Provisional Measure No. 1,954-23, Of 3 February 2000

Original Language Title: Medida Provisória nº 1.954-23, de 3 de Fevereiro de 2000

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PROVISIONAL MEASURE # 1.954-23, OF February 3, 2000.

Institution the Special Financing Program to combat the effects of estimation in the area of acting of the North-East Development Superintendency-SUDENE, and gives other providences.

THE PRESIDENT OF THE REPUBLIC, in the use of the attribution that confers you the art. 62 of the Constitution, adopts the following Interim Measure, with force of law:

Art. 1º It is hereby instituted the Special Funding Program to rural producers who have their activities impaired by the effects of the estimation that assorts the acting area of the North East Development Superintendency-SUDENE.

§ 1º The Special Financing Program that treats this article will be operated by the Bank of Northeast Brazil S.A. and will count on features of R$ 450,000,000.00 (four hundred and fifty million reais) coming from the following sources:

I-R$ 280,000,000.00 (two hundred and eighty million reais) of the North East-FNE Financing Constitutional Fund, established by Law No. 7,827 of September 27, 1989 ;

II-R$ 120,000,000.00 (one hundred and twenty million reais) of the Amparo Fund to Worker-FAT, instituted by Law No. 7,998 of January 11, 1990 ;

III-R$ 50,000,000.00 (fifty million reais) of programs run by the National Bank for Economic Development and Social-BNDES.

§ 2º Fifty per cent of the resources allocated to the Special Financing Program that treats this Provisional Measure should be earmarked for the mini and we have been sinking producers who explore areas of up to four rural modules and, cumulatively, be framed in the criteria applicable to the National Agricultural Strengthening Program-PRONAF.

§ 3º Based on the annual gross revenue obtained in the previous financial year, in rural activity, it is considered, for the purposes of this Provisional Measure:

I-major producer, the one with revenue exceeding R$ 500,000.00 (five hundred thousand reais) ;

II-medium producer, the one with revenue exceeding R$ 80,000.00 (eighty thousand reais) and up to R$ 500,000.00 (five hundred thousand reais) ;

III-mini and small producer, the one with revenue equal to or less than R$ 80,000.00 (eighty thousand reais).

Art. 2º The rural financing contracted to the ampairing of the Special Financing Program will have the following conditions:

I-interest:

a) of three per cent per year, in the custi operations ;

b) of six per cent per year, in investment financing ;

II-deadlines:

a) of up to four years, included up to two of deficiency, in the custio operations ;

b) of up to twelve years, included up to four of deficiency, when it comes to credits for investments ;

III-limits of funding:

a) mini and small producers: R$ 15,000.00 (fifteen thousand reais) ;

b) average producers: R$ 35,000.00 (thirty-five thousand reais) ;

c) major producers: R$ 50,000.00 (fifty thousand reais).

Single Paragraph. The funding given to the mini and small rural producers will have rebates of fifty per cent on the depreciation of the plots of the credit used.

Art. 3º Stay the federal official banks authorized to grant an extension of the maturity of rural credit operations contracted until May 13, 1998, by the two-year period, provided that the producer proves the loss of the revenue from the holding of his rural property, as a result of the effects of the estimation, and provided that the real estate is located in Municipalities that meets the requirements set out in the following article.

Single Paragraph. The administrators of the resources mentioned in § 1º of the art. 1º will adept the return of their credits to the new deadlines for return on extended funding in the form of the caput.

Art. 4º Will benefit from the object funding of the Program that treats this Provisional Measure the rural producers whose productive units are situated in Municipalities located in the area mentioned in the art. 1º, recognized in emergency in accordance with the legislation in force.

Art. 5º Will be of responsibility:

I-of the FNE, the rebate of fifty per cent of the main of the financing referred to in the single paragraph of art. 2º;

II-of the National Treasury, the differential between the interest rates set in the inciso I of art. 2º and the Long-term Interest Rate-TJLP, in the financials carried out with resources of the FAT and the BNDES.

Single Paragraph. In carrying out the funding for this Provisional Measure, federal financial officers will waiver the services commissions usually charged in the operations of the species.

Art. 6º In the periods of state prevalence of public calamity of Municipalities located in the polygon of the droughts, declared by the Executive Power, will be able to the competent federal public bodies, with their own resources, or complementing resources supplied by third parties, drill, install, equip, including with desalinators, recover and extend wells in urban and rural clusters that count on more than two hundred inhabitants, where there is no, within a radius of five kilometres counted to from the largest spatial concentration of dwellings, public sugar, course d?drinking water in availability for the normal consumption of residents and animals.

Single Paragraph. The works of which it treats the caput can be carried out in areas of public domain unavailable, of common use, regardless of the existence of title of ownership of the area.

Art. 7º For the purpose of the preceding article, it shall be the Executive Power authorised to purchase, receive in donation or disown, by social interest, the rural area which is necessary, regardless of its size, does not apply to the limit minimum set for the rural module.

Art. 8º For the purposes of which it treats art. 6º, state public powers, located in the polygon of the droughts, are allowed to raise areas of real estate, rural or urban, of unknown possession, upon publication of office of convocation of eventual owners or third parties interested in the area of which it is, observed the legislation of its own on return land.

Art. 9º Stay convalidated the acts practiced on the basis of the Provisional Measure No. 1.954-22 of January 6, 2000.

Art. 10. This Provisional Measure comes into force on the date of its publication.

Brasilia, February 3, 2000 ; 179º of Independence and 112º of the Republic.

FERNANDO HENRIQUE CARDOSO

Amaury Guilherme Bier

Martus Vinicius Pratini de Moraes

Martus Tavares