PROVISIONAL MEASURE NO 1.925-14, November 16, 2000.

Disposal on the Banking Credit Cédule.

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:

CHAPTER I

DA BANK CREDIT CÉDULA

Art. 1º The Bank Credit Ballot is credit title issued, per physical or legal person, in favor of financial institution or entity to this equation, representing promise of payment in cash, arising from credit operation, from any modality.

§ 1º The creditor institution must integrate the National Financial System by being admitted the issuance of the Banking Credit Cédule in favor of institution domiciled abroad, provided that the obligation is subject exclusively to the law and to Brazilian court.

§ 2º The Banking Credit Cédule in favor of institution domiciled abroad can be issued in foreign currency.

Art. 2º The Bank Credit Ballot can be issued, with or without warranty, real or fidejute, cedularly constituted.

Single Paragraph. The guarantee constituted will be specified in the Banking Credit Cédule, observed the provisions of Chapter II of this Interim Measure and, in so far as they are not with these conflicting ones, those of the common or special legislation applicable.

Art. 3º The Bank Credit Ballot is an extrajudicial executive title and represents debt in cash, certain, liquid and payable, whether by the sum therein indicated, either by the debtor balance shown on calculation sheet, or in the excerpts of the current account, drawn up as provided for in § 2º.

§ 1º In the Banking Credit Cédule can be paced:

I-interest on the debt, capitalized or not, the criteria of its incidence and, if applicable, the periodicity of its capitalization, as well as the expenses and the other charges arising from the obligation ;

II-the monetary update criteria, as permitted under law, or the criteria for exchange-rate update of the debt in the form of § 2º of the art. 1º and in the other cases permitted under law ;

III-the cases of occurrence of living and incidence of fines and contractual penalties, as well as the hypotheses of anticipated maturity of the debt ;

IV-the criteria for ascertaining and remaking, by the issuer or by third guarantor, of the expenses of debt collection and the legal, judicial or extrajudicial fees, the fees being that the fees were to be awarded extrajudicial will not be able to overcome the limit of ten percent of the total value due ;

V-when it is the case, the debt guarantee modality, its extension and the chances of substitution of such warranty ;

VI-the obligations to be fulfilled by the creditor ;

VII-the creditor's obligation to issue excerpts from the current account or debt calculation spreadsheets, or from its debtor balance, in accordance with the criteria set out in the Banking Credit Cédule itself, observed the provisions of § 2º; and

VIII-other conditions of granting credit, its warranties or liquidation, additional obligations of the issuer or the third guarantor of the obligation, provided that it does not counter the provisions of this Provisional Measure.

§ 2º Where necessary, the determination of the exact value of the obligation, or its debtor balance, represented by the Banking Credit Cédule, shall be made by the creditor by means of calculation sheet or the excerpts of the current account, or of both, documents these that will integrate the Cédula, observed that:

I-the calculations carried out should evidenced in a clear, precise and easy-to-understand manner and understanding, the principal value of the debt, its charges and the contractual expenses due, the share of interest and the criteria of its incidence, the repayment of monetary or currency update, the share corresponding to fines and other contractual penalties, the collection expenses and the law fees due up to the date of the calculation and, finally, the total value of the debt ; and

II-The representative Banking Credit Cédule of debt arising from an open-bank credit opening contract will be issued by the total value of the credit put at the disposal of the issuer, competing to the creditor, in the terms of the of this paragraph, to discriminate in the excerpts of the current account or in the calculation sheets, which shall be attached to Cédula, the plots used of the open credit, the increases in the credit limit initially granted, the possible depreciation of the debt and the incidence of charges in the various periods of use of open credit.

Art. 4º The Bank Credit Cédula must contain the following essential requirements:

I-the denomination?Bank Credit Caesar?;

II-the issuer's promise to pay the debt in cash, certain, net and payable on its maturity or, in the case of debt arising from a bank credit opening contract, the issuer's pledge to pay the debt in cash, certain, net and demand corresponding to the credit used ;

III-the date and place of the payment of the debt and, in the case of parcelial payment, the dates and values of each instalment, or the criteria for that determination ;

IV-the name of the creditor institution, may contain clause to the order ;

V-the date and place of its issuance ; and

VI-the subscription of the issuer and, if applicable, of the third guarantor of the obligation, or of its respective mandators.

§ 1º The Banking Credit Cédule may be the subject of assignment in accordance with the provisions of common law, in which case the transferee, even if not being a financial institution or entity equated to it, shall be sub-rogated in all rights of the transferor, and may even collect the interest and other charges in the form paced in the Cédula.

§ 2º The Banking Credit Cédule will be issued in writing, in so many ways as to how many parties are to intervene, signed by the creditor, by the issuer and by the third guarantor, if any, or by their respective mandators, should each party be given a track.

§ 3º Only the route of the creditor will be negotiable, and should you find in the other ways the expression?non-negotiable?.

§ 4º The Banking Credit Cédule can be adjourned, rectified and ratified upon written documents dated, dated, with the requirements set out in the preceding paragraph, passing on that document to integrate Cédula for all purposes.

CHAPTER II

DAS CEDULARLY CONSTITUTED GUARANTEES

Art. 5º The constitution of guarantee of the obligation represented by the Banking Credit Cédule is disciplined by this Provisional Measure, with the provisions of the common or special legislation being applicable that are not with it conflicting.

Art. 6º The guarantee of the Banking Credit Cédule may be fideable or real, in the latter case constituted by well-patrimonial of any kind, available and disposable, mobile or immaterial, material or immaterial, present or future, fungible or infungable, consumable or not, whose entitlement belongs to the issuer itself or the third guarantor of the principal obligation.

Single Paragraph. The pension for rights is by mere notification to the debtor of the apeaned right.

Art. 7º The constitution of the warranty may be made in the Banking Credit Cédule itself or in separate document, in this case by making, in Cédula, mention of such circumstance.

Art. 8º The guarantee of the guarantee must be described and individualized in such a way that it allows for its easy identification.

Single Paragraph. The description and individualization of the guarantee's constitutive good may be replaced by the remission to the document or certificate submitted by competent entity, which will integrate the Banking Credit Cédule for all purposes.

Art. 9º The guarantee of the obligation shall cover, in addition to the principal constitutive guarantee of the guarantee, all its accessories, benefits of any kind, valuations to any title, fruit and any well linked to the principal good by physical access, intellectual, industrial or natural.

§ 1º The creditor will be able to avert, in the competent body for the registration of the guarantee of the guarantee, the existence of any other good by it covered.

§ 2º Until the effective settlement of the guaranteed obligation, the goods covered by the warranty shall not, without prior written authorization of the creditor, be amended, withdrawn, displaced or destroyed, nor may they have their destination modified, except where the warranty is constituted by semovents or by vehicles, automotive or not, and the removal or displacement of such goods is inherent in the activity of the issuer of the Banking Credit Cédule, or the third provider of the warranty.

Art. 10. The constitutive goods of warranty or fiduciary disposal object may, at the discretion of the creditor, remain under the direct possession of the issuer or the third provider of the warranty, under the possessing constitution clause, case where the parties should specify the location in which the good will be kept and retained until the effective settlement of the guaranteed obligation is made.

§ 1º The issuer and, if applicable, the third provider of the guarantee shall respond in solidarity with the guard and conservation of the guarantee's well-constitutive good.

§ 2º Where the guarantee is provided by legal person, this shall indicate representatives to reply under the preceding paragraph.

Art. 11. For the efficacy, in the face of third parties, of warranty or fiduciary disposal, it will be sufficient, in the case of automotive vehicles of any kind, to avert the onus on the respective transit organ, in which registration must be made for the purchase or transfer of rights.

Art. 12. The creditor may require the guarantee of the guarantee to be covered by insurance until the effective settlement of the guaranteed obligation, in which the creditor will be appointed as sole beneficiary of the securitarian policy and will be authorised to receive the compensation for liquidating or amortizing the guaranteed obligation.

Art. 13. If the constitutive good of the warranty is misappropriated, or if it is damaged or perished in fact attributable to the third party, the creditor sub-rogate shall be in the right to compensation due by the exproprier or the third causer of the damage, up to the amount necessary to liquidate or amortize the guaranteed obligation.

Art. 14. In the cases provided in the arts. 12 and 13 of this Provisional Measure, it will provide the creditor to demand the replacement of the guarantee, or its reinforcement, renouncing the right to the perception of the value relating to the compensation.

Art. 15. The creditor may require the replacement or reinforcement of the warranty in the event of loss, deterioration or decrease in its value.

Single Paragraph. The creditor shall notify the issuer in writing and, if applicable, the third guarantor, to replace or strengthen the guarantee within fifteen days, under penalty of advance maturity of the guaranteed debt.

CHAPTER III

DAS SPECIAL PROVISIONS

Art. 16. In the rotating credit operations, the credit limit granted will be repurchased, automatically and during the term of the Banking Credit Cédula, where the debtor, not being in arrears or defaulting, amortize or liquidate the debt.

Art. 17. For the purpose of the protest lavatory, the Banking Credit Cédula may be forwarded, by copy, to the officer of the office, provided that the creditor institution declares that it is in possession of its sole negotiable track and indicates the value by which it will be protesting, including in the case of partial protest.

Art. 18. The validity and efficacy of the Banking Credit Cédule does not depend on registration, but the real guarantees, by it, shall be subject, to be worth against third parties, to the records or averages provided for in the applicable legislation, with the changes introduced by this Interim Measeur.

Art. 19. Financial institutions, when authorized by the Central Bank of Brazil and under conditions set by the National Monetary Council, will be able to issue Certificates of Banking Credit Cédulas-CCB with effective ballast in Credit Cédule Banking held in custody, to negotiate these claims on the national or international market, with people members or not from the National Financial System.

§ 1º Banking Credit Cédulas issued in the form provided for in this Provisional Measure, which give rise to the CCB, should remain custodiaed in financial institution authorized under the caput, which will make the collection together to the respective debtors.

§ 2º The CCB may be unfolded or regrouped by convenience of the issuer or the acquirer.

§ 3º The ticket capital, in the case of external market trading, will be registered at the Central Bank of Brazil upon proving the effective trading of foreign exchange in the Country.

§ 4º The CCB may be issued in the physical or scriptural form and in both cases registered in magnetic archives organized by the issuer, of which they will confer:

I-the location and the date of issue ;

II-the name of the depositor of the Banking Credit Cédulas ;

III-the name of the issuing financial institution ;

IV-the denomination?Bank Credit Cédule Certificate-CCB?;

V-the express indication of the respective ballot or ballots under which it has been issued, the principal value, the agreed charges and the time of amortization, total or partial, and the final maturity ;

VI-the name of the debtor issuers of the Banking Credit Cédulas ; and

VII-the place and payment dates of the principal ransom and the charges of the Banking Credit Cédulas.

§ 5º The CCB may be transferred upon endorsement or term of assignment, if office, and in any case the transfer shall be dated and signed by its holder or authorized representative with special powers and averaged to the institution issuer, within the maximum period of two days.

§ 6º The expenses and charges arising from the transfer and averbation of the CCB shall be borne by the transferee, unless otherwise convention.

CHAPTER IV

DAS GENERAL PROVISIONS

Art. 20. It applies to the Banking Credit Cédules, in so far as not to counter the provisions of this Provisional Measure, the foreign exchange legislation, dismissed the protest to ensure the right of return against endorsements, guarantors and third party guarantors.

Art. 21. The securities of credits and receivables, represented in the form of the written or physical form, which have been the subject of discount, may be admitted to rediscount with the Central Bank of Brazil, observing the lowered standards and instructions by the National Monetary Council.

§ 1º The credit securities and receivables of which it treats the caput shall be deemed to be transferred, for the purposes of rediscount, to the property of the Central Bank of Brazil, provided that they inscribed in term of electronic tradition constant of the Central Bank Information System-SISBACEN, or, yet, in the term of tradition provided for in § 1º of the art. 5º of Decree No 21,499 of June 9, 1932, with the essay given by art. 1º of Decree No 21,928 of October 10, 1932.

§ 2º Entend-if entered in the terms of tradition referred to in the preceding paragraph of the credit and receivables securities in them related and described, observing the requirements, criteria and forms established by the National Monetary Council.

§ 3º The inscription will produce the same legal effects of the endorsement, only by perfecting itself with the receipt, by the financial institution proponent of the discount, message of acceptance from the Central Bank of Brazil, or, not being electronic the term of tradition, after the signature of the parties.

§ 4º The credit securities and representative documents of receivables, enrolled in the tradition terms, may, at the discretion of the Central Bank of Brazil, remain in the direct possession of the financial institution beneficial to the re-discount, which will store them and retain in deposit, and must proceed, as Commissioner del credere, to their judicial or extrajudicial collection.

Art. 22. The acts practiced on the basis of the Provisional Measure No. 1.925-13, of October 19, 2000, shall be convalidated.

Art. 23. This Provisional Measure comes into force on the date of its publication.

Brasilia, November 16, 2000 ; 179º of Independence and 112º of the Republic.

FERNANDO HENRIQUE CARDOSO

Pedro Malan