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PROVISIONAL MEASURE # 1.978-30, De October 26, 2000.

Provides on the renegotiation of debts under the Educational Credit Program, and gives other arrangements.

OVICE-PRESIDENTDAREPUBLIC, in the exercise of the post of CHAIRMAN OF THE REPUBLIC, use of the attribution conferring you the art. 62 of the Constitution, adopts the following Interim Measure, with force of law:

Art. 1º The debtor balances of contracts entered into under the Educational Credit Programme may be consolidated and refunded, once again, under this Provisional Measure.

Art. 2º The refinancing contracts concluded pursuant to this Provisional Measure will contain collateral clauses of the financed value, as set out in resolution of the Federal Economic Box.

Art. 3º In the act of composition of the debtor balance, thirty per cent of the importance due to monetary correction shall be granted, in the case of contracts concluded after 1º March 1991, the value of which will be automatically incorporated, duly corrected, to the refunded value in the contract's inadimpletion hypothesis.

Single Paragraph. The abatement of which treats caputwill be thirty-five per cent in the case of contracts that meet all of the benefits on the date of the composition.

Art. 4º In the refinancing contract under this Provisional Measure, the value of the consolidated debtor balance shall become the principal of the debt, and, on the same shall be calculated the charges due, in the form of the applicable legislation.

Art. 5º The consolidated debtor balance can be refunded by up to one hundred and eighty months, observed as follows:

I-the term of refinancing will not be able to exceed three times the period of use of educational credit, computed in semesters ; and

II-the resulting provision of the refinancing may not be less than R$ 150, to 00 per cent (one hundred and fifty reais).

Single Paragraph. Exceptionally, on the assumption that the provision resulting from the refinancing under this article exceeds thirty per cent of the gross household income of the contractor, is the Federal Economic Box authorized to dispense with the application of the inciso II.

Art. 6º In the immediate settlement assumption of the consolidated debtor balance, the following discounts will be granted:

I-ten per cent of the value due in the case of contracts concluded by February 28, 1991 ;

II-thirty per cent of the value due in the case of contracts concluded from 1º March 1991.

Art. 7º The benefits of contracts refunded under this Provisional Measure shall be due on the last working day of each month of competence, and on these shall be covered:

I-fine of two per cent in the case of payment until the last business day of the month subsequent to that of maturity ;

II-abatement of fifty per cent of the importance corresponding to interest in the payment case by day 25 of the month of maturity, or business day immediately prior.

§ 1º In any given hypothesis, the amortization of the financing shall be made by the full value of the benefit due.

§ 2º It shall be the Federal Economic Box authorized to terminate the refinancing contract and to carry out the total debt value in the event of non-payment of the instalment within the time limit referred to in the inciso I of this article.

Art. 8º It is provided, at any time, the partial amortization of the debtor balance of the contracts refunded in the form of this Provisional Measure, dispensed with the collection of interest on the advance instalment, observed the provisions of the inciso II of the art. 5º.

Single Paragraph. In the total discharge assumption of the debtor balance, a abatement of twenty per cent of its value on the discharge date will be granted.

Art. 9º The refinancing conditions established in the arts. 3º to 7º of this Provisional Measure will be valid:

I-until December 30, 1999, for contracts whose deficiency is over by February 28, 1999 ;

II-by the term of ninety days counted from the termination of the deficiency, for contracts with termination of the period of use up to the second reading semester of 1999.

Single Paragraph. In the accession hypothesis of the student at the stage of use of the Educational Credit Program to the Higher Education Student Funding Fund, of which it treats the Provisional Measure No. 1.972-19, of this date, the abatements will be granted predicted in art. 3º of this Provisional Measure, subject to the debtor balance resulting from the standards of the said Fund.

Art. 10. The acts practiced on the basis of the Provisional Measure No. 1.978-29, of September 27, 2000, shall be convalidated.

Art. 11. This Provisional Measure comes into force on the date of its publication.

Brasilia, October 26, 2000 ; 179º of Independence and 112º of the Republic.

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Paulo Renato Souza