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PROVISIONAL MEASURE NO. 1.978-31, OF November 23, 2000.

Disposes on the renegotiation of debts under the Educational Credit Program, and gives others providencies.

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

Art. 1º The debtor balances of contracts concluded under the Educational Credit Program will be able to be consolidated and refunded, a only time, pursuant to this Provisional Measure.

Art. 2º The refinancing contracts concluded pursuant to this Interim Measuring will contain guarantee clauses of the financed value, as set out in resolution of the Federal Economic Box.

Art. 3º In the act of composition of the debtor balance, it will be granted abatement of thirty percent of the importance due to the monetary correction title, in the case of the contracts concluded after 1º March of 1991, value this which will be automatically incorporated, duly corrected, to the refunded value in the contract inadimplement hypothesis.

Single paragraph. The abatement of which treats the caput will be thirty-five percent in the case of contracts that meet all the installments in day on the date of the composition.

Art. 4º On the refinancing contract on the terms of this Provisional Measure, the value of the consolidated debtor balance will henceforward to integrate the principal of the debt, and, on the same shall be calculated the charges due, in the form of the applicable law.

Art. 5º The balance consolidated debtor could be refunded in up to one hundred and eighty months, noted the following:

I-the refinancing term will not be able to surpass three times the period of use of the educational credit, computed in semesters; e

II-the resulting benefit from refinancing may not be less than R$ 150, to 00 (one hundred and fifty reais).

Single paragraph. Exceptionally, in the assumption of the delivery resulting from refinancing under this article surpasses thirty percent of the contractor's gross household income, is the Federal Economic Box authorized to dispense with the application of the inciso II.

Art. 6º In the immediate settlement assumption of the consolidated debtor balance, the following discounts will be granted:

I-ten percent of the value due in the case of contracts concluded up to 28 percent of February 1991;

II-thirty percent of the value due in the case of the contracts concluded from 1º March 1991.

Art. 7º The benefits of the contracts refunded under this Measure Provisional will be due on the last working day of each month of competence, and on these will be concerned:

I-fine of two per cent in the case of payment until the last working day of the subsequent month to the due date;

II-abatement of fifty per cent of the importance corresponding to the interest in the case of payment by day 25 of the month of maturity, or immediately preceding business day.

§ 1º In any hypothesis, the amortization of the financing will be done by the full value of the benefit due.

§ 2º Stay the Federal Economic Box authorised to rescind the refinancing contract and to carry out the total debt value in case of non-payment of the instalment within the period referred to in the inciso I of this article.

Art. 8º It is provided, at any time, the partial amortization of the debtor balance of the refunded contracts in the form of this Interim Measment, waived the collection of interest on the early repayment, observed the provisions of the inciso II of the art. 5º.

Single paragraph. In the total settlement assumption of the debtor balance, a rebate of twenty percent of its value on the date of discharge will be granted.

Art. 9º The refinancing conditions set out in the arts. 3º to 7º of this Provisional Measure will be valid:

I-until December 30, 1999, for contracts whose deficiency has ended until February 28, 1999;

II-by the term of ninety days counted from the termination of the deficiency, for the contracts with termination of the utilization period until the second school semester of 1999.

Single paragraph. In the assumption of accession of the student in use of the Educational Credit Program to the Student Funding Fund of Higher Education, that it treats the Provisional Measure No. 1.972-20, of this date, shall be granted the rebates provided for in art. 3º of this Provisional Measure, subjecting the debtor balance resulting to the standards of the said Fund.

Art. 10. They are convalidated the acts practiced on the basis of the Provisional Measure No. 1.978-30, of October 26, 2000.

Art. 11. This Interim Measure shall come into force on the date of its publication.

Brasilia, November 23, 2000; 179º of Independence and 112º of the Republic.

Fernando henrique cardoso

Luciano Oliva Patricio