United States Senate Resolution No. 45, December 20 2007

Original Language Title: Resolução do Senado Federal nº 45, de 20 de dezembro de 2007

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I make it known that the Federal Senate has approved, and I, Garibaldi Alves Filho, 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. 45, DE 2007

Authorizes the state of the Rio Grande do Norte to hire external credit operation, with Union guarantee, with the International Bank for Reconstruction and Development (Bird), worth up to US$ 22,500,000.00 (twenty two million and five hundred thousand dollars Americans).

The Federal Senate resolves:

Art. 1º It is the State of Rio Grande do Norte authorized to hire external credit operation, with guarantee from the Union, with the International Bank for Reconstruction and Development (Bird), worth up to US$ 22,500,000.00 (twenty-two million and five hundred thousand U.S. dollars).

Single Paragraph. The proceeds from the credit operation referred to in the caput are intended for the additional funding of the Rural Poverty Project in the State of Rio Grande do Norte.

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

I-dever: State of the Rio Grande do Norte ;

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

III-guarantor: Federative Republic of Brazil ;

IV-value: up to US$ 22,500,000.00 (twenty-two million and five hundred thousand dollars Americans) ;

V-deadline of disbursement: until December 31, 2010 ;

VI-amortization: in 26 (twenty-six) semiannual and consecutive plots, with maturities on day 15 of the months of May and November of each year, starting on November 15, 2011 and ending on May 15, 2024, being that each of the 25 (twenty-five) first will correspond to 3.85% (three integers and eighty-five hundredths) of the value disbursed, and the last to 3.75% (three integers and seventy-five hundredths per cent) ;

VII-interest: required semesterly on day 15 of the months of May and November of each year, calculated on the periodic debtor balance of the loan at an annual fee composed of the semi-annual Libor for the U.S. dollar, plus a spread to be determined by the Bird at each fiscal year and set at the date of signing of the contract ;

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

IX-commission in sight: up to 1% (one per cent) on the value of the loan, to be debited on the date on that the contract enter into effectiveness.

§ 1º They are provided to the State of Rio Grande do Norte, in the credit operation that it treats this Resolution, the interest rate conversion options applicable on the partial or total amount of the loan, from float to fixed or vice versa, of establishment of ceilings and bands for fluctuating interest rate and change of reference currency for the disbursed amounts and disbursing.

§ 2º The dates of payments of the principal and financial charges as well as of disbursements, may be changed depending on the date of signing of the loan agreement.

Art. 3º It is the Union authorized to grant guarantee to the State of Rio Grande do Norte in hiring of the external credit operation referred to in this

Single Paragraph. The exercise of the authorization provided for in the caput shall be conditional upon the State of Rio Grande of the North to contract with the Union for the concession of contragaranties in the form of binding of the own revenues of which it treats art. 155, and the revenue apportionment quotas of which they treat the arts. 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 the Federal Transfers.

Art. 4º The authorisation granted by this Resolution should be exercised within the maximum period of 540 (five hundred and forty) days, relied on from the duration of this Resolution.

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

Federal Senate, on December 20, 2007.

Senator Garibaldi Alves Filho

President of the Federal Senate