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 And S O L U Ç O No. 28, DE 2010

Authorizes the State of São Paulo to hire external credit operation, with guarantee from the Federative Republic of Brazil, with a consortium of Japanese private banks led by the Sumitomo Mitsui Banking Corporation (SMBC), in the quality of financial agent, guaranteed by Japan Bank for International Cooperation (JBIC), in Japanese yen equivalent to up to US$ 130,000,000.00 (one hundred and thirty million U.S. dollars).

The Senate Federal resolves:

Art. 1º It is the State of São Paulo authorized to hire operation of external credit, with a guarantee from the Union, with a consortium of Japanese private banks led by the Sumitomo Mitsui Banking Corporation (SMBC), as a financial agent, guaranteed by the Japan Bank for International Cooperation (JBIC), in japanese yen equivalent to up to US$ 130,000,000.00 (one hundred and thirty million U.S. dollars).

Paragraph single. Do the proceeds from the credit operation of which it treats the caput are intended for partial financing of the?Venture Line 4-Yellow from the São Paulo Metrô?.

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

I-debtor: State of São Paulo;

II-creditor: consortium of Japanese private banks led by Sumitomo Mitsui Banking Corporation (SMBC), guaranteed by Japan Bank for International Cooperation (JBIC);

III- warrantor: Federative Republic of Brazil;

IV-value of the operation: the equivalent of up to US$ 130,000,000.00 (one hundred and thirty million U.S. dollars), in Japanese yen;

V- period of disbursement: until June 30, 2014;

VI-amortization of the debtor balance: 14 (fourteen) semester and consecutive plots, paid on April 15 and October 15 each year, winning the first on October 15, 2015 and the last one on April 15, 2022;

VII-applicable interest: required semester on the same repayment dates of amortization and calculated on the periodic debtor balance of the loan, at an annual rate for each semester composed of the Libor interest rate for yen, increased by a margin of 1.40% a.a. (one whole and forty hunduths per cent per year);

VIII-interest rates: up to 2.0% a.a (two percent to the year);

IX-agent commission (SMBC): US$ 15,000.00 (fifteen thousand dollars Americans) to the year, payable on the same interest payment dates;

X-commission of the arranger and structurer (SMBC): US$ 1,495,000.00 (one million and four hundred and ninety five thousand U.S. dollars), payable in full on the date of the first disbursement or in 6 (six) months after the date of entry into effectiveness of the agreement of loan, what occurs first;

XI-commission of the International Bank for Reconstruction and Development (Bird): US$ 239,270.00 (two hundred and thirty-nine thousand, two hundred and seventy U.S. dollars), payable in up to 3 (three) installments, being the first, in the amount of US$ 80,000.00 (eighty thousand U.S. dollars), along with the first disbursement; the second, in the amount of US$ 80,000.00 (eighty thousand U.S. dollars), in 12 (twelve) months after the first disbursement; and the last, in the amount of US$ 79,270.00 (seventy-nine thousand, two hundred and seventy dollars Americans), in 24 (twenty-four) months after the first disbursement;

XII-commission of commitment: 0.15% a.a. (fifteen hundrths per cent a year) on the undisbursed balance of the loan and after the signing of the contract, payable on the same interest payment dates;

XIII-legal expenses: up to US$ 100,000.00 (one hundred thousand U.S. dollars).

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 authorized to grant guarantee to the State of São Paulo in the external credit operation referred to in this Resolution.

Single paragraph. The intended permit in the caput is conditioned to that:

I-the State of São Paulo celebrates contract with the Union for the granting of countermeasures, in the form of linking the proceeds of which they treat the arts. 155, 157 and 159, 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 honoured commitments directly from the centralizing accounts of the state fundraising or federal transfers;

II-prior to the signing of the contract, the Ministry of Finance checks and attests to the adimplence of the State of São Paulo as to the payments and benefits of accounts of which it treats the art. 10 of Resolution No. 48, of 2007, of the Federal Senate.

Art. 4º The maximum term 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