PROVISIONAL MEASURE NO. 77, OF October 25, 2002

Altera as Leis n 10,464, of May 24, 2002, 10,177, of January 12, 2001, and 10,437, of April 25, 2002; authorizes the granting of credit, with resources from the Northern, Northeast and Central-Western Financing Constitutional Funds for the acquisition of the National Treasury securities required by contracting operation in the form of the Resolution No. 2,471 of February 26, 1998 of the National Monetary Council, related to debts contracted with resources from other sources; it has about reconversion of activities of borrowers with debts along to federal official banks; and gives other arrangements.

THE PRESIDENT OF THE REPUBLIC, at the use of the assignment that gives you the art. 62 of the Constitution, adopts the following Provisional Measure, with force of law:

Art. 1º The Law No. 10,464, of May 24, 2002, goes on to invigorate with the following changes:

?Art. 1º It is authorized for repacing and the lengthening of debts arising from rural credit operations contracted under the Special Credit Program for Agrarian Reform-PROCERA, whose borrowers are either adowed with their obligations or the regularize until March 31, 2003, observed the following conditions:

................................................................................................

IV-the financial agents will debasement from deadline to March 31, 2003 for formalization of the instrument of repactuation.? (NR)

?Art. 2º The adiment borrowers who do not opt for the repactuation will jus the addedness bonus of which it treats the inciso III of the art. 1, in the case of full payment of its debits until March 31, 2003.? (NR)

?Art. 4º ................................................................

I-repactuation of the somatory of the full benefits accrued, taken without bonus and no additional charges of inadimplement; or

II-payment of the full benefits accrued, taken without additional inadimplement charges and applying the bonus of which treats the inciso III of the art. 1º on the amount arrears.? (NR)

?Art. 6º ................................................................

I-on June 30 of 2003, in the case of borrowers with overdue bonds in years prior to 2001 that are not worth one of the alternatives provided for in art. 4;

...................................................................? (NR)

?Art. 7º Financial agents shall inform, by May 30, 2003, to the Family Agriculture Office of the Ministry of Agrarian Development and to the National Treasury Board Secretariat of the Ministry of Finance, the amounts involved in the repactuations and the liquidations of bonds.? (NR)

?Art. 8º It is authorized to renegotiate debts arising from rural investment credit operations contracted by family farmers, mini and small producers and from their cooperatives and associations, in the originally funded value of up to R$ 35,000.00 (thirty-five thousand reais), whose borrowers are adjoining with their obligations or regularise them under contractual rules until March 31, 2003, observed the following characteristics and conditions:

Investment funding granted until December 31, 1997, with resources from the Constitutional Funds of Financing of the North, Northeast and Central-West or equalized by the National Treasury, in the originally contracted value of up to R$ 15,000.00 (fifteen thousand reais), which were not renegotiated on the basis of Resolution No. 2,765 of August 10, 2000, of the National Monetary Council, and in Law No. 9,138, of November 29, 1995:

a) rebate in the balance debtor equivalent to eight integers and eight tenths per cent, on the date of the renegotiation;

b) bonus of thirty percent addedness on each share of the debt paid up to the date of the respective maturity;

c) application of effective rate of three percent to the year, as of the date of the renegotiation;

d) maintenance of the original schedule of payments;

e) in the case of financing with resources of the mentioned Constitutional Funds, the borrowers:

1. except those located in the semi-arid of the North-East region and the State of Minas Gerais, will have to pay, for framing in this inciso, ten percent, at the very least, of the somatory of the full benefits accrued until May 26, 2002, taken without charge additional inadimplement, repacing the remainder in the debtor balance commensurate between the remaining plots;

2. located in the semi-arid of the Northeast region and the State of Minas Gerais will have the total full benefits accrued until May 26, 2002, taken without additional incharge, repaced in the debtor balance commensurately between the remaining plots;

II-investment financing granted in the period from January 2, 1998 to June 30, 2000, under the National Programme for Strengthening of Familial-PRONAF Agriculture and backed with resources from the Northern, Northeast and Central-Western Financing Constitutional Funds or equalized by the National Treasure, in the originally contracted value of up to R$ 15,000.00 (fifteen thousand reais): rebate of eight integers and eight tenths per cent on the existing debtor balance on 1º January 2002, provided that it is contracted operation with charges post-fixed;

III-investment financing granted in the periods referenced in the incisos I and II, to the amparo of resources of the Northern, Northeast and Midwest Financing Constitutional Funds, with value originally contracted above R$ 15,000.00 (fifteen thousand reais) and up to R$ 35,000.00 (thirty-five thousand reais), observed the following conditions:

a) applies the provisions of inciso I or II, as per the date of the formalization of the original operation, for the repayment of the debtor balance, or of the provision, which corresponds to the limit of R$ 15,000.00 (fifteen thousand reais) on the date of the original contract;

b) for the repayment of the debtor balance, or of the provision, which concerns the original credit surplus to the limit of R$ 15,000.00 (fifteen thousand reais), remain the prevailing contractual burdens for normality situation.

...................................................................................? (NR)

?Art. 11. They stay the managers of the Northern, Northeast and Central-West Financing Constitutional Funds allowed to grant bonus of addedness on each repayment of the debt paid up to maturity, in the proportions and conditions to be explained, in the case of credit operations to the rural sector to the amparo of resources from these Funds, whose borrowers are either adressed with their obligations or regularize them by March 31, 2003:

....................................................................................? (NR)

Art. 2º The § 3º of the art. 3º of Law No. 10,177 of January 12, 2001, passes the vigour with the following essay:

? § 3º It is set the deadline until March 31, 2003 for the closure of the renegotiations, extensions and compositions of amparting debts in resources of the Constitutional Funds, including under the alternative form of which it treats art. 4º of this Law.? (NR)

Art. 3º The art. 2º of Law No. 10,437 of April 25, 2002, passes the invigoration with the following essay:

?Art. 2º ................................................................

I-zero comma setecents and fifty nine percent a month on the main, for the IGP-M variation of the month immediately preceding the incidence;

....................................................................................? (NR)

Art. 4º It shall be authorised, for the operations acquired by the Union under the aegis of the Provisional Measure No. 2.196-3 of August 24, 2001, which are liable to framing in the art. 2da Law No. 10,437, of 2002, the replacement of the paced financial charges, in the period commenced on the date of the publication of this Provisional Measure until March 31, 2003, by the charges laid down in the terms of the incisors I and II of the caput of the referred to art. 2.

§ 1º The benefits that are due on the date of the publication of this Provisional Measure will be corrected as follows:

I-of the respective maturities up to the day before the of the mentioned publication, by the financial burdens set out in the art. 5º of the Interim Measure No. 2.196-3, of 2001;

II-of the date of publication of this Measure Provisional until March 31, 2003, by the charges laid down in the art. 2º of Law No. 10,437, 2002.

§ 2º Applying to the provisions of the caput of this article to parcels with maturity from the date of the publication of this Interim Measuring until March 31, 2003, provided that they paid up to maturity.

Art. 5º Stay authorized for granting credit, with resources from the Constitutional Funds of Funding from the North, Northeast or Midwest, under the same conditions as § 2º of the art. 4º of Law No. 10,177, 2001, for the acquisition of the National Treasury securities necessary for the contracting of operation in the form of the National Monetary Council's Resolution No. 2,471 of February 26, 1998 relating to rural credit debts contracted with alhedic resources to these Funds, which enroll in that Resolution and which involve projects located in one of these three Regions.

Paragraph single. It applies to the operations of which it treats the caput the provisions of the art. 6º of Law No. 10,177, of 2001, as to the sharing of the risk.

Art. 6º Federal official banks will be able, at their sole discretion, to slow down the proposal or suspend the judicial execution process of rural credit operations debts, in the case of family farmers, mini and small producers and their cooperatives and associations, when they involve originally funded value of up to R$ 35,000.00 (thirty-five thousand reais) in projects located in the areas of the Funds ' comprehensiveness Constitutional of North, Northeast or Midwest Financing provided that there is recognition of the need for reconversion of activities for rescue or extension of farmers ' income generation capacity.

§ 1º For the recognition effect of the need for reconversion of activities, federal official banks will be able to Worth of studies carried out by research and provision entities of technical assistance and rural extension.

§ 2º Excludes from the provisions of this article the operations acquired under the aegis of the Provisional Measure No. 2.196-3, of 2001, those renegotiated on the basis of Law No. 9,138, of November 29 of 1995, those contemplated by art. 8º of Law No. 10,464, 2002, with the essay given by art. 1º of this Provisional Measure, and those formalized after June 30, 2000.

§ 3º The provisions of this article apply to the resource-backed operations of the Northern, Northeast, or Midwest Financing Constitutional Funds.

Art. 7º The financial impact of the provisions of this Interim Measles that concern the Funds Constitutional North, Northeast and Midwest Financing, in the 2003 and 2004 exercises, will be supported by the transfers due to each of these Funds in those respective years.

Art. 8º This Interim Measles comes in vigour on the date of its publication.

Art. 9º It is revoked the art. 12 of Law No. 10,464, of May 24, 2002.

Brasilia, October 25, 2002; 181º of Independence and 114º of the Republic.

FERNANDO HENRIQUE CARDOSO

Pedro Malan

Marcos Vinicius Pratini de Moraes

Luciano Barbosa

Jose Abrão

Pedro Parente