I do know that the Federal Senate has approved, and I, José Sarney, 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. 49, DE 2009

Authorizes the state of Sao Paulo to hire credit operation external, with a guarantee from the Union, with the International Bank for Reconstruction and Development (Bird), worth up to US$ 4,000,000.00 (four million U.S. dollars).

The Federal Senate resolves:

Art. 1º It is the State of São Paulo authorized to hire external credit operation, with a guarantee from the Union, with the International Bank for Reconstruction and Development (Bird), worth up to US$ 4,000,000.00 (four million U.S. dollars).

Single Paragraph. Are the resources of this credit operation intended to fund, partially, the?Environmental Sanitation Program of the Manancials of the Alto Tietê-Manancial Program?.

Art. 2º The credit operation referred to in art. 1º should be carried out under the following conditions:

I-dever: State of São Paulo ;

II-credor: International Bank for Reconstruction and Development (Bird) ;

III-guarantor: Federative Republic of Brazil ;

IV-value: up to US$ 4,000,000.00 (four million U.S. dollars) ;

V-modality: variable margin (variable spread loan) ;

VI-deadline of disbursement: until September 30, 2015 ;

VII-amortization: each disbursement is to be paid in 50 (fifty) semi-annual and consecutive plots, with value of each of them equivalent to 1/50 of each disbursement, except the latter, which will be equivalent to the remaining value, to be paid on the days 15 of the months of May and November of each year, winning the first on November 15, 2014 and the last in 15 of May 2039 ;

VIII-interest: required semester on the same repayment dates as the amortization and calculated on the debtor balance periodical of the loan, at a rate composed of the semi-annual interest rate for U.S. dollar, plus a margin (spread) to be determined by the Bird at each fiscal year ;

IX-interest arrears: 0.50% a.a. (fifty hundredths per year) add to the interest due and not yet paid within 30 (thirty) days after the expected date for your payment ;

X-commission in sight: 0.25% (twenty-five hundredths per cent) on the value of the loan, to be debited on the date on that the contract enter into effectiveness.

§ 1º The dates of payments of the principal and financial charges as well as of the planned disbursements, may be changed depending on the subscription date of the loan agreement.

§ 2º The borrower will be able to request the creditor to change the variable margin hiring for fixed margin, which it allows the use of the following financial instruments:

I-conversion of the interest rate applicable to the partial or total amount of the loan, from float to fixed or vice-versal ;

II-change in the reference currency of the credit operation for the amount already disbursed and for the amount to disburse.

Art. 3º It is the Union authorized to grant guarantee to the State of São Paulo in the hiring of the credit operation external referred to in this

Single Paragraph. The exercise of the authorization provided for in the caput is conditional upon the State of São Paulo meeting the following conditionalities before signing the contracts:

I-conclude contract with the Union for the concession of contragaranties, in the form of binding of the revenue of which treat the arts. 155, 157 and 159, all of the Federal Constitution, and other guarantees in accepted law, and the Federal Government may apply for the transfers of resources required to cover the commitments honoured directly from the centralizing accounts of the state collection or federal transfers ;

II-subscribe to the execution arrangement with the executor organs of the Program.

Art. 4º The maximum period for the exercise of this authorization is 540 (five hundred and forty) days, counted from of this Resolution.

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

Federal Senate, on December 17, 2009.

Senator Jose Sarney

President of the Federal Senate