I do know that the Federal Senate has approved, and I, Marconi Perillo, First Vice President of the Federal Senate, in the exercise of the Presidency, in the terms of the art. 48, inciso XXVIII, of the Internal Rules, promulgated the following

R And S O L U Ç Ç

No. 20, DE 2009

Authorizes the State of São Paulo to hire external credit operation, with guarantee from the Union, with the International Bank For Reconstruction and Development (Bird), worth up to US$ 166,650,000.00 (one hundred and sixty-six million and six hundred and fifty thousand 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 from the Union, with the International Bank for Reconstruction and Development (Bird), worth up to US$ 166,650,000.00 percent (one hundred and sixty-six million and six hundred and fifty thousand U.S. dollars).

Paragraph single. The features of this credit operation are intended for the partial funding of the "Paving and Recovery Program of Vicinal Roads of the State of São Paulo".

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: International Bank for Reconstruction and Development (Bird);

III-guarantor: Federative Republic of Brazil;

IV-value: up to US$ 166,650,000.00 (one hundred and sixty-six million and six hundred and fifty thousand dollars Americans);

V-modality: borrowing with variable margin;

VI-deadline of disbursement: up to June 30, 2014;

VII-amortization: each disbursement is to be paid in 50 (fifty) semi-annual and consecutive installments, on day 15 of the months of May and November each year, winning the first on November 15, 2014 and the last one on May 15, 2039, being that the values of each parcel will be equivalent to 1/50 of each disbursement, except the last one, which will be equivalent to the value remnant;

VIII-interest: required semestally on the same payment dates as amortization and calculated on the periodic debtor balance of the loan, at a rate comprised of the semi-annual Libor to U.S. dollar, plus a spread to be determined by Bird semester;

IX-interest rates: up to 0.50% a.a. (fifty hundred percent a year), add to the interest due and unpaid in up to 30 (thirty) days after the target date for your payment;

X-commission in sight: 0.25% (twenty-five hundred percent) on the value of the loan, to be debited on the date on which the contract enters into effectivity.

§ 1º The dates of payments of the principal and financial burdens, as well as of the disbursements predicted, could be changed depending on the date of signing of the loan agreement.

§ 2º It is provided for the change of variable margin modality for fixed, which will allow the borrower to exercise the option of conversion of the applicable interest rate to the total amount or partial loan, from float to fixed, and vice versa, as well as from the reference currency of the credit operation to the amount already disbursed and to the to disburse.

§ 3º For the exercise of the options referred to in § 2º, it is authorized to collect the charges incurred by the Bird in the realization of the options and of a Transaction Commission on the affected values.

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.

Paragraph single. The exercise of the authorization provided for in the caput is conditional on the State of São Paulo to conclude contract with the Union for the granting of countermeasures, in the form of linking the proceeds of which they treat the arts. 155, 157 and 159, inciso I, paragraph "a", and inciso II, all of the Federal Constitution, and other guarantees in law admitted, and the Federal Government may apply for the transfers of resources necessary for coverage of the Honourable commitments directly from the centralizing accounts of the state's fundraising or the federal transfers.

Art. 4º The maximum term 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 goes into effect on the date of its publication.

Federal Senate, on June 20, 2009.

Senator Marconi Perillo

First Vice President of the Senate

Federal, in the exercise of the Presidency