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

RESOLUTION # 50, DE 2009

Autorizes the Municipality of Manaus to hire external credit operation, with collateral of the Federative Republic of Brazil, worth up to US$ 50,000,000.00 (fifty million U.S. dollars).

The Federal Senate resolves:

Art. 1º It is the Municipality of Manaus authorized to hire external credit operation, with Union guarantee, with the Inter-American Development Bank (BID), worth up to US$ 50,000,000.00 (fifty million U.S. dollars).

Single Paragraph. The resources of the operation are intended for the partial funding of the "Socio-Environmental Development and Inclusion Program of Manaus (Prourbis)".

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

I-devedor: Municipality of Manaus ;

II-credor: Inter-American Development Bank (BID) ;

III-guarantor: Federative Republic of Brazil ;

IV-value: up to US$ 50,000,000.00 (fifty million U.S. dollars) ;

V-modality: loan of the unimonetary mechanism with interest rate based interest rate interbank practiced in London (Libor) ;

VI-disbursement currency: US dollar ;

VII-conversion options: the borrower will be able to exercise the option of conversion of currency disbursements and / or the currency conversion option of the debtor balances ;

VIII-deadline of disbursement: 4 (four) years, counted from the duration of the contract ;

IX-amortization of the debtor balance in U.S. dollars: semiannual and consecutive plots, of values as much as possible equal, paid on day 15 of the months of April and October each year, by winning the first after transcurated 5 (five) years and the last, at the latest, after transfer 25 (twenty-five) years, both of which are counted from the date of the signing of the contract ;

X-amortization of the debtor balance in reais: will be fixed for each disbursement converted into reais, being that the conditions offered are those constants of the Indicative Quotation Charter of the Disbursement Conversion to the Disbursement Conversion and Letter of Notification ;

XI-interest applicable for debtor balance in U.S. dollars: required semester in the same dates of the repayment of amortization and calculated on the periodic debtor balance of the loan, at an annual fee for each quarter determined by: (a) quarterly Libor rate for US dollar ; (b) more or less a margin of cost related to loans the operations of the Libor modality ; (c) plus the net value of any cost / profit generated by operations to mitigate the fluctuations in the Libor rate ; and (d) more the margin for loans from the ordinary capital ;

XII-interest applicable for debtor balance in reais: base interest rate, corresponding to the rate of equivalent interest in the real market (BRL) at the quarterly Libor rate for U.S. dollar (USD) plus 10 basis points (ten) basis points (pbs), being that the base interest rate will be determined for each conversion in function: (a) of the fixed interest rate applied to a nominal amount corrected by inflation ; (b) of the payment schedule ; (c) of the conversion date ; and (d) of the nominal amount of each conversion ;

XIII-interest rate fixation option: the borrower will be able to apply for the BID the conversion to a fixed interest rate of part or all of the debtor balances subject to the interest rate based on the Libor rate and vice versa, being that each conversion can only be performed at a minimum value equivalent to 25% (twenty-five per cent) of the amount of the loan or US$ 3,000,000.00 (three million U.S. dollars), whatever is higher ;

XIV-expenses with general inspection and supervision: as current policy, the BID will not charge amount to meet expenses with inspection and general supervision, with, by periodic review of its policies, it will notify the borrower a value due in a given semester, which may not exceed 1% (one per cent) of the funding, divided by the number of semesters understood within the original period of disbursements ;

XV-credit commission: up to 0.75% a.a. (seventy five hundredths per cent per year), to be established periodically by the BID and calculated on the undisbursed balance of the loan, required together with interest and entering into force 60 (sixty) days after the signing of the contract.

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

Art. 3º It is the Union authorized to grant warranty to the Municipality of Manaus in the credit operation external referred to in this

Single Paragraph. The authorization provided in the caput is conditioned to:

I-that the Municipality of Manaus celebrates contract with the Union for the granting of contragarantias, under the form of linking of the revenue apportionment quotas of which they treat the arts. 158 and 159, complemented by the tax revenues established in art. 156, all of the Federal Constitution, and other warranties in admitted law, and the Federal Government may require the transfers of resources required to cover the commitments honoured directly from the centralizing accounts of the collection of the Municipality or federal transfers ;

II-that it is proven to comply with the preconditions for the first disbursement.

Art. 4º The maximum term for the exercise of this authorisation is 540 (five hundred and forty days), counted from their publication.

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

Federal Senate, on December 17, 2009.

Senator Jose Sarney

President of the Federal Senate