I do know that the Federal Senate has approved, and I, Ramez Tebet, President, in the terms of art. 48, inciso XXVIII, of the Rules of Procedure, promulgated the following

R E S O L U UNK UNK No 44, DE 2002

Authorizes the Union to hire external credit operation with Dresdner Bank AG in the amount equivalent to US$ 2,533,000.00 (two million, five hundred and thirty-three thousand U.S. dollars), of principal, intended for financing partial of the Hospital Modernization Program and Reequipment of the Hospitalar Network.

The Federal Senate resolves:

Art. 1º It is the Union authorized to hire external credit operation with Dresdner Bank AG in the value equivalent of US$ 2,533,000.00 (two million, five hundred and thirty-three thousand U.S. dollars), from principal.

Single Paragraph. Resources arising from the authorisation referred to in the caput of this article will be intended for the partial funding of the Hospital Modernization Program and Reequipment of the Hospitalar Network.

Art. 2º The credit operation referred to in art. 1º consists of the following conditions and characteristics:

I-dever: Federative Republic of Brazil / Ministry of Health ;

II-creditor: Dresdner Bank AG (Frankfurt) ;

III-value: US$ 2,533,000.00 (two million, five hundred and thirty-three thousand U.S. dollars) ;

IV-deadline: 60 (sixty) months ;

V-interest: 1% a.a. (one percent a year) above the Libor of 6 (six) months for U.S. dollars, incidents over each disbursement ;

VI-commission of engagement: 0.5% a.a. (five tenths per cent a year) on the non-disbursed balance ;

VII-processing fee: 0.5% (five tenths per cent) on the value of the Contract ;

VIII-general expenses: limited to US$ 25,000.00 (twenty-five thousand U.S. dollars) ;

IX-interest arrears: 1% a.a. (one per cent a year) above the contractual interest rate ;

X-payment conditions:

a) of the principal: in 10 (ten) equal, consecutive and semi-annual plots, winning the first 6 (six) months after the average weighted date of delivery ;

b) of interest: semiannually accrued, payable on July 15 or January 15 of each year, which first occurs ;

c) of the commission of engagement: semester-seller ;

d) of the processing fee: within 30 (thirty) days after the signing date of the Contract ;

e) of general expenses: upon proven.

Single Paragraph. The dates of payment of the principal and financial charges may be changed depending on the date of signing of the Agreement.

Art. 3º The authorisation granted by this Resolution is to be exercised within 540 (five hundred and forty) days, counted from the date of its publication.

Art. 4º This Resolution comes into force on the date of its publication.

Federal Senate, on July 2, 2002

Senator RAMEZ TEBET

President of the Federal Senate