[Free translation]
Law no. 15.038 (DOE 17/11/17) defined the rules to perform the compensation of debts registered in active debt, of tax nature or not, with expired precatórios, of the State of Rio Grande do Sul, own or third parties, among which are:
a) Limit of the debt registered in active debt that may be subject to compensation: the compensation will be made between the updated value of the debt inscribed in active debt and the updated net amount effectively titled by the creditor of the precatório. The debt registered in active debt may be subject to compensation up to the limit of 85% (eighty-five percent) of its restated amount.
b) Payment of the part of the unpaid debt: the part of the debt not compensated with the precatório and not subject to payment, must be paid or paid in accordance with the conditions established in the legislation, within a period of up to thirty (30) days of the debtor's summons on its amount, ensuring the application of the discounts, reductions or other benefits previously agreed for the same debt to the balance.
c) Requirements of the precatório and the debit to be compensated so that there is such compensation: the compensation is conditioned to that, cumulatively:
I) the precatory:
a) be owed by the State of Rio Grande do Sul, its municipalities or foundations;
b) is past due on the date of offering to the compensation;
c) does not serve as guarantee of debit other than that indicated for compensation;
II) the debt to be compensated:
a) has been enrolled in active debt until 03/25/15;
b) is not the subject, in the administrative or judicial sphere, of any challenge or appeal, or, in case, that there is express renunciation;
c) is not subject to suspended liability;
d) has the amount corresponding to 10% of the respective amount, duly updated, paid in up to 3 installments, the first being paid together with the request for compensation, the second within 30 days and the third within 60 days counted the application for compensation;
III) the debtor of the debt enrolled in active debt collects on a day-to-day basis the amounts declared in GIA, as well as those related to installments previously agreed upon, until the compensation is effective.
d) Effects of compensation: it is irretrollable confession of the debt inscribed in active debt and the responsibility of the debtor and does not cover the procedural expenses and legal fees incident on the debt inscribed in active debt.
Lastly, the organization and procedures for the aforementioned compensation will be subject to regulation by the Attorney General's Office and by the State Treasury Department within the scope of its attributions.
