PROVISIONAL MEASURE NO. 2.085?36, OF May 17, 2001.

Discuss on the Revitalization Program of Agrohusbandry Production Cooperatives?RECOOP, authorizes the creation of the National Cooperativism Learning Service?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 Is the Executive Power authorized to implement the Revitalization Program of Agrohusbandry Production Cooperatives ? RECOOP, observed the provisions of this Provisional Measure.

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

§ 1º The credit transactions of which this article deals will have as a limit, after the trading of discounts with the respective creditors, the debtor balance of existing bank bonds on June 30, 1997, still in being, plus the necessary resources for payment of debts, existing on June 30, 1997 and still unpaid:

I? coming from acquisition of agri-livestock inputs;

II? with cooperates;

III? labour and come from tax and social obligations.

§ 2º In the amount established in the form of § 1º and in accordance with the cooperative's revitalization plan, the values for spin capital will be increased and essential investments and the cooperated receivables, originating in credits constituted until June 30, 1997.

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

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

II? from 1º July 1998, up to the 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 year plus the Referential Rate? TR, the smallest of these two parameters;

b) node 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: paced financial burdens for normalcy situation, or interest of up to twelve percent a year plus Referential Rate? TR, prevailing what is minor.

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

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

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

§ 7º Credit operations under the RECOOP amparo are considered to be of rural credit for all purposes, up to the Board National Monetary disciplining the conditions and supplementary procedures that are shown to be necessary.

Art. 3º For habilitation to credit operations classified as of RECOOP, met to the preliminary condition constant of the final part of the art. 5 °, caput, require? se?á independent audit opinion on the provenance of the values related to existing debts and cooperates receivables, as well as the presentation of the co-operative development plan, approved in extraordinary general assembly by most of the cooperates, contemplating:

I? restructuring project demonstrating the technical and economic feasibility? finance of the cooperative, with directing the activities to the main acting focus of an agri-production cooperative and non-asset immobilizations of related to the main object of the society, among other aspects;

II? capitalization project;

III? project of professionalization of co-operative management;

IV? organization project and professionalization of the cooperates;

V? co-operative development plan monitoring project.

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

I? merger, dismemberment, incorporation or partnership, when necessary and as the case;

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

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

IV? term of office of the board of directors not exceeding four years, and is mandatory for 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, trade agent or legal person administrator who operates in one of the economic fields or that exerts one of the activities of the society, of their respective spouses, as well as of those prevented by law or by social status, in addition to those convicted of ffeeding crime, of prevarication, peita or bribery, concussion, embezzled or against the popular economy, public faith or property;

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

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 the assembly election;

VII? sealing 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 cooperative;

b) take by borrowing resources or goods from society, or use, in their own or third party's advantage, 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 personal interest, fulfilling? to state the grounds of their impediment;

e) operer in any of the economic fields of the cooperative or perform activity by it performed;

f) provide, under any pretext, yet upon taking of prices or competition, goods or services to the society, except those regarding the cooperative acts practiced between them and the cooperative, extending? if such a ban on the spouses, ancestry, descendants and collateral to the second degree, by consangüinity or affinity;

VIII? personal responsibility of the administrator for the damage it causes to the cooperative, including with a requirement to return the values received, add to compensatory charges, when proceeding:

a) with violation of the law or of the statute;

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

IX? liability of the members of the tax council for damages resulting from omission in the fulfillment of their duties and violation of law or statute and the acts practiced with guilt or dolo;

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

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), aimed at financing RECOOP items of interest from the cooperatives whose consultation prior, until July 31, 1998, by the Executive Committee established upon an act of the Executive Power of January 23, 1998.

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

I? with credit line features of which 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 resources from the Northern Financing Constitutional Funds, from the Northeast or the Centre?West (FNO, FNE and FCO), in the case of cooperatives of these regions and as per their location, excluded the plots intended for new investments and respected the provisions of § § 3º and 4º of this article;

III? under risk from the financial institution, by incumbent? if this is to substantiate the ability to pay and to demand the necessary guarantees, in line with the provisions of the rural credit, with the exception of the parcel intended for the payment of debts attached to the National Institute of Social Insurance? INSS, whose risk will be allotted to the National Treasury.

§ 2º The tax burden of the RECOOP's amparo loans, re-salvaged those carried out by the Funds mentioned in § 3º, shall be covered by cancellation of expenditure intended for other programmes included in the General Budget of the Union.

§ 3º The defence fund repass contracts of the Cafeeira Economy Fund (FUNCAFÉ) and the Northern Financing Constitutional Funds, the Northeast and the Centre?West (FNO, FNE and FCO), when they are chipping credit operations under the RECOOP, will have their return and financial burdens duly adjusted to these operations, running the burden on the respective Fund's account.

§ 4º In the case of cooperatives of the regions amparted by the mentioned Constitutional Funds, apply? if to the credit operations, except on the plots intended for new investments and on the values of securitization, the charges Financial usually by them practiced or, to the choice of cooperatives in the act of the signing of the credit instrument, in definite character, those set out in the Annex to this Provisional Measure.

Art. 6º Stay the Union authorized, at its sole discretion and under the terms established by the Minister of State for Finance, to partially assume the risks of the investment financing and spin capital operations 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 of credit operations, of which it treats this Interim Measure, when backed by resources passed down by the National Treasury, will be intended for the abatement of the public debt.

Art. 8º Is it authorized to set up the National Cooperativism Learning Service? SESCOOP, with a legal personality of private law, composed of entities bound to the 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 to perform throughout the 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 next 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 employees 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. Constitute revenue from SESCOOP:

I? compulsory monthly contribution, to be collected, as of January 12, 1999, by Social Security, of two comma five percent on the amount of remuneration 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, divestment or leasing of their goods;

V? operating revenues;

VI? pecuniary penalties.

§ 1º The contribution referred to in the inciso I of this article will be collected by Social Security, applying? se?it the same conditions, time limits, sanctions and privileges, including with regard to collection judicial, applicable to the contributions to Social Security, being its product being made available to SESCOOP

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

I? National Industrial Learning Service? SENAI;

II? Social Service of Industry? SESI;

III? National Commercial Learning Service? SENAC;

IV? Social Service of Commerce? SESC;

V? National Transport Learning Service? SENAT;

VI? Transport Social Service? SEST;

VII? National Rural Learning Service? SENAR.

§ 3º As of 1º January 1999, the cooperatives become disobligated from collecting contributions to the entities mentioned in § 2a, excepted those of competence by 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? to develop systems for monitoring, supervising, auditing and controlling the application of public resources in the cooperative system;

II? evaluate the Brazilian cooperative system model by formulating measures aimed at its enhancement.

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 the Act on 5,764, of December 16, 1971, goes on to invigorate 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 at 2.085?35, of April 19, 2001.

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

Brasilia, May 17, 2001; 180º of Independence and 113º of the Republic.

FERNANDO HENRIQUE CARDOSO

Pedro Parente

ANNEX

I-CONDITIONS FOR REFIANCE OF DEBTS WITH The FINANCIAL SYSTEM

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

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

Species	Prazo	Financial Charges (*)
Debts with cooperated and others coming from procuring agrolivestock inputs (after negotiation of discounts).	Up to 15 years	IGP-DI + 4% a. a.
Tributs and social and labor burdens (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 SPIN CAPITAL

Espécie	Prazo	Financial Charges (*)
Investments (inclusive of spin capital for commencement 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 bank spread of up to three percent a year.

NOTE: In the case of co-operatives of the regions amstops by Constitutional Funds (FNO, FNE and FCO), apply 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 investment, in definite character.