I get to 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

R E S O L U Ç O-No. 21, DE 2002

Authorizes the State of São Paulo to hire external credit operation, with guarantee of the Union, with the Bank Inter-American Development (BID), worth US$ 120,000,000.00 (one hundred and twenty million U.S. dollars).

The Federal Senate resolves:

Art. 1º It is the State of São Paulo authorized to hiring external credit operation, with a guarantee from the Union, with the Inter-American Development Bank (BID), worth US$ 120,000,000.00 (one hundred and twenty million U.S. dollars).

Single paragraph. The advinds proceeds from the external credit operation referred to in the caput are intended for the partial financing of the State of São Paulo's Highway Recovery Program.

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

I-creditor: Inter-American Development Bank (BID);

II-guarantor: Federative Republic of Brazil, having as a counterbalance, as defined in the text of Law No. 10,668 of October 18, 2000 authorizing the intended loan, the quotas or plots of state participation in the Union's fundraising, supplemented by the state's own revenues;

III-value: US$ 120,000,000.00 (one hundred and twenty million U.S. dollars);

IV-deficiency: 5 (five) years;

V-amortization: 31 (thirty-one) semiannual, consecutive, and, as far as possible, equal;

VI-interest: required semestically, calculated on the basis of the costs of the Qualified Multimonetary Loans on the debtor balances of the loan, plus a spread that the Bank will fix at the end of each semester;

VII-commission of commitment: 0.75% a.a. (seventy-five hundrths per cent a year), paid semester on the undisbursed balance of the loan, coming into force 60 (sixty) days after the signing of the Contract;

VIII-inspection and general supervision: 1% (a per cent) of the value of the loan, limited to US$ 1,200,000.00 (one million and two hundred thousand U.S. dollars).

Single paragraph. The dates of payments of the principal and the financial burdens may be changed depending on the date of signing of the Agreement.

Art. 3º It is the Union authorized to grant guarantee to the State of São Paulo in the operation of external credit referred to in art. 1º of this Resolution.

Single paragraph. The authorization provided in the caput is conditional on the State of São Paulo binding, as a counterbalance to the Union, the constitutional transfers of tax revenues to which it does jus, supplemented by its own revenues, by formalization of contragarantia contract, and the Federal Government may retain necessary importances directly from the centralizing accounts of the state's fundraising.

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

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

Federal Senate, on June 5, 2002

SENATOR RAMEZ TEBET

President of the Federal Senate