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United States Senate Resolution No. 5, Of 25 January 2006

Original Language Title: Resolução do Senado Federal nº 5, de 25 de janeiro de 2006

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I do know that the Federal Senate has approved, and I, Renan Calheiros, President, in the terms of art. 48, inciso XXVIII, of the Internal Rules, promulgated the following

RESOLUTION NO. 5, OF 2006

Authorizes the Municipality of São Bernardo do Campo, State of São Paulo, to hire external credit operation, with guarantee from the Union, with the Inter-American Development Bank-BID, in the value of up to US$ 72,000,000.00 (seventy and two million U.S. dollars).

The Senate Federal resolve:

Art. 1º It is the Municipality of São Bernardo do Campo, State of Saint Paulo, authorized to hire external credit operation, with Union warranty, with the Inter-American Development Bank-BID, worth up to US$ 72,000,000.00 percent (seventy and two million U.S. dollars).

Paragraph single. The advinds proceeds from the external credit operation referred to in the caput are intended for the partial financing of the São Bernardo Urban Transport Program of the Field, State of São Paulo.

Art. 2º The credit operation referred to in art. 1º should be carried out in the following conditions:

I-debtor: Municipality of São Bernardo do Campo, State of São Paulo;

II-creditor: Inter-American Development Bank-BID;

III-guarantor: Federative Republic of Brazil;

IV-value: up to US$ 72,000,000.00 (seventy and two million U.S. dollars);

V-deadline of disbursement: 6 (six) years;

VI-modality: loan of the unimonetary mechanism with interest rate based on?Libor?;

VII-amortization: semiannual and consecutive plots, of values as much as possible equal, winning the first 6 (six) months from the date initially scheduled for the final disbursement and the last no later than 20 (twenty) years after the signing of the Contract;

VIII-interest: required semestically, calculated on the periodic debtor balance of the loan, at an annual rate for each quarter composed by:

a) interest rate?Libor? quarterly to U.S. dollar;

b) more (or less) a related cost margin to the loans that finance the loans modality?Libor?;

c) plus the net value of any cost / profit generated by operations to mitigate the fluctuations of the?Libor?; and

d) plus the margin for loans from the ordinary capital;

IX-credit commission: required semester on the same interest payment dates and calculated on the basis of the rate maximum up to 0.75% a.a. (seventy-five hundred percent a year) on the undisbursed balance of the loan, entering into force 60 (sixty) days after the signing of the Contract, with the Municipality of São Bernardo do Campo, at first, will pay a commission of credit from 0.25% a.a. (twenty-five hundrths per cent per annum), and that percentage may be modified, semiannually, by the BID, without which, under no circumstances, it may exceed the target percentage of 0.75% a.a. (seventy-five hunduths per cent per year);

X-resources for inspection and supervision general: during the disbursement period, no funding resources will be set aside for the fulfilment of general inspection and supervision expenses, unless the Bank establishes otherwise during that period, being that, in no case, to meet the said expenditures in a given semester, may be earmarked for resources greater than 1% (one per cent) of the financing, divided by the number of semesters understood in the original disbursement term.

Paragraph single. The payment dates of the principal and the financial charges, as well as the disbursements, may be changed depending on the date of signing of the loan Agreement.

Art. 3º It is the Union authorized to grant guarantee to the Municipality of São Bernardo do Campo in the credit operation referred to in this Resolution.

Single paragraph. The permit provided in the caput is conditional on the Municipality of São Bernardo do Campo celebrates contract with the Union for the offering of countermeasures, in the form of binding of own revenue generated by the taxes to which the arts. 156 and 158 and the resources of which it treats art. 159, incisors I and II, all of the Federal Constitution, and others in law admitted, and the Federal Government may apply for the transfers of resources necessary for coverage of the honorable commitments, directly from the centralizing accounts of the Municipality's fundraising.

Art. 4º The authorization granted by this Resolution should be exercised within 540 (five-hundred and forty) days, counted from the date of its publication.

Art. 5º This Resolution goes into effect on the date of its publication.

Federal Senate, on January 25, 2006.

Senator Renan Calheiros

President of the Federal Senate