GUARANTEES
The guarantees are given by the state government in order to ensure the payments of debts taken by any state entity, or entities which are related to the state, in case of defaults.
COUNTER-GUARANTEES
They must be defined when the state, or any related entity work as a guarantor in a credit operation. It is when a counter-guarantee, of similar or higher value must be demanded. The total amount of guarantees and counter –guarantees can not exceed the limit of 22% of the Current Net Revenue, according to the Senate resolution.
GUARANTEES
According to the Fiscal Responsibility Law, Art. 29: Art.29, IV – Guarantee Concession: Payment guarantee of the debts and other financial obligations taken by the federation entity and others related.
COUNTER-GUARANTEES
According to the Fiscal Responsibility Law, Art. 40: Art. 40. The entities can grant guarantees in internal and external credit operations, in compliance to this article and the norms of article 32, and for the Federal Union, also the limits and conditions defined by the federal senate. 1º§ The guarantee is conditioned to a counter-guarantee, of equal or higher value, and to the payment complainces of the requesting entities towards the guarantor and entities by those controlled, considering: I –The counter-guarantee Will not be demanded from belonging organs and entities. II – The counter –guarantee demanded by the federal union from States and Cities, or, By states from cities, can Consist of connecting the tributary revenues originated from constitutional transferences, granting to the guarantor conditions to retain them, using the amount to pay off the debt. Ceará State, according to Art. 9º, resolution 43/01 of the Federal senate, Written below, cannot exceed the limit of 22% of the current net revenue, previously explained, for the concession of those guarantees. Art. 9º : The total amount of the guarantees given by States, the Federal District and cities, cannot exceed 22% of the current net revenue, calculated in art. 4º
