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United States Senate Resolution No. 36, Of 14 August 2013

Original Language Title: Resolução do Senado Federal nº 36, de 14 de agosto de 2013

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I get to know that the Federal Senate has approved, and I, Renan Calheiros, President, in the terms of art. 48, inciso XXVIII, of the Internal Rules, promulgated the following

RESOLUTION NO. 36, OF 2013

Authorizes the State of São Paulo to hire external credit operation, with guarantee of the Federative Republic of the Brazil, worth up to US$ 300,000,000.00 (three hundred million 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$ 300,000,000.00 (three hundred million dollars Americans).

Single paragraph. The features of the operation referred to in the caput are intended for the partial funding of the "Transport, Logistics and Environment Program".

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$ 300,000,000.00 (three hundred million U.S. dollars);

V-modality: variable margin;

VI-amortization: 50 (fifty) semi-annual and consecutive instalments, paid on June 15 and on December 15;

VII-interest: required semester on the same dates of repayment of the amortization and calculated on the periodic debtor balance of the loan, to a rate composed of the semi-annual Libor rate for U.S. dollar increased by a margin (spread) to be determined by the Bird to each fiscal year;

VIII-commission in sight (front-end fee): 0.25% (twenty-five hunduth per cent) on the value of the loan, to be paid, with own resources of the borrower, up to 60 (sixty) days after the date of effectivity of the contract;

IX-interest of mora: 0.5% a.a. (five tenths per cent per annum), plus interest due and not yet paid; due 30 (thirty) days after the target date for payment of interest, will constitute the borrower in arrears;

X-risk coverage options: upon formal request to the creditor, the borrower will be able to use the following financial instruments:

a) conversion of the interest rate applicable to the partial or total amount of the loan, from float to fixed or vice-versa;

b) establishment of ceilings and bands for the fluctuation of the interest rate;

c) change of the reference currency of the credit operation for the amount already disbursed or to disburse;

XI-transaction commission (transaction fee): to be charged in the case of use of any risk coverage option.

Single paragraph. 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 provide assurance to the State of São Paulo in the external credit operation referred to in this Resolution.

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

I-that the State of São Paulo celebrates contract with the Union for the granting of countermeasures, in the form of linking of the quotas or plots of the State's participation in the fundraising of the Union in the form of the provisions of the art. 159, inciso I, paragraph "a", and inciso II of the Federal Constitution, or resulting from those quotas or transferable parcels, as well as of the own revenues to which the arts are referred. 155 and 157, likewise of the Federal Constitution;

II-that is proven to fulfill the conditions of the effectivity of the contract;

III-that the situation of addedness of all obligations be proven of the State of São Paulo together with the Union and its controlled.

Art. 4º The maximum period for the exercise of this authorization shall be 540 (five hundred and forty) days, counted from the duration of this Resolution.

Art. 5º This Resolution comes into effect on the date of its publication.

Federal Senate, on August 14, 2013

Senator RENAN CALHEIROS

President of the Federal Senate