Provisional Measure No. 1,948-61, 16 November 2000

Original Language Title: Medida Provisória nº 1.948-61, de 16 de Novembro de 2000

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PROVISIONAL MEASURE # 1.948-61, OF November 16, 2000.

Disposal on the issuance of National Treasury Notes-NTN intended for the capital increase of the Banco do Brasil S.A., and gives other arrangements.

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:

Art. 1º It gets the Executive Power authorized to:

I-subscribe to the Bank of Brazil S.A.'s capital increase, up to the R$ 8,000,000,000.00 (eight billion reais) limit, and the Banco do Amazonia S.A., up to the limit of R$ 150,000,000.00 percent (percent and fifty million reais), upon issuance of National Treasury Notes-NTN, in the nominative and negotiable modalities, with a maximum term of fifteen years and minimum three-year regimen, for principal and charges, and interest rates calculated in the form of § 3º of the art. 2º of Law No. 8,249 of October 24, 1991, or upon the use of other sources, at the discretion of the Executive Power ;

II-replace the National Treasury Notes, N series, of the Banco do Brasil S.A. portfolio, up to the limit of R$ 1,550,000,000.00 (one billion, five hundred and fifty million reais), by securities of financial characteristics equal to the of those to which the inciso I of this article refers ;

III-divest, to Banco do Brasil S.A., shares linked to the National Disability Fund, of which it treats Law No. 9,491 of September 9, 1997, and the Federal Public Debt Amortization Fund, of which it treats the Act No. 9,069, from June 29, 1995, up to the amount of R$ 2,880,000,000.00 (two billion, eight hundred and eighty million reais) ;

IV-votar, in general assembly of shareholders of the Banco do Brasil S.A., by the assignment of restricted voting to the preferred shares ;

V-pay to Banco do Brasil S.A., with monetary update by the General Price Index-Internal-IGP-DI Availability of the Getulio Vargas Foundation and interest of six per cent per year:

a) the value equivalent to a sixth of the expedient fee to which the art refers. 10 of Law No. 2,145 of December 29, 1953, levied by the issue of licences, import guides or any document of equivalent effect, in the period between 1º July 1988 and December 31, 1991, to resurrate costs incurred with the Foreign Trade services provided by that financial institution, in the same period ;

b) the expenditure on staff and administrative charges, relating to the services provided in the Foreign Trade area, in the period between 1º January 1992 and July 30, 1995 ;

c) the value of interest rate equalization regarding the differential between the cost of caption of resources-Referential rate-TR and interest of twenty one percent a year-and the paced rate-Referential rate-TR and interest of nine percent the year-on loan granted, by that financial institution, to the Government of the State of Rio de Janeiro, in 1991, intended to finance the first stage of the Red Line Project ;

d) commissions concerning services provided, in particular services performed in the quality of National Treasury Financial Agent, recognized as liquid, certain and required by Working Groups created by the MF Portaria No. 150, of April 26, 1995, whose reports have been approved by the Minister of State for the Fight ;

VI-pay the difference between the values collected for additional or premium and the imports due as compensation and other expenses, relating to the Agroanian Activity Guarantee Program-PROAGRO, incidents from of the duration of Law No. 8,171 of January 17, 1991 (PROAGRO NOVO) ;

VII-pay the Brasilian American Merchant Bank -BAMB, wholly-owned subsidiary of the Banco do Brasil S.A., the value, capitalized semester, of the equalization of fees regarding the difference between the average cost of external caption of resources by the Banco do Brasil S.A. and the dividends obtained with the investment arising from the shareholding in Jari Celulose S.A., successor to the Monte Dourado Forest Company, as well as to acquire the shares subscribed by the BAMB in that venture, upon reimbursement to that subsidiary of the importance there invested ;

VIII-pay to Banco do Brasil S.A. the value corresponding to the monetary update by the General Index of Prices-Internal Availability-IGP-DI of the Getulio Vargas Foundation and interest of six per cent to the year incidents on the payments made to the Leite Mills, within the framework of the National Leite Program for Caring Children-PNLCC ;

IX-acquire, together with the Banco do Brasil S.A., the claims arising from the rural credit securitization operations carried out under Law No. 9,138 of November 29, 1995.

§ 1º In the divestment of the actions of which it treats the inciso III of this article, the average of the opening and closing prices of quotations in the twenty pregons prior to the date of disposal shall be deemed to be the average.

§ 2º The payment of the share price divested in the form of the inciso III of this article can be effected with the federal public debt securities of which it treats the inciso I.

§ 3º The standards and conditions for effecting the payments of which it treats the inciso VI of this article shall be fixed in joint act of the State Ministers of the Finance and Planning, Budget and Management.

§ 4º The Ministry of Finance will inform the National Congress, semester, until the discharge of the debit, the values paid by the Union, on account of PROAGRO, in the form of the inciso VI of this article.

§ 5º The equalization referred to in the inciso VII of this article is due from the date of each disbursement and the subsequent ones will be effected every twelve-month period, counted from the date of the ordinary general assembly that approves the balance sheet of the company.

Art. 2º The debts of the Union, to which they refer to the incisos V to VIII of the art. 1º of this Provisional Measure, as well as the debts of the Union to the Banco do Brasil S.A. recognized as liquid, certain and required by the Working Groups created by Portaria MF No. 150, of 1995, whose reports were approved by the Minister of State of the Farm, may be paid with National Treasury Securities, issued for that end, registered in the Central Custody And Financial Settlement of Titles-CETIP.

§ 1º The securities referred to in the caput of this article, the maturity of which may not exceed eighteen years, will be updated by the General Price Index-Internal Availability-IGP-DI of the Getulio Vargas Foundation, increased interest of up to fifteen per cent per year.

§ 2º Poor may be, still, used for amortization or settlement of the debts referred to in the caput of this article, shares owned by the Union, deposited in the Federal Public Debt Amortization Fund-FADP or the Fund National Desestatization-FND, of any species and classes, traded or not on stock exchange, representative of participation in anonymous capital corporation open or closed, public or private, earlier heard the Ministers of States of the Farm and Planning, Budget and Management.

§ 3º The shares of the societies of which it treats the preceding paragraph will have their price determined according to one of the following criteria, in order of priority:

I-in the case of anonymous companies with shares traded on stock exchange, by the systematic provision in § 1º of the art. 1º of this Provisional Measure ;

II-in the case of anonymous companies related to the National Desestatisation Program, of which it treats Law No. 9,491, 1997, or in state demestatisation program, according to the minimum price stipulated in the respective edition of privatisations ;

III-in the case of anonymous companies not covered by the incisos I and II, by the value, ascertained on the basis of the latest balance sheet published by the company.

§ 4º The actions of which treat the inciso III of the art. 1º and the § 2º of the art. 2º of this Provisional Measure, deposited in the Federal Public Debt Amortization Fund, will be able to be freely negotiated by the Banco do Brasil S.A., not by subjecting itself to new deposit in that Fund.

§ 5º In return for the acquisition of the credits referred to in the inciso IX of the art. 1º, may be issued National Treasury Securities, with characteristics to be defined in act of the Minister of State of the Farm.

Art. 3º It shall be the Central Bank of Brazil authorised to acquire, by assignment, credit arising from external loan granted, on September 15, 1980, by the Banco do Brasil S.A. to BankHandlowy W Warszowie S.A., upon payment of the updated debtor balance of the said operation.

Art. 4º The financial availabilities of the Funds to which they refer to the single paragraph of art. 6º of Decree-Law No. 2,295 of November 21, 1986, and the art. 1º of Law No. 8,150 of December 28, 1990 will be implemented by means of federal public financial institution in the disciplined manner by the National Monetary Council.

Single Paragraph. The provisions of the caput of this article applies to the share of financial availabilities of the Amparo Fund to Worker-FAT applied in National Treasure Securities in the form of the art. 9º of Law No. 8,019 of April 11, 1990.

Art. 5º The open capital mixed economy corporations, creditor balance holders in the registration account of the monetary correction adjustment of the permanent asset and net worth in balance sheet with date-basis prior to the publication of the Act paragraph 8,920 of July 20, 1994, may no longer target that balance for the reserve of profit reserves to be held.

Single Paragraph. The provisions of this Article shall apply only in cases where the semi-annual balance sheet of the company has been approved by the Board of Directors and if it expressly finds provision for the payment of dividends for the first half of the 1994.

Art. 6º The caput of the art. 2º of Law No. 9,094 of September 14, 1995, passes vigorously with the following essay:

?Art. 2º The FND is authorized to rescue Union quotas or to pay Union Title FND obligations, up to the amount set out in this Act, upon transfer of the shares subscribed in the form of the previous article.? (NR)

Art. 7º It is the Bank of North East Brazil S.A. -BNB authorized to acquire and the National Development Fund-FND authorized to divest to BNB shares owned by FND that are deposited in the National Unestation Fund, which are to remain deposited in the latter Fund, in name of BNB.

Art. 8º Stay convalidated the acts practiced on the basis of the Provisional Measure No. 1.948-60 of October 19, 2000.

Art. 9º This Provisional Measure shall enter into force on the date of its publication.

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

FERNANDO HENRIQUE CARDOSO

Pedro Malan

Waldeck Ornélas

Martus Tavares