I get to know that the Federal Senate has approved, and I, Renan Calheiros, President, in the terms of art. 48, inciso XXVIII, of the Internal Rules, promulgated the following

RESOLUTION NO. 7, OF 2014

Authorizes the State of São Paulo to hire external credit operation, with Union warranty, with the Andina de Fomento Corporation (CAF), in value of up to US$ 204,000,000.00 (two hundred and four million of U.S. dollars).

The Federal Senate resolves:

Art. 1º It is the State of São Paulo authorized to hire external credit operation, with a guarantee of the Union, with the Andina de Fomento Corporation (CAF), worth up to US$ 204,000,000.00 (two hundred and four million U.S. dollars).

Paragraph single. The features of this credit operation are intended to partially finance the "Baquirivu-Guaçu River Macrodrenage System".

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

I-debtor: State of São Paulo;

II-creditor: Andina de Fomento Corporation (CAF);

III-guarantor: Federative Republic of Brazil;

IV-value: up to US$ 204,000,000.00 (two hundred and four million U.S. dollars);

V-deadline of disbursement: 48 (forty-eight) months, counted from the duration of the contract;

VI-amortization: in 24 (twenty-four) semester and successive plots, of values as much as possible equal, winning the first at 54 (fifty-four) months from the date of signing of the contract;

VII-interest: required semester, on the same date of amortization, and calculated on the basis of the Libor semester to U.S. dollar, plus a spread of 2.65% a.a. (two integers and sixty-five hundreths per cent per annum), being that during the period of 8 (eight) years ran from the effective date of the contract, the margin will be 1.65% a.a. (one integer and sixty-five hundrths per cent per annum), and may be extended, depending on the availability of the Compensatory Fund and the CAF criterion;

VIII-commission of commitment: up to 0.35% a.a. (thirty-five hundred percent a year) on the undisbursed balance of the loan, coming into effect from the maturity of the first half after the signing of the contract;

IX-funding commission: 0.85% (eighty-five hunduths per cent) on the total loan amount, due from the beginning of the term of the contract and at the latest at the opportunity in which the first disbursement takes place;

X-expenses: relative to the cost of assessment, worth US$ 40,000.00 (forty thousand U.S. dollars), debited from funding at the time of the first disbursement;

XI-interest from mora: 2% a.a. (two percent a year), add to the interest in case of mora.

Single paragraph. The payment dates of the principal, the financial charges and the expected disbursements will be able to be changed depending on the date of signing of the loan agreement.

Art. 3º It is the Union authorized to provide assurance to the State of São Paulo in the contracting of the external credit operation referred to in this Resolution.

§ 1º The exercise of the authorization provided for in the caput is conditional on that the State of São Paulo celebrates contract with the Union for the granting of countermeasures, in the form of linking the recipes of which they treat the arts. 155, 157 and 159, in the terms of § 4º of the art. 167, all from the Federal Constitution, and from other guarantees in admitted law, and the Federal Government may apply for the transfers of resources necessary for coverage of the commitments honored directly from the centralizing accounts of the fundraising of the State or federal transfers.

§ 2º Previously to the signing of the contract, the Ministry of Finance will check and attest to the addedness of the State of São Paulo as to the payments and benefits of accounts of which it treats art. 10 of the Federal Senate Resolution No. 48, of 2007, as well as the fulfilment of the preconditions to the first disbursement.

Art. 4º The maximum period for the exercise of this authorization is 540 (five hundred and forty) days, counted as of the duration of this Resolution.

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

Federal Senate, on May 7, 2014

Senator RENAN CALHEIROS

President of the Federal Senate