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. 42, OF 2014

Authorizes the Municipality of Fortaleza-CE to hire external credit operation, with guarantee from the Federative Republic of Brazil, with the Inter-American Development Bank (BID), worth up to US$ 57,908,000.00 (fifty-seven million, nine-hundred and eight thousand U.S. dollars).

The Federal Senate resolves:

Art. 1º It is the Municipality of Fortaleza-CE authorized to hire external credit operation, with guarantee of the Federative Republic of Brazil, with the Inter-American Development Bank (BID), worth up to US$ 57,908,000.00 (fifty-seven million, nineties and eight thousand U.S. dollars).

Single paragraph. The proceeds from the credit operation are intended for the partial financing of the "Urban Transport Program of Fortaleza II".

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

I-debtor: Municipality of Fortaleza- CE;

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

III-guarantor: Federative Republic of Brazil;

IV-value: up to US$ 57,908,000.00 (fifty-seven million, nine-hundred and eight thousand U.S. dollars);

V-modality: Flexible Financing Mechanism;

VI-disbursement: in 5 (five) years, counted as of the duration of the contract;

VII-amortization: semiannual benefits, consecutive and, where possible, equal, winning the first up to 66 (sixty-six) months after the contract signing date, and the last, up to 25 (twenty-five) years after that date;

VIII-interest: required on the daily debtor balances at an annual interest rate fixed for each quarter based on the Libor plus applicable margin for loans of the ordinary capital of the BID, while the loan has not been the subject of conversion;

IX- conversion: the borrower, already duly authorized by this Resolution, will be able to request currency and interest rate conversion at any time during the duration of the contract, as per contractually willing;

X-commission of credit: up to 0.75% a.a. (seventy-five hundrths per cent a year) on the undisbursed balance of the loan, from 60 (sixty) days of the contract signing date; and

XI-expenditure of inspection and supervision: in a given semester, up to 1% (one per cent) of the value of the loan, divided by the number of semesters understood in the original term of disbursements.

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 Federative Republic of Brazil authorized to grant guarantee to Municipality of Fortaleza-CE in the external credit operation referred to in this Resolution.

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

I-conclusion of contract of granting of countermeasures between the Municipality of Fortaleza and the Union, in the form of linking the quotas of participation of the Municipality in the Union's fundraising, according to the established in the arts. 158 and 159, inciso I, paragraph "b", both of the Federal Constitution, as well as of the own revenues of the Municipality referred to in art. 156, also of the Federal Constitution, and others in admitted law;

II-proof of the adimplements situation as to the payments of tributes, loans and financing owed to the Union and as to the provision of previously received resource accounts, pursuant to the art. 10 of the Federal Senate Resolution No. 48, of 2007; and

III-fulfilment of the conditions previeeways 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 December 18, 2014

Senator RENAN CALHEIROS

President of the Federal Senate