I do know that the Federal Senate has approved, and I, José Sarney, President, in the terms of art. 48, inciso XXVIII, of the Internal Rules, promulgated the following

R E S O L Ç No 54, DE 2010

Authorizes the State of Rio Grande do Sul to hire external credit operation, with guarantee from the Union, with the Inter-American Development Bank (BID), worth up to US$ 60,000,000.00 (sixty million U.S. dollars), from principal, for partial financing of the?Project of Strengthening the Fiscal Management of the State of Rio Grande do Sul (Professional-RS)?.

The Senate Federal resolves:

Art. 1º It is the State of Rio Grande do Sul authorized to hiring external credit operation, with a guarantee from the Union, with the Inter-American Development Bank (BID), worth up to US$ 60,000,000.00 (sixty million U.S. dollars).

Paragraph single. Are the resources of this credit operation intended to partially finance the?Project of Strengthening the Fiscal Management of the State of Rio Grande do Sul (Professional-RS)?.

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

I-debtor: State of Rio Grande do South;

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

III-guarantor: Federative Republic of Brazil;

IV-value: up to US$ 60,000,000.00 (sixty million U.S. dollars), of principal;

V-modality: loan of the unimonetary mechanism with Libor-based interest rate;

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

VII-amortization: semestral plots, consecutive ones and, where possible, equal, winning the first 5 (five) years after the effective date of the contract and the last up to 20 (twenty) years after that date, to be paid on May 15 and on November 15 of each year;

VIII-interest: required semester on the same repayment terms of amortization and calculated on the periodic debtor balance of the loan, at an annual rate for each quarter determined by the BID and comprised of the interest rate Libor quarterly to U.S. dollar, plus, or less, a quarterly calculated cost margin as the weighted average of all the cost margins for the BID, related to the loans assigned to the BID loan basket that finance the loans of the unimonetary mechanism, based on Libor, plus the margin (spread) for loans from the ordinary capital;

IX-credit commission: to be set up periodically by the BID, from up to 0.75% a.a. (seventy-five hundred percent a year) on the undisbursed balance of the loan, required together with the interest, going into effect 60 (sixty) days after the signing of the contract;

X-expenses with inspection and general supervision: the due value in a given semester could not be greater than 1% (one percent) of the funding, divided by the number of semesters understood in the original disbursement term.

§ 1º The payment dates of the principal and the financial charges, as well as the expected disbursements, could be changed depending on the date of signing of the contract of loan.

§ 2º It is provided to the borrower, with written consent from the guarantor, to exercise the interest rate conversion option applicable to the total or partial amount of the loan, from float, based on Libor, to fixed, and vice versa, at minimum amounts and deadlines set out in the loan agreement.

§ 3º For the exercise of the options referred to in § 2º, it is authorized to collect the costs incurred by the BID in its realization.

Art. 3º It is the Union authorized to grant guarantee to the State of Rio Grande of the South in the contracting of the external credit operation referred to in this Resolution.

§ 1º The exercise of the authorisation provided in the caput is conditional on the State of Rio Grande do Sul celebrates 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, in accordance with § 4º of the art. 167, 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 honoured commitments directly from the centralizing accounts of the fundraising State or federal transfers.

§ 2º Previously to the signing of the contract, the Ministry of Finance will check and attest to the adimation of the State of Rio Grande do Sul and all the organs and integral entities of the State as to the payments and installment of accounts of which it treats art. 10 of Resolution No. 48, of 2007, with the wording given by Resolution No. 41, of 2009, both of the Federal Senate.

Art. 4º The hiring referred to in art. 1º shall be conditional on the suspension or cessation of the effects resulting from the Judgment No. 1,347 of 2010, of the Plenary of the Court of Auditors of the Union.

Art. 5º 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. 6º This Resolution goes into effect on the date of its publication.

Federal Senate, on August 31, 2010.

Senator José Sarney

President of the Federal Senate