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 No 53, DE 2009

Authorizes the Municipality of Fortaleza, in the State of Ceará, to hire external credit operation, with guarantee from the Union, to the Bank Inter-American Development (BID), worth up to US$ 33,066,000.00 (thirty-three million and sixty-six thousand U.S. dollars), whose resources are intended for partial financing of the?Integrated Youth Public Policy Program of Fortaleza?.

The Senate Federal resolves:

Art. 1º It is the Municipality of Fortaleza, in the State of Ceará, authorized to hire operation of external credit, with a guarantee from the Union, with the Inter-American Development Bank (BID), worth up to US$ 33,066,000.00 (thirty-three million and sixty-six thousand U.S. dollars).

Paragraph single. Do the advintresources of the external credit operation referred to in the caput are intended for the partial financing of the?Integrated Fortress Youth Public Policies Program?.

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

I? creditor: Inter-American Development Bank (BID);

II-value of the loan: up to US$ 33,066,000.00 (thirty and three million and sixty-six thousand U.S. dollars);

III? loan modality: Unimonetary Mechanism Loan with Libor-based Interest Rate;

IV-deadline of disbursements: 5 (five) years, counted from the date of the Contract's duration;

V-amortization: semi-annual installments and consecutive, of values as much as possible equals, paid on day 15 of the February and August months of each year, winning the first on February 15 or August (as the case) after transcurring 5 (five) years of the date of signing of the contract and the last one on February 15 or August (as the case) before transcurring 25 (twenty five) years of the Contract signature;

VI-interest: required semester on the same dates of repayment of the amortization and calculated on the periodic debtor balance of the loan, at an annual rate for each quarter composed of the rate of interest Libor quarterly to U.S. dollar plus (or less) a cost margin related to the loans that finance the loans of the Libor modality plus net worth of any cost or profit generated by operations to mitigate the fluctuations of Libor and more the margin for loans from the ordinary capital;

VII-expenditure on inspection and general supervision: as per current policy, the Bank will not charge amount to meet expenses with inspection and general supervision; by periodic review of its policies, it will notify the borrower a value due in a given semester, which will not be able to be more than 1% (one per cent) of the funding, divided by the number of semesters understood in the original disbursement term;

VIII-option of interest rate fixation: the Mutuary, respected the terms and conditions set out in the Contract, may request the Bank to convert to a Fixed Interest Rate of part or of the all of the debtor balances subject to the Libor-based interest rate and a new conversion of part or all of the debtor balances calculated to a Fixed Interest Rate for the Libor-based interest rate, with each conversion only could be carried out at a minimum value equivalent to 25% (twenty five percent) of the amount of the Loan or US$ 3,000,000.00 (three million U.S. dollars), which is higher.

Art. 3º It is the Union authorized to grant guarantee to Municipality of Fortaleza (EC) in the contracting of the external credit operation referred to in this Resolution.

Single paragraph. The exercise of the authorization provided for in the caput is conditional on the Municipality meets, prior to the formalization of the contractual instruments, the following requirements:

I? the Mutuary presents evidence that the Operational Regulation of the Program (ROP) previously agreed upon with the BID;

II-the Mutuary presents, for the non-objection of the BID, the model of the management contract by performance targets that will be firmed up with the Social Organization that is selected to administer the Centres Urban of Culture, Art, Science and Sport of Component II of the Program on the Development of New Social Work Technologies;

III? are paid the debits on behalf of the Direct Administration of the Municipality of Fortaleza with the Union or its controlled entities;

IV? is formalized the contract of contragarantia;

Art. 4º The maximum term for the exercise of the present authorization is for 540 (five hundred and forty) days, counted from its publication.

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

Senate Federal, on December 17, 2009.

Senator Jose Sarney

President of the Federal Senate

faa/prs09-095