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Provisional Measure No. 1,985-32, September 27 2000

Original Language Title: Medida Provisória nº 1.985-32, de 27 de Setembro de 2000

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PROVISIONAL MEASURE NO. 1.985-32, OF September 27, 2000.

Disposes about financial operations between the National Treasury and the entities that mentions, and gives other arrangements.

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

Art. 1º Stay the Union authorized to issue, in the form of direct placement, in favor of the National Economic and Social Development Bank- BNDES, Federal Foreign Debt Securities securities, whose characteristics will be defined by the Minister of State for Finance.

§ 1º In contrast to the securities issued in the form of this article, BNDES may use, the criterion of the Minister of State for Finance and, except for the incisors II and III of this paragraph, by the present value:

I-securitized issuance of National Treasury issuance, registered with the Custody Central and of Financial Settlement of Securities-CETIP, for its present value, to be defined by the National Treasury Board Secretariat of the Ministry of Finance;

II-credits held against the Binational Itaipu or against BNDESPAR-BNDES Shareholdings S.A.;

III-Notes from the National Treasury, Series P-NTN-P;

IV-credits held against the Union in decoration of:

a) refinancing contracts concluded on the basis of Law No. 8,727 of November 5, 1993, together with BNDES;

b) contract for the purchase and sale of shares of Brazilian Steel Steel S.A. -SIDERBRÁS between the Union and BNDESPAR;

c) assumption, by the Union, of debits of the Federal Railway Network S.A. -RFFSA, together with BNDES, pursuant to the provisions of this Interim Measure;

d) credits relating to leasing or public service concession contracts concluded under the National Disestatization Programme-PND;

e) obligations arising from price equalization regarding the agricultural securitization process of which it treats Law No. 9,138 of November 29, 1995.

§ 2º In the assumption of use of the credits to which refers to the inciso II of the preceding paragraph, shall be assured of the minimum monthly remuneration equivalent to that of the Single Account of the National Treasury attached to the Central Bank of Brazil, to be paid by the BNDES, on the last working day of each month.

§ 3º The BNDES will be able to repurchase from the Union, at any time, the credits referred to in the inciso II of § 1º, admitting to dation in payment of goods and rights of their property, observed the provisions of the inciso I of § 1º, in fine.

Art. 2º The goods and rights received by the Union, pursuant to § 3º of the preceding article, may be the subject of exchange with goods and rights of entities included in the PND or, noted the relevant legislation, be used for capital raising in the said entities.

Art. 3º Will be fully used for amortization of the Federal Furnished Public Debt the payments effected:

I-by Itaipu Binational and by BNDESPAR, relating to the credits received in BNDES;

II-by the relative BNDES:

a) to the fulfillment of the provisions of § 2º of the art. 1º;

b) to the repo operation provided for in § 3º of the art. 1º, when in kind.

Art. 4º Stay the National Development Fund authorized to pay, at the sole discretion of the Ministry of Finance, Obligations of the National Development Fund titled by the Union, with shareholdings of its property, deposited in the National Disestatization Fund-FND, of which they will be unlinked at the time of the transfer.

Art. 5º Stay the Union authorized to exchange stakes shareholdings of its ownership by shareholdings held by BNDESPAR, provided that the transaction does not affect the Union's controlling share in the companies involved in the exchange.

Art. 6º The price of the shareholdings shares to be permuted in the form of the previous articles may not be higher, in the case of open society, to the average quotation verified in the week prior to the lavrature of the exchange instrument or, in the case of shares without quotation in Bolsas de Values, at the constant patrimonial value of the last balance sheet or of special balance sheet.

Art. 7º The operations of which deal with the preceding articles, excluding those provided for in art. 4º, they will not be able to exceed, together, the limit of R$ 10,000,000,000.00 (ten billion reais).

Art. 8º Stay the Union authorised to refinance the operation of which it treats art. 8º of Law No. 9,639 of May 25, 1998, observed the following conditions:

I-deadline: ten years;

II-payment: in single instalment, at the end of ten years counted from the date of the conclusion of the contract of refinancing;

III-monetary update: updated and debited monthly based on the variation of the General Price Index-Internal Availability (IGP-DI), calculated by the Getulio Vargas Foundation, or other index that comes to replace it.

§ 1º The INSS is authorized to offer floating guarantee to the refinancing operation of which it treats this article, represented by goods and integral rights of its asset, in particular credits against authorities, foundations and federal public companies and entities whose shares have been deposited in the FND, to be defined jointly by the Ministries of Finance and Welfare and Social Care.

§ 2º In the operation of which it treats this article, may the Union, at the discretion of the Minister of State for Finance, for partial amortization or settlement of the debt, receive in payment goods and integral rights of the INSS asset, responding to the INSS, in the case of claims against third parties, by the existence of the credit and the solvency of the debtor.

§ 3º Could the INSS be constituted of the Union's representative for the receipt of the credits given in payment.

§ 4º The federal authorities and foundations will be able to pay the obligations transferred to the Union, due to the provisions of § 2º, with goods and rights integral to its assets, by staying the Union alternatively authorised to promote, at the sole discretion of the Minister of State for Finance, the low total or partial credit, if necessary to maintain the financial health of the institution.

§ 5º Federal public companies and entities whose shares have been deposited in the FND may, the sole discretion of the Minister of State of the Finance, to pay the obligations transferred to the Union, in accordance with the provisions of § 2º, with securitized credits, Securities of the Agrarian Debt registered with CETIP or credits arising from leasing or granting contracts of public service concluded within the framework of the PND, kept, at a minimum, when it is the case, the economic equivalence of the reciprocal credits.

§ 6º The Union may use its claims arising from the credit operation it deals with this article for capital raising of the respective debtor entity.

Art. 9º Stay the authorized Union, at the discretion of the Minister of State for Finance, up to the limit of R$ 19,000,000,000.00 (nineteen billion reais), to:

I-acquire credits that the Brazilian Electrical Central S.A. -ELECTROBRÁS holds against the Binational Itaipu, referring to the refinancing contracts firmed on September 2, 1997, and may use in payment:

a) goods and integral rights of the Global Reversion Reserve-RGR de that treats Law No. 5,655, of May 20, 1971;

b) resources raised by way of payment for the use of public good of which it treats art. 7º of Law No. 9,648 of May 27, 1998;

c) securities of the Federal Affiliated Public Debt, whose characteristics will be defined in act of the Minister of State for Finance;

II-receive the credits of which treats the inciso I of this article, in dation in payment of Union credits arising out of:

a) of the external debt refinance owed by ELECTROBRÁS and by companies of the ELECTROBRÁS system;

b) of the participation in the social capital of ELECTROBRÁS;

c) of other obligations of ELECTROBRÁS and ELECTROBRÁS system companies.

§ 1º The operations of which it treats this article will be by the present value of the credits and obligations in them involved.

§ 2º The credits acquired by the Union pursuant to the caput of this article may be transferred to BNDES, upon disposal or exchange for goods and rights.

Art. 10. It shall be the Union authorized to assume the obligations of the Federal Railway Network S.A. -RFFSA, represented by the debtor balances of financing contracts attached to BNDES, up to the amount of R$ 210,000,000.00 (two hundred and ten million reais).

§ 1º The obligations to which the caput refers will be object of audit by the Federal Office of Control of the Ministry of Finance.

§ 2º In case there has already been the assumption, eventual difference found by the Federal Office of Control will be paid to the Union, in kind or in goods, by the RFFSA, within thirty days.

§ 3º Stay the Union authorized to issue securities of the Federal Corporate Debt in payment of the obligations to which the caput or securitize the assumed bonds are concerned, in both cases with characteristics to be defined in the act of the Minister of State for Finance.

Art. 11. In contrast to the assumption of the debts of which it treats the previous article, the RFFSA will transfer to the Union, by the face value, credits relating to leasing or public service concession contracts entered into in the scope of the PND.

Art. 12. The meeting of accounts between the credits of the BNDES to which the caput of the art is referred to is authorized. 10 and credits held by the Union against BNDES, including those transferred to the Union pursuant to this Provisional Measure.

Art. 13. Is the Union authorised to acquire RFFSA credits relating to leasing or public service concession contracts concluded under the PND, by the face value, up to the limit of R$ 2,097,956,000.00 (two billion, ninety and seven million, nine hundred and fifty thousand reais), using in payment, up to the amount of R$ 1,789,956,000.00 (one billion, seven hundred and eighty and nine million, nine hundred and fifty thousand reais), Treasury Financial Letters-LFT, and, up to the amount of R$ 308,000,000.00 (three hundred and eight million reais), certificates issued by the National Treasury.

§ 1º The characteristics of the Financial Letters of the Treasury-LFT and of the certificates to be issued in service to the provisions of the caput will be defined in the act of the Minister of State for Finance.

§ 2º For purposes of the formalization of the contract with Union for the realization of the transaction referred to in the caput of this article, they do not apply to the RFFSA, in liquidation, the requirements and legal impediments regarding the attestation of addedness with organs or entities of the direct or indirect Federal Public Administration, except with the system of social security.

Art. 14. Is the Union authorised to receive the certificates of which it treats the previous article in full or partial payment of the public debt of liability of States and the Federal District before the Union, concerning contracts concluded by the Amparo of the Law (9,496) of September 11, 1997 and of the Provisional Measure No. 2.044-56 of September 26, 2000.

Single Paragraph. The application of the provisions of the caput will observe the following criteria:

I-fifty percent on the flow of the refinancing benefits and for amortization of the debtor balance of the graphic account;

II -fifty percent on the total stock of the debt.

Art. 15. Is the Union authorised to acquire credits from the Doctoral Company of Rio de Janeiro-CDRJ, relating to leasing or public service concession contracts concluded under the PND, using in payment Financial Letters of the Treasury- LFT:

I-by face value, up to the limit of R$ 162,000,000.00 (one hundred and sixty-two million reais);

II-by economic equivalence, up to the limit of R$ 80,000,000.00 (eighty million reais).

Single paragraph. The characteristics of the Treasury-LFT Financial Letters to be issued in fulfillment of the provisions of this article, as well as the conditions of the operation, will be defined in an act of the Minister of State for Finance.

Art. 16. It shall be the Union authorised, until December 31, 2000, to acquire from the States and the Federal District credits relating to compulsory government participation in the modalities of royalties, special holdings and financial compensations, concerning the exploitation of water resources for the purposes of electrical energy, oil and natural gas.

§ 1º The authorization of which treats the caput is limited to the value properly designed by the National Petroleum Agency-ANP or by the National Electrical Power Agency-ANEEL, as the case, discounted any and all budgetary linkage or mandatory transfer.

§ 2º Will be object of acquisition only the values distributed by intermediate to the regulatory agencies mentioned in the preceding paragraph.

§ 3º The Union shall use in payment Financial Certificates of the Exchequer-CFT with defined characteristics in act of the Minister of State of Finance.

§ 4º The CFT received by the Federation Units, as a result of the operation of which it treats the caput, will be compulsorily used in the payment of debts to the Union and its entities or in the capitalization of the funds of foresight, at the discretion of the Minister of State for Finance.

§ 5º The acquisition of which treats the caput can only be carried out once in relation to each state and the Federal District.

Art. 17. It is the Union authorized to register, in centralized custody system, receivables acquired in the form of the law, which they will be able to be securitized for purposes of transfer to third parties.

Single paragraph. The alienating entities of the caput object credits will qualify, together with the centralized custody system, as registrants of the assets in favor of the Union.

Art. 18. The resources in kind received by the Union in accordance with the provisions of the arts. 9º to 16 of this Provisional Measure are to be used in full in the amortization of the Federal Furnished Public Debt.

Art. 19. The debtor balance of the Oil, Derivatives and Alcohol Account, established by Law No. 4,452 of November 5, 1964, includes monthly remuneration, calculated:

I-for the period from 1º to January 1992 a to June 30, 1996, based on the index of the Reference Fiscal Unit;

II-as of 1º July 1996, by the monthly application of the Referential Rate-TR, released by the Central Bank of Brazil.

Art. 20. It is the Union authorized to issue, in favor of Brazilian Petroleum S.A. -PETROBRÁS, Federal Foreign Debt Securities securities, whose characteristics will be defined by the Minister of State for Finance, with the purpose of guaranteeing the payment of eventual debtor balance of the Oil, Derivatives and Alcohol Account, existing in June 30, 2003.

§ 1º The total value of the securities referred to in caput is limited to R$ 5.819.364.988, to 37 (five billion, eight hundred and nineteen million, three hundred and sixty-four thousand, nine hundred and eighty eight actual and thirty-seven cents), equivalent to the debtor balance of the Oil, Derivatives and Alcohol Account, on June 30, 1998.

§ 2º The warranty will be adjusted monthly, depending on the reduction of the debtor balance of the Account.

Art. 21. Is the Union authorised to settle the debtor balance of the Oil, Derivatives and Alcohol Account upon securitization of the debt under the terms set out by the Minister of State for Finance, staying, in this case, cancelled, automatically, the securities issued in warranty in the form of the art. 20.

Art. 22. The debtor balance of the Oil, Derivatives and Alcohol Account, on June 30, 1998, will be the subject of audit by the Federal Office of Control, from the values already approved by the extinct National Department of Fuels, relatively to the period prior to 1º April 1992.

Single paragraph. Completed the audit, the amount of the securities used in warranty pursuant to the art. 20, or of the securitized credits in the form of the art. 21, will be adjusted to the new ascertained value.

Art. 23. Eventual creditor balance of the Oil, Derivatives and Alcohol Account will be collected monthly to the Single Account of the National Treasury.

Art. 24. It shall be the authorized Union, at the discretion of the Ministry of Finance, to promote meeting of accounts between the debtor balance of the Oil, Derivatives and Alcohol and Alcohol and obligations of PETROBRÁS to with the Union, inclusive of a tax nature.

Art. 25. It is the Union authorized to securitize, under conditions to be defined by the Minister of State for Finance, the following debts with the Federal Economic Box-CEF:

I-the debtor balance of the financing contracts signed between the extincts National Housing Bank-BNH and the National Department of Works and Sanitation-DNOS, up to the amount of R$ 396,000,000.00 (three hundred and ninety six million reais), position of October 30, 1998;

II- the ressarted value, at least, by the Union, the CEF, as the successor to the BNH, regarding the bonuses granted pursuant to the Decree-Law No. 2,164 of September 19, 1984 up to the amount of R$ 72,200,000.00 (seventy-two million and two hundred thousand actual), position of November 30, 1998.

§ 1º The Ministry of Finance, through the Federal Office of Control, will affirm the correctness of the values concerning the obligations of which it treats this article.

§ 2º The securitization contracts should contain prediction that eventual difference arising from the afferition of which it treats the preceding paragraph:

I-if in favor of the CEF, it will be the object of new securitization, in the conditions set out by the Minister of State for Finance;

II-if in favor of the Union, will it be debited to the account of?Bank Reserves? of the CEF, through the Central Bank of Brazil, upon prior notification to the financial institution, with the subsequent transfer to the National Treasury of the corresponding value, which is to be fully used in the amortization of the Debt Public Mobiliary Public.

Art. 26. Is the Union authorised to hold itself accountable, before the CEF, for the obligations arising from the migration of the participants of the Employee Welfare Association of the extinct BNH-PREVHAB, to the Foundation of the Federal Economies-FUNCEF or to the National Insurance Company General-SASSE, up to the amount of R$ 1,136,000,000.00 (one billion, one hundred and thirty and six million reais), position of November 30, 1998, inclusive upon securitization, under conditions to be defined by the Minister of State of the Farm.

§ 1º The transfer to the Union of the equities yielded to the CEF will give the end of the migration process, concerning the individual reservations of the PREVHAB participants who adhered to the Regulation of the Plans for Benefits-REPLAN of the Foundation of the Federal Economies-FUNCEF or which have opted for the Special Benefits Plan instituted by the CEF attached to the National General Insurance Company-SASSE.

§ 2º The homologation of the amount referred to in the caput of this article will be effected after the securitization of the obligations upon opinions to be drawn up by at least two companies of notorious specialisation in actuarial advice, to be contracted by the CEF, whose Completion should be mandatorily confirmed by the Supplementary Welfare Office of the Ministry of Welfare and Social Care and by the Private Insurance Supervision of the Ministry of Finance, within their respective competencies.

§ 3º The securitization contracts should contain prediction that the possible difference arising from the homologation of which it treats the preceding paragraph will occur under the provisions of Paragraph 2º of the preceding article.

§ 4º Once long all the obligations of the benefits plans mentioned in § 1º, the perhaps remaining resources will be reverted to the National Treasury.

Art. 27. Is the Union authorized to issue, in the form of direct placement, in favor of the CEF, up to the limit of R$ 13,000,000,000.00 (thirteen billion reais), Federal Foreign Debt Securities, whose characteristics will be defined by the Minister of State from the farm.

Single paragraph. In contrast to the securities issued in the form of the caput, the CEF will be able to use credits arising from contracts concluded on the basis of Law No. 8,727 of November 5, 1993.

Art. 28. Stay the INSS authorized to receive, from full capital company of the Union, Financial Certificates of the Exchequer-CFT, by the face value, in dation in payment of previdential debits, existing until December 31, 1999, to the limit of R$ 1,100,000,000.00 (one billion and one hundred million reais), position of May 31, 2000, which come to be recognized by the debtor company.

Single paragraph. The certificates referred to in this article will be able to be rescued in advance by the National Treasury, by the face value, upon request from the INSS.

Art. 29. It shall be the Union authorised to assume and securitize, up to the amount of R$ 250,000,000.00 (two hundred and fifty million reais), under conditions to be defined by the Minister of State for Finance, the financial obligations laid down in the contract of firm financing, on September 24, 1996, between the Rio Docas Company of Rio de Janeiro and the BNDES with the aim of implementing the Project of Magnification and Modernization of the Port of Sepetiba.

Single paragraph. The Union's credit, arising from the assumption provided for in the caput of this article, is to be settled with the binding of receivable from the Doctoral Company of Rio de Janeiro, in the anticipation of these, or with future increases in its capital.

Art. 30. The arts. 1º and 6º of the Law No. 9,364 of December 16, 1996, they go on to invigorate with the following essay:

?Art. 1º .....................................................................................................................................

...........................................................................................................................................................

§ 1º The débitos referred to in this article will be audit object by the Federal Office of Control of the Ministry of Finance.

§ 2º The amount set out in the inciso II of this article will be updated, up to the date of the effective payment, by the variation of the General Index of Prices-Internal Availability-IGP-DI, plus interest rate of six per cent per year.? (NR)

?Art. 6º The liquidation of the débitos referred to in the inciso II of the art. 1º of this Act will give itself by means of securitized claims of National Treasury liability, with characteristics set out at the sole discretion of the Minister of State of the Farm.

Single paragraph. The REFER shall give full, shallow and total discharge of all the obligations of the RFFSA corresponding to the value mentioned in the art. 1º, inciso II, of this Law, owing to manifest desistance of all actions helped by debits of the RFFSA.? (NR)

Art. 31. It is the Union authorized to assume and securitize, up to the amount of R$ 80,000,000.00 (eighty million reais), under conditions to be defined by the Minister of State for Finance, the financial obligations of the Brazilian Material Industry of Brazil- IMBEL before the National Institute of Social Insurance-INSS.

Art. 32. It shall be the Union authorized to reimburse the Brazilian Electrical Power Stations S.A. -ELECTROBRÁS, up to the amount of R$ 8,861,000,000.00 (eight billion, eight hundred and sixty and one million reais), position on November 30, 1999, corresponding values:

I-at the surplus cost of power generation nucleoelectric by the Usina de Angra I, determined with respect to the cost of generating hydro power per plant of similar capacity;

II-to the complementary investments effectuated in the Angra Usina I, from 1º of January 1985;

III-to the spending effected, with own resources, in the construction of the Angra II and III electric core Mills, until December 31, 1980;

IV-to the cost surplus of construction of the Angra II plant, surplus this determined with respect to the cost of a hydroelectric power plant of equal generation capacity.

Art. 33. The reimbursement provided for in the previous article will be effected by:

I-disobligation of liability commitments of FURNAS-Central Electrical S.A., registered at the National Treasury Board Secretariat, arising from the agreements of refinancing of debts firmed up by the Federative Republic of Brazil;

II-securitization of the remaining balance, under the terms defined by the Minister of State for Finance; and

III-cancellation of credit that the Union holds against FURNAS, in the quality of the successor to the extinct Brazilian Nuclear Companies S.A. -NUCLEBRÁS, in the terms of art. 1º of Law No. 7,862, of October 30, 1989.

Art. 34. It is ELECTROBRÁS authorised to acquire the actuary control of the Energy Company of Amazonas-CEAM.

§ 1º For the purpose of this article, ELECTROBRÁS will extend its participation in the social capital of CEAM by means of acquisition of common shares entitled to vote and preference belonging to the State of Amazonas, or by process of raising capital of the Company, with acquisition of the rights of preference in the subscription of shares corresponding to the shareholding of the State.

§ 2º For the authorized acquisition in this article, ELECTROBRÁS will use resources from the Fund of the Global Reversion Reserve pursuant to the provisions of § 4º of the art. 4º of Law No. 5,655 of May 20, 1971, amended by Law No. 8,631 of March 4, 1993, with the wording given by Law No. 9,496, of September 11, 1997.

Art. 35. Effective the acquisition of the actuary control, in the form provided for in the previous article, CEAM will be included in the PND, by having ELECTROBRÁS implement the adjustments of economic-financial, administrative and operational character that are necessary for the privatization of the company, under the standards of Law No. 9,491, of September 9, 1997.

Art. 36. To the resources obtained with the divestiture of the shareholding of ELECTROBRÁS at CEAM, the devices of the art do not apply. 13 of Law No. 9,491, of 1997, and shall be deposited in the Fund of the Global Reversion Reserve, up to the amount used for the purchase authorized by art. 34.

Art. 37. Is the authorized ELETROBRÁS, within the framework of the PND, to promote the society-wide restructuring of its companies controlled, directly or indirectly, that act in the State of Amazonas, upon division operations, merger, incorporation, capital reduction or constitution of integral subsidiaries, inclusive of the creation of new societies, with a view to segregating the business activities of generation, transmission, distribution and marketing of electrical energy.

Art. 38. The arts. 12 and 13 of Law No. 3,890-A of April 25, 1961, amended by Law No. 4,400 of August 31, 1964, go on to invigorate with the following essay:

?Art. 12. ...................................................................................................................................

§ 1º The Board of Directors will be integrated by nine members, elected by the Assembly General, which will designate from them the President, all with managerial deadlines that may not be more than three years, admitted to re-election, thus constituted:

I-seven Councillors chosen from among the Brazilian of notorious knowledge and experience, moral suitability and illiberal reputation, indicated by the Minister of State for Mines and Energy;

II-a Counsellor appointed by the Minister of State for Planning, Budget and Management, in the form of the art. 61 of Law No. 9,649 of May 27, 1998;

III-a Counsellor elected by minority shareholders, physical and legal persons of private law.

§ 2º The President of ELECTROBRÁS will be chosen among the members of the Board of Directors.

§ 3º The Executive Director shall be comprised of the President and the directors.

§ 4º The President and the Directors shall not be able to perform directing duties, administration or consultancy in private economy companies, utilities dealerships of electric power, or of privately owned companies connected in any way to the electrical sector, save in the subsidiaries, controlled and companies dealerships on control of the States in which ELECTROBRÁS has shareholding, where they will be able to exercise positions in the board of directors, observed the provisions of Law No. 9,292, July 12, 1996, as to the perceived remuneration.? (NR)

?Art. 13. The Fiscal Council, of permanent character comprised of five members and respective alternates, elected by the Ordinary General Assembly, all Brazilians and domiciled in the Country, observed the requirements and impediments fixed by the Companies Act by Shares, shareholders or not, of which one will be elected by holders of the minority common shares and another by holders of the preferred shares, in a separate vote.

§ 1º Among the members of the Fiscal Council, one will be indicated by the Minister of State for Finance, as a representative of the National Treasury.

§ 2º In the event of vacancy, resignation, impediment or unwarranted absence to two consecutive meetings, will be the member of the Fiscal Council replaced, until the end of the mandate, by the respective alternate.

§ 3º The mandate of the members of the Fiscal Council is one year, allowed for re-election.? (NR)

Art. 39. It shall be the Union authorised to promote, through the Ministry of Finance, meeting of accounts of credits arising from operations effected with proceeds from the extinct Export Financing Fund-FINEX with obligations of the Credit Insurance to the Export-SCE, in value in reais equivalent to 893, to 414, 735.32 (eight hundred and ninety three million, four hundred and fourteen thousand, seven hundred and thirty-five dollars and thirty-two cents), ascertained by the Secretary of the National Treasury, by the Banco do Brasil S.A. and by IRB Brasil Resinsurance S.A., position on November 30, 1997.

Art. 40. It shall be the Union authorised to acquire credits from the Company Docas of the State of São Paulo-CODESP concerning contracts for leases or public service concession contracts concluded within the framework of the PND, observed economic equivalence, using in Payment Financial Letters from the Treasury-LFT, up to the limit of R$ 40,000,000.00 (forty million reais).

Single paragraph. The characteristics of the Treasury-LFT Financial Letters to be issued in fulfillment of the caput of this article, as well as the conditions of the operation, will be set in an act of the Minister of State for Finance.

Art. 41. Is the Union authorised to acquire Credits from the Company Docas of Espirito Santo-CODESA concerning the lease or public service concession contract concluded under the PND, observed economic equivalence, using in payment Treasury Financial Letters-LFT, up to the limit of R$ 6,100,000.00 (six million and one hundred thousand reais).

§ 1º Of the amount referred to in the caput of this article, up to the limit of R$ 2,000,000.00 (two million reais) are expected to be used in the negotiation of the CODESA debit to the National Institute of Social Insurance-INSS, for payment of the initial instalment.

§ 2º The characteristics of the Treasury-LFT Financial Letters to be issued in service to the willing in the caput of this article, as well as the conditions of the operation will be set in act of the Minister of State for Finance.

Art. 42. It shall be the Union authorised to hire, at its sole discretion, internal loans with BNDES, up to the value equivalent to 11, to 000, 000.00 (eleven million dollars), intended for the purchase of imported equipment under the Program of Modernization and Consolidation of the Academic Infrastructure of the Higher Education Institutions and their University Hospitals, of interest of the Ministry of Education.

Art. 43. The arts. 2º and 4º of the Law No. 9,143 of December 8, 1995, they go on to invigorate with the following essay:

?Art. 2º Is the Union authorised to receive, in payment of credit arising from the assumption of the obligations of the CEEE, the equipment already purchased for the Termelometric Usina of Candiota III.? (NR)

?Art. 4º The assumption, by the Union, of the rights and obligations referred to in art. 1º, will have as a condition the occurrence of the events listed below:

I-homologation of quitting the action of Security Mandate No. 96.01.462-4, in tramway in the Federal Regional Court of the 1ª Region.

II-release of the equipment stored in the ports located in the State, without burden of the storage fees;

III-tranference of the resources cautioned in the Federal Economic Box-CEF, to the Treasury account National, corresponding to the values paid by the Union, of resusability of the CEEE, arising from the Brasil / France Agreement and the Agreement under the so-called Paris Club, until August 3, 1998;

IV-tranference of the resources cautioned in the CEF to the National Treasury account, corresponding to the values paid by the Union, arising from the contract concluded between the Federative Republic of Brazil, through the Bank of Brazil S.A., and the Republic of France, in 21 of January 1981, registered at the Central Bank of Brazil under paragraph 121/0114;

V-assumption of commitment to honour, thematically, the obligations of responsibility of the EEEE under the framework of the Brazil / France Agreements and the Paris Club, relative to the registration No. 121/0114 of the Central Bank of Brazil;

VI-total discharge to the Union of all values related to the construction project of the Usina of Candiota III.? (NR)

Art. 44. They are convalidated the acts practiced on the basis of the Provisional Measure No. 1985-31, of August 28, 2000.

Art. 45. This Interim Measure shall come into force on the date of its publication.

Art. 46. It is repealed Law No. 9,358, December 12, 1996.

Brasilia, September 27, 2000; 179º of Independence and 112º of the Republic.

Fernando henrique cardoso

Geraldo Magela da Cruz Quinton

Amaury Guilherme Bier

Alderico Jefferson da Silva Lima

Waldeck Ornélas

Helio Vitor Ramos Filho

Martus Tavares