United States Senate Resolution No. 22, June 05 2002

Original Language Title: Resolução do Senado Federal nº 22, de 05 de junho de 2002

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


Authorizes the State of São Paulo to hire external credit operation, with a guarantee from the Federative Republic of Brazil, in the value equivalent to US$ 209,000,000.00 (two hundred and nine million U.S. dollars), of principal, with the International Bank for Reconstruction and Development (Bird), intended to partially fund the "Urban Train System-4ª Line of the Underground".

The Federal Senate resolves:

Art. 1º It is the State of São Paulo authorized to hire external credit operation with the International Bank for Reconstruction and Development (Bird).

Single Paragraph. The resources referred to in the caput will be used to partially fund the "Urban Train System-4ª Line of the subway".

Art. 2º The credit operation mentioned in art. 1º presents the following financial characteristics:

I-worth intended: US$ 209,000,000.00 (two hundred and nine million U.S. dollars) ;

II-loan modality: Single Currency Loan (U.S. dollar dollar), with variable interest rate (Libor + spread) ;

III-deadline of disbursement: until June 30, 2007 ;

IV-amortization: 20 (twenty) semiannual and consecutive plots, worth US$ 10,450,000.00 (ten million, four hundred and fifty thousand U.S. dollars) each, winning the first on September 15, 2007 and the last in 15 from March 2017 ;

V-interest: required semester, calculated on the basis of the semi-annual Libor for dollars, increased from a spread expressed as an annual percentage. The spread will consist of 0.75% (seventy and five hundredths per cent), added or diminished to the difference between the average Bird caption margin to cover loans in Single Currency Loan and the Libor also for the period, ascertained during the 6 (six) months prior to their respective maturities ;

VI-Bank commission: 1% a.a. (one percent a year) on the total amount of the loan, drawn from the loan account after the Contract was signed ;

VII-commission of engagement: 0.75% a.a. (seventy five hundredths per cent a year) required semester, on the same dates of interest payment, on the undisbursed debtor balances of the loan, entering into force 60 (sixty) days after signing of the Contract.

Single Paragraph. The dates of payment of the principal and financial charges may be changed depending on the date of the Contract signing.

Art. 3º It is the Union authorized to grant warranty to the credit operation mentioned in the arts. 1º and 2, having as a counterbalance to the quotas of the Union's constitutional transfers to which the State makes jus, supplemented by its own revenues.

Art. 4º The signature of the contractual instruments shall be preceded by:

I-formalization and subscription of the respective contragarantia contract ;

II-discharge of the debits on behalf of the Registrar of Finance of the State of São Paulo, as well as of organs of the indirect administration with the Union and entities controlled by the federal public sector.

Art. 5º The authorisation granted by this Resolution is to be exercised within 540 (five hundred and forty) days, counted from the date of its publication.

Art. 6º This Resolution comes into force on the date of its publication.

Federal Senate, on June 5, 2002


President of the Federal Senate