I get to know that the Federal Senate has approved, and I, Renan Calheiros, President, in the terms of the art. 48, inciso XXVIII, of the Internal Rules, promulgated the following

R E S O L U Ç Ã ° 41, DE 2006

Authorizes the State of Pernambuco to hire external credit operation, with Union warranty, with the International Bank for Reconstruction and Development-Bird, worth up to US$ 30,000,000.00 (thirty million U.S. dollars).

The Federal Senate resolves:

Art. 1º It is the state of Pernambuco authorized to hire external credit operation, with warranty of the Union, with the International Bank for Reconstruction and Development-Bird, worth up to US$ 30,000,000.00 (thirty million U.S. dollars).

Paragraph single. The advinds proceeds from the credit operation referred to in the caput are intended for the additional funding of the Rural Poverty Alleviating Project in the State of Pernambuco-PCR II.

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

I-debtor: State of Pernambuco;

II-creditor: International Bank for Reconstruction and Development-Bird;

III-guarantor: Federative Republic of Brazil;

IV-value: up to US$ 30,000,000.00 (thirty million U.S. dollars);

V-deadline of disbursement: until August 15, 2009;

VI-amortization: 24 (twenty four) semester and consecutive plots, with maturity in the days 15 of the months of February and August each year, starting on February 15, 2012 and ending on August 15, 2023;

VII-interest: required semester on days 15 of the months of February and August each year, and calculated on the periodic debtor balance of the loan at an annual rate float composed by the Semestral Libor to U.S. dollar, increased spread composed of 0.25% a.a. (twenty-five hundredths per cent a year), added to or diminished from the difference between the weighted average Bird catchment margin for EMV and Libor loan coverage, ascertained during the 6 (six) months prior to the respective maturities;

VIII-commission of commitment: up to 0.75% a.a. (seventy-five hundley percent a year) on the value of the principal of the undisbursed loan, subject to a partial discount, per discretionary act of the Bird;

IX-commission in sight (front-end-fee): up to 1% (one percent) on the total amount of the loan, to be debited from the loan account on the date the contract enters into effectivity.

Single paragraph. The payment dates of the principal and the financial charges, as well as the disbursement term, may be changed depending on the date of signing of the loan agreement.

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

Single paragraph. The exercise of the permit provided for in the caput is conditional on the State of Pernambuco to conclude contract with the Union for the granting of countermeasures, in the form of linking the own revenues of which it treats the art. 155, and of the revenue apportionment quotas of which treat the arts. 157 and 159, 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 honorable commitments, directly from the centralizing accounts of the state fundraising or federal transfers.

Art. 4º The authorization granted by this Resolution should be exercised within the maximum period of 540 (five hundred and forty) days, counted from the duration of this Resolution.

Art. 5º This Resolution goes into effect on 1º January 2007.

Federal Senate, on December 20, 2006.

Senator Renan Calheiros

President of the Federal Senate