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United States Senate Resolution Nº 20, 08 August 2014

Original Language Title: Resolução do Senado Federal nº 20, de 08 de agosto 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 N ° 20, OF 2014

Authorizes the State of Bahia to hire external credit operation, with guarantee from the Federative Republic of Brazil, in the amount of up to US$ 200,000,000.00 (two hundred million dollars Americans).

The Federal Senate resolves:

Art. 1º It is the State of Bahia authorized to hire external credit operation, with a guarantee of the Union, with the Inter-American Development Bank (BID), worth up to US$ 200,000,000.00 (two hundred million U.S. dollars).

Paragraph single. The resources of the operation are intended for the "Program of Strengthening the Single Health System in the Metropolitan Region of Salvador (ProSUS)".

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

I-debtor: State of Bahia;

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

III-guarantor: Federative Republic of Brazil;

IV-value: up to US$ 200,000,000.00 (two hundred million U.S. dollars);

V-modality: flexible financing mechanism;

VI-disbursement: in up to 5 (five) years, counted as of the duration of the contract;

VII-amortization: 40 (forty) semestral, consecutive and customised installments, winning the first 66 (sixty-six) months after the contract signing date, and the last one, 25 (twenty-five) years after that date;

VIII-interest: while the loan has not been the subject of any conversion, the borrower will pay interest on the daily debtor balances at a rate based on Libor (rate of reference interest from the London interbank market) plus the applicable margin for loans from the ordinary capital of the BID;

IX-conversions: the borrower will be able to request the BID currency conversion and interest rate conversion at any time during the duration of the contract, as a provision contractual;

X-credit commission: incident on the undisbursed balance of the loan, starting to focus 60 (sixty) days after the date of signing of the contract and may not exceed 0.75% a.a. (seventy-five hunduths per cent per year);

XI-inspection and supervision expenses: the BID shall notify the borrower a value due in a given semester, which may not be more than 1% (one percent) of the value of the funding divided by the number of semesters understood at the original disbursement time.

Paragraph single. The payment dates of the principal, the financial charges and the expected disbursements will be able to be changed depending on the date of signing of the loan agreement.

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

Paragraph single. The authorization provided for in the caput is conditioned to that:

I-the State of Bahia celebre contract with the Union for the granting of countermeasures, in the form of linking of the quotas or plots of the State's participation in the Union's fundraising in the form of the provisions of the art. 159, incisos I, paragraph "a", and II, of the Federal Constitution, as well as of the own revenue referred to in the arts. 155 and 157, likewise of the Federal Constitution;

II-be proven the situation of addedness of all the obligations of the direct administration of the State of Bahia to the Union and its controlled entities;

III-are fulfilled the preconditions to the first disbursement.

Art. 4º The maximum period 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 August 8, 2014

Senator RENAN CALHEIROS

President of the Federal Senate