vested with emergency powers under the First Institutional Act, which among other things allowed him to cancel the political rights of "subversive elements" for ten years. He was otherwise committed to permitting normal political activities while carrying out reform through legislation. In March 1965 municipal elections were held as planned. Castelo Branco had every intention of turning over power to a civilian president when his term was due to run out in 1966. However, the hard-line officers within the regime (known as linha-dura) with the support of War Minister Artur da Costa e Silva, wanted to stay in power for a greater period of time in order to achieve their political goals. Events reached a breaking point in October 1965, when opposition candidates won the governorships of the major states of Minas Gerais and Guanabara. Hard-liners demanded that Castelo Branco annul the results, but he refused. Another coup was averted after Costa e Silva persuaded hard-liners to recognize the election results in return for Castelo Branco's promise to implement a tougher policy. Thereafter, Castelo Branco dropped all pretense of democracy. On October 27, 1965, he issued the Second Institutional Act, which abolished all existing political parties, restored his emergency powers, and extended his term to 1967. The numerous political parties were replaced with only two: the pro-government National Renewal Alliance Party (ARENA) and the opposition Brazilian Democratic Movement (MDB). In 1967, he convened an extraordinary commission of jurists that drafted a highly authoritarian constitution. Castelo Branco issued many repressive laws, most notably a highly draconian press law (Lei de Imprensa) near the end of his term. This law continued to be valid in Brazil until 2009, when it was struck down by Brazil's Supreme Federal Court. He was succeeded in Presidency by Costa e Silva at midnight on March 15, 1967. Castelo Branco promoted government intervention into the economy (e.g., shutting down by decree the country's flag carrier, Panair do Brasil). Castelo Branco's government, unlike previous directly elected Presidents Juscelino Kubitschek, Jânio Quadros and João Goulart, was bankrolled from the start by the credits and loans from World Bank, International Monetary Fund and massive investment from multinational American companies, which saw the Brazilian right-wing military dictatorship as a new, economically stable Western ally against international communism in Latin America during the Cold War. Death Four months after leaving the Presidency, Castelo Branco died in a midair collision of small aircraft