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. 34, DE 2010

Authorizes the Municipality of Rio de Janeiro- RJ to hire external credit operation, with Union guarantee, with the International Bank for Reconstruction and Development (Bird), worth up to US$ 1,045,000,000.00 (one billion and forty-five million dollars Americans).

The Federal Senate resolves:

Art. 1º It is the Municipality of Rio de Janeiro-RJ, authorized to hire credit operation external, with a guarantee from the Union, with the International Bank for Reconstruction and Development (Bird), worth up to US$ 1,045,000,000.00 (one billion and forty-five million U.S. dollars).

Single Paragraph. Are the proceeds from that credit operation intended for financing the?Development Policy Project of the Municipality of Rio de Janeiro?.

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

I-dever: Municipality of Rio de Janeiro-RJ ;

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

III-guarantor: Federative Republic of Brazil ;

IV-value: up to US$ 1,045,000,000.00 (one billion and forty five million dollars Americans) ;

V-modality: variable margin ;

VI-deadline of disbursement: until June 30, 2013 ;

VII-amortization: 359 (three hundred and fifty-nine) monthly and consecutive installments, paid in the days 15 of each month, with custom amortization, as stated in Annex II of the loan agreement ;

VIII-interest: required monthly on the same dates of payment of amortization and calculated on the periodic debtor balance of the loan at a rate comprised of the monthly Libor interest rate for U.S. dollar, plus a margin (spread) to be determined by the Bird each semester ;

IX-interest arrears: up to 0.50% a.a. (fifty hundredths per year), in addition to the interest paced and not yet paid in up to 30 (thirty) days after the expected date for your payment, as per the provisions of Section 3.02 (d) of the Bird General Standards ;

X-transaction rate: 0.01% a.a. (one hundredth percent a year), charged monthly to carry out the exchange of the semi-annual Libor rate for monthly Libor ;

XI-commission in sight: 0.25% (twenty five hundredths per cent) on the total value of the loan, to be debited on the date on which the contract comes into effect.

§ 1º The planned disbursement limit date may be changed depending on the date of signing of the loan contract.

§ 2º The borrower will be able to apply for the creditor to change the variable margin hiring for margin fixed, which allows for 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 for fixed or vice-versa;

II-establishment of ceilings and bands for interest rate fluctuation ;

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

§ 3º For the exercise of the option referred to in § 2º, the collection of the charges incurred by the Bird in realizing the option and a transaction fee over the affected values.

Art. 3º It is the Union authorized to grant guarantee to the Municipality of Rio de Janeiro in the hiring of the external credit operation referred to in this Resolution.

Single Paragraph. The exercise of the authorization provided for in the caput of this article is conditional on the Municipality of Rio de Janeiro:

I-contract with the Union for the concession of contragaranties, in the form of binding of the recipes of which treat the arts. 156, 158 and 159, in the form of § 4º of the art. 167, all of the Federal Constitution, and other guarantees in law admitted, and the Federal Government may apply for the transfers of the resources required to cover the commitments honoured directly from the centralizing accounts of the Municipality's collection of Rio de Janeiro or federal transfers ;

II-taste together with the Ministry of Finance, prior to the conclusion of the contract of contragarantia referred to in the inciso I of this paragraph, the adimation as to payments and the accounts of accounts of which it treats art. 10 of Resolution 48, 2007, of the Federal Senate.

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

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

Federal Senate, on August 6, 2010.

Senator Jose Sarney

President of the Federal Senate