Advanced Search

United States Senate Resolution No. 29, July 14 2010

Original Language Title: Resolução do Senado Federal nº 29, de 14 de julho de 2010

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$40 per month.

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 And S O L U Ç O No. 29, DE 2010

Authorizes the State of São Paulo to hire operation of external credit, with a guarantee from the Union, with the Inter-American Development Bank (BID), at the total value of US$ 480,958,000.00 (four hundred and eighty million, nine hundred and fifty-eight thousand U.S. dollars).

The Federal Senate resolves:

Art. 1º It is the State of São Paulo authorized to hire external credit operation, with guarantee from the Union, with the Inter-American Development Bank (BID), in value total of US$ 480,958,000.00 (four hundred and eighty million, nine hundred and fifty-eight thousand U.S. dollars).

Paragraph single. Do the advintresources of the external credit operation referred to in the caput are intended for the partial financing of the?Program Expansion of the Line 5-Lilac of the São Paulo Metrô, Trecho Largo Treze-cups Klabin?.

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

I-debtor: State of São Paulo;

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

III-guarantor: Federative Republic of Brazil;

IV-value: US$ 480,958,000.00 (four hundred and eighty million, nine hundred and fifty-eight thousand dollars Americans);

V-modality: features of the unimonetary mechanism of ordinary capital of the BID, with interest rate based on Libor;

VI-term of disbursement: 3 (three) years, counted from the effective date of the contract;

VII-amortization: in semi-annual installments and consecutive ones, to the extent possible of equal values, winning the first 4 (four) years and 6 (six) months after the contract signing date and the last up to 25 (twenty five) years after the signing of the contract;

VIII-interest: required semester on the same repayment terms of amortization and calculated on the debtor balance journal 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 cost margin related to the loans that finance the loans of the unimonetary mechanism based on Libor, plus the net value of any cost or profit generated by operations to mitigate the Libor fluctuations, plus the margin for ordinary capital loans;

IX-credit commission: to be set up periodically by the BID, 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 general inspection and supervision: by current policy decision, the BID will not charge amount to meet expenses with general inspection and supervision, being that, by periodic review of its policies, it will notify the borrower a value due in a given semester, which may not be more than 1% (one percent) of the financing, divided by the number of semesters understood in the original deadline of disbursements;

XI-conversion options: the debtor may, with the written consent of the guarantor, request the BID to convert the applicable interest rate, from float to fixed, as well as the conversion of the disbursements and the debtor balance, from U.S. dollars to real.

§ 1º The payment dates of the principal, the financial burdens and the expected disbursements will be able be changed depending on the date of signing of the loan agreement.

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

Art. 3º It is the Union authorized to grant assurance to the State of São Paulo in the external credit operation referred to in this Resolution.

§ 1º The intended authorization in the caput is conditioned to which the State of São Paulo celebrates contract with the Union for the provision of countermeasures, in the form of binding of the revenue provided in the arts. 155, 157 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 honoured directly from the centralizing accounts of the state's fundraising São Paulo or the federal transfers.

§ 2º Previously to the signing of the contract, the Ministry of Finance will check and attest to the addedness of the State of São Paulo as to the payments and benefits of accounts of which it treats art. 10 of Resolution No. 48, of 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 goes into effect on the date of its publication.

Federal Senate, on July 14, 2010.

Senator Jose Sarney

President of the Federal Senate