COMMITMENTS OF THE BORROWER. Until the loan has been repaid in full, the Borrower shall:
a) if he is engaged in agriculture, he must meet the conditions that made him eligible for the loan during its entire term and more particularly:
a.1) if the Borrower is a natural person, he must be of full age, domiciled in Quebec, a Canadian citizen or permanent resident within the meaning of the Immigration and Refugee Protection Act (R.S.C., (2001), chapter 27) and hold the ownership rights or other rights in the farming business;
a.2) if the Borrower is a business corporation, it must have its head office and main place of business in Quebec. At least fifty percent (50 %) of its issued shares comprising a single right to vote and of its issued shares of each category and each serie comprising more than a single right to vote, must be held by one or more natural persons who are engaged in agriculture on the Borrower’s farm and who meet the requirements of subparagraph a.1), or by one or more business corporations, cooperatives, general or limited partnerships, who meet the requirements of this subparagraph or subparagraphs a.3) and a.4);
a.3) if the Borrower is a cooperative, it must have its head office and main place of business in Quebec. At least fifty percent (50 %) of its shares must be held by one or more natural persons who are engaged in agriculture on the Borrower’s farm and who meet the requirements of subparagraph a.1) or by one or more business corporations, cooperatives, general or limited partnerships who meet the requirements of this subparagraph or of subparagraphs a.2) and a.4);
a.4) if the Borrower is a general or limited partnership, it must have its domicile and main place of business in Quebec. At least fifty percent (50 %) of the partners’ shares must be held by one or more natural persons who are engaged in agriculture on the Borrower’s farm and who meet the requirements of subparagraph a.1) or by one or more business corporations, cooperatives, general or limited partnerships who meet the requirements of this subparagraph or of subparagraphs a.2) and a.3);
a.5) if the Borrower is an entity composed of more than one natural person, business corporation, cooperative, general or limited partnership or of a combination of those ones, each one of them must comply with the requirements applicable to it in accordance with subparagraphs a.1), a.2), a.3) and a.4). However, in the case the entity is composed of more than one natural person, it is sufficient, if the persons other...
COMMITMENTS OF THE BORROWER. Until the loan has been repaid in full, the Borrower shall:
a) meet the conditions that made him eligible for the loan during its entire term of the loan and more particularly:
a.1) if the Borrower is a natural person, he must be of full age, domiciled in Canada, a Canadian citizen or permanent resident within the meaning of the Immigration and Refugee Protection Act (R.S.C., [2001], chapter 27);
a.2) if the borrower is a legal person, a general or limited partnership, it must have its head office and principal place of business in Canada;
a.3) if the Borrower is an entity composed of more than one natural person, legal person, general or limited partnership or of a combination of those ones, each of them must comply with the requirements applicable to them in accordance with subparagraphs a.1) and a.2);
b) not possess a wood processing plant operating permit whose authorized annual consumption is more than 2 000 cubic metres of rough timber for peeling, sawing or pulp and paper production, the Borrower expressly declaring to not possess such a permit;
c) comply with every requirement and condition listed in the certificate;
d) carry on the regular operations of his business;
e) obtain prior authorization from La Financière agricole to validate any discharge, with or without consideration, of a surety securing the loan, to be granted subsequently by the Lender;
f) obtain prior authorization from La Financière agricole to validate any taking charge of the loan;
g) where the Borrower is or is formed of a general or limited partnership, a business corporation or a cooperative, obtain prior authorization from La Financière agricole to validate any amendment to the agreement under which it was formed and any disposal of the shares of a partner, the issue, allotment, transfer, redemption or repayment of shares of the business corporation, or the issue, allotment, transfer or repayment of common shares of the cooperative;
h) comply with all laws, regulations and by-laws pertaining to the protection of the environment, be they federal, provincial or municipal;
i) provide La Financière agricole and the Lender, at the Borrower's expense, with any information and documents deemed necessary.
COMMITMENTS OF THE BORROWER. 8.1 The borrower shall withdraw and use the loan according to the term and purpose as prescribed in the contract, which shall not be applied to fixed assets or equity investment, or the stock market, futures market or other purposes banned or restricted by related laws and regulations in any form.
8.2 The borrower shall liquidate the borrowing principal, interest and other payables according to this contract.
8.3 The borrower shall accept and initially coordinate with the lender to inspect and supervise the borrowing capital utilization including the borrowing purpose in the forms of account analysis, certificates and vouchers inspection and on-site survey, and regularly submit the summary report to the lender on the borrowing utilization.
8.4 The borrower shall accept the credit inspection of the lender and offer the finance and accounting data including the balance sheet and the profit and loss statement and other materials reflecting the solvency, and positively coordinate and cooperate with the lender to conduct the survey, understanding and supervision of and over the production, management and finance.
8.5 The borrower shall not divide dividends and bonuses in any form before paying back the principal and interest and other payables as prescribed in the contract.
8.6 The borrower shall in advance solicit the written approval of the lender or make the satisfactory arrangements for the achievement of the right of credit of the lender while conducting consolidation, dismantlement, reduction of capital, equity alteration, transfer of material assets and obligatory right, material foreign investment, substantive increase of debt financing and other acts possibly producing adverse impact on the rights and interest of the lender.
8.7 The borrower shall timely notify the lender in one of the following situations:
(1) Alteration of the articles of association, business scope, registered capital or legal representative;
(2) Closing down, dissolution, liquidation, suspending to bring up to standard, revocation of business license, cancellation or filing (filed) for bankruptcy;
(3) Being or possibly being involved in material economic disputes, lawsuits, arbitrations or property being sealed up, detained or supervised by law; and
(4) Shareholders, directors and present executives suspected of being involved material cases or economic disputes.
8.8 The borrower shall timely, fully and accurately disclose to the lender the relationships and related transactions wi...
COMMITMENTS OF THE BORROWER. 4.1 The Borrower, as a major shareholder of the Borrower’s Company, agrees that it shall cause the Borrower’s Company, during the term of this Agreement,
(a) not to supply, amend or modify its articles of association, to increase or decrease its registered capital, or to change its capital structure in any way without the Lender’s prior written consent;
(b) to comply with good financial and business rules and practices, to maintain and operate its business and handle matters prudently and effectively;
(c) not to sell, transfer, mortgage, dispose of in any other way, or to create other security interest on, any of its assets, business or legal right to collect interests without the Lender’s prior written consent;
(d) without the Lender’s prior written consent, not to create, succeed to, guarantee or permit any debt, except (i) the debt arising in the course of the ordinary or daily business operation, but not arising from the loan, and (ii) the debt being reported to the Lender or having approved by the Lender in writing;
(e) to operate persistently all the business of the Borrower’s Company and to maintain the value of its assets;
(f) without the Lender’s prior written consent, not to execute any material contracts (during this stage, a contract will be deemed material if the value of it exceeds RMB¥100,000) except those executed during the ordinary operation;
(g) not to provide loan or credit to any person without the Lender’s prior written consent;
(h) to provide information concerning all of its operation and financial affairs subject to the Lender’s request;
(i) to purchase insurance from an insurance company accepted by the Lender and maintain persistently such insurance, provided that the amount and type of such insurance are as the same as, or equivalent to, the insurance amount and insurance type taken out generally by the companies that operate, in the same territory, the similar business and possesses the similar properties or assets;
(j) not to merge or combine with, buy or invest in, any other person without the Lender’s prior written consent;
(k) to inform promptly the Lender of the pending or threatened suit, arbitration or regulatory procedure concerning the assets, business or income of the Borrower’s Company;
(l) to execute all necessary or appropriate documents, to take all necessary or appropriate action and to bring all necessary or appropriate lawsuits or to take all necessary and appropriate defensive measures against all claims, in o...
COMMITMENTS OF THE BORROWER. Throughout the term of the Agreement, the Borrower agrees:
i. to provide the Lender with:
a) each year, at the latest six months after the date of the settlement of accounts, all corporate and similar accounting documents relating to the situation of the company (balance sheets, statements of income, annexes, auditors' report certifying the financial statements) and each year, at the latest 6 months from the date of the settlement of accounts, the documents referred to in 1.3.i.a draw up on a consolidated basis,
ii. to notify the Lender immediately:
b) of any change in the person of its legal representative,
c) of any merger, spinoff, absorption, partial contribution of assets, dissolution or discontinuance of operations,
d) of any event that is likely to significantly and adversely affect the value of its net worth or appreciably increase the amount of its commitments,
e) of any event likely to entail the premature repayability of the Line.
