DECREE NO 3,859, DE July 4, 2001

Establishes the characteristics of the Internal Federal Public Debt Securities and gives other providences.

THE PRESIDENT OF THE REPUBLIC, in the use of the attribution that confers you the art. 84, inciso IV, of the Constitution, and in view of the provisions of Law No. 10,179 of February 6, 2001, and in Law nº9.711 of November 20, 1998,

DECRETA:

Art. 1º The National Treasury Letters? LTN will have the following characteristics:

I? deadline: defined by the Minister of State of the Farm, when of the issue of the title ;

II? modality: nominative ;

III? nominal value: multiple of R$ 1,000.00 (thousand reais) ;

IV? throughput: defined by the disorder over the nominal value ;

V? rescue: by the nominal value, on the due date.

Art. 2º The Financial Letters of the Treasury?LFT will have the following characteristics:

I? deadline: defined by the Minister of State of the Farm, when of the issue of the title ;

II? modality: nominative ;

III? nominal value on the date?base: multiple of R$ 1,000.00 (thousand reais) ;

IV? yield: adjusted average rate of daily financing ascertained in the Special System of Liquidation and Custody-SELIC for federal public securities, released by the Central Bank of Brazil, calculated on the nominal value ;

V? rescue: by the nominal value, plus the respective income, since the title-base of the title.

Art. 3º The Treasury Financial Letters intended for the fulfilment of the Union assumption contracts of the debts of responsibility of the States and the Federal District, pursuant to Law No. 9,496 of September 11, 1997, well as of the operations concerning the reduction of the presence of the state public sector in banking financial activity pursuant to the Provisional Measure No. 2,192?68, of June 28, 2001, may be issued in two separate series: Financial Letters of the Treasure Series A? LFT?A and Financial Letters from the Treasury Series B? LFT?B.

Single Paragraph. Can you also be issued Financial Letters from the Treasury Series B? LFT?B, for the fulfilment of the contracts for assumption by the Union of the debts of responsibility of Municipalities, pursuant to the Provisional Measure No. 2.185­-33 of June 28, 2001.

Art. 4º The LFT?It will have the following characteristics:

I? term: up to fifteen years ;

II? form of placement: direct, in favor of the person concerned ;

III? nominal value on the date?base: R$ 1,000.00 (thousand reais) ;

IV? throughput: adjusted average rate of daily financing ascertained in the Special Settlement and Custody System-SELIC for federal public securities, released by the Central Bank of Brazil, increased by 0.0245% a.m.;

V? rescue of the principal: by up to one hundred and eighty monthly and consecutive installments, winning the first one in the month following that of the issue, each of which is of value corresponding to the result obtained by the division of the remaining balance, updated and capitalized, on the date of the maturity of each of the plots by the number of vincendas plots, including to which it is being paid.

Art. 5º The LFT?B will have the following characteristics:

I? term: up to fifteen years ;

II? form of placement: direct, in favor of the person concerned ;

Ill? nominal value on the date?base: R$ 1,000.00 (thousand reais) ;

IV? throughput: adjusted average rate of daily financing ascertained in the Special Settlement and Custody System-SELIC for federal public securities, released by the Central Bank of Brazil ;

V? rescue: by the nominal value, plus of the respective income, since the date?base of the title.

Art. 6º The National Treasury Notes? NTN will be able to be issued in ten distinct series: NTN Series A? NTN?A ; NTN Series B? NTN?B ; NTN Series C? NTN?C ; NTN Series D? NTN?D ; NTN Series F? NTN?F ; NTN Series H? NTN?H ; NTN Series I? NTN?I ; NTN Series M? NTN?M ; NTN Series P? NTN?Q ; and NTN Series R, Sub?series 2? NTN?R2.

Art. 7º The NTN?A, to be used in the exchange operations by?Brazil Investment Bonds-BIB?, according to the inciso III of the art. 1º of Law No. 10,179, 2001, and for the other securities issued in accordance with restructuring agreements of Brazilian foreign debt, and for the purposes of replacing the National Treasure Notes Series l-NTN?L, existing with the Central Bank of Brazil, up to the limit of the obligation arising from the?Multi?Year Deposit Facility Agreement-MYDFA?, as willing on art. 6º of Provisional Measure No. 2,179?34, of June 28, 2001, will be issued in nine sub?distinct series: NTN?A1, NTN?A3, NTN?A4, NTN?A5, NTN?A6, NTN?A7, NTN?A8, NTN?A9 and NTN?A10.

§ 1º The NTN?A1, to be used in the exchange operations by?Brazil Investment Bonds-BIB?, will have the following characteristics:

I? term: up to sixteen years, observed the remaining BIB maturity schedule used in the exchange operation ;

II? interest rate: six per cent per year, calculated on the updated nominal value ;

III? form of placement: direct, in favor of the person concerned, and may be on par, with either again or in a toll ;

IV? modality: nominative ;

V? nominal value on the date?base: multiple of R$ 1,000.00 (thousand reais) ;

VI? nominal value update: by the variation in the sale quote of the US dollar of the United States in the free rate exchange market, released by the Central Bank of Brazil, being considered the average rates of the business day immediately prior on date?basis and the date of the expiration of the title ;

VII? payment of interest: every day fifteen of the months of March and September, with adjustment in the first period of fluency, when couber ;

VIII? main rescue: under the same conditions observed for the BIB payment that originated the exchange operation, with adjustment in the first period of fluency, when couber.

§ 2º The NTN?A3, to be used in the exchange operations by?Par Bond?, will have the following characteristics:

I? deadline: up to twenty-seven years, observed the remaining maturity schedule of the?Par Bond? used in the exchange operation ;

II? interest rate, calculated on the updated nominal value, as follows:

a) by April 14, 1998: five integers and twenty-five hundredths per cent per year ;

b) from April 15, 1998 to April 14, 1999: five integers and five tenths per cent a year ;

c) from April 15, 1999 to April 14, 2000: five integers and seventy five hundredths per cent a year ;

d) from April 15, 2000 until maturity: six per cent a year ;

III? form of placement: direct, in favor of the person concerned, and may be on par, with either again or in a toll ;

IV? modality: nominative ;

V? nominal value on the date?base: multiple of R$ 1,000.00 (thousand reais) ;

VI? nominal value update: by the variation in the sale quote of the US dollar of the United States in the free rate exchange market, released by the Central Bank of Brazil, being considered the average rates of the business day immediately prior on date?basis and the date of the expiration of the title ;

VII? payment of interest: every day fifteen of the months of April and October, with adjustment in the first period of fluency, when couber ;

VIII? main rescue: under the same conditions observed for the payment of?Par Bond? that originated the exchange operation, with adjustment in the first period of fluency, when couber.

§ 3º The NTN?A4, to be used in the exchange operations by?Discount Bond?, will have the following characteristics:

I? deadline: up to twenty-seven years, observed the remaining maturity schedule of the?Discount Bond? used in the exchange operation ;

II? interest rate:?LIBOR? semiannual, disclosed by the Central Bank of Brazil, being considered the rate for the second working day prior to that of repactuation, increased from?spread? of eight thousand, one hundred and twenty-five tenths of thousandths per cent per year, calculated on the updated nominal value, respected the threshold of twelve per cent per year ;

III? form of placement: direct, in favor of the person concerned, and may be on par, with either again or in a toll ;

IV? modality: nominative ;

V? nominal value on the date?base: multiple of R$ 1,000.00 (thousand reais) ;

VI? nominal value update: by the variation in the sale quote of the US dollar of the United States in the free rate exchange market, released by the Brazilian Central Bank, being considered the average rates of the business day immediately prior to the date?basis and the date of the expiration of the title ;

VII? payment of interest: every day fifteen of the months of April and October, with adjustment in the first period of fluency, when couber ;

VIII? main rescue: under the same conditions observed for the payment of?Discount Bond? that originated the exchange operation, with adjustment in the first period of fluency, when couber.

§ 4º The NTN?A5, to be used in the exchange operations by?Front Loaded Interest Reduction Bond-FLIRB?, will have the following characteristics:

I? term: up to twelve years, observed the remaining FLIRB maturity schedule used in the exchange operation ;

II? interest rate, calculated on the updated nominal value, as follows:

a) by April 14, 1998: four integers and five tenths per cent per year ;

b) from April 15, 1998 to April 14, 1999: five per cent per year ;

c) from April 15, 1999 to April 14, 2000: five per cent a year ;

d) from April 15, 2000 until maturity:?LIBOR? semiannual, disclosed by the Central Bank of Brazil, being considered the rate for the second working day prior to that of repactuation, increased from?spread? of eight thousand, one hundred and twenty-five tenths of thousandths per cent per year, respected the threshold of twelve per cent per year ;

III? form of placement: direct, in favor of the person concerned, and may be on par, with either again or in a toll ;

IV? modality: nominative ;

V? nominal value on the date?base: multiple of R$ 1,000.00 (thousand reais) ;

VI? nominal value update: by the variation in the sale quote of the US dollar of the United States in the free rate exchange market, released by the Central Bank of Brazil, being considered the average rates of the business day immediately prior on date?basis and the date of the expiration of the title ;

VII? payment of interest: every day fifteen of the months of April and October, with adjustment in the first period of fluency, when couber ;

VIII? main rescue: under the same conditions observed for the payment of?FLIRB? that originated the exchange operation, with adjustment in the first period of fluency, when couber.

§ 5º The NTN?A6, to be used in the exchange operations by?Front Loaded Interest Reduction Bond With Capitalization? C?Bond?, will have the following characteristics:

I? deadline: up to seventeen years, observed the remaining schedule of C maturity?Bond used in the exchange operation ;

II? interest rate, calculated on the updated nominal value in the following way:

a) by April 14, 1998: four integers and five tenths per cent per year ;

b) from April 15, 1998 to April 14, 2000: five per cent per year ;

c) from April 15, 2000 until maturity: eight per cent a year ;

d) the difference between the prevailing interest rates until April 14, 2000 and the rate of eight percent a year will be capitalized on the payment dates ;

III? form of placement: direct, in favor of the person concerned, and may be on par, with either again or in a toll ;

IV? modality: nominative ;

V? nominal value on the date?base: multiple of R$ 1,000.00 (thousand reais) ;

VI? nominal value update: by the variation in the sale quote of the US dollar of the United States in the free rate exchange market, released by the Central Bank of Brazil, being considered the average rates of the business day immediately prior on date?basis and the date of the expiration of the title ;

VII? payment of interest: every day fifteen of the months of April and October, with adjustment in the first period of fluency, when couber ;

VIII? main rescue: under the same conditions observed for the payment of?C?Bond? that originated the exchange operation, with adjustment in the first period of fluency, when couber.

§ 6º The NTN?A7, to be used in the exchange operations by?Debt Conversion Bond-DCB?, will have the following characteristics:

I? term: up to fifteen years, observed the remaining schedule of DCB maturity used in the exchange operation ;

II? interest rate:?LIBOR? semiannual, disclosed by the Central Bank of Brazil, being considered the rate for the second working day prior to that of repactuation, increased from?spread? of eight hundred and seventy-five thousandths per year, calculated on the updated nominal value, respected the threshold of twelve per cent per year ;

III? form of placement: direct, in favor of the person concerned, and may be on par, with either again or in a toll ;

IV? modality: nominative ;

V? nominal value on the date?base: multiple of R$ 1,000.00 (thousand reais) ;

VI? nominal value update: by the variation in the sale quote of the US dollar of the United States in the free rate exchange market, released by the Central Bank of Brazil, being considered the average rates of the business day immediately prior on date?basis and the date of the expiration of the title ;

VII? payment of interest: every day fifteen of the months of April and October, with adjustment in the first period of fluency, when couber ;

VIII? main rescue: under the same conditions observed for the payment of?DCB? that originated the exchange operation, with adjustment in the first period of fluency, when couber.

§ 7º The NTN?A8, to be used in the exchange operations by?New Money Bond? NMB?, will have the following characteristics:

I? term: up to twelve years, observed the remaining NMB maturity schedule used in the exchange operation ;

II? interest rate:?LIBOR? semiannual, disclosed by the Central Bank of Brazil, being considered the rate for the second working day prior to that of repactuation, increased from?spread? of eight hundred and seventy-five thousandths per year, calculated on the updated nominal value, respected the threshold of twelve per cent per year ;

III? form of placement: direct, in favor of the person concerned, and may be on par, with either again or in a toll ;

IV? modality: nominative ;

V? nominal value on the date?base: multiple of R$ 1,000.00 (thousand reais) ;

VI? nominal value update: by the variation in the sale quote of the US dollar of the United States in the free rate exchange market, released by the Central Bank of Brazil, being considered the average rates of the business day immediately prior on date?basis and the date of the expiration of the title ;

VII? payment of interest: every day fifteen of the months of April and October, with adjustment in the first period of fluency, when couber ;

VIII? rescue of the main: under the same conditions observed for the payment of the NMB that originated the exchange operation, with adjustment in the first period of fluency, when couber.

§ 8º The NTN?A9, to be used in the exchange operations by?Eligible Bond-EIBond?, will have the following characteristics:

I? term: up to nine years, observed the remaining EIBond maturity schedule used in the exchange operation ;

II? interest rate:?LIBOR?semiannual, disclosed by the Central Bank of Brazil, being considered the rate for the second working day prior to that of repactuation, increased from?spread? of eight thousand, one hundred and twenty-five tenths of thousandths per cent per year, calculated on the updated nominal value, respected the threshold of twelve per cent per year ;

III? form of placement: direct, in favor of the person concerned, and may be on par, with either again or in a toll ;

IV? modality: nominative ;

V? nominal value on the date?base: multiple of R$ 1,000.00 (thousand reais) ;

VI? nominal value update: by the variation in the sale quote of the US dollar of the United States in the free rate exchange market, released by the Central Bank of Brazil, being considered the average rates of the business day immediately prior on date?basis and the date of the expiration of the title ;

VII? payment of interest: every day fifteen of the months of April and October, with adjustment in the first period of fluency, when couber ;

VIII? main rescue: under the same conditions observed for the payment of?EIBond? that originated the exchange operation, with adjustment in the first period of fluency, when couber.

§ 9º The NTN?A10, to be issued for the purposes of substitution of NTN?L existing together with the Central Bank of Brazil, up to the limit of obligation arising from the?MYDFA?, will have the following characteristics:

I? deadline: up to nine years, observed the remaining schedule of MYDFA maturities ;

II? interest rate:?LIBOR? semiannual, disclosed by the Central Bank of Brazil, being considered the rate for the second working day prior to that of repactuation, increased from?spread? of eight thousand, one hundred and twenty-five tenths of thousandths per cent per year, calculated on the updated nominal value, respected the threshold of twelve per cent per year ;

III? form of placement: direct, in favor of the person concerned ;

IV? modality: nominative and inegociable ;

V? nominal value on the date?base: multiple of R$ 1,000.00 (thousand reais) ;

VI? nominal value update: by the variation in the sale quote of the US dollar of the United States in the free rate exchange market, released by the Central Bank of Brazil, being considered the average rates of the business day immediately prior on date?basis and the date of the expiration of the title ;

VII? payment of interest: every day fifteen of the months of March and September, with adjustment in the first period of fluency, when couber ;

VIII? rescue of the main: under the same conditions observed for the payment of the MYDFA, with adjustment in the first period of fluency, when couber.

Art. 8º The NTN?B will have the following characteristics:

I? deadline: defined by the Minister of State of the Farm, when of the issue of the title ;

II? interest rate: defined by the Minister of State of the Farm, when of the issue, in percentage to the year, calculated on the updated nominal value ;

III? modality: nominative ;

IV? nominal value on the date?base: multiple of R$ 1,000.00 (thousand reais) ;

V? nominal value update: by the variation in the National Wide Consumer Price Index? IPCA from the previous month, released by the Brazilian Institute of Geography and Statistical Institute? IBGE, since the date?base of the title ;

VI? payment of interest: semester, with adjustment of the deadline in the first period of fluency, when couber. The first interest coupon to be paid will contemplate the full rate set for six months, regardless of the date of issue of the title ;

VII? rescue of the principal: in single plot, on the date of their maturity.

Art. 9º The NTN?C will have the following characteristics:

I? deadline: defined by the Minister of State of the Farm, when of the issue of the title ;

II? interest rate: defined by the Minister of State of the Farm, when of the issue, in percentage to the year, calculated on the updated nominal value ;

III? modality: nominative ;

IV? nominal value on the date?base: multiple of R$ 1,000.00 (thousand reais) ;

V? nominal value update: by the change in the General Price Index? Market? IGP?M of the previous month, disclosedby the Getúlio Vargas Foundation, since the title-base of the title ;

VI? payment of interest: semester, with adjustment of the deadline in the first period of fluency, when couber. The first interest coupon to be paid will contemplate the full rate set for six months, regardless of the date of issue of the title ;

VII? rescue of the principal: in single plot, on the date of their maturity.

Art. 10. The NTN?D will have the following characteristics:

I? deadline: defined by the Minister of State of the Farm, when of the issue of the title ;

II? interest rate: defined by the Minister of State of the Farm, when of the issue, in percentage to the year, calculated on the updated nominal value ;

III? modality: nominative ;

IV? nominal value on the date?base: multiple of R$ 1,000.00 (thousand reais) ;

V? nominal value update: by the variation in the sale quote of the US dollar of the United States in the free rate exchange market, released by the Central Bank of Brazil, being considered the average rates of the business day immediately prior on date?basis and the date of the expiration of the title ;

VI? payment of interest: semester, with adjustment of the deadline in the first period of fluency, when couber. The first interest coupon to be paid will contemplate the full rate set for six months, regardless of the date of issue of the title ;

VII? rescue of the principal: in single plot, on the date of their maturity.

Art. 11. The NTN?F will have the following characteristics:

I? deadline: defined by the Minister of State of the Farm, when of the issue of the title ;

II? interest rate: defined by the Minister of State of the Farm, when of the issue, in percentage to the year, calculated on the nominal value ;

III? modality: nominative ;

IV? nominal value: multiple of R$ 1,000.00 (thousand reais) ;

V? throughput: defined by the disorder over the nominal value ;

VI? payment of interest: semester, with adjustment of the deadline in the first period of fluency, when couber. The first interest coupon to be paid will contemplate the full rate set for six months, regardless of the date of issue of the title ;

VII? rescue: by the nominal value, on the date of their maturity.

Art. 12. The NTN?H will have the following characteristics:

I? deadline: defined by the Minister of State of the Farm, when of the issue of the title ;

II? modality: nominative ;

III? nominal value on the date?base: multiple of R$ 1,000.00 (thousand reais) ;

IV? nominal value update: per index calculated based on the Referential Rate? TR, released by the Central Bank of Brazil, since the date?basis up to the date of the expiry of the title ;

V? rescue of the principal: in single plot, on the date of their maturity.

Art. 13. The NTN?I, to be used exclusively in the caption of resources for the payment of equalization of interest rates from the export financing of domestic goods and services amidded by the Export Financing Program? PROEX, of which it treats Law No. 10,184 of February 12, 2001, when provided for in the Annual Budget Act, will have the following characteristics:

I? deadline: defined by the Minister of State of the Farm, when of the issue of the title ;

II? interest rate: defined by the Minister of State of the Farm, when of the issue, in percentage to the year, calculated on the nominal value ;

Ill? modality: nominative and non-negotiable, observed the provisions of § 1º of this article ;

IV? nominal value on the date?base: multiple of R$ 1.00 (a real) ;

V? nominal value update:by the variation in the sale quote of the US dollar of the United States in the free rate exchange market, released by the Central Bank of Brazil, being considered the average rates of the business day immediately prior to the date?basis and the date of the expiration of the title ;

VI? rescue of the principal and payment of the interest: up to the due date of the corresponding interest share of the export financing.

§ 1º The NTN?I issued from January 1998 will be negotiable, maintained their other characteristics.

§ 2º The issuance of NTN?I will be held after the voucher for the beneficiary institution of equalization or by its legal representative:

I? in operations with resources in foreign currency: from the shipment of the goods, as well as of the settlement of the exchange contracts concerning the entirety of the export value, in the International Commercial Terms modality? INCOTERMS negotiation ;

II? in the financing provided with resources in national currency: from the shipment of the goods, from the credit to the bank current account holder holder of the national currency values corresponding to the negotiated amount, as well as the settlement of the export exchange contracts for the unfunded parcel.

Art. 14. The NTN?M, to be acquired with the resources arising from the capitalizations carried out on the exchange of the Exchange Contract and Subscribe of the New Money Bonus and Debt Conversion, dated November 29, 1993, will have the following characteristics:

I? deadline: fifteen years ;

II? interest rate:?LIBOR? semiannual, disclosed by the Central Bank of Brazil, being considered the rate for the second working day prior to that of repactuation, increased from?spread? of eight hundred and seventy-five thousandths a year, calculated on the updated nominal value, up to the limit of twelve per cent per year ;

III? form of allotment: direct, in favor of the person concerned and upon express permission from the Minister of State of the Finance, and may not be by value lower than the pair, in quantity equivalent to that required to meet the demand arising from the Contract of Exchange and Subscription of the New and Debt Conversion Burden, dated November 29, 1993 ;

IV? modality: nominative and inegociable ;

V? nominal value on the date?base: multiple of R$ 1,000.00 (thousand reais) ;

VI? nominal value update: by the variation in the sale quote of the US dollar of the United States in the free rate exchange market, released by the Central Bank of Brazil, being considered the average rates of the business day immediately prior on date?basis and the date of the expiration of the title ;

VII? payment of interest: semester, with adjustment in the first period of fluency, when couber ;

VIII? rescue of the main one: in seventeen semi-annual and consecutive installments, starting from the seventh anniversary, to be counted from April 15, 1994, inclusive.

Single Paragraph. The NTN?M may be used, on par, as means of payment for purchase of goods and rights disposed of within the framework of the National Desestatization Programme-PND under Law No. 9,491 of September 9, 1997.

Art. 15. The NTN?P, to be issued to meet the willing on the inciso II of the art. 1º of Law No. 10,179 of February 6, 2001 will have the following characteristics:

I? period: minimum of fifteen years, from the date of the financial settlement of the disposal occurring within the UNDP ;

II? interest rate: six per cent per year, calculated on the updated nominal value ;

III? modality: nominative and non-negotiable, observed the provisions of § 2º of this article ;

IV? nominal value on the date?base: multiple of R$ 1.00 (a real) ;

V? nominal value update:per index calculated based on the TR, released by the Central Bank of Brazil, from the date-base to the date of the expiry of the title ;

VI? payment of interest: on the date of the title rescue ;

VII? rescue of the principal: in single plot, on the date of maturity.

§ 1º The current currency resources arising from the issuance of NTN?P will beused to amortize the federal public debt of issuance of the National Treasury and to cost programs and projects in the area of science and technology, health, national defence, public safety and the environment, approved by the President of the Republic.

§ 2º The holders of NTN?Will you be able to use?las, on par, upon express annuence of the creditor, to:

I? payment of own debts due or vincensed to with the Union or with members of the Federal Public Administration ;

II? payment of third party debts due or vincendas to the Union or with members of the Federal Public Administration, upon express permission of the Minister of State for the Farm and the Ministers of State under whose supervision if find the entities involved ;

III? transfer, to any title, to an integral entity of the Federal Public Administration

§ 3º Observed legal privileges, you will have preference, for payment effect, the debts due to the National Treasury, or those arising from endorings honored by the Union.

§ 4º The provisions of § 2º shall not apply to debts of tax origin for the National Farm.

§ 5º In the operations to which this article refers, to NTN?P will be received on pair, valued?pro rata? working days.

§ 6º Is the use of NTN is vetoed?P as a means of payment for purchase of goods and rights disposed of within the PND.

§ 7º The boards of directors or competent bodies of the mixed-economy corporations, public companies and other entities of the Federal Administration, holders of shares and goods disposed of in accordance with the PND, shall adopt the necessary provision in the sense that resources received in current currency, by the disposal of those goods, are applied in the acquisition of NTN?Q.

§ 8º For the purpose of the preceding paragraph, the resources in current currency received by the divestants of shares, goods and rights under the PND will be updated by the remuneration rate of the applications carried out, by intermediate of the Central Bank of Brazil, by the companies covered by the Decree?Law No. 1,290 of December 3, 1973, from the date of the financial settlement of the respective privatization auction to the date of the acquisition of NTN?P, in the form of this Decree.

Art. 16. The NTN?R2, to be used for acquisition purposes by the closed entities of private pension that have by sponsors, exclusive or not, public undertakings, mixed-economy, federal or state-owned enterprises, municipalities, inclusive those of a special nature, and foundations instituted by the Public Power, will have the following characteristics:

I? term: ten years ;

II? interest rate: twelve per cent per year, calculated on the updated nominal value ;

III? modality: nominative ;

IV? nominal value on the date?base: multiple of R$ 1,000.00 (thousand reais) ;

V? nominal value update: by the variation in the sale quote of the US dollar of the United States in the free rate exchange market, released by the Central Bank of Brazil, being considered the average rates of the business day immediately prior on date?basis and the date of the expiration of the title ;

VI? payment of interest: monthly ;

VII? rescue of the main: in ten annual, equal and successive installments.

Single Paragraph. Is the acquisition of NTN available?R2 by the other closed private pension entities, as well by insurers, capitalization societies and open private pension entities.

Art. 17. Is the Treasury-CFT Financial Certificate set up, intended to preferably meet operations with specific purposes set forth in law, which can be issued in eight distinct series, CFT Series A? CFT?A, CFT Series B? CFT?B, CFT Series C? CFT?C, CFT Series D? CFT?D, CFT Series E? CFT?E and CFT Series F? CFT?F, CFT Series G? CFT?G and CFT Series H? CFT?H, and will have the following characteristics:

I? form of placement: direct in favor of specific interested ;

II? modality: nominative ;

III? nominal value on the date?base: multiple of R$ 1,000.00 (thousand reais) ;

IV? deadline: defined by the Minister of State of the Farm, when issuing the certificate ;

V? interest rate: defined by the Minister of State of the Farm, when of the issue, in percentage to the year, calculated on the updated nominal value.

Art. 18. The CFT?Will it have by specific characteristic the monthly update of the nominal value by the variation in the General Price Index? Internal Availability? IGP-has DI DI of the previous month, released by the Getulio Vargas Foundation, since the date?basis of the certificate.

Art. 19. The CFT?B will have by specific characteristic the monthly update of the nominal value per index calculated on the basis of the TR, released by the Central Bank of Brazil, since the date?basis of the certificate.

Single Paragraph. The CFT?B issued as collateral as referred to in § 10 of the art. 34 of Law No. 6,368 of October 21, 1976 will have as a multiple nominal value of R$ 1.00 (a real one).

Art. 20. The CFT?C will have by specific characteristic the income defined by the adjusted average rate of the daily financing ascertained in the Special Settlement and Custody System (SELIC), released by the Central Bank of Brazil, since the date?base of the certificate.

Art. 21. The CFT?D will have by specific characteristic the update of the nominal value by the change in the selling quote of the US dollar in the free rate exchange market, released by the Central Bank of Brazil, being considered the rates average of the last day immediately prior to the date?basis and on the date of the maturity of the certificate.

Art. 22. The CFT?And will it have by specific characteristic the monthly update of the nominal value by the variation of the IGP?M of the previous month, released by the Getúlio Vargas Foundation, since the date?basis of the certificate.

Single Paragraph. The CFT?And issued in function of art. 7º of Provisional Measure No. 2,094?28, of June 13, 2001, will have as multiple nominal value of R$ 1.00 (a real one).

Art. 23. The CFT?F will have by specific characteristic the income defined by the figure over the nominal value.

Art. 24. The CFT?G will have by specific characteristic the update of the nominal value by the variation in the National Wide Consumer Price Index? IPCA, released by the Brazilian Institute of Geography and Statistical Institute? IBGE, of this the date?basis of the certificate.

Art. 25. The CFT?H will it have by specific characteristic the update of the nominal value by the variation in the Long-term Interest Rate? TJLP, released by the Brazilian Central Bank, since the date-base of the certificate.

Art. 26. Will CFT be able to be issued in five sub?distinct series: CFT Sub?series 1? CFT?1, CFT Sub?series 2? CFT?2, CFT Sub?series 3-CFT-3, CFT Sub?series 4? CFT?4 and CFT Sub?series 5-CFT?5.

§ 1º The CFT?1 will have the following general characteristics:

I? payment of interest: on the date of the certificate's rescue ;

II? principal payment: in single instalment, on the date of their maturity.

§ 2º The CFT?2 will have the following general characteristics:

I? payment of interest: annually, with adjustment of the deadline in the first fluency period, when couber. The first interest coupon, to be paid after a period to be defined by the Minister of State of the Farm, will contemplate the full rate set for twelve months, regardless of the date of issue of the title ;

II? principal payment: in single instalment, on the date of their maturity.

§ 3º The CFT?3 will have the following general characteristics:

I? payment of interest: semester, with adjustment of the deadline in the first period of fluency, when couber. The first interest coupon, to be paid after a period to be defined by the Minister of State of the Farm, will contemplate the full rate set for six months, regardless of the date of issue of the title ;

II? principal payment: in single instalment, on the date of their maturity.

§ 4º The CFT?4 will have the following general characteristics:

I? payment of interest: monthly, with adjustment of the deadline in the first period of fluency, when couber. The first interest coupon, to be paid after a period to be defined by the Minister of State of the Farm, will contemplate the full rate set for one month, regardless of the date of issue of the title ;

II? principal payment: in single instalment, on the date of their maturity.

§ 5º The CFT?5 will have the following general characteristics:

I? payment of interest: periodically, on the anniversary dates of the certificate, together with the principal payments, from the first payment ;

II? principal payment: periodically, on the anniversary dates of the certificate, as the French amortization system-?Table Price?.

Art. 27. It is created the National Treasury Certificate-CTN, intended to provide resources necessary for coverage of budget deficits, observed the limits set by the Legislative Power.

§ 1º The CTN can be put on par, with plain or plain, in favor of specific interest, which should it use?lo for the purposes of collateral in credit operations of which it treats Resolution No 2,471 of February 26, 1998, of the National Monetary Council.

§ 2º The face value of the securities to be acquired by the debtors shall correspond to the debtor balance of the credit operation.

§ 3º For issuance of the title mentioned in the caput, the following conditions will be observed:

I? emission limit: defined by the Secretary of the National Treasury, noting?if that:

(a) annual securities issues by the National Treasury shall not be able to exceed the amount corresponding to the principal depreciation of securitized claims indexed to general price indices, deducted from the volume of new securitizations effected in the same financial year, upon registration of book credits indexed to the cited indices ;

(b) for the purposes of calculating the emissions permitted in the form of the previous paragraph, the securitizations are not computed from 1998, and their respective depreciation, carried out on the ampairing of the Laws No. 9,364, December 16. 1996, and No. 9,496, of 1997, and of Interim Measures No. 2,192?68, from 2001, and No. 2,162-­70, of June 28, 2001 ;

II? date of issue: day first of each month ;

III? deadline: twenty years ;

IV? form of placement: direct ;

V? nominal value: R$ 1,000.00 (thousand reais) ;

VI? unit price: calculated at the discount rate of twelve per cent per year on the updated nominal value ;

VII? update: based on the variation of the IGP?M, released by the Getúlio Vargas Foundation, or other index that comes to replace it?lo ;

VIII? repurchase option by the issuer: based on the unit price, properly updated up to the date of the repurchase, which can be exercised from the release of the warranty ;

IX? modality: negotiable, observing?if that:

a) the securities will be ceded to the creditor financial institution of the debt renegotiation operation, in guarantee of the principal, with a resolute clause, which should remain blocked as long as they constitute warranty and there is no manifestation of the National Treasury about the exercise of the buyback option ;

(b) in the case of transfer of securities to the financial institution, due to the execution of the guarantee, the securities shall be deemed to be non-negotiable, upon replacement of the said asset by the Office of the National Treasury, specifying this new characteristic ;

X? rescue: in single plot, on the expiration date of the title.

§ 4º In the case of early debt rescue, the borrower, through the custodian financial institution, is expected to ask the Office of the National Treasury to demonstrate on the repurchase interest of the CTN. In the assumption that the repurchase does not take effect by the Office of the National Treasury, the title becomes negotiable on the market within up to fifteen working days after receipt of the request for repurchase demonstration specified in the caput of this article.

Art. 28. The Certificates of Federal Public Debt? National Social Insurance Institute? CDP/INSS, to be issued with the exclusive purpose of amortization or settlement of previdual debts under Law No. 9,711 of November 20, 1998 will have the following characteristics:

I? deadline: defined by the Minister of State of the Farm, when of the issue of the title ;

II? interest rate: defined by the Minister of State of the Farm, when of the issue, in percentage to the year, calculated on the updated nominal value ;

III? modality: nominative and negotiable ;

IV? nominal value: multiple of R$ 1,000.00 (thousand reais) ;

V? update of the nominal value: monthly, per index calculated based on TR, released by the Central Bank of Brazil, from the date of the issuance of the title ;

VI? rescue of the principal and payment of interest: in single instalment, on the date of the title rescue.

Single Paragraph. Will the CDP be issued, adopting?if one of the following forms, to be defined by the Minister of State of the Farm:

I? public offering, with the holding of auctions, and may be on par, with either again or take off ;

II? direct, in favor of the National Institute of Social Insurance, pursuant to § 3º of the art. 3º of Law No. 9,711, 1998.

Art. 29. Will the titles to which this Decree refer can be issued with date?basis that will serve as the reference date for updating the nominal value of the said securities.

Art. 30. The Minister of State of the Farm is hereby authorized to:

I? discipline the forms of operationalization for issuance and rescue of the public debt securities of National Treasury liability and registration in centralized settlement and custodial system ;

II? celebrate arrangements, adjustments or contracts for issuance, placement and rescue of the titles referred to in this Decree.

Art. 31. The Minister of State of the Farm will lower the remaining acts necessary for the faithful fulfillment of this Decree.

Art. 32. This Decree shall enter into force on the date of its publication.

Art. 33. The Decrees No 2,941 of January 18, 1999 and No ­3.540 of July 11, 2000 shall be revoked.

Brasilia, July 4, 2001 ; 180º of Independence and 113º of the Republic.

FERNANDO HENRIQUE CARDOSO

Pedro Malan