United States Senate Resolution No. 5, Of 18 March 2010

Original Language Title: Resolução do Senado Federal nº 5, de 18 de março de 2010

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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. 5, DE 2010

Authorizes the hiring of operation of external credit, with collateral of the Federative Republic of Brazil, worth up to ¥ 14,426,000,000.00 (fourteen billion and four hundred and twenty-six million yen), between the Catarinense Company of Waters and Sanitation (Casan) and the Japan International Cooperation Agency (Jica), intended to finance, partially, the "Environmental Sanitation Program of the State of Santa Catarina".

The Federal Senate resolves:

Art. 1º It is the Union authorized to grant collateral in external credit operation, in the value of up to ¥ 14,426,000,000.00 (fourteen billion and four hundred and twenty-six million yen), to be celebrated between the Catarynan Company of Waters and Sanitation (Casan) and the Japan International Cooperation Agency (Jica).

Single Paragraph. The resources of this credit operation are intended to finance, partially, the "Environmental Sanitation Program of the State of Santa Catarina".

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

I-dever: Catarinese Company of Waters and Sanitation (Casan) ;

II-credor: Japan International Cooperation Agency (Jica) ;

III-guarantor: Federative Republic of Brazil ;

IV-value: up to ¥ 14,426,000,000.00 (fourteen billion and four hundred and twenty-six million yen) ;

V-modality: fixed interest rates ;

VI-amortization of the debtor balance: in 37 (thirty-seven) semi-annual installments, as far as possible equal and consecutive, due after the grace period ;

VII-interest applicable: required semestrally at a fixed rate of up to 0.01% a.a. (one hundred-percent per year) for the share of the main equivalent of up to ¥ 2,202,298,787.00 (two billion, two hundred and two million, two hundred and ninety eight thousand, seven hundred and eighty-seven yen), and up to 1.2% a.a. (an integer and two tenths per cent per year), for the share of the principal equivalent to up to ¥ 12,223,701,213.00 (twelve billion, two hundred and twenty-three million, seven hundred and one thousand, two hundred and thirteen yen), incidents over the debtor balance of the financing ;

VIII-interest arrears: up to 2.0% a.a. (two per cent a year) above the rate of the operation ;

IX-commission of engagement: up to 0.1% a.a. (one tenth per cent per year), semesterally paid on the undisbursed balances of the loan, in accordance with the categories set out in the Annex to the loan contract.

Single Paragraph. The dates of payment of the principal and the financial charges as well as of the planned disbursements may be changed depending on the date of signing of the loan agreement.

Art. 3º The exercise of the authorization to which the art caput refers. 1º is conditioned to which:

I-the Catarinese Company of Waters and Sanitation (Casan) celebrates contract with the Union for concession of contragarantias by means of the indication of own revenue ;

II-the State of Santa Catarina, duly authorized by this Resolution, conclude contract with the Union for the concession of contragarantias, in the form of binding of the recipes for which they 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, in the terms of art. 167, § 4º, of the Federal Constitution ;

III-in advance of the signing of the contract, the Secretary of the National Treasury will verify and attest to adimitation of the Catarinese Company of Waters and Sanitation as to the payments and accounts of accounts of which it treats art. 10 of Resolution No. 48, 2007.

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 March 18, 2010.

Senator Jose Sarney

President of the Federal Senate