PROVISIONAL MEASURE # 1.972-16, OF July 28, 2000.

Has over the Higher Education Student Funding Fund 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:

CHAPTER I

OF THE FUNDING FUND TO THE STUDENT OF HIGHER EDUCATION-FIES

Art. 1º It is hereby instituted, pursuant to this Provisional Measure, the Graduate Funding Fund for Higher Education-FIES, of a accounting nature, intended for the grant of funding to students regularly enrolled in higher courses not free of charge and with positive evaluation, according to own regulation, in the processes conducted by the Ministry of Education.

Single Paragraph. The Union's participation in funding to the non-free higher education student shall, exclusively, give contributions to the Fund instituted by this Interim Measure, ressaved the willing art. 14.

I Section

From the revenues of the FIES

Art. 2º Constitute revenues from FIES:

I-orational appropriations earmarked for the Ministry of Education, re-salvaged the provisions of art. 14 ;

II-thirty percent of the net income of the prognostic contests administered by the Federal Economic Box, as well as the totality of the award resources not sought by the contemplated within the prescribed period of prescription, ressaved the willing in the art. 14 ;

III-charges and contractual penalties levied on the financing granted to the ampairing of this Provisional Measure ;

IV-fees and emoluments charged from participants of the selection processes for the funding ;

V-charges and contractual penalties levied in the financing granted under the Educational Credit programme, of which it treats Law No. 8,436 of June 25, 1992, ressaved the provisions of the art. 14 ;

VI-yield of financial applications on their availabilities ; and

VII-patrimonial revenues.

§ 1º It gets authorized:

I-the hiring, by the operator of FIES, of internal and external credit operations in the disciplined manner by the National Monetary Council-CMN ;

II-the transfer to the FIES of the debtor balances of the finaciations granted under the Educational Credit Programme of which it treats Law No. 8,436 of 1992 ;

III-the disposal, total or partial, to financial institutions accredited for this purpose by the CMN, of the assets of which it treats the earlier incision and of the assets represented by financing granted to the amparo of this Measles Provisional.

§ 2º FIES cash availabilities are to be kept in deposits in the single account of the National Treasury.

§ 3º The administrative expenses of the FIES, as per CMN regulation, will correspond to:

I-up to zero comma two per cent per year to the operator agent, by the management of the Fund, calculated on its availabilities ;

II-up to zero comma three per cent per year to the operator agent, by the management of the Fund, calculated on the debtor balance of the repasses to financial institutions ;

III-Up to a comma five per cent a year to financial agents, calculated on the debtor balance, by the administration of the credits granted and the absorption of the credit risk effectively characterized, in the percentage set in the inciso V of the art. 5º.

§ 4º The payment of the obligations arising from the operations of which it treats the inciso I of § 1º shall take precedence over all other expenses.

Section II

From the Management of FIES

Art. 3º The management of the FIES will fit:

I-the Ministry of Education, as the formulator of the policy on offer and financing and supervision of the implementation of the Fund's operations ; and

II-to the Federal Economic Box, as an operator and administrator quality of the assets and liabilities, as per the regulation and standards downloaded by the CMN.

§ 1º The Ministry of Education will edit regulation that will have, including, on:

I-the rules of selection of students to be funded by FIES ;

II-the cases of temporary overrun and closing of the financing contracts ;

III-the demands of academic performance for the maintenance of funding.

§ 2º The Ministry of Education will be able to rely on counsel advice, advisory nature, whose members will be appointed by the Minister of State.

§ 3º According to the credit limits set by the operator agent, financial institutions will be able, as financial agent, to grant funding with FIES resources.

CHAPTER II

DAS OPERATIONS

Art. 4º These are passable from funding by the FIES up to seventy percent of the educational charges levied on students by the higher education institutions duly enrolled for that purpose by the Ministry of Education, in contraction to the graduation courses in which they are regularly enrolled.

§ 1º The enrollment that the caput of this article will be per course offered, being vetoed in the grant of funding in the courses with negative evaluation in the processes conducted by the Ministry of Education.

§ 2º Could the Ministry of Education, in exceptional character, cadastrar, for the purposes of the funding for this Provisional Measure, courses for which there are no completed evaluation processes.

§ 3º Each student will be able to qualify for only one funding, intended for the coverage of expenses for a single degree course being vetoed the grant to the student who has participated in the Educational Credit Programme of which deals with Law No. 8,436, 1992.

Art. 5º The funding awarded with resources from FIES should note the following:

I-deadline: it may not be higher than the regular duration of the course ;

II-interest: to be stipulated by the CMN, for each lethal semetre, applying from the date of the celebration to the end of the student's participation in funding ;

III-offered warranty by the funded student ;

IV-amortization: it will begin in the month immediately subsequent to the completion of the course, or in advance, on the initiative of the student funded, calculating benefits, in any case:

a) in the first twelve months of amortization, in value equal to that of the instalment paid directly by the student funded to the institution of higher education in the immediately prior semester ;

b) parading the remaining debtor balance in period equivalent to up to one and a half times the period of stay in the student condition financed ;

V-risk: financial agents and higher education instutions will participate in the risk of funding in the percentage of twenty percent and five percent, respectively, being considered solidary debtors at the limits. specified.

§ 1º Over the period of use of funding, the funded student is required to pay, quarterly, interest incidents on the financing, limited to the amount of R$ 50, to 00 (fifty reais).

§ 2º It is permitted to the student funded, at any time, observed the regulation of the CMN, to perform extraordinary amortization of the financing.

§ 3º Exceptionally, on the initiative of the higher education institution to which it is bound, may the student dildo by up to one year the deadline for which it treats the inciso I of the caput of this article, on whose hypothesis the maximum period of parcelament of the moralization will be limited to one and a half times the regular duration of the course.

Art. 6º In the event of the inadimpletion of benefits due by the student financed, the institution referred to in § 3º of the art. 3º will promote the execution of the contractual guarantees, as established by the institution of treating the inciso II of the caput of the same article, by repassing the FIES and the higher education institution the part concerningtheir risk.

CHAPTER III

OF PUBLIC DEBT SECURITIES

Art. 7º It is the Union authorized to issue, in favor of FIES, title of public debt, up to the limit of R$ 300,000,000.00 (three hundred million reais).

§ 1º It is still authorized the Union to issue additional installment of securities, up to the limit of R$ 100,000,000.00 (one hundred million reais), to cope with the amount corresponding to the option of which it treats the single paragraph of art. 14.

§ 2º The securities to which they refer to caput and § 1º will be represented by National Treasury issuance certificates, with features defined in act of the Executive Power.

§ 3º The certificates referred to in the preceding paragraph shall be issued in the form of direct allotment, upon par, upon express request from the FIES to the Secretary of the National Treasury.

§ 4º The resources in current currency delivered by the FIES in return for the direct placement of the certificates will be used exclusively for the abatement of the National Treasury's public liability debt.

Art. 8º In return for the direct placement of the certificates, it is the FIES entitled to use in payments the securitized claims received in the form of the art. 12.

Art. 9º The certificates of which it treats the previous article shall be intended by the FIES exclusively for payment to the higher education institutions of the educational charges relating to the financing operations carried out with FIES resources.

Art. 10. Certificates received by higher education institutions in the form of the previous article will be used exclusively for payment of previdual obligations to the National Social Insurance Institution-INSS, staying this authorized to receive them.

Art. 11. The Office of the National Treasury will rescue, upon formal request from the INSS, the certificates intended for that Institute in the form of the previous article.

Art. 12. For the purposes of the alienation that it treats the inciso III of § 1º of the art. 2º, is the FIES entitled to receive in payment securitized claims of liability of the National Treasury, originating from the securitization of debt in the manner provided for in point?b? of the inciso II of § 2º of the art. 1º of the Provisional Measure No. 1.981-50, of this date.

Single Paragraph. For the purpose of receiving the securitized credits in the form provided for in the caput the economic equivalence criterion between the assets involved will be observed.

Art. 13. The operations to which the arts refer. 8º to 11 will be held on par.

CHAPTER IV

DAS GENERAL AND TRANSITIONAL PROVISIONS

Art. 14. In the exercises of 1999 and following, of the revenue referred to in the incisos I, II and V of the art. 2º will be deducted the resources required for payment of the educational charges contracted under the Educational Credit Programme that treats Law No. 8,436 of 1992.

Single Paragraph. Students entitled to the Program referred to in the caput of this article are permitted to opt, by June 30, 2000, for the financing of this Provisional Measure, observed willing in the final part of the art. 1º in § 1º of the art. 4º.

Art. 15. Exceptionally, in the 1999 financial year, they will do jus to the funding for this Provisional Measure, with effect from 1º May 1999, the students demonstrably needy who have ceased to benefit from scholarships integral or partial granted by the institutions referred to in art. 4º of Law No. 9,732, 1998, in value corresponding to the fellowship previously received.

Single Paragraph. To the financing of which it treats the caput of this article does not apply to the provisions of the final part of art. 1º and in § 1º of the art. 4º.

Art. 16. It is vetoed, from the publication of this Provisional Measure, the inclusion of new beneficiaries in the Educational Credit program of which it treats Law No. 8,436 of 1992.

Art. 17. The acts practiced on the basis of the Provisional Measure No. 1.972-15, of June 29, 2000, shall be convalidated.

Art. 18. This Provisional Measure comes into force on the date of its publication.

Brasilia, July 28, 2000 ; 179º of Independence and 112º of the Republic.

fernando henrique cardoso

Pedro Malan

Paulo Renato Souza

Waldeck Ornélas

Martus Tavares