DECREE NO. 3,540, OF July 11, 2000.

Establishes the characteristics of the Public Debt Securities Internal Federal mobiliary and gives other arrangements.

THE PRESIDENT OF THE REPUBLIC, in the use of the assignment that gives it the art. 84, incisus IV, of the Constitution, and with a view to the provisions of the Provisional Measure No. 1.974-81, of June 29, 2000, and in Law No. 9,711 of November 20, 1998,

DECRETA:

Art. 1º The Letters of the Treasury National-LTN will have the following characteristics:

I-deadline: defined by the Minister of State of the Farm, when the issuance of the title;

II-modality: nominative and negotiable;

III-nominal value: multiple of R$ 1,000.00 (thousand reais);

IV-throughput: defined by the dearth over the nominal value;

V-rescue: by the nominal value, on the due date.

Paragraph single. The LTN will be issued, adopting one of the following forms, to be defined by the Minister of State for Finance:

I-public offering, with the holding of auctions, and may be at par, with age or dismay;

II-direct, in operations with autarchy, foundation, public company or mixed economy society, members of the Federal Public Administration, upon express authorization of the Minister of State for Finance, and may not be placed by lower value than par.

Art. 2º The Financial Letras of the Treasury-LFT will have the following characteristics:

I-deadline: defined by the Minister of State of the Finance, when of the issuance of the title;

II-modality: nominative and negotiable;

III-nominal value in the date-base: multiple of R$ 1,000.00 (thousand reais);

IV-throughput: average adjusted rate of daily financing ascertained in the Special Settlement and Custody System-SELIC for federal public securities, released by the Central Bank of Brazil, calculated on the nominal value;

V-rescue: by the nominal value, increased from the respective yield, from the date-base of the title.

Single paragraph. The LFT will be issued, adopting one of the following forms, to be defined by the Minister of State for Finance:

I-public offering, with the holding of auctions, and may be at par, with age or dismay;

II-direct, in operations with autarchy, foundation, public company or mixed economy society, members of the Federal Public Administration, upon express authorization of the Minister of State for Finance, and may not be placed by lower value than par.

Art. 3º The Financial Letters of the Treasury intended for the fulfillment of the contracts of assumption by the Union of the liability debt of the states and the Federal District, in the terms of the art. 1º of Law No. 9,496 of September 11, 1997, as well as of the operations concerning the reduction of the presence of the state public sector in the banking financial activity pursuant to art. 3º of the Provisional Measure No. 2.023-52 of June 21, 2000, may be issued in two separate series: Treasury Financial Letters Series A-LFT-A and Treasury Financial Letters Series B-LFT-B.

Art. 4º The LFTA-A will have the following characteristics:

I-deadline: fifteen years;

II-form of placement: direct, in favor of the person concerned;

III-nominal value: R$ 1,000.00 (thousand reais);

IV-throughput: average adjusted rate of daily financing ascertained in the Special Settlement and Custody System-SELIC for federal public securities, released by the Central Bank of Brazil, increased from 0.0245% a.m.;

V-rescue of the main: in 180 monthly and consecutive installments, winning the first in the month following that of the issue, each of which is of value corresponding to the result obtained by the division of the renaissance balance, updated and capitalized, on the date of the maturity of each of the plots by the number of vincende plots, including to which it is being paid.

Art. 5º The LFT-B will have the following characteristics:

I-deadline: up to fifteen years;

II-form of placement: diet, in favor of the person concerned;

III-nominal value on the date-base: R$ 1,000.00 (thousand reais);

IV-throughput: average adjusted rate of daily financing ascertained in the Special System of Settlement and of Custody-SELIC for federal public securities, released by the Central Bank of Brazil;

V- Rescue: by the nominal value, plus the respective yield, from the date-base of the title.

Art. 6º The National Treasury Notes-NTN will be able to be issued in ten distinct series: NTN Series A-NTN-A; NTN Series C-NTN-C; NTN Series D-NTN-D; NTN Series F-NTN-F; NTN Series H-NTN-H; NTN Series I-NTN-I; NTN Series M-NTN -M; NTN-Series P-NTN-P; NTN Series R-NTN-R; and NTN Series U-NTN-U.

Art. 7º A NTN-A, to be used in the trade-in operations by?Brazil Investment Bonds-BIB?, according to the inciso III of the art. 1º of the Interim Measure No. 1.974-80/2000, and by the remaining securities issued under the Brazilian foreign debt restructuring agreements, and for the purposes of replacing the National Treasury Notes Series L-NTN-L, existing together with the Bank Central do Brasil, up to the limit of the obligation arising from the?Multi-Year Deposit Facility Agreement -MYDFA?, as disposed of in art. 6º of the Provisional Measure No. 1.980-19, from 1º June 2000, will be issued in ten separate sub-series: NTN-A1, NTN-A2, NTN-A3, NTN-A4, NTN-A5, NTN-A6, NTN-A7, NTN-A8, NTN-A9 and NTN-A10.

§ 1º A NTN-A1, to be used in the trade-in operations by?Brazil Investment Bonds -BIB?, will have the following characteristics:

I-term: up to sixteen years, observed the remaining timeframe of maturity of the BIB used in the exchange operation;

II-interest rate: six percent to the year, calculated on the updated nominal value;

III-form of placement: direct, in favor of the person concerned, and may be on par, with either aragiarism or dismay;

IV-modality: nominative and negotiable;

V-nominal value: multiple of R$ 1,000.00 (thousand reais)

VI-update of the nominal value: by the variation of the selling quote of the US dollar of America on the market of free exchange rate exchange, released by the Central Bank of Brazil, being considered the average business day rates immediately preceding the dates of the issuance and the maturity of the title;

VII-payment of interest: every day fifteen of the months of March and September, with adjustment in the first period of fluency, when couber;

VIII-rescue of the main: under the same conditions observed for the payment of the BIB that originated the exchange operation, with adjustment in the first period of fluency, when couber.

§ 2º A NTN-A2, to be used in the trade-in operations by?Interest Due and Unpaid Bond -IDU?, will have the following characteristics:

I-term: up to four years, observed the remaining expiry schedule of the IDU used in the operation of exchange;

II-rate of interest:?Londo Inter-Bank Offered Rate -LIBOR? half-yearly, released by the Central Bank of Brazil, being considered the rate regarding the second working day prior to that of the repactuation, increased of?spread? of eight thousand, one hundred and twenty-five tenths of thousandths per cent per annum, calculated on the updated nominal value, respected the limit of twelve per cent per annum;

III-form of placement: direct, in favor of the person concerned, and may be at par, with age or take-off;

IV-modality: nominative and negotiable;

V-nominal value: multiple of R$ 1,000.00 (thousand reais);

VI-update of the nominal value: by the variation of the selling quote of the US dollar of America on the market of free exchange rate exchange, released by the Central Bank of Brazil, being considered the average business day rates immediately preceding the dates of the issuance and the maturity of the title;

VII-payment of interest: every day first of the months of January and July, with adjustment in the first period of fluency, when couber;

VIII-rescue of the main: under the same conditions observed for the payment of the IDU that originated the exchange operation, with adjustment in the first period of fluency, when couber.

§ 3º A NTN-A3, to be used in the trade-in operations by?Par Bond?, will have the following characteristics:

I-term: up to twenty-seven years, observed the schedule of the?Par Bondmaturity remnant? used in the exchange operation;

II-interest rate, calculated on the nominal value updated, as follows:

a) until April 14, 1998: five integers and twenty-five centisimos per cent per year;

b) from April 15, 1998 to April 14, 1999: five integers and five tenths per cent per year;

c) from April 15, 1999 to April 14, 2000: five whole and seventy five hundthths per cent per annum;

d) from April 15, 2000 to the maturity: six percent a year;

III-form of placement: direct, in favor of the interested, and may be on par, with age or dismay;

IV-modality: nominative and negotiable;

V-nominal value: multiple of R$ 1,000.00 (thousand reais);

VI-update of the value: by the variation of the selling quotation of the US dollar of the United States in the free rate exchange market, released by the Central Bank of Brazil, being considered the average business day rates immediately preceding the dates of the issuance and the maturity of the title;

VII-payment of interest: every day fifteen of the months of April and October, with adjustment in the first period of fluency, when couber;

VIII-rescue of the main: under the same conditions observed for the payment of the?Par Bond? that originated the exchange operation, with adjustment in the first period of fluency, when couber.

§ 4º A NTN-A4, to be used in the trade-in operations by?Discount Bond?, will have the following characteristics:

I-term: up to twenty seven years, observed the remaining maturity schedule of the?Discount Bond? used in the exchange operation;

II-interest rate:?LIBOR?, Semestral, released by the Central Bank of Brazil, being considered the rate regarding the second working day prior to that of the repactuation, increased?spread? of eight thousand, one hundred and twenty-five tenths of thousandths per cent per annum, calculated on the updated nominal value, respected the limit of twelve per cent per annum;

III-form of placement: direct, in favor of the person concerned, and may be at par, with age or take-off;

IV-modality: nominative and negotiable;

V-nominal value: multiple of R$ 1,000.00 (thousand reais);

VI-update of the nominal value: by the variation of the selling quote of the US dollar of America on the market of free exchange rate exchange, released by the Central Bank of Brazil, being considered the average business day rates immediately preceding the dates of the issuance and the maturity of the title;

VII-payment of interest: every day fifteen of the months of April and October, with adjustment in the first period of fluency, when couber;

VIII-rescue of the main: under the same conditions observed for the payment of the?Discount Bond? that originated the exchange operation, with adjustment in the first period of fluency, when couber.

§ 5º A NTN-A5, to be used in the trade-in operations by?Front Loaded Interest Reduction Bond -FLIRB?, will have the following characteristics:

I-term: up to twelve years, observed the remaining maturity schedule of the FLIRB used in the operation of exchange;

II-interest rate, calculated on the updated nominal value, of the following form:

a) until April 14, 1998: four integers and five tenths per cent per year;

b) from April 15, 1998 to April 14, 1999: five per cent per year;

c) from April 15, 1999 to April 14, 2000: five per cent a year;

d) from April 15, 2000 to maturity:?LIBOR? half-yearly, released by the Central Bank of Brazil, being considered the rate regarding the second working day prior to that of the repactuation, increased of?spread? of eight thousand, one hundred and twenty-five tenths of thousandths per cent per annum, respected the limit of twelve per cent per annum;

III-form of placement: direct, in favor of the person concerned, and may be at par, with age or take-off;

IV-modality: nominative and negotiable;

V-nominal value: multiple of R$ 1,000.00 (thousand reais);

VI-update of the nominal value: by the variation of the selling quote of the US dollar of America on the market of free exchange rate exchange, released by the Central Bank of Brazil, being considered the average business day rates immediately preceding the dates of the issuance and the maturity of the title;

VII-payment of interest: every day fifteen of the months of April and October, with adjustment in the first period of fluency, when couber;

VIII-rescue of the main: under the same conditions observed for the payment of the?FLIRB? that originated the exchange operation, with adjustment in the first period of fluency, when couber.

§ 6º A NTN-A6 to be used in the trade-in operations by?Front Loaded Interest Reduction Bond With Capitalization -C-Bond?, will have the following characteristics:

I-term: up to sixteen years, observed the remaining maturity schedule of the C-Bond used in the exchange operation;

II-interest rate, calculated on the nominal value updated as follows:

a) até14 April 1998: four integers and five tenths per one percent a year;

b) from April 15, 1998 to April 14, 2000: five percent year;

c) from April 15, 2000 to maturity: eight per cent per year;

d) the difference between prevailing interest rates until April 14, 2000 and the rate of eight per cent per year will be capitalized on the payment dates;

III-form of placement: direct, in favor of the interested, and may be on par, with age or dismay;

IV-modality: nominative and negotiable;

V-nominal value: multiple of R$ 1,000.00 (thousand reais);

VI-update of the nominal value: by the variation of the selling quote the US dollar of the America in the free rate exchange market, released by the Central Bank of Brazil, being considered the average rates of the business day immediately preceding the dates of the issuance and the maturity of the title;

VII-payment of interest: every day fifteen of the months of April and October, with adjustment in the first period of fluency, when couber;

VIII-rescue of the main: under the same conditions observed for the payment of the?C-Bond? that originated the exchange operation, with adjustment in the first period of fluency, when couber.

§ 7º A NTN-A7 to be used in the trade-in operations by?Debt Conversion Bond -DCB?, will have the following characteristics:

I-term: up to fifteen years, observed the remaining time schedule of DCB maturity used in the operation of exchange;

II-interest rate:?LIBOR? half-yearly, released by the Central Bank of Brazil, being considered the rate regarding the second working day prior to that of the repactuation, increased of?spread? of eight hundred and seventy five thousandths per cent a year, calculated on the updated nominal value, respected the limit of twelve per cent per annum;

III-form of placement: direct, in favor of the person concerned, and may be at par, with age or take-off;

IV-modality: nominative and negotiable;

V-nominal value: multiple of R$ 1,000.00 (thousand reais);

VI-update of the nominal value: by the variation of the selling quote of the US dollar of America on the market of free rate exchange, disclosed by the Central Bank of Brazil, being considered the average business day rates immediately preceding the dates of the issuance and the maturity of the title;

VII-payment of interest: every day fifteen of the months of April and October, with adjustment in the first period of fluency, when couber;

VIII-rescue of the main: under the same conditions observed for the payment of the?DCB? that originated the exchange operation, with adjustment in the first period of fluency, when couber;

§ 8º A NTN-A8, to be used in the trade-in operations by?New Money Bond -NMB?, will have the following characteristics:

I-deadline: up to twelve years, observed the remaining maturity schedule of the NMB used in the exchange operation;

II-interest rate:?LIBOR? half-yearly, released by the Central Bank of Brazil, being considered the rate regarding the second working day prior to that of the repactuation, increased of?spread? of eight hundred and seventy five thousandths per cent a year, calculated on the updated nominal value, respected the limit of twelve per cent per annum;

III-form of placement: direct, in favor of the person concerned, and may be at par, with age or take-off;

IV-modality: nominative and negotiable;

V-nominal value: multiple of R$ 1,000.00 (thousand reais);

VI-update of the nominal value: by the variation of the selling quote of the US dollar of America on the market of free rate exchange, released by the Central Bank of Brazil, being considered the average payday rate immediately preceding the dates of the issuance and the maturity of the title;

VII-payment of interest: every day fifteen of the months of April and October, with adjustment in the first period of fluency, when couber;

VIII-rescue of the main: under the same conditions observed for the payment of the NMB that originated the exchange operation, with adjustment in the first period of fluency, when couber.

§ 9º A NTN-A9, to be used in the trade-in operations by?Eligible Interest Bond.-EIBond?, will have the following characteristics:

I-term: up to nine years, observed the remaining schedule of expiry of the EIBond used in the operation of exchange;

II-interest rate:?LIBOR? half-yearly, released by the Central Bank of Brazil, being considered the rate regarding the second working day prior to that of the repactuation, increased of?spread? of eight thousand, one hundred and twenty-five tenths of thousandths per cent per annum, calculated on the updated nominal value, respected the limit of twelve per cent per annum;

III-form of placement: direct, in favor of the person concerned, and may be at par, with age or take-off;

IV-modality: nominative and negotiable;

V-nominal value: multiple of R$ 1,000.00 (thousand reais);

VI-update of the nominal value: by the variation of the selling quote of the US dollar of America on the market of free exchange rate exchange, released by the Central Bank of Brazil, being considered the average business day rates immediately preceding the dates of the issuance and the maturity of the title;

VII-payment of interest: every day fifteen of the months of April and October, with adjustment in the first period of fluency, when couber;

VIII-rescue of the main: under the same conditions observed for the payment of the?EIBond? that originated the exchange operation, with adjustment in the first period of fluency, when couber.

§ 10. Is NTN-A10, to be issued for the purposes of replacing NTN-L, existing with the Central Bank of Brazil, to the limit of the obligation arising from the?MYDFA?, will have the following characteristics:

I-deadline: up to nine years, observed the timetable remnants of maturities of the MYDFA;

II-interest rate:?LIBOR? half-yearly, released by the Central Bank of Brazil, being considered the rate regarding the second working day prior to that of the repactuation, increased of?spread? of eight thousand, one hundred and twenty-five tenths of thousandths per cent per annum, calculated on the updated nominal value, respected the limit of twelve per cent per annum;

III-form of placement: direct, in favor of the person concerned;

IV.-modality: nominative and negotiable;

V-nominal value: multiple of R$ 1,000.00 (thousand reais);

VI-update of the nominal value: by the variation of the selling quotation of the US dollar of the United States in the free rate exchange market, released by the Central Bank of the Brazil, being considered the average rates of the business day immediately preceding the dates of the issue and the maturity of the title;

VII-payment of interest: every day fifteen of the months of March and September, with adjustment in the first period of fluency, when couber;

VIII-rescue of the main: under the same conditions observed for the payment of the MYDFA, with adjustment in the first period of fluency, when couber.

Art. 8ºA NTN-C will have the following characteristics:

I-deadline: defined by the Minister of State for Finance, when of the issuance of the title;

II-interest rate: defined by the Minister of State of Finance, when of the issuance, in percentage to the year, calculated on the updated nominal value;

III-modality: nominative and negotiable;

IV-nominal value: on the date-base: mumpple of R$ 1,000.00 (thousand reais);

V-update of the nominal value: by the variation of the General Price Index-Market? IGP-M of the previous month, released by the Getulio Vargas Foundation, since the data-base of the title;

VI-payment of interest: semestrally, with adjustment of the deadline in the first period of fluency, when couber. The first coupon of interest to be paid will contemplate the full rate set for six months, regardless of the date of issue of the title;

VII-rescue of the main: in single parcel, on the date of its maturity.

Art. 9º The NTN-D will have following characteristics:

I-deadline: defined by the Minister of State of the Finance, when of the issuance of the title;

II-interest rate: defined by the Minister of State of Finance, when of the issuance, in percentage to the year, calculated on the updated nominal value;

III-modality: nominative and negotiable;

IV-nominal value in the date-base: multiple of R$ 1,000.00 (thousand reais);

V-update of the nominal value: by the variation of the selling quotation of the US dollar of the United States on the market of free rate exchange, released by the Central Bank of Brazil, being considered the average business day rates immediately preceding the date-base and the date of the maturity of the title;

VI-payment of interest: semestrally, with adjustment of the deadline in the first period of fluency, when couber. The first coupon of interest to be paid will contemplate the full rate set for six months, regardless of the date of issue of the title;

VII-rescue of the main: in single parcel, on the date of its maturity.

Art. 10. The NTN-F will have the following characteristics:

I-deadline: defined by the Minister of State for Farm, when of the issuance of the title;

II-interest rate: defined by the Minister of State of the Farm, when of the issuance, in percentage to the year, calculated on the nominal value;

III- modality: nominative and negotiable;

IV-nominal value: multiple of R$ 1,000.00 (thousand real);

V-throughput: defined by the toll on the nominal value;

VI-payment of interest: semestrally, with adjustment of the term in the first period of fluency, when couber. The first coupon of interest to be paid will contemplate the full rate set for six months, regardless of the date of issue of the title;

VII-rescue: at the nominal value, on the date of its maturity.

Art. 11. NTN-H will have the following characteristics:

I-deadline: defined by the Minister of State for Farm, when of the issuance of the title;

II-modality: nominative and negotiable;

III-nominal value in the date-base: multiple R$ 1,000.00 (thousand reais);

IV-update of the nominal value: by index calculated on the basis of the Referential Rate-TR, released by the Bank Central Brazil, from the date-base to the date of the expiration of the title;

V-rescue of the main: in single parcel, on the date of their maturity.

Art. 12. NTN-I, to be used in the catchment of resources for the payment of equalization of interest rates on export financing of domestic goods and services loved by the Exports Financing Program-PROEX, of which it treats Measure Provisional No. 1.994-40 of June 8, 2000, when provided for in the Annual Budget Law, will have the following characteristics:

I-deadline: defined by the Minister of State of the Finance, when of the issuance of the title;

II-interest rates: defined by the Minister of State of Finance, when of the issuance, in percentage to the year, calculated on the nominal value;

III-modality: nominative and non-negotiable, observed the provisions of § 1º of this article;

IV-nominal value in the date-base: multiple of R$ 1, to 00 (a real one);

V-update of the nominal value: by the variation of the selling quotation of the US dollar of the United States on the market of free rate exchange, released by the Central Bank of Brazil, being considered the average business day rates immediately preceding the date-base and the date of the maturity of the title;

VI-rescue of the principal and payment of interest: up to the maturity date of the corresponding interest share of the financing for export.

§ 1º The NTN-I issued from January 2000 will be negotiable, held its remaining too many characteristics.

§ 2º The issuance of NTN-I will be held after the substantiation by the beneficiary institution of the equalization or by its legal representative;

I-in the operations with resources in foreign currency: from the shipment of the goods, as well as to the settlement of the foreign exchange contracts concerning the whole export value, in the modality International Commercial Terms -INCOTERMS negotiated;

II-in financing granted with resources in national currency: from the shipment of the goods, from the bank current account credit titled by the exporter of the national currency values corresponding to the negotiated amount, as well as the settlement of the foreign exchange contracts of export relative to the unfunded parcel.

Art. 13. NTN-M, to be acquired with the resources arising from the capitalisations carried out by the Amparo of the Exchange contract and Underwriting of the New and Debt Conversion Burden, dated November 29, 1993, will have the following characteristics:

I-term: fifteen years;

II-interest rate:?LIBOR? half-yearly, released by the Central Bank of Brazil, being considered the rate regarding the second working day prior to that of the repactuation, increased of?spread? of eight hundred and seventy five thousandths per cent per annum, calculated on the updated nominal value, up to the limit of twelve per cent per annum;

III-form of placement: direct, in favour of the person concerned and upon express permission of the Minister of State of the Finance, and may not be of lower value than the pair, in amount equivalent to that required to meet the demand arising from the Exchange Contract and Underwriting of the New and Debt Conversion Burden, dated November 29, 1993;

IV-modality: nominative and inegocible;

V-nominal value: multiple of R$ 1,000.00 (thousand reais);

VI-update of the nominal value: by the variation of the selling quote of the US dollar of America on the market of free exchange rate exchange, released by the Central Bank of Brazil, being considered the average business day rates immediately preceding the dates of the issuance and maturity of the title;

VII-payment of interest: semestrally, with adjustment in the first period of fluency, when couber:

VIII-rescue of the main: in seventeen semester and consecutive installments, from the seventh birthday, as of April 15, 1994, inclusive.

Single paragraph. NTN-M may be used, on par, as a means of payment for acquisition of goods and rights disposed of under the National Disestatization Programme-PND, pursuant to Law No. 9,491, of September 9, 1997.

Art. 14. The NTN-P, to be issued to meet the provisions of the inciso II of the art. 1º of the Provisional Measure No. 1.974-80/2000, shall have the following characteristics:

I-term: minimum of fifteen years, from the date of the financial settlement of the divestance occurring under the PND;

II-interest rate: six per cent a year, calculated on the updated nominal value;

III-modality: nominative and non-negotiable, observed the provisions of § 2º of this article;

IV-nominal value: multiple of R$ 1, to 00 (a real one);

V-update of the nominal value: by index calculated on the basis of the TR, released by the Central Bank of Brazil, from the date of the issuance to the date of the expiry of the title;

VI-payment of interest: on the date of the title bailout;

VII-ransom of the main: in single parcel, on the due date.

§ 1º The resources in current currency from NTN-P issuance will be used to amortize public debt federal national exchequer issuance furnishings and to cost programs and projects in the area of science and technology, health, national defense, public safety and the environment, approved by the President of the Republic.

§ 2º The holders of the NTN-P will be able to use them, on par, upon express annuence of the creditor, to:

I-payment of own debts accrued or vincends to the Union or with integral entities of the Federal Public Administration;

II-payment of debts of third party overdue or vincense to the Union or to the entities of the Federal Public Administration, upon express permission of the Minister of State for Finance and State Ministers under whose supervision the entities find themselves involved;

III-transfer, to any title, to an integral entity of the Federal Public Administration.

§ 3º Observed the legal privileges, will have preference, for payment effect, debts accrued with the National Treasury, or those arising from avals honored by the Union.

§ 4º The provisions of § 2º do not apply to debts of tax origin to with the National Finance.

§ 5º In the operations referred to in this article, will NTN-P be greeted to the pair, valued? pro rata? working days.

§ 6º It is vetted the use of the NTN-P as a means of payment for acquisition of assets and rights disposed of in the scope of the PND.

§ 7º The Boards of Directors or bodies competent from the mixed-economy companies, public companies and other entities of the Federal Administration, holders of shares and assets disposed of in accordance with the PND, shall adopt the necessary arrangements in the sense that the resources received in current currency, by the disposal of those goods, are applied in the acquisition of NTN-P.

§ 8º For the purpose of the preceding paragraph, the current currency resources received by the divestants of shares, goods and rights under the PND will be updated by the rate of remuneration for the applications carried out, via the Central Bank of the Brazil, by the companies covered by the Decree-Law No. 1,290 of December 3, 1973, from the date of the financial settlement of the respective auction of privatization to the date of the acquisition of NTN-P in the form of this Decree.

Art. 15. NTN-R, to be used for the purpose of acquisition by the closed entities of private providence that have by sponsors, exclusive or otherwise, public companies, mixed-economy, federal or state-owned, territorial corporations, inclusive of of special nature, and foundations instituted by the Public Power, will be issued in two separate sub-series, R1 and R2.

§ 1º A NTN-R1 will have the following characteristics:

I-deadline: two years;

II-interest rate: eight per cent a year, calculated on the updated nominal value;

III-modality: nominative and negotiable;

IV-nominal value: multiple of R$ 1,000.00 (thousand reais);

V-update of the nominal value: by the variation of the selling quotation of the US dollar of the United States in the free rate exchange market, released by the Central Bank of the Brazil, being considered the average rates of the business day immediately preceding the dates of the issue and the maturity of the title;

VI-payment of interest: on the date of the rescue;

VII-rescue of the main: in single parcel, on the date of its maturity.

§ 2º A NTN-R2 will have the following characteristics:

I-deadline: ten years;

II-interest rate: twelve percent a year, calculated on the updated nominal value;

III-modality: nominative and negotiable;

IV-nominal value: multiple of R$ 1,000.00 (thousand reais);

V-update of the nominal value: by the variation of the selling quotation of the US dollar of the United States in the free rate exchange market, released by the Central Bank of the Brazil, being considered the average rates of the business day immediately preceding the dates of the issue and the maturity of the title;

VI-payment of interest: monthly;

VII-rescue of the main: in ten annual, equal and successive plots.

§ 3º It is provided for the acquisition of NTN-R by the remaining closed entities of private foresight, as well by the holding companies, capitalization societies and open entities of private foresight.

Art. 16. The NTN-U will have the following characteristics:

I-deadline: up to fifteen years;

II-interest rate: six integers and fifty-three hundrths per cent a year, calculated on the nominal value updated;

III-modality: nominative and negotiable;

IV-nominal value: multiple of R$ 1,000.00 (thousand reais);

V-update of the nominal value: by index calculated based on the Long-Term Rate of Interest-TJLP, released by the Central Bank of Brazil, from the date of the issuance to the date of the expiry of the title;

VI- rescue of the principal and interest: in monthly and consecutive instalments, being each of them of value corresponding to the result obtained by the division of the remaining, updated and capitalized balance, existing on the date of its maturity by the number of vincend plots, including the one being paid for.

Art. 17. NTN will be issued by adopting one of the following forms, to be defined by the Minister of State for Finance:

I-public offering, with the holding of auctions, and may be at par, with age or dismay;

II-direct, in operations with autarchy, foundation, public company or mixed economy society, members of the Federal Public Administration, upon express authorization of the Minister of State for Finance, and may not be placed by lower value on par;

III- direct, in operations with specific stakeholder and upon express authorization of the Minister of State of Finance, and may not be placed by less than par, when it comes to issuance to meet PROEX and in the exchange operations by ?Brazil Investment Bonds? -BIB, of which it treats the inciso III of the art. 1º of the Provisional Measure No. 1.974-80/2000;

IV-direct, in operations with interested specific and upon express permission of the Minister of State for Finance, and may not be placed by lesser value on par in the exchange transactions for use in projects of encouragement to the Brazilian audiovisual sector and allocations to the Fund National of Culture, of which it treats the inciso V of art. 1º of the Provisional Measure No. 1.974-80/2000, and placed on par, with toll or take on the remaining transactions of exchange for securities issued in the interim of the external debt restructuring agreements.

Art. 18. It is created the Treasury-CFT Financial Certificate, intended to meet preferentially to operations with specific purposes set out in law, which could be issued in six distinct series, CFT Series A-CFT-A, CFT Series B-CFT-B, CFT Series C -CFT-C, CFT Series D-CFT-D, CFT Series E-CFT-E and CFT Series F-CFT-F, and will have the following characteristics:

I-form of placement: direct in favor of specific stakeholder;

II-modality: nominative;

III-nominal value in the date-base: multiple of R$ 1,000.00 (thousand reais);

IV-deadline: defined by the Minister of State of the Finance, when the issuance of the certificate;

V-rate of interest: defined by the Minister of State of Finance, when of the issuance, in percentage to the year, calculated on the updated nominal value.

Art. 19. The CFT-A will have by specific characteristic the monthly update of the nominal value by the variation of the General Price Index-Internal Availability-IGP-DI of the previous month, released by the Getulio Vargas Foundation, since the certificate's date-basis.

Art. 20. The CFT-B will have by specific characteristic the monthly update of the nominal value per index calculated on the basis of the TR, released by the Central Bank of Brazil, since the certificate's date-base.

Paragraph single. The CFT-B issued as collateral referred to in § 10 of the art. 34 of Law No. 6,368 of October 21, 1976, will have as a multiple nominal value of R$ 1, to 00 (a real one).

Art. 21. The CFT-C will have by specific characteristic the yield defined by the average rate adjusted daily financing ascertained in the Special Settlement and Custody System (SELIC), released by the Central Bank of Brazil, from the date-base of the certificate.

Art. 22. The CFT-D. will have by specific characteristic the nominal value update: by the variation of the selling quotation of the US dollar of America in the free rate exchange market, released by the Central Bank of Brazil, being considered the rates averages of the last day immediately preceding the date-base and the date of the certificate due.

Art. 23. The CFT-E will have by specific characteristics the monthly update of the nominal value by the variation of the IGP-M of the previous month, released by the Getulio Vargas Foundation, from the certificate's date-base.

Art. 24. The CFT-F will have by specific characteristic the throughput defined by the toll on the nominal value.

Art. 25. The CFT will be able to be issued in five distinct sub-series: CFT Sub-series I-CFT-1, CFT Sub-series 2, CFT-2, CFT Sub-series 3-CFT-3, CFT Sub-series 4-CFT-4 and CFT Sub-series 5-CFT-5.

§ 1º The CFT-1 will have the following general characteristics:

I-payment of interest: on the certificate's ransom date;

II-payment of principal: in single instalment, on the date of its maturity.

§ 2º The CFT-2 will have the following general characteristics:

I-payment of interest: annually, with adjustment of the deadline in the first period of fluency, when couber. The first coupon of interest, to be paid after a period to be defined by the Minister of State for Finance, will contemplate the full rate set for twelve months, regardless of the date of issue of the title;

II-payment of the main one: in single parcel, on the date of its maturity.

§ 3º The CFT-3 will have the following general characteristics:

I-payment of interest: semestrally, with adjustment of the term in the first period of fluency, when couber. The first coupon of interest, to be paid after a period to be defined by the Minister of State for Finance, will contemplate the full rate set for six months, regardless of the date of issue of the title;

II-payment of principal: in single instalment, on the date of its maturity.

§ 4º The CFT-4 will have the following general characteristics:

I-payment of interest: monthly, with adjustment of the deadline in the first period of fluency, when couber. The first coupon of interest, to be paid after a period to be defined by the Minister of State for Finance, will contemplate the full rate set for one month, regardless of the date of issue of the title;

II-payment of principal: in single instalment, on the date of its maturity.

§ 5º The CFT-5 will have the following general characteristics:

I-payment of interest: periodically, on the anniversary dates of the certificate, along with the payments of principal, from the first payment;

II-principal payment: periodically, in the certificate anniversary dates, as per French amortization system-?Table Price?.

Art. 26. It is created the National Treasury Certificate-CTN, intended to provide necessary resources to the coverage of budget deficits, observed the limits set by the Legislative Power.

§ 1º The CTN could be put on par, with age or toll, in favour of specific stakeholder, which it should use it for warranty purposes in credit operations of which it treats Resolution No. 2,471, of February 26, 1998, of the National Monetary Council.

§ 2º The face value of the securities to be acquired by the debtors must correspond to the debtor balance of the credit operation.

§ 3º For issuance of the title mentioned in?caput?, the following conditions will be observed:

I-limit of issuance: defined by the National Treasure Registry, noting that:

a) annual emissions of securities by the National Treasure will not be able to surpass the amount corresponding to the principal amortizations of securitized credits indexed to general price indexes, deducted from the volume of new securitizations effected in the same financial year, upon the registration of scriptural credits indexed to those cited indices;

b) for the purposes of calculating the allowable emissions in the form of the preceding paragraph, no will be computed the securitizations effected from 1998, and their respective depreciation, carried out in amparo of the Laws No. 93.64, of December 16, 1996; No 9,496 of September 11, 1997 and of the Interim Measures No. 2.023-52/2000, and para. 1.948-55, of May 26, 2000;

II-date of issuance: day first of each month;

3rd-term: twenty years;

IV-form of placement: direct;

V-nominal value: R$ 1,000.00 (thousand reais);

VI-unit price: calculated at the discount rate of twelve per cent a year on the updated nominal value;

VII-update: based on the variation of the IGP-M, released by the Getulio Vacancies Foundation, or other index that comes to replace-lo;

VIII-repurchase option by the issuer: on the basis of the unit price, duly updated to the date of the repurchase, which can be exercised from the release of the warranty;

IX-modality: negotiable, observing that:

a) bonds will be ceded to the creditor financial institution of the debt renegotiation operation, in guarantee of the principal, with resolute clause, which shall remain blocked as long as they constitute warranty and there is no manifestation of the National Treasury about the exercise of the buyback option;

b) in the case of transfer of the securities to the financial institution, as a result of execution of the guarantee, the securities will become considered non-negotiable, mediating replacement of the said asset by the National Treasury Board Secretariat, specifying this new characteristic;

X-rescue: in single installment, on the maturity date of the title.

§ 4º In the case of early debt rescue, the borrower, through the custodian financial institution, is expected to request the National Treasury Board Secretariat about the repurchase interest of the CTN. In the repurchase hypothesis not to take effect by the National Treasury Board Secretariat, the title becomes tradable on market within up to fifteen business days after the receipt of the repurchase manifestation request specified in the caput of this article.

Art. 27. The Certificates of the Federal Corporate Debt-National Institute of Social Insurance-CDP/INSS, to be issued with the sole purpose of amortization or settlement of pension debts, pursuant to Law No. 9,711, of November 20 of 1998, will have the following characteristics:

I-deadline: defined by the Minister of State for Farm, when of the issuance of the title;

II-interest rate: defined by the Minister of State of the Farm, when of the issue, in percentage to the year, calculated on the updated nominal value;

III-modality: nominative and negotiable;

IV-nominal value: multiple of R$ 1,000.00 (thousand reais);

V-update of the nominal value: monthly, by index calculated on the basis of the TR, released by the Central Bank of Brazil, since the date of the issuance of the title;

VI-rescue of the principal and payment of the interest: in single instalment, on the date of the title bailout.

Single paragraph. The CDP will be issued, adopting one of the following forms,. to be defined by the Minister of State for Finance:

I-public offering, with the holding of auctions, and may be at par, with age or dismay;

II-direct, in favor of the National Institute of Social Insurance, pursuant to § 3º, art. 3º, of Law No. 9.711/1998.

Art. 28. The LFT, NTN-C, NTN-D, NTN-H, NTN-I and the CFT will be able to be issued with date-base that will serve as the reference date for updating the nominal value of the said securities.

Art. 29. The headings referred to in this Decree may, at the discretion of the Minister of State for Finance, be salvaged in advance, noted the provisions of the art. 3º of the Provisional Measure No. 1.974-80/2000.

Art. 30. The Minister of State for Finance shall be authorized to:

I-discipline the forms of operationalization for issuance and rescue of the National Treasury liability and registration liability debt securities in centralized settlement and custody system;

II-celebrate congeniuses, adjustments or contracts for issuance, placement and rescue of the titles referred to in this Decree.

Art. 31. The Minister of State for Finance will expedite the acts necessary to comply with this Decree.

Art. 32. This Decree comes into effect on the date of its publication.

Art. 33. The Decrees No. 2,701, of July 30, 1998, No. 2,766 of September 2, 1998, No. 2,887 of December 17, 1998, paragraph 2,987 of March 12, 1999, paragraph 3,287 of December 14, 1999, paragraph 3,346, January 27, 2000 and para. 3,346 3,438, of April 25, 2000.

Brasilia, July 11, 2000; 179º of Independence and 112º of the Republic.

FERNANDO HENRIQUE CARDOSO

Pedro Malan