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United States Senate Resolution No. 40 Of July 02, 2002

Original Language Title: Resolução do Senado Federal nº 40, de 02 de julho de 2002

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I get to know that the Federal Senate has approved, and I, Ramez Tebet, President, in the terms of art. 48, inciso XXVIII, of the Rules of Procedure, promulgated the following

R E S O L U Ç Ã ° 40, DE 2002

Authorizes the Federative Republic of Brazil to hire external credit operation, at the equivalent value to US$ 454,550,000.00 (four hundred and fifty-four million, five hundred and fifty thousand U.S. dollars), with the International Bank for Reconstruction and Development (Bird), for the Electrical Sector Adjustment Loan.

The Federal Senate resolves:

Art. 1º It is the Federative Republic of Brazil authorized to hire external credit operation with the International Bank for Reconstruction and Development (Bird).

Single paragraph. The features referred to in the caput will be used to finance the Electrical Sector Adjustment Loan.

Art. 2º The authorized credit operation in the art. 1º presents the following financial characteristics:

I-value intended: US$ 454,550,000.00 (four hundred and fifty and four million and five hundred and fifty thousand U.S. dollars);

II- loan modality: Fixed Spread Loan (FSL), with the possibility of:

a) currency conversion;

b) conversion of the floating interest rate to fixed or vice-versa; and

c) establishment of ceilings and bands for interest-rate fluctuation;

III-term disbursement: by December 31, 2002;

IV-deficiency: 9 (nine) years and 6 (six) months;

V-amortization: in only 1 (one) parcel, to be paid together with the last instalment of interest (1º June 2012);

VI-interest: required semially, due on June 15 and December 15, calculated on the periodic debtor balance of the Loan, at an initially floating annual rate Libor of 6 (six) months plus spread to be fixed 1 (one) day prior to the signing of the Contract;

VII-commission of commitment: 0.85% a.a. (eighty-five hundred percent a year) on the undisbursed debtor balances, required semiannually, on the same dates of the interest payment, entering into force 60 (sixty) days after the signing of the Contract up to the 4º (fourth) year of its entry into force, and 0.75% a.a. (seventy-five hundreths per cent a year) onwards;

VIII-commission in sight: 1% (one percent) calculated on the loan amount, to be deducted from the value of the tranche to be disbursed.

Single paragraph. The payment dates of the principal and the financial burden may be changed depending on the date of signing of the Contract.

Art. 3º The authorization granted by this Resolution is to be exercised within 540 (five hundred and forty) days, counted from the date of its publication.

Art. 4º This Resolution comes into effect on the date of its publication.

Federal Senate, on July 2, 2002

Senator RAMEZ TEBET

President of the Federal Senate