United States Senate Resolution No. 3, Of 25 April 2005

Original Language Title: Resolução do Senado Federal nº 3, de 25 de abril de 2005

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

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No. 3, DE 2005

Authorizes the Federative Republic of Brazil to hire external credit operation with consortium of banks formed by Banco Bilbao Vizcaya Argentaria S.A., by BNP Paribas S.A. and by Banco Santander Central Hispanic S.A., with collateral of Compañia Española de Seguros de Crédito a la Exportación S.A. (CESCE), worth up to US$ 698,730,000.00 (seishundred and ninety-eight million, seven hundred and thirty thousand U.S. dollars).

The Federal Senate resolves:

Art. 1º It is the Federative Republic of Brazil authorized to hire external credit operation with consortium of banks formed by Banco Bilbao Vizcaya Argentaria S.A., by BNP Paribas S.A. and by Banco Santander Central Hispanic S.A., with collateral of Compañia Española de Crédito a la Exporatación S.A. (CESCE), worth up to US$ 698,730,000.00 (seishundred and ninety-eight million, seven hundred and thirty thousand U.S. dollars).

Single Paragraph. The proceeds arising from the operation referred to in the caput will be intended to partially finance the acquisition of goods and services to be provided by the company EADS CASA, for the CLX Projects and Modernization of P-3 within the framework of the Programme of Strengthening of the Control of Brazilian Air Space (PFCEAB).

Art. 2º The conditions of the credit operation are as follows:

I-borrower: Federative Republic of Brazil ;

II-lender: consortium of banks formed by Banco Bilbao Vizcaya Argentaria S.A., by BNP Paribas S.A. and by Banco Santander Central Hispanic S.A.;

III-external guarantee: Compañia Española de Seguros de Crédito a la Exportación S.A. (CESCE) ;

IV-value of the loan: US$ 698,730,000.00 (seishundred and ninety eight million, seven hundred and thirty thousand U.S. dollars), of principal ;

V-term: 120 (one hundred and twenty) months ;

VI-caress: 6 (six) months ;

VII-amortization: 20 (twenty) semiannual, consecutive and equal plots, for each disbursement ;

VIII-interest: semiannually accrued, at the rate of 4.75% a.a. (four integers and seventy five hundredths a year), fixed, equal to Commercial Interest Reference Rate (CIRR) quoted for the respective currency, determined in accordance with the consensus of the Organization for Economic Co-operation and Development (OECD), to be determined on the date of approval of credit by the Official Credit Institute of Spain (OIC), incident on the principal's debtor balance ;

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

X-insurance premium: equivalent to 8.4% (eight integers and four tenths per cent) of the total value of the operating ;

XI-other expenses: estimated at US$ 15,500.00 (fifteen thousand and five hundred dollars Americans).

Art. 3º The parties involved in this operation should comply, preliminarily to the contractual formations, all the preconditions for the realisation of the first disbursement of the loan.

Art. 4º The time limit for the exercise of this authorisation shall be 540 (five hundred and forty) days, from the date of its publication.

Art. 5º This Resolution shall enter into force on the date of its publication.

Federal Senate, on April 25, 2005

Senator Renan Calheiros

President of the Federal Senate