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United States Senate Resolution No. 24, Of 18 July 2012

Original Language Title: Resolução do Senado Federal nº 24, de 18 de julho de 2012

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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 E S O L U Ç Ã °- 24, DE 2012

Authorizes the State of Rio Grande do Sul to hire external credit operation, with a Union guarantee, with the International Bank for Reconstruction and Development (Bird), worth up to US$ 480,000,000.00 (four hundred and eighty million U.S. dollars).

The Senate Federal resolve:

Art. 1º It is the State of Rio Grande do Sul authorized to hire external credit operation, with a Union guarantee, with the International Bank for Reconstruction and Development (Bird), worth up to US$ 480,000,000.00 (four hundred and eighty million U.S. dollars).

Single paragraph. The proceeds from this credit operation are intended to finance the "Retake Support Program of the Economic and Social Development of Rio Grande do Sul (Proredes RS)", of broad sectoral approach.

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

I-debtor: State of Rio Grande do South;

II-creditor: International Bank for Reconstruction and Development (Bird);

III-guarantor: Federative Republic of Brazil;

IV-value: up to US$ 480,000,000.00 (four hundred and eighty million U.S. dollars);

V-modality: loan from the Variable Margin Mechanism, with interest rate based on Libor semestral plus margin (spread);

VI-period of disbursement: up to 60 (sixty) months, counted from the duration of the contract;

VII-amortization: in 52 (fifty-two) semiannual, successive, custom-valued plots (variable percentage), paid on May 15 and on November 15 each year, due to the first on May 15, 2016 and the last one on November 15, 2041;

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 semester determined by the Bird and composed by the interest rate Libor semiannual to U.S. dollar, plus a margin (spread) to be determined by Bird every financial year tax;

IX-credit commission: 0.25% (twenty five hunduths per cent) on the value of the loan, to be debited on the date on which the contract comes into effect;

X-interest of lives: 0.5% a.a. (five tenths per cent per year), add to the interest due and not yet paid.

§ 1º As 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.

§ 2º It is allowed to the borrower, already duly authorized by this Resolution, with the formal consent of the guarantor, by formal request to the creditor, exercise the option of:

I-conversion to a fixed interest rate, of part or of the totality of the debtor balances subject to the interest rate based on the Libor, and a new conversion of part or all of the loan debtor balances calculated at a fixed interest rate to the interest rate based on the Libor;

II-establish ceilings and bands for interest-rate fluctuation;

III-change the reference currency of the credit operation for the amount already disbursed and the disburse.

§ 3º For the exercise of the options referred to in § 2º, it is authorised to collect the costs incurred by Bird, as well as transaction commission.

Art. 3º It is the Union authorized to grant guarantee to the State of Rio Grande do Sul.

§ 1º The exercise of the authorization provided for in the caput is conditioned to have the State of Rio Grande do Sul conclude 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, pursuant to § 4 ° of the art. 167, all of the Federal Constitution, and of other guarantees in law admitted, and the Federal Government may apply for the transfers of resources necessary for coverage of the commitments honored directly from the centralizing accounts of the fundraising of the State or federal transfers.

§ 2º Previously to the signing of the contract, the Ministry of Finance will check and attest to the adimation of the State of Rio Grande do Sul as to the payments and installment of accounts of which it treats art. 10 of Resolution No. 48, 2007, of the Federal Senate, as well as the fulfilment of 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 July 18, 2012.

Senator JOSÉ SARNEY

President of the Federal Senate