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Provisional Measure No. 1,972-10, February 10 2000

Original Language Title: Medida Provisória nº 1.972-10, de 10 de Fevereiro de 2000

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PROVISIONAL MEASURE NO. 1.972-10, OF February 10, 2000.

Disposes on the Student Funding Fund of Higher Education and gives other arrangements.

THE PRESIDENT OF THE REPUBLIC, in the use of the attribution that confers it on art. 62 of the Constitution, adopts the following Provisional Measure, with force of law:

CHAPTER I

OF THE FUNDING FUND TO THE STUDENT OF HIGHER EDUCATION-FIES

Art. 1º Stay instituted, pursuant to this Provisional Measure, the Higher Education Student Financing Fund-FIES, of an accounting nature, intended for the granting of funding to students regularly enrolled in non-free upper courses and with positive evaluation, in accordance with own regulation, in the processes conducted by the Ministry of Education.

Single paragraph. The participation of the Union in funding to the non-free higher education student shall, exclusively, give contributions to the Fund established by this Provisional Measure, re-salvaged the provisions of art. 14.

Section I

Of the revenues of the FIES

Art. 2º Constituting revenues of the FIES:

I-appropriations oration consigned to the Ministry of Education, ressaved the provisions of the art. 14;

II-thirty percent of the net income of prognostic contests administered by the Federal Economic Box, as well as the totality of the award proceeds not sought by the contents within the term of prescription, resonated the willing noart. 14;

III-charges and contractually charged sanctions in the financing granted to the amparo of this Interim Meida;

IV-fees and emoluments collected from the participants of the selection processes for the financing;

V-charges and contractually charged penalties in the funding granted under the Educational Credit program, of which it treats Law No. 8,436 of June 25, 1992, respurred the provisions of the art. 14;

VI-throughput of financial applications on their availabilities; and

VII-heritage revenues.

§ 1º Stay authorized:

I-the hiring, by the agent operator of the FIES, from internal and external credit operations in the disciplined manner by the National Monetary Council-CMN;

II-the transfer to the FIES of the debtor balances of the finaciings granted under the Educational Credit program of which it treats Law No. 8,436, of 1992;

III-the divestory, total or partial, to financial institutions accredited to that end by the CMN, of the assets of which it treats the previous inciso and the assets represented by funding granted to the amparo of this Provisional Measure.

§ 2º FIES cash availabilities should be kept in deposits in the National Treasury Single account.

§ 3º As administrative expenses of the FIES, as per the regulation of the CMN, will correspond to:

I-up to zero comma two percent a year to the operator agent, by the management of the Fund, calculated on their availabilities;

II-up to zero comma three percent a year to the operator, by the management of the Fund, calculated on the debtor balance of the repasses to financial intitutions;

III-Up to a comma five percent a year to the agents financial, calcualdos on the debtor balance, by the administration of the credits granted and absorption of the credit risk effectively characterized, in the percent set forth in the inciso V of the art. 5º.

§ 4º The payment of the obligations arising from the operations of which it treats the inciso I of § 1º shall take precedence over all the remaining expenses.

Section II

Of The Management of FIES

Art. 3º The management of the FIES will fit:

I-to the Ministry of Education, as the formulator of the policy of supply and financing and supervision of the implementation of the fund's operations; and

II-to the Federal Economic Box, on the quality of operator and managing agent of the assets and liabilities, as per regulation and standards downloaded by the CMN.

§ 1º The Ministry of Education will edit regulation that have, inclusive, on:

I-the selection rules of students to be funded by the FIES;

II-the cases of temporary supervision and termination of financing contracts;

III-the requirements of academic performance for the maintenance of funding.

§ 2º The Ministry of Education will be able to rely on advising counsel, of a consultative nature, whose members will be designated by the Minister of State.

§ 3º In accordance with the credit limits established by the operator, financial institutions will be able to, as a financial agent, provide financing with resources from the FIES.

CHAPTER II

Of The Operations

Art. 4º Are liable for funding by the FIES up to seventy percent of the educational charges collected from the students by part of the higher education institutions duly enrolled for that purpose by the Ministry of Education, in countering to the undergraduate courses in which they are enrolled.

§ 1º The enrollment of which the caput of this article will be per course offered, being vetted to provide funding in the courses with negative evaluation in the processes conducted by the Ministry of Education.

§ 2º may the Ministry of Education, in exceptional character, to enroll, for the purposes of the funding of which it treats this Interim Measure, courses for which there are no completed evaluation processes.

§ 3º Each student will be able to empower to only one funding, intended for the coverage of expenses relating to a single degree course being vetted the granting to student that there is participated in the Educational Credit Program of which it treats Law No. 8,436, 1992.

Art. 5º The funding provided with resources from the FIES should look at the following:

I-term: it may not be higher than the regular duration of the course;

II-interest: to be stipulated by the CMN, for each semetre letivo, applying from the date of the celebration to the end of the student's participation in funding;

III-offer of adequate assurance by the funded student;

IV-amortization: will begin in the month immediately subsequent to that of the course, or in advance, on the initiative of the funded student, calculating benefits, in any case:

a) in the first twelve months of amortization, in value equal to that of the instalment paid directly by the student funded to the higher education institution in the immediately preceding semester;

b) parceling the remaining debtor balance in period equivalent to up to one and a half the term of stay in the funded student condition;

V-risk: Financial agents and higher education instutions will participate in the risk of funding in the percentage of twenty percent and five percent, respectively, being considered sympathetic debtors at the specified limits.

§ 1º Throughout the period of use of the financing, the funded student is obliged to pay, quarterly, the interest incidents on the financing, limited to the amount of R$ 50, to 00 (fifty reais).

§ 2º It is allowed to the funded student, at any time, observed the regulation of the CMN, to perform extraordinary depreciation of the funding.

§ 3º Exceptionally, on the initiative of the higher education institution to which it is bound, can the student dilate in up to one year the time frame of which it treats the inciso I of the caput of this article, in whose hypothesis the maximum term of parceling of the moralization will be limited to one and a half times the regular duration of the course.

Art. 6º In case of inaddition of the benefits due by the funded student, the institution referred to in § 3º of the art. 3º will promote the execution of contractual guarantees, as set out by the institution of treating the inciso II of the caput of the same article, going back to the FIES and the higher education institution the part concernable at their risk.

CHAPTER III

OF THE PUBLIC DEBT SECURITIES

Art. 7º Stay Union authorized to issue, in favor of the FIES, title of the public debt, up to the limit of R$ 300,000,000.00 (three hundred million reais).

§ 1º Stay still authorized the Union and issue additional share of securities, up to the limit of R$ 100,000,000.00 (one hundred million reais), to cope with the amount corresponding to the option of which rata the paragraph unique of the art. 14.

§ 2º The titles to which refer to the caput and § 1º will be represented by certificates of issuance of the National Treasury, with characteristics set out in act of the Executive Power.

§ 3º The certificates referred to in the preceding paragraph shall be issued in the form of direct placement, on par, upon express request of the FIES to the Secretary of the National Treasury.

§ 4º The resources in current currency delivered by the FIES in return for the direct placement of the certificates will be used exclusively for abatement of the public debt liability of the National Treasury.

Art. 8º In contrast to the direct placement of the certificates, stands the FIES authorized to use in payments the securitized credits received in the form of the art. 12.

Art. 9º The certificates of which it treats the previous article will be earmarked by the FIES exclusively for payment to the higher education institutions of the educational charges relating to the financing operations carried out with resources of the FIES.

Art. 10 The certificates received by the higher education institutions in the form of the previous article will be used exclusively for payment of pension obligations attached to the National Institute of Social Insurance-INSS, by staying this authorized to receive them.

Art. 11. The National Treasury Board would rescue, upon formal request from the INSS, the certificates destined for that Institute in the form of the previous article.

Art. 12. For purposes alienating that it treats the inciso III of § 1º of the art. 2º, is the FIES authorized to receive in payment securitized claims of liability of the National Treasury, originating in the debt securitization transactions in the form provided for in paragraph (b)? of the inciso II of § 2º of the art. 1º of the Provisional Measure No. 1.981-44, of December 10 and 1999.

Single paragraph. For effect of the receipt of the securitized credits in the form predicted in the caput will be observed the economic equivalence criterion among the assets involved.

Art. 13. The operations to which the arts relate. 8º to 11 will be held at par.

CHAPTER IV

OF THE GENERAL AND TRANSITIONAL PROVISIONS

Art. 14. In the exercises of 1999 and following, of the recipes referred to in the incisos I, II and V of the art. 2º will be deducted the resources required for payment of the educational charges contracted under the Educational Credit Program of which it treats Law No. 8,436, 1992.

Paragraph. It is permitted to the recipient students of the Program referred to in the caput of this article to opt, until June 30, 2000, for the funding of which it treats this Provisional Measure, observed disposed of in the final part of the art. 1º in § 1º of the art. 4º.

Art. 15. Exceptionally, in the 1999 financial year, they will be jus to the funding of which it treats this Provisional Measure, with effect from 1º May 1999, the demonstrably deprived students who have left to benefit from scholarships integrals or partial granted by the institutions referred to in art. 4º of Law No. 9,732, of 1998, in value corresponding to the scholarship previously received.

Single paragraph. To the financing of which it treats the caput of this article does not apply to the provisions of the final part of the art. 1º and in § 1º of the art. 4º.

Art. 16. It becomes vetted, from the publication of this Interim Measage, the inclusion of new beneficiaries in the Educational Credit program that it treats Law No. 8,436, from 1992.

Art. 17. They are convalidated the acts practiced on the basis of the Provisional Measure No. 1.972-9, of January 11, 2000.

Art. 18. This Interim Measure shall come into force on the date of its publication.

Brasilia, February 10, 2000; 179º of Independence and 112º of the Republic.

fernando cardoso henrique

Pedro Malan

Paulo Renato Souza

Waldeck Ornélas

Martus Tavares