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United States Senate Resolution No. 24, 03 September 2014

Original Language Title: Resolução do Senado Federal nº 24, de 03 de setembro de 2014

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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. 24, OF 2014

Authorizes the Environmental Sanitation Company of the Federal District (Caesb) to hire external credit operation, with Union warranty, with the Inter-American Development Bank (BID), in value total up to US$ 170,840,000.00 (one hundred and seventy million, eight hundred and forty thousand U.S. dollars).

The Federal Senate resolves:

Art. 1º Is the Environmental Sanitation Company of the Federal District (Caesb) authorized to hire external credit operation, with Union warranty, with the Inter-American Development Bank (BID), at the total value of up to US$ 170,840,000.00 (one cent and seventy million, eight hundred and forty thousand U.S. dollars).

Single paragraph. The advent resources of the external credit operation referred to in the caput are intended for the partial financing of the "Caesb-1ª Step Environmental Sanitation Program".

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

I-debtor: Sanitation Company Environmental District of the Federal District (Caesb);

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

III-guarantor: Federative Republic of Brazil;

IV-value: US$ 170,840,000.00 (one hundred and seventy million, eight hundred and forty thousand U.S. dollars);

V-modality: flexible financing mechanism;

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

VII-amortization: upon payment of 41 (forty one) semestral benefits, consecutive and, to the extent of possible, equal, winning the first 5 (five) years after the contract signing date and the last up to 25 (twenty-five) years after that date, pursuant to clause 1.05 of the loan agreement minuta;

VIII-interest: the borrower should pay interest on the daily debtor balances at a rate that will be determined from agreement with article 3.03 of the General Rules, as stipulated in clause 1.06 of the minuta of the loan agreement; while the loan has not been the subject of any conversion, the borrower will pay interest on the daily debtor balances at a rate of interest based on Libor plus the applicable margin for loans from the ordinary capital;

IX-credit commissions: the borrower must pay credit commission in accordance with the provisions of Articles 3.04, 3.05 and 3.07 of the General Rules, as provided for in clause 1.07 of the minuta of the loan agreement; the commission in no case may exceed 0.75% a.a. (seventy-five hunduths per cent per year) and will start to focus 60 (sixty) days from the signing of the contract;

X-expenditure of inspection and supervision: except if the BID establishes otherwise, in accordance with the provisions of article 3.06 of the General Norms, the borrower will not be obliged to cover the Bank's spending for general inspection and supervision, as stipulated in clause 1.08 of the loan agreement minuta; in no hypothesis could be charged to the borrower, to that title, in any given semester, more than 1% (one percent) of the value of the loan, divided by the number of semesters understood in the original disbursement term.

§ 1º The payment dates of the principal, the financial burden and the expected disbursements may be changed depending on the date of signing of the contract of funding.

§ 2º It is permitted to the borrower, already duly authorized by this Resolution, ask the Bank for currency conversion and interest rate conversion, as laid out in clause 1.09 of the loan agreement and in Chapter V of the General Rules.

Art. 3º It is the Union authorized to provide assurance to Caesb in the external credit operation referred to in this Resolution.

§ 1º The authorization provided for in the caput is conditioned on that the Federal District will conclude contract with the Union for the granting of countermeasures, in the form of binding of the revenue provided for in the arts. 155, 156, 157, 158 and 159, in the terms of art. 167, § 4º, all of the Federal Constitution, and other guarantees in law admitted, and the Federal Government may withhold the necessary resources for coverage of the commitments honored directly from the centralizing accounts of the District's fundraising Federal or federal transfers.

§ 2º Previously to the signing of the contract, the Ministry of Finance will check and attest to Caesb's addedness as to the payments and the benefits of accounts of which it treats art. 10 of the Federal Senate Resolution No. 48, of 2007, as well as the fulfilment of the preconditions to the first disbursement.

Art. 4º The maximum period for the exercise of this authorisation is 540 (five hundred and forty) days, counted from its publication.

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

Federal Senate, on September 3, 2014

Senator RENAN CALHEIROS

President of the Federal Senate