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

RESOLUTION NO. 2, OF 2011

Authorizes the State of São Paulo to hire external credit operation, with guarantee from the Union, with the Inter-American Development Bank (BID), worth up to US$ 115,700,000.00 (one hundred and fifteen Millions and seven hundred thousand North American dollars).

The Federal Senate resolves:

Art. 1º It is the State of São Paulo authorized to hire external credit operation, with a guarantee of the Union, with the Inter-American Development Bank (BID), worth up to US$ 115,700,000.00 (one hundred and fifteen million and seven hundred thousand dollars north- Americans).

Single paragraph. Are the resources of this credit operation intended to finance the?Tietê's Várzeas program?.

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

I- debtor: State of Saint Paulo;

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

III- guarantor: Federative Republic of Brazil;

IV- value: up to US$ 115,700,000.00 (one hundred and fifteen million and seven hundred thousand U.S. dollars);

V- modality: loan of the unimonetary mechanism;

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

VII- amortization: in semi-annual instalments, consecutive and whenever possible equals, paid on January 15 and on July 15 of each year, winning the first 5 (five) years after the effective date of the contract and the last up to 25 (twenty five) years after this date;

VIII- interest: required semiannually 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, more or less a cost margin related to the BID loans that finance the loans of the unimonetary mechanism with rates of interest based on Libor, increased from a spread to loans from the ordinary capital;

IX- commissions: up to 0.75% (seventy-five hundred percent) a year, to be set up periodically by the BID, calculated on the undisbursed balance of the funding, entering into force 60 (sixty) days after the signing of the contract, required together with the interest;

X- expenditure on inspection and general supervision: up to 1% (one percent) on the value of the loan, being that the due value in a given semester could not be greater than 1% (one per cent) of the financing, divided by the number of semesters understood in the original disbursement term.

Paragraph single. The payment dates of the principal and the financial charges, as well as of the planned disbursements, may be changed depending on the date of signing of the loan agreement.

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.

§ 1º The exercise of the permit provided in the caput is conditioned to which the State of Saint Paulo celebrates contract with the Union for the granting of countermeasures, in the form of linking the revenues of which they treat the arts. 155, 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.

§ 2º Previously to the signing of the contract, the Ministry of Finance will check and attest to the adimplence of the State of São Paulo as to the payments and benefits of accounts of which it treats art. 10 of Resolution No. 48, 2007, of the Federal Senate.

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 comes into effect on the date of its publication.

Federal Senate, on May 19, 2011.

Senator Jose Sarney,

President of the Federal Senate.