PROVISIONAL MEASURE NO. 2.181?43, OF June 28, 2001

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

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

Art. 1º Is the Union authorized to issue, in the form of direct allotment, 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 as regards the incisos II and III of this paragraph, by the present value:

I? securitization claims of issuance of the National Treasury, registered with the Central of Custody And Financial Settlement of Securities? CETIP, for its present value, to be defined by the National Treasury Board of the Ministry of Finance;

II? credits held against Itaipu Binational or against BNDESPAR? BNDES Participations S.A.;

III? National Treasury notes, Series P? NTN?P;

IV? claims held against the Union for the purposes 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 the Brazilian Siderurgy 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 entered into under the National Disestatization Program? PND;

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

§ 2º In the hypothesis of use of the credits referred to in inciso II of § 1º, 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 art. 1º, they may be the subject of exchange with goods and rights of entities included in the PND or, observed the relevant legislation, be used for capital increase 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 from BNDES;

II? by the BNDES concerning:

a) to the fulfilment 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 your property, deposited in the National Disestatization Fund? FND, of which they will be unbound at the time of the transfer.

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

Art. 6º The price of the shareholdings to be permuted in the form of the arts. 1º to 5º shall not be higher, in the case of open society, to the average quotation verified in the week preceding the lavrature of the exchange instrument or, in the case of shares without quotation in Stock Grants, to the constant patrimonial value of the last balance sheet or of special balance sheet.

Art. 7º The operations of which treat the arts. 1º to 6º, 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 refinancation ciamento;

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 federal authorities, foundations and 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 Assistance.

§ 2º In the operation of which it treats this article, it may be the Union, at the discretion of the Minister of State for Finance, for partial amortization or debt settlement, to receive in payment goods and integral rights of the asset of the INSS, 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 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 their assets, by staying the Union alternatively authorized to promote, at the sole discretion of the Minister of State for Finance, the low total or partial credit of the 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, at the sole discretion of the Minister of State for Finance, pay the obligations transferred to the Union, in accordance with the provisions of § 2º, with securitized credits, Registered Agrarian Debt Securities together with CETIP or credits arising from leasing or public service concession contracts concluded within the framework of the PND, kept, at a minimum, when it is the case, the economic equivalence of the reciprocal credits.

§ 6º A Union will be able to use its credits arising from the credit operation that it treats this article for raising capital from the respective debtor entity.

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

I? acquire credits that the Brazilian Electrical Central S.A.? ELECTROBRÁS detains 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 Reversal Reserve? RGR that it 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 Corporate Debt, whose characteristics will be set out in the act of the Minister of State of the Farm;

II? receive the credits of which it 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 ELECTROBRÁS obligations and of ELECTROBRÁS system companies.

§ 1º The operations of which it treats this article far? se?ao by the value present of the credits and obligations therein 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. Is the Union authorized to assume the obligations of the S.A. Federal Railway Network? 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 art. 10, the RFFSA shall transfer to the Union, by the face value, credits relating to leasing or public service concession contracts entered into in the framework 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, nineties and fifty six thousand reais), using in payment, up to the amount of R$ 1,789,956,000.00 (one billion, seven hundred and eighty-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 fulfillment of the caput will be set in act of the Minister of State for Finance.

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

Art. 14. It shall be the Union authorised to receive the certificates of which it treats the art. 13 in full or partial payment of the public debt of liability of States and the Federal District before the Union, relating to contracts concluded for the Amparo of Law No. 9,496 of September 11, 1997 and of the Provisional Measure No. 2.192?68 of 28 from June 2001.

Single paragraph. The application of the willing cathing put will observe the following criteria:

I? fifty percent on the flow of benefits from refinancing 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 authorized to acquire credits from the Docas Company of Rio de Janeiro? CDRJ, relating to leasing or public service concession contracts concluded under the PND, using in payment Financial Letters from the Treasury? LFT:

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

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

Single paragraph. The characteristics of the Treasury Financial Letters? LFT to be issued in fulfillment of the provisions 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. 16. It shall be the Union authorised, until December 31, 2001, 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 Oil 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 § 1º.

§ 3º The Union will use in payment Financial Certificates of the Treasury? CFT with characteristics set out in act of the Minister of State for Finance.

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

§ 5º The acquisition of which treats the caput only could be held a single time 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, along 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, instituted by Law No. 4,452 of November 5, 1964, includes monthly remuneration, calculated:

I? for the period 1º from January 1992 a to June 30, 1996, based on the index of the Fiscal Reference 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. 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 to which the caput refers is limited? if at R$ 5,819,364,988.37 (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. 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 extinct 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 and six million reais), position of October 30, 1998;

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

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

§ 2º The securitization contracts should contain prediction that possible difference arising from the afferition of which it treats § 1º:

I? if in favour of CEF, will be the object of new securitization, under the conditions set by the Minister of State for Finance;

II? if in favour of the Union, it will 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 subsequent transfer to the National Treasury of the value corresponding, which is to be fully used in the amortization of the Federal Furnished Public Debt.

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

§ 1º The transfer to the Union of the patrimonial assets ceded to CEF give? se?á to the end of the migration process, concerning the individual reservations of PREVHAB participants who adhered to the Regulation of Plans of Benefits? REPLAN from the Foundation of the Federal Economies? Did FUNCEF or have opted for the Special Plan of Benefits instituted by the CEF attached to the National Insurance Company General? SASSE.

§ 2º The approval 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 specialization in actuarial advice, to be contracted by the CEF, the conclusion of which is to be mandatorily confirmed by the Supplementary Welfare Office of the Ministry of Welfare and Social Assistance and by the Superintendency of Private Insurance of the Ministry of Finance, within the framework of their respective competences.

§ 3º The securitization contracts should contain prediction that the possible difference arising from the homologation of which it treats § 2º will occur pursuant to the provisions of § 2º of the art. 25.

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

Art. 27. It 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), securities of the Federal Public Corporate Debt, whose characteristics will be defined by the Minister of State of 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. Is the INSS authorized to receive, from full capital company of the Union, Treasury Financial Certificates? CFT, by the face value, in dation in payment of previdential debits, existing until December 31, 1999, up to the limit of R$ 1,100,000,000.00 (one billion and one hundred million reais), position of May 31, 2000, and 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 ....................................................................................................................

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§ 1º The debits referred to in this article will be the subject of auditing on the part of 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 Price Index? Internal Availability? IGP?DI, plus of interest 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 Law give-to-be by means of securitized claims of liability of the National Treasury, 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 dismissals of all actions helped by debits from the RFFSA. " (NR)

Art. 31. Is the Union authorised to assume and securitize, up to the amount of R$ 112,000,000.00 (one hundred and twelve miIlions of reais), under conditions to be defined by the Minister of State for Finance, the financial obligations of the Material Industry of the Belgium Brazil? IMBEL before the National Institute of Social Insurance? INSS.

Art. 32. Is the Union authorized to reimburse the Brazilian Electrical Plants 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 generation of nucleoelectric power by the Angra I Usina I, determined with respect to the cost of generating hydroelectric power per plant of similar capacity;

II? to the complementary investments effected in the Usina de Angra I, as of 1º January-September 1985;

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

IV? to the construction cost surplus of Angra II's Usina, surplus this determined with respect to the cost of a hydropower plant of equal generating capacity.

Art. 33. The reimbursement provided for in the art. 32 will be effected upon:

I? disobligation of FURNAS liability commitments? S.A. Electrical Power Stations, registered in the National Treasury Board Secretariat, arising from the debt refinancing agreements firmed up by the Federative Republic of Brazil;

II? securitization of the remaining balance, pursuant to the terms defined by the Minister of State for Finance; and

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

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

§ 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 with a right to vote and preferred belonging to the State of Amazonas, or by process of raising capital of the company, with the acquisition of the rights of preference in the subscription of shares corresponding to the participation 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 predicted in the art. 34, 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, according to the norms of Law No. 9,491 of September 9 of 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 General Assembly, who will designate among them the President, all with a managerial deadline that may not be more than three years, admitted to re-election, thus constituted:

I? Seven Councillors chosen from among Brazilians of notorious knowledge and experience, moral idoneity and ilibated reputation, indicated by the Minister of State for Mines and Energy;

II? a Councillor 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 Councilor elected by the minority shareholders, physical and legal persons of private law.

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

§ 3º The Board?Executive compose? se?á of the President and the directors.

§ 4º The President and the directors will not be able to exercise direction, administration or consultancy functions in private economics companies, public service dealerships of electric power, or of privately owned companies connected in any way to the electrical sector, save in the subsidiaries, controlled and dealerships on control of the states where ELECTROBRÁS would have shareholding, where will be able to exercise positions on the board of directors, observed the provisions of Law No. 9,292 of July 12, 1996, as to the perceiment of remuneration. " (NR)

" Art. 13. The Fiscal Council, of permanent character, composes? if of five members and their 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 the holders of the preferred shares, in separate voting.

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

§ 2º In case 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. Is the Union authorized to promote, through the Ministry of Finance, meeting of accounts of credits arising from operations carried out with proceeds from the extinct Export Financing Fund? FINEX with obligations of Export Credit Insurance? SCE, in value in reais equivalent to US$ 893,414,735.32 (eight hundred and ninety three million, four hundred and fourteen thousand, seven hundred and thirty-five dollars and thirty-two cents), ascertained by the Registry of the National Treasury, by the Bank of the Brazil S.A. and by IRB Brasil Resinsurance S.A., position on November 30, 1997.

Art. 40. Is the Union authorized to acquire credits from the Docas Company of the State of São Paulo? CODESP relating to leasing or public service concession contracts concluded within the framework of the PND, observed economic equivalence, using in payment Financial Letters of the Treasury? LFT, up to the limit of R$ 40,000,000.00 (forty million reais).

Single paragraph. The characteristics of the Treasury Financial Letters? LFT to be issued in fulfillment of the willing 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. 41. Is the Union authorized to acquire credits from the Sweet Spirit Company of the Holy Spirit? CODESA concerning leasing or public service concession contracts concluded within the framework of the PND, observed economic equivalence, using in payment Financial Letters of the Treasury? 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 to be used in the negotiation of the debit from CODESA to the National Institute of Social Insurance? INSS, for payment of the initial instalment.

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

Art. 42. It is the Union authorized to hire, at its sole discretion, internal loans with BNDES, up to the value equivalent to US$ 11,000,000.00 (eleven million), intended for the purchase of equipment imported under the Program of Modernization and Consolidation of the Infra?Academic Structure of 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 It is the Union authorized to receive, in payment of the credit arising from the assumption of the obligations of the CEEE, the equipment already purchased for the Termeletric 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? withdrawal approval of the action of the Security Commandant No. 96.01.462?4, in tramway in the Federal Regional Court of the 1º Region;

II? Release of the equipment stored in the ports located in the State, without burden of the storage fees;

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

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

V? assumption of the commitment to honour, tempestively, the obligations of responsibility of the EEEE in the framework of the Brazil / France Agreements and the Paris Club, concerning 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. It is the Union authorised to assume the difference between the interest rate of the Housing Financial System financing contracts, concluded until December 31, 1987 with final borrowers, backed with resources from the Time Guarantee Fund of Service? FGTS, and the effective rate of three comma twelve percent a year, regarding the period from 1º January 1997 a to December 31, 2001.

Single paragraph. The assumption provided for in the caput of this article to be carried out? se?á upon the issuance of securities by the National Treasury in favour of the CEF, as Operator Agent of the FGTS, under financial conditions to be defined by the Ministry of Finance, and in amount ascertained by the System of the Wage Variances Compensation Fund.

Art. 45. The art. 18 of Law No. 8,177, from 1º March 1991, passes the vigour with the following amendment:

" Art. 18. ..................................................................................................................

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§ 5º The financial institutions holder of the Portfolio of Real Estate Credit is allowed to issue mortgage letters, adopting? if, for the purpose of basic remuneration, the below-related indexes, obeying the one provided for in Law No. 7,684, of December 2, 1988:

I? Index of Remuneration of Savings;

II? General Price Index? Market (IGP?M), released by the Getulio Vargas Foundation;

III? National Consumer Price Index (INPC), released by the Brazilian Institute of Geography and Statistics? IBGE;

IV? General Price Index? Internal Availability (IGP?DI), released by the Getulio Vargas Foundation.

§ 6º The mortgage letters issued on the basis of an index of prices shall have a minimum term of sixty months.

§ 7º The financial institutions referred to in § 5º should determine in the act of the issuance of the mortgage letter a single update index, being vetted of option clause. " (NR)

Art. 46. The art. 6º of Law No. 9,365 of December 16, 1996, passes the vigour with the following essay:

" Art. 6º The resources of the Amparo Fund to the Worker applied in the financing operations of which it treats art. 5º of this Act will have as remuneration the Interest Rate for Loans and Financing in the London Interbank Market (LIBOR) or the interest rate of the Treasury Securities of the United States of America ("Treasury Bonds").

.............................................................................................................................. " (NR)

Art. 47. They are convalidated the acts practiced on the basis of the Provisional Measure No. ­2.103?42 of June 22, 2001.

Art. 48. This Interim Measure shall come into force on the date of its publication.

Art. 49. They shall be repealed by Law No. 9,358 of December 12, 1996 and the Provisional Measure No. 2.103?42 of June 22, 2001.

Brasilia, June 28, 2001; 180º of Independence and 113º of the Republic.

FERNANDO HENRIQUE CARDOSO

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