PROVISIONAL MEASURE NO. 2.085-33, OF February 22, 2001

Discuss on the Programme of Revitalization of Agrolivestock Production Cooperatives-RECOOP, authorizes the creation of the Service National de Apprenticeship of the 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 transactions 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 by the necessary resources for payment of debts, existing on June 30, 1997 and not yet paid:

I-coming from acquisition of agri-agri inputs;

II-with cooperates;

III -Labour and coming from tax 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 values for which are to be increased will be increased spin capital and essential investments and the cooperated receivables, originating in credits constituted until June 30, 1997.

§ 3º The debtor balance of bank bonds and the cooperated receivables, to which if refer to, respectively, § § 1º and 2º of this article, will be updated in the following form:

I-until June 30, 1998, by the financial burdens paced for situation of normality;

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

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

b) in the case of banking obligations, 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 that it deals with this article will have grace of twenty-four months for the share of increased capital from the variation of the General Price Index-Internal Availability (IGP-DI), released by the Getulio Vargas Foundation, and from six months to the interest share, when handle resources for debt settlement with the financial system, with cooperates and arising from the acquisition of agri-based inputs, from tributes and social and labor burdens, as well as for financing of receivable values of cooperated.

§ 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 charges financial.

§ 7º Credit operations under the Amparo of the RECOOP are considered to be of rural credit for all purposes, with the National Monetary Council meeting the conditions and the supplementary procedures that are shown to be 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 an independent audit opinion on the provenance of the values relating to existing debts and cooperated receivables, as well as the presentation of the cooperative development plan, approved in general assembly extraordinary by most of the cooperates, contemplating:

I-restructuring project demonstrating the technical and economic-financial viability of the cooperative, with directing the activities to the main acting focus of a cooperative of agri-production and disimmobilizations of assets unrelated to the main object of the society, among other aspects;

II-project of capitalization;

III-project of professionalization of cooperative 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, where 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 designated technicians by the Federal Government for data and information relating to the implementation of the cooperative development plan;

IV-term of the board of directors not exceeding four years, and the renewal of, in 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, the 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 barred by law or social status, in addition to those convicted of crime ffeeding, of prevarication, peita or bribery, concussion, embezzle or against the popular economy, public faith or property;

b) of the spouse, ancestry, descendants, or collateral 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 of election;

VII-vedic 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 own or from third parties, 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 their office;

d) participate in or influence in deliberation on matters of personal interest, by complying with them stating the reasons of their impediment;

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

f) provide, under any pretext, albeit upon price-taking or competition, goods or services to society, except those referring to the cooperative acts practiced between them and the cooperative, extending such a ban to the spouses, ascendants, 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, plus compensatory charges, when proceeding:

a) with violation of law or statute;

b) within his or her attributions or powers, with guilt or dolo;

IX-liability of the members of the tax council for the damage resulting from omission in the fulfillment of their duties and violation of law or statute and the acts practiced with guilt or dolo;

X-prohibition of joint participation, in the governing bodies and the tax council, of the spouse, ascendants, descendants and collateral to the second degree, by consangüinity or affinity, from the administrators or members of the tax board.

Art. 5º Stay the Executive Power authorized to open credit line, up to the limit of R$ 2,100,000,000.00 (two billion and one hundred million reais), intended to fund RECOOP items of interest from the cooperatives whose prior consultation was hosted, until July 31, 1998, by the Executive Committee instituted upon act of the Power Executive, 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 resources from the line of credit 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, 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 respected the provisions of § § 3º and 4º of this article;

III-at risk of the financial institution, it is incumbent upon this to substantiate the payment capacity 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 Institute National 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, will be covered by cancelling expenditure intended for other programmes included in the General Budget of the Union.

§ 3º The defence fund repass agreements of the Cafeeira Economy Fund (FUNCAFÉ) and the Constitutional Funding Funds of the North, from the Northeast and the Midwest (FNO, FNE and FCO), when they are lasing credit operations under RECOOP, will have their return and financial burdens duly adjusted to these operations, running the burden on the account of the respective Fund.

§ 4º In the case of cooperatives of the regions amparted by the mentioned Constitutional Funds, they apply to the credit operations, except on the parcels intended for new investments and on the values of the securitization, the financial burdens usually by them practiced or, to the choice of cooperatives in the act of the signing of the credit instrument, in definitive character, those set out in the Annex to this Interim Measuration.

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 investments financing and spin capital operations of which 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 resourced resources by the National Treasury, will be earmarked for the abatement of the public debt.

Art. 8º It is authorized to set up the National Cooperativism-SESCOOP National Learning Service, with a legal personality of private law, comprised 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 executing on the whole of the national territory the education of training professional, development and social promotion of the worker in co-operative and the cooperates.

Single paragraph. For the development of its activities, the 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 Labour 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-a 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 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 the provision of services, of the disposal 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 the Social Security, applying to you the same conditions, deadlines, penalties and privileges, including with regard to judicial collection, applicable to the Social Security contributions, being your product being made available to SESCOOP.

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

I-National Service of Industrial Learning-SENAI;

II-Social Service of Industry-SESI;

III-National Commercial Learning Service-SENAC;

IV-Social Service of Commerce-SESC;

V-National Transportation Apprenticeship-SENAT;

VI-Social Service of Transportation-SEST;

VII-National Rural Learning Service-SENAR.

§ 3º A from 1º January 1999, the cooperatives become disobligated from collecting contributions to the entities mentioned in § 2º, excepted those of competence until 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. 2.085-32, of January 25, 2001.

Art. 16. This Interim Measure takes effect on the date of its publication.

Brasilia, February 22, 2001; 180º of Independence and 113º of the Republic.

FERNANDO HENRIQUE CARDOSO

Pedro Parente

republication

PROVISIONAL MEASURE NO. 2.085-33, OF February 22, 2001

Disposes about the Revitalization Program of Cooperatives of Agribusiness Production-RECOOP, authorizes the creation of the National Cooperative Learning Service-SESCOOP, and gives other arrangements.

(*) Republics in the DOFE 02/24/2001 PÁG 000001 COL 1.

Attachment (s)