PROVISIONAL MEASURE NO. 2.085-34, OF March 22, 2001

Discuss on the Programme of Revitalization of Agrolivestock Production Cooperatives-RECOOP, authorizes the creation of the Service National de Apprenticeship of the Cooperativism-SESCOOP, and gives other arrangements.

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

Art. 1º Stay the Executive Power authorized to implement the Revitalization Program of Agrolivestock Production Cooperatives-RECOOP, observed the provisions of this Provisional Measure.

Art. 2º The credit operations under the Amparo of the RECOOP will comply with the conditions laid down in the Annex to this Provisional Measure.

§ 1º The credit operations of which treats this article will have as a limit, after the negotiation of discounts with the respective creditors, the debtor balance of existing bank bonds on June 30, 1997, still in being, plus the resources required for payment of debts, existing on June 30, 1997 and not yet paid for:

I-coming from acquisition of agri-livestock inputs;

II-with cooperates;

III-labor and coming from obligations tax and social.

§ 2º In the amount established in the form of the preceding paragraph and in accordance with the cooperative's revitalization plan, the values for spin capital and essential investments will be increased and the receivables of cooperates, originating in credits constituted until June 30, 1997.

§ 3º The debtor balance of bank bonds and the cooperated receivables, to which they refer, respectively, § § 1º and 2º of this article, will be updated in the following form:

I-until June 30, 1998, by the paced financial burdens for normality situation;

II-as of 1º July 1998, up to date of the effective formalization of the new credit instruments:

a) the cooperated receivables, by the paced charges for normality situation or by interest of up to twelve percent to the year plus the Referential Rate-TR, the smallest of these two parameters;

b) in the case of bank bonds, in accordance with the criteria below specified by source of the resources involved:

1. external capping resources: exchange rate plus interest of up to twelve percent a year, or paced rate in the contract if lower;

2. repasses from BNDES: paced financial charges for normality situation;

3. own resources or other sources not explained in the previous incisors: financial charges paced for normalcy situation, or interest of up to twelve percent a year plus the Referential Rate-TR, prevailing what is lower.

§ 4º They are liable to framing in the operations by amparo of the RECOOP the existing bank debts on June 30, 1997, recognized in the independent audit opinion provided for in the art. 3º, which, for any reason, have shifted from accounting classification or creditor financial institution, applying the provisions of the preceding paragraph for updating purposes.

§ 5º The credit operations that it deals with this article will have grace of twenty-four months for the share of increased capital from the variation of the General Price Index-Internal Availability (IGP-DI), released by the Getulio Vargas Foundation, and from six months to the interest share, when handle resources for debt settlement with the financial system, with cooperates and arising from the acquisition of agri-based inputs, from tributes and social and labor burdens, as well as for financing of receivable values of cooperated.

§ 6º When it comes to credit for investments under the aegis of RECOOP, the transaction will have grace of maturity equivalent to that of the maturation of the venture provided for in the project, applicable to capital and charges financial.

§ 7º Credit operations under the Amparo of the RECOOP are considered to be of rural credit for all purposes, with the National Monetary Council meeting the conditions and the supplementary procedures that if they show necessary.

Art. 3º For habilitation to rated credit operations as of RECOOP, met with the constant preliminary condition of the final part of the art. 5º, caput, shall require independent audit opinion on the provenance of the values relating to existing debts and cooperates receivables, as well as the presentation of the cooperative development plan, approved in Extraordinary general assembly by most of the cooperates, contemplating:

I-restructuring project demonstrating the technical and economic-financial viability of the cooperative, with directing the activities to the focus principal acting of an agri-production cooperative and disimmobilizations of assets unrelated to the main object of the society, among other aspects;

II-project of capitalization;

III-project of professionalization of the cooperative management;

IV-project of organization and professionalization of the cooperates;

V-project of monitoring the development plan co-operative.

Art. 4º The cooperative interested in RECOOP financing is expected to substantiate the approval, by the general assembly, of statutory reform, with the prediction of the following subjects:

I- merger, dismemberment, incorporation or partnership, when necessary and as the case may be;

II-independent audit on the balance sheets and demonstrations of results of each exercise;

III-access guarantee of technicians appointed by the Federal Government to data and information relating to the implementation of the cooperative development plan;

IV-term of the board of directors not exceeding four years, being mandatory to renewal of at least one third of the members;

V-ineligibility, for the board of directors and for the tax council:

a) of the associate establishing employment relationship with the co-operative, of the trade agent or legal person administrator who operates in one of the economic fields or who exercises one of the activities of the society, of their respective spouses, as well as persons prevented by law or social status, in addition to the dodged by ffeeding crime, of prevarication, peita or bribery, concussion, embezzle or against the popular economy, public faith or property;

b) of the spouse, ancestry, descendants, or collateral to the second degree, by consangüinity or affinity, of the members of the statutory bodies of the cooperative;

VI-ineligibility, for the board of directors, of the members of the fiscal council in financial year in the six months prior to the date of election assembly;

VII-vedic to the administrators, thus understood the members of the board of directors and the executive board, of:

a) practice act of liberality at the expense of the co-operative;

b) take by borrowing resources or goods from society, or use, in own or from third parties, their goods, services, or credit, save in connection with cooperative acts practiced between them and the co-operative;

c) receive from associates or from third parties any benefit directly or indirectly in function of the exercise of your office;

d) participate in or influence in deliberation on matters of interest personnel, by complying with them stating the grounds for their impediment;

and) operate in any of the economic fields of the cooperative or exercise activity by it performed;

f) provide, under any pretext, yet by taking prices or competition, goods or services to society, except those regarding the cooperative acts practiced between them and the cooperative, extending such a ban to the spouses, ascendants, descendants and collateral up to the second degree, by consanginity or affinity;

VIII-personal responsibility of the administrator for the damage it causes to the cooperative, including with demand for return of the values received, increased charges compensation, when proceeding:

a) with violation of law or statute;

b) within his or her attributions or powers, with guilt or dolo;

IX-responsibility of the members of the board tax for damages resulting from omission in the performance of their duties and violation of the law or statute and the acts practiced with guilt or dolo;

X-prohibition of joint participation, in the governing bodies and in the tax advice, from spouse, ancestry, descendants and collateral to the second degree, by consangüinity or affinity, from the administrators or members of the tax board.

Art. 5º Stay the Executive Power authorized to open line of credit, up to the limit of R$ 2,100,000,000.00 (two billion and one hundred million reais), intended to fund RECOOP items of interest from cooperatives whose prior consultation has been hosted, by July 31, 1998, by the Executive Committee instituted upon an act of the Executive Power of January 23, 1998.

§ 1º The RECOOP's credit operations of which it treats this Interim Measure and depending on the constant discrimination of its Annex will be carried out:

I-with features of the line of credit that it treats the caput of this article, except for the situations framed in the subsequent inciso II and in § 3º of this article;

II-with features of the Constitutional Funds of Financing of the North, the Northeast or the Midwest (FNO, FNE and FCO), in the case of cooperatives of these regions and as per their location, excluded the parcels intended for new investments and respected the provisions of § § 3º and 4º of this article;

III-under risk from the financial institution, it is incumbent on this to substantiate the ability to pay and to demand the necessary guarantees, in line with the provisions of rural credit, with the exception of repayment intended for the payment of debts to the National Social Insurance Institution-INSS, the risk of which will be assigned to the National Treasury.

§ 2º The tax burden of the RECOOP's amparo loans, resurfaced those carried out by the Funds mentioned in the following paragraph, shall be covered by cancellation of expenses for other programmes included in the General Budget of the Union.

§ 3º The defence fund contracts of the Cafeeira Economy Fund (FUNCAFÉ) and the Northern, Northeast and Midwest Financing Constitutional Funds (FNO, FNE and FCO), when they are lasing credit operations under RECOOP, will have their return deadlines and financial burdens properly adjusted to these operations, running the burden on the account of the respective Fund.

§ 4º In the case of cooperatives of the regions amped by the mentioned Constitutional Funds, apply to the credit operations, except on the installments intended for new investments and on the values of securitization, the financial burdens usually by them practiced or, to the choice of cooperatives in the act of the signing of the credit instrument, in definite character, those fixed in the Annex to this Provisional Measure.

Art. 6º Stay the authorised Union, at its sole discretion and under the terms established by the Minister of State for Finance, to partially take the risks of the financing operations of investments and spin capital of which it treats this Provisional Measure, up to the amount of R$ 300,000,000.00 (three hundred million reais).

Art. 7º The returns on credit operations, of which it treats this Provisional Measure, when backed by resourced resources by the National Treasury, they will be earmarked for the abatement of the public debt.

Art. 8º It is authorized to establish the National Cooperativism-SESCOOP National Learning Service, with legal personality of private law, composed of entities bound to the trade union system, without prejudice to the supervision of the application of its resources by the Court of Auditors of the Union, with the aim of organizing, administering and executing in the whole national territory the teaching of vocational training, development and social promotion of the worker in co-operative and of the cooperates.

Single paragraph. For the development of its activities, the SESCOOP will contest with own centers or act in the form of cooperation with public or private bodies.

Art. 9º The SESCOOP will be directed by a National Council, with the following composition:

I-a representative of the Ministry of Labour and Employment;

II-a representative of the Ministry of Welfare and Social Assistance;

III-a representative of the Ministry of Finance;

IV-a representative of the Ministry of Planning, Budget and Management;

V-a representative of the Ministry of Agriculture and Supply;

VI-five representatives of the Organization of Brazilian Cooperatives-OCB, including its President;

VII-a representative of the workers in cooperative societies.

§ 1º The SESCOOP will be chaired by the President of OCB, which will be entitled in the deliberations only to the quality vote.

§ 2º Powers will be created regional councils, in the form that comes to be established in the SESCOOP Regiment.

Art. 10. They constitute revenue from SESCOOP:

I-compulsory monthly contribution, to be collected, from 1º January 1999, by Social Security, from two comma five percent on the amount of pay paid to all employees by the cooperatives;

II-donations and legacies;

III-voluntary grants from the Union, the States, the Federal District and the Municipalities;

IV-rents arising from the provision of services, of the disposal or leasing of your assets;

V-operating income;

VI-pecuniary penalties.

§ 1º The contribution referred to in the inciso I of this article will be collected by the Social Security, applying to you the same conditions, deadlines, penalties and privileges, including with regard to judicial collection, applicable to the Social Security contributions, being your product being made available to SESCOOP.

§ 2º The said contribution is instituted in substitution to the contributions, of the same species, due and collected by the cooperative societies and, until December 31, 1998, intended for:

I-National Service of Industrial Learning-SENAI;

II-Social Service of Industry-SESI;

III-National Commercial Learning Service-SENAC;

IV-Social Service of Trade-SESC;

V-National Transportation Apprenticeship-SENAT;

VI-Social Service of Transportation-SEST;

VII-National Rural Learning Service-SENAR.

§ 3º A from 1º January 1999, the cooperatives become disobligated from collecting contributions to the entities mentioned in § 2º, excepted those of competence until the month of December 1998 and the respective charges, fines and interest.

Art. 11. The Executive Power, within the period of up to one hundred and eighty days, will establish conditions for:

I-developing systems for monitoring, supervising, auditing and controlling the application of public resources in the cooperative system;

II-evaluate the model of the Brazilian cooperative system, formulating measures aimed at its improvement.

Art. 12. The organization and operation of the SESCOOP will build regiment, which will be approved in an act of the Executive Power.

Art. 13. The art. 88 of Law No. 5,764 of December 16, 1971, passes the vigour with the following essay:

" Art. 88. They will be able to participate in non-cooperative societies for better service of the goals themselves and others of accessory or complementary character. " (NR)

Art. 14. The Executive Power shall regulate the provisions of this Provisional Measure.

Art. 15. They are convalidated the acts practiced on the basis of the Provisional Measure No. 2.085-33, of February 22, 2001.

Art. 16. This Interim Measure takes effect on the date of its publication.

Brasilia, March 22, 2001; 180º of Independence and 113º of the Republic.

FERNANDO HENRIQUE CARDOSO

Pedro Parente

ANNEX

I-CONDITIONS FOR REFINANCING DEBTS WITH THE FINANCIAL SYSTEM

Espécie	Prazo	Financial Charges (*)
Cows-parts	Up to 15 years	IGP-DI + 4% a.a.
Securitization	Magnification, for 10 years, of the deadlines of securitized operations	Variation of minimum prices + 3% a.a.
Other debts (after negotiation of discounts and exchange of funding)	Up to 15 years	IGP-DI + 4% a.a.

II-CONDITIONS FOR REFINANCING OF DEBTS WITH COOPERATES AND ARISING FROM ACQUISITION OF AGRI-OWNED INPUTS AND OF TRIBUTES AND SOCIAL CHARGES

Espécie	Prazo	Financial Charges (*)
Debates with cooperates and others coming from acquisition of agrolivestock inputs (after negotiation of discounts)	Up to 15 years	IGP-DI + 4% a.a.
Tributs and social and labor charges (after negotiation of discounts)	Up to 15 years	IGP-DI + 4% a.a.

III-CONDITIONS FOR FUNDING OF COOPERATED RECEIVABLES

Espécie	Prazo	Financial Charges (*)
Values to receive from cooperates	Up to 15 years	IGP-DI + 4% a.a.

IV-CONDITIONS FOR FINANCING OF INVESTMENTS AND GIRO CAPITAL

Species	Deadline	Financial Charges (*)
Investments (inclusive spin capital for start of activity arising from these investments)	Up to 15 years	IGP-DI + 4% a.a.
Giro Capital	Up to 2 years	8, 75% a. a.

(*) It includes there the spread banking of up to three percent a year.

NOTE: In the case of cooperatives of the regions ampared by Constitutional Funds (FNO, FNE and FCO), appli-

Care to credit operations, except on the plots intended for new investments and on the values of securitization, the financial burdens usually by them practiced or these here established, as a choice of these cooperatives in the act of the signing of the credit instrument, in definitive character.