Do I know that the Senate approved, and I, Renan Calheiros, President, pursuant to art. 48, paragraph XXVIII, the internal regulations, enact the following resolution No. 42, of 2014 authorizes the city of Fortaleza to hire external credit operation, with guarantee of the Federative Republic of Brazil, with the Inter-American Development Bank (IDB), worth up to $ 57,908,000.00 (57 million, us $ 908,000).
The Senate resolves: Art. first is the municipality of Fortaleza authorized to hire external credit operation, with guarantee of the Federative Republic of Brazil, with the Inter-American Development Bank (IDB), worth up to $ 57,908,000.00 (57 million, us $ 908,000).
Sole paragraph. The credit operation's resources are intended for partial financing of the "Fortaleza urban transport program II".
Art. 2 the credit operation referred to in art. 1st should be conducted under the following conditions: (I)-debtor: municipality of Fortaleza-CE;
II-creditor: Inter-American Development Bank (IDB);
III-guarantor: Federative Republic of Brazil;
IV-value: up to $ 57,908,000.00 (57 million, us $ 908,000);
V-mode: Flexible Funding mechanism;
VI-disbursement: in 5 (five) years from the period of the contract;
VII-depreciation: semi-annual installments, consecutively and, whenever possible, the same, winning the first until 66 (66) months after the date of signature of the contract, and the last until 25 (twenty-five) years thereafter;
VIII-interest: required on the daily debit balances to an annual fixed interest rate for each quarter based on Libor plus the applicable margin for loans from the IDB's ordinary capital, while the loan has not been the subject of conversion;
IX-conversion: the borrower, already authorized by this resolution, may request conversion of currency and interest rate at any time during the term of the contract, as provided contractually;
X-credit Commission: up to 0.75% p.a. (75 cents per 100 a year) on the balance not paid the loan, from 60 (60) days from the date of signing of the contract; and XI-inspection and supervision: expenditure in a given semester, up 1% (1%) of the loan amount divided by the number of semesters understood within original disbursement schedule.
Sole paragraph. The dates of payment of the principal, the financial charges and disbursements referred to can be changed depending on the date of signature of the loan contract.
Art. third is the Federative Republic of Brazil authorized to grant a guarantee to the city of Fortaleza on external credit operation referred to in this resolution.
Sole paragraph. The authorization referred to in the caput is conditional: I-celebration of counter-guarantees concession contract between the municipality of Fortaleza and the Union, in the form of binding the municipality participation quotas in storage, according to the Union set out in arts. 158 and 159, section I, item "b", both of the Federal Constitution, as well as the own resources of the Municipality referred to in art. 156, also of the Federal Constitution, and other permitted law;
II-attesting the delivery situation as tax payments, loans and financing due to Union and about the accountability of resources previously her received, pursuant to art. 10 the Federal Senate resolution No. 48, 2007; and III-compliance with the preconditions to the first disbursement.
Art. 4 the maximum time limit for the exercise of this authorization shall not exceed 540 (540) days, counted from the validity of this resolution.
Art. 5 this decision shall enter into force on the date of its publication.
Senate, on 18 December 2014 Senator RENAN CALHEIROS President of Senate