarantees, directly or indirectly, up to the elimination of excess.

§ 4º The limit may be elevated temporarily, in exceptional character, at the request of the Power Executive, on the basis of justification submitted by the Ministry of Finance.

Art. 10. The Union shall only provide assurance to whom it meets the following requirements, in what couber:

I-existence of endowment in the budget law for the admission of resources, the docket of counterpart, as well as the charges arising from the operation or, in the case of state-owned enterprises, inclusion of the project in the investment budget ;

II-demonstration:

a) of the adimplement as to the payment of tributes, loans and financing due to the Union, as well as on the provison of previously received resource accounts of it ;

b) of compliance with minimum constitutional limits on spending on education and health ;

c) of the observance of the limits on consolidated and furnished debts, of credit operations, including by anticipation of revenue, of enrollment in remains to be paid and of total expense with personnel ;

d) of compliance with commitments arising from debt refinancing contracts or tuning programs affirmed with the Union ; and

e) of the fulfilment of the other devices of the Supplementary Law No. 101, 2000 ;

III-contragarantia that covers the full rear of the financial costs arising from the coverage of the inadimpletion ; and

IV-payment or compensation of the administrative expenses arising from the negotiation and formalization of contract instruments.

§ 1º The contracts should provide for the timely and periodic provision, by the beneficiary entity, of the balances of the guaranteed bonds.

§ 2º In the guarantees granted by the Union in the insurance modality, they will be considered to be contragarantias sufficient premiums paid by insured persons, provided that they are calculated on the basis of actuarial criteria in such a way as to cover the risk of default of the guaranteed obligations.

§ 3º It will not be required to contract against federal public authorities, foundations or public companies, whose capital belongs in full to the Union.

CHAPTER V

DOS PLEITOS FOR THE REALIZATION OF CREDIT OPERATIONS

Art. 11. Subject to the specific approval of the Federal Senate the external credit operations, the Union's liability, excluded the Central Bank of Brazil, as well as guarantees granted by the Union to operations of the same kind, including addition to contract for external credit operation providing for the raising of the borrowed or financed values or the reduction of the payment terms.

Single Paragraph. Requests for this article are to be forwarded to the Federal Senate, instructed with:

a) explanatory statement of the Minister of State of the Farm, accompanied by pronouncements from the Attorney General of the National Farm and the Secretary of the National Treasury ;

(b) proof of compliance with the applicable devices contained in the Supplementary Act No. 101, of 2000 ;

c) analysis of the costs and economic and social benefits of the project to be funded by the operation of credit ;

d) competent legislative authorization ;

e) voucher that the program or project is included in the Pluriannual Plan Act ;

f) proof of inclusion in the budget law of the appropriations required for the admission of resources external, payment of the charges of the operation, as well as the national counterpart or signal of the operation in dealing with the financing of the purchase of goods and services, when it is cabin ;

g) proof of the inclusion of the programs and projects, in the case of state-owned enterprises, in the Budget of Investments ;

h) estimative schedule of execution of the program, project or acquisition of goods and services ;

i) financial analysis of the operation accompanied by the schedule of expenditon and evaluation of sources financing alternatives ;

j) information on the fulfillment of the provisions in the inciso III of the art. 167 of the Constitution and of the other borrowing limits set by the Federal Senate, in what couber ;

l) information on the borrower's finances highlighting the amount and timeline of internal debt and external ;

m) proof of compliance with the conditions laid down in art. 10 and in this article, in the case of the granting of guarantees ; and

n) other information that enables the Federal Senate to know perfectly the operation of credit.

Art. 12. Applications for authorization for external credit operations linked to the acquisition of goods or the hiring of services, arising from specific international agreement approved by the National Congress in the event of a bidding waiver, pursuant to the inciso XIV of the art. 24 of Law No. 8,666 of June 21, 1993, should be forwarded accompanied by technical and legal advice from the contracting entity, discriminating against the economic advantages for the Public Power with regard to the price of the acquisition and the financial conditions of the financing.

Art. 13. They are authorized, in a global manner and under this Resolution, the external credit operations of a financial nature of interest of the Union, its municipalities, foundations and dependent state enterprises, which refers to the inciso V of the art. 52 of the Constitution, of non-refundable character, thus characterizing international and other donations of the species.

Single Paragraph. The Ministry of Finance will inform the Federal Senate, semester, of the operations referred to in the caput of this article contracted during the period, including information on compatibility with the Pluriannual Plan, the benefits economic or social consequences arising, the existing budgetary allocations for the allocation of resources and for eventual financial consideration of liability of the beneficiary.

Art. 14. Applications for authorisation for the hiring of external credit operations, upon issuance of Republic securities in the international financial market, which are not entered into programmes approved in specific resolution of the Federal Senate should be referred to the Federal Senate, informing the maximum amount of the emissions, their objectives, the targeting of resources and information as to the existence of budget forecasting for the expenses arising from operations.

§ 1º The Minister of State for Finance will refer to the Federal Senate, at the end of each quarter civil, report of the emissions carried out, and the position of the balance of the authorization granted.

§ 2º The non-compliance with the time limit laid down in § 1º shall entail the immediate suspension of the permit granted, until the relevant information is forwarded.

CHAPTER VI

DAS FINAL PROVISIONS

Art. 15. This Resolution shall enter into force on the date of its publication.

Art. 16. The Resolutions n^the 96, 1989, and 23, of 1996, of the Federal Senate are repealed.

Federal Senate, on December 21, 2007.

Senator Garibaldi Alves Filho

President of the Federal Senate

Attachment (s)