Key Benefits:
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 Ç No 22, 2010
Authorizes the State of São Paulo to hire external credit operation, with guarantee from the Union, with the International Bank For Reconstruction and Development (Bird), worth up to US$ 650,400,000.00 (six hundred and fifty million and four hundred thousand U.S. dollars).
The Federal Senate resolves:
Art. 1º It is the State of São Paulo authorized to hire external credit operation, with a guarantee of the Union, with the International Bank for Reconstruction and Development (Bird), worth up to US$ 650,400,000.00 (six hundred and fifty million and four hundred thousand U.S. dollars).
Single paragraph. Are the resources of this credit operation intended to partially finance the?Program of 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: International Bank for Reconstruction and Development (Bird);
III-guarantor: Federative Republic of Brazil;
IV-value: up to US$ 650,400,000.00 (six hundred and fifty million and four hundred thousand U.S. dollars);
V-modality: variable margin;
VI-deadline of disbursement: until June 30, 2014;
VII-amortization of the debtor balance: each disbursement is to be paid in 50 (fifty) semester plots and consecutive, on February 15 and August 15 each year, winning the first on August 15, 2015 and the last on February 15, 2040, being that the values of each parcel will be equivalent to 1/50 of each disbursement, except the last one that will be equivalent to the remaining value;
VIII-applicable interest: required semestally in the same dates of the repayment of the amortization and calculated on the periodic debtor balance of the loan, at a rate composed by the interest rate Libor semestral to U.S. dollar, plus a spread to be determined by Bird a each fiscal year;
IX-interest rates: 0.50% (fifty hunduths per cent) increased interest due and not yet paid. Due 30 (thirty) days after the target date for payment of the interest, will constitute the borrower in arrears, applying the provisions of Section 3.2 (d) of the General Rules;
X-commission in sight (front-end fee): 0.25% (twenty five hundred percent) on the value of the loan, to be debited on the date the contract enters effectiveness;
XI-option of loan modality change: the hiring in the modality variable margin allows your change for hiring at fixed margin upon formal request to the creditor (clause 2.07 of the loan agreement).
§ 1º The fixed margin allows the borrower the use of the following financial instruments:
I-conversion the rate of interest applicable to the partial or total amount of the loan, from float to fixed or vice-versa;
II-alteration the reference currency of the credit operation for the amount already disbursed;
III-alteration the reference currency of the credit operation for the amount to be disbursed.
§ 2º The exercise of the options previously referred to implies collection of the charges incurred by the Bird in the realization of the options and of a transaction commission (transaction fee).
Art. 3º It is the Union authorized to provide assurance to the State of São Paulo in the contracting of the external credit operation referred to in this Resolution.
Paragraph single. The exercise of the authorization provided for in the caput is conditioned on verification by the Ministry of Finance, prior to the signing of the contractual instruments, of the fulfilment of the following requirements:
I-signature and entry into force of the execution convenium between the borrower and the São Paulo Metropolitan Company -Subway;
II-the condition of adimplence of the direct administration of the State of São Paulo with the Union and its controlled entities;
III-the formalization of the contragarantia contract.
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 goes into effect on the date of its publication.
Federal Senate, on July 14, 2010.
Senator Jose Sarney
President of the Federal Senate