PROVISIONAL MEASURE NO. 2.085-32, OF January 25, 2001

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

THE PRESIDENT OF THE REPUBLIC, in the use of the assignment 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 it treats this article 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, increased the resources required for payment of debts, existing on June 30, 1997 and not yet paid:

I-coming from acquisition of agri-livestock inputs;

II-with cooperates;

III-labor and coming from fiscal and social obligations.

§ 2º To the amount established in the form of the preceding paragraph and in accordance with the cooperative's revitalization plan, the earmarked values for spin capital and essential investments and the receivables of the 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 of 1998, by the paced financial burdens for normality situation;

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

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

b) in the case of bank bonds, according to 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 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 The Getúlio 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-based inputs, from tributes and social charges and labour, as well as for funding of cooperated receivables.

§ 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 financial burdens.

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

Art. 3º For habilitation to credit operations classified as of RECOOP, serviced to 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 econo-financial feasibility of the cooperative, with directing the activities to the main acting focus of an agri-production cooperative and asset disimmobilizations no related to the main object of the society, among other aspects;

II-project of capitalization;

III-project of professionalization of co-operative management;

IV-project of organization and professionalization of the cooperates;

V-project monitoring of the cooperative development plan.

Art. 4º The cooperative interested in funding from RECOOP 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-warranty of access of technicians designated by the Federal Government to data and information related to the implementation of the co-operative development plan;

IV-term of the board of directors not exceeding four years, being compulsory the renewal of, at the minimum, 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 who exercises one of the activities of the society, their respective spouses, as well as persons prevented by law or by social status, in addition to those convicted of ffood 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 up 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 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, by complying with them stating the reasons for their impediment;

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

f) provide, under any pretext, yet upon taking up prices or competition, goods or services to the society, except those referring to the cooperative acts practiced between them and the cooperative, extending 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 performance of their duties and violation of the law or statute and the acts practiced with guilt or dolo;

X-prohibition of participation joint, in the governing bodies and the tax council, 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 prior consultation has been hosted, until July 31, 1998, by the Executive Committee instituted upon the 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 its Annex will be carried out:

I-with credit line resources 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, of 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 complied with the provisions of § § 3º and 4º of this article;

III-at risk of the financial institution, 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 the parcel earmarked for payment of debts to the National Institute of Social Insurance? INSS, the risk of which will be assigned to the National Treasury.

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

§ 3º The Cafeeira Economy Defence Fund (FUNCAFÉ) and the Northern Financing Constitutional Fund, Northeast and the Midwest (FNO, FNE and FCO), when they are lasing operations of credit under RECOOP, will have their return deadlines and financial charges 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, they 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, to the choice of the cooperatives in the act of the signing of the credit instrument, in definite character, those set out in the Annex to this Interim Measlant.

Art. 6º Stay the authorized Union, at its sole discretion and under the terms established by the Minister of State for Finance, to partially assume the risks of the investments and capital financing operations of giro that 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 Provisional Measure, when backed by resources passed down by the National Treasury, will be earmarked for the abatement of the public debt.

Art. 8º Is it authorized the creation of 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 the cooperates.

Single paragraph. For the development of its activities, 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 Labor 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-one 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 the 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 provision of services, divestments 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 Social Security, applying to the same conditions, deadlines, penalties and privileges, including with regard to the judicial collection, applicable to the contributions to Social Security, being its product being put at the disposal of SESCOOP.

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

I- National Service for Industrial Learning-SENAI;

II-Social Service of the Industry-SESI;

III-National Service of Commercial Learning-SENAC;

IV-Social Service of the Trade-SESC;

V-National Transportation Apprenticeship-SENAT;

VI-Social Service of Transportation-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 § 2º, 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-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. 2.085-31 of December 27, 2000.

Art. 16. This Interim Measure shall come into force on the date of its publication.

Brasilia, January 25, 2001; 180º of Independence and 113º of the Republic.

FERNANDO HENRIQUE CARDOSO

Silvano Gianni

ANNEX

I-CONDITIONS FOR REFINANCING DEBTS WITH THE FINANCIAL SYSTEM

Species	Prazo	Financial Charges (*)
Cows	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-BASED INPUTS AND OF TRIBUTES AND SOCIAL CHARGES

Species	Prazo	Charges financial (*)
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 COOPERATES RECEIVABLES

Species	Deadline	Financial Charges (*)
Values to receive from cooperated	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 start of activity arising from these investments)	Up to 15 years	IGP-DI + 4% a.a.
Capital of Giro	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 amparted by Constitutional Funds (FNO, FNE and FCO), apply to credit operations, except on the plots intended for new investments and on the values of the securitization, the financial burdens usually by them practiced or these herein established, as a choice of these cooperatives in the act of the signing of the credit instrument, in definitive character.