Subsidiary Loan Agreements Sample Clauses
A Subsidiary Loan Agreements clause establishes the terms under which a primary borrower, such as a government or parent entity, will on-lend funds received from a lender to its subsidiaries or sub-entities. This clause typically outlines the requirements for creating separate agreements with each subsidiary, ensuring that the terms of the original loan—such as interest rates, repayment schedules, and use of funds—are mirrored or appropriately adapted in the subsidiary agreements. Its core practical function is to ensure that the flow of funds and obligations are clearly defined and legally enforceable at each level, thereby maintaining accountability and compliance throughout the lending structure.
Subsidiary Loan Agreements. 1. To facilitate the carrying out of Part 1.A of the Project by the Project Implementing Entity, the Borrower shall make the proceeds of the Loan allocated from time to time to Category 1 of the table set forth in Section IV.A.2 of this Schedule and the proceeds of the AFD Co-financing, the AfDB Co-financing I, the AfDB Co-financing II, the EIB Co-financing, and the KfW Co-financing I available to the Project Implementing Entity as a loan or loans under one or more subsidiary loan agreements between the Borrower and the Project Implementing Entity, under terms and conditions approved by the World Bank (“Subsidiary Loan Agreements”), including the commitments of the Project Implementing Entity set forth or referred to in this Agreement and the right of the Borrower to suspend disbursements under such Subsidiary Loan Agreements in case of non compliance by the Project Implementing Entity.
2. The Borrower shall exercise its rights and shall cause the Project Implementing Entity to exercise its rights under the Subsidiary Loan Agreements in such manner as to accomplish the purposes of the Loan. Except as the World Bank shall otherwise agree, the Borrower shall: (i) not assign, abrogate or waive any of the Subsidiary Loan Agreements or any of their respective provisions; (ii) cause the Project Implementing Entity not to assign, abrogate or waive any of the Subsidiary Loan Agreements or any of their respective provisions. The Borrower shall not amend, and shall cause the Project Implementing Entity not to amend any of the Subsidiary Loan Agreements or any of their respective provisions without the prior approval of the World Bank. Such prior approval shall be deemed to have been granted by the World Bank in the absence of response from the World Bank within fifteen (15) days from the date on which a request for prior approval shall have been communicated by the Borrower to the World Bank.
Subsidiary Loan Agreements. Hunan shall
Subsidiary Loan Agreements. The Project Implementing Entity shall relend the portions of the proceeds of the Loan, which was allocated to it pursuant to paragraph 1 of Section I of Schedule 2 to the Loan Agreement to each of the Project Companies under a subsidiary loan agreement to be entered into between the Project Implementing Entity and said Project Company for the purposes of carrying out each Project Company’s Respective Parts of the Project (“Subsidiary Loan Agreement”): (i) on the principal terms set forth in paragraphs 1 through 3 of Annex A to this Schedule; and
Subsidiary Loan Agreements. 1. To facilitate the carrying out of Part 1(a) of the Project, in order to provide working capital loans and investment loans or leases (each, individually or jointly a “Sub- financing”) to Sub-borrowers, the Recipient shall first make the proceeds of the Grant allocated from time to time to category 1 of the table set forth in Section IV.A.2 of this Schedule available to PFIs through Subsidiary Loans, in each case under a Subsidiary Loan Agreement between the Recipient and each qualifying PFI, under terms and conditions approved by the World Bank which shall include, among others, the following:
(a) Each Subsidiary Loan shall be:
(i) Provided on terms and conditions set forth in the Project Operational Manual and the EMP;
(ii) Denominated and repayable in Som or Dollars;
(iii) Charged a variable (floating) interest rate based on the reference rate which shall be equal to:
(A) For Subsidiary Loans in Som, the reference rate will be the average between the annual inflation rate projected by the National Bank of the Kyrgyz Republic for the current year and the actual inflation rate of the preceding year. An initial fixed margin of up to one percent (1%) will be added to the basic reference rate to compensate the Recipient for the administration costs, and a fixed margin of up to one percent (1%) for risk coverage;
(B) For Subsidiary Loans in Dollars, the reference rate will be equal to the 6-month LIBOR rate for Dollars. A minimum margin of one percent (1%) will be added to the reference rate to compensate the Recipient for administration costs and risk coverage; and
(C) The reference rate applicable to the Subsidiary Loans shall be reviewed jointly with the World Bank, the Ministry of Finance of the Recipient, and the PFIs, and may be revised semi-annually, as necessary; and
(iv) repayable over a period not exceeding fifteen (15) years from the date of the Subsidiary Loan Agreement, inclusive of a grace period not exceeding three (3) years, in accordance with a detailed amortization schedule to be furnished to the respective PFI by the Ministry of Finance of the Recipient before the expiration of the grace period indicated above.
(b) The Recipient shall obtain rights adequate to protect its interests and those of the World Bank, including the right to: (i) suspend or terminate the right of the PFI to use the proceeds of the Subsidiary Loan, or declare to be immediately due and payable all or any part of the amount of the Subsidiary Loan then withdrawn, upon...
Subsidiary Loan Agreements. Henan shall cause each Project County to relend the portions of the proceeds of the Loan, which was allocated to it pursuant to paragraph 6 of this Schedule for the purposes of carrying out its Respective Project Company’s Respective Parts of the Project, to such Project Company under a subsidiary loan agreement to be entered into between said Project County and its Respective Project Company: (i) on the principal terms set forth in Section I of Schedule 3 to this Agreement; and (ii) under conditions which shall have been approved by the Bank, and which shall include, without limitation, those set forth in Section II of Schedule 3 to this Agreement; and
Subsidiary Loan Agreements. The Project Implementing Entity shall cause each Project Municipality (except Zaozhuang Municipality) and Project County/City to relend the portions of the proceeds of the Loan, which was allocated to it pursuant to Section I, paragraph 6 of this Schedule for the purposes of carrying out its Respective Project Company’s Respective Parts of the Project, to each of the Respective Project Company under a subsidiary loan agreement to be entered into between said Project Municipality (directly or through a Project County/City) or Project County/City, as the case may be, and its Respective Project Company: (i) on the principal terms set forth in paragraphs 1 through 4 of Annex A to this Schedule; and (ii) under conditions which shall have been approved by the Bank, and which shall include, without limitation, those set forth in paragraphs 5 through 15 of the Annex A to this Schedule.
Subsidiary Loan Agreements between the Borrower and the Project Cities Except as the Bank shall otherwise agree, and for the purposes of the provisions of Section 3.03 (a) of this Agreement, the SLAs shall, inter alia, include the following covenants:
(a) the Project Cities shall take all necessary measures during Project implementation to implement their respective local institutional development action programs (LIDAPs), revenue improvement action plans (RIAPs) and PJMs.
(b) the Project Cities shall periodically review and adjust their charges for solid waste disposal, with a view to obtaining and thereafter maintaining throughout Project implementation, full recovery of the costs of operation and maintenance of their respective solid waste and sanitation programs.
Subsidiary Loan Agreements. The Project Implementing Entity shall cause each Project Municipality to relend the portions of the proceeds of the Loan, which was allocated to it pursuant to paragraph 5 of this Schedule for the purposes of carrying out its Respective Part of the Project, to each of the Respective Project Company under a subsidiary loan agreement to be entered into between said Project Municipality and the Respective Project Company: (a) on the principal terms set forth in paragraphs 1 through 4 of Annex A to this Schedule; and (b) under conditions which shall have been approved by the Bank, and which shall include, without limitation, those set forth in paragraphs 5 through 13 of Annex A to this Schedule.
Subsidiary Loan Agreements. For the purposes of carrying out Parts A and C of the Project, Shandong shall relend a portion of the proceeds of the Loan, which was allocated to it pursuant to paragraph 1 of Section I of Schedule 2 to the Loan Agreement to each of Rongshihua, Guotai and Luxin Energy under a Subsidiary Loan Agreement, with terms and conditions acceptable to the Bank, which shall include, without limitation, those set forth in Annex A to this Schedule.
Subsidiary Loan Agreements. 1. Shanghai shall relend the proceeds of the Loan, allocated in accordance with arrangements satisfactory to the Bank for the carrying out the Respective Parts of the Project, under a subsidiary loan agreement to be entered into between Shanghai and each of the Project Companies:
(a) on the principal terms set forth in Section I of Annex A to this Schedule; and
(b) under conditions which shall have been approved by the Bank, and which shall include, without limitation, those set forth in Section II of Annex A to this Schedule.
2. Shanghai shall:
(a) Cause each Project Company to: (i) perform, in accordance with the provisions of its Subsidiary Loan Agreement, all of the obligations of said Project Company therein set forth; (ii) take or cause to be taken all action including, the provision of funds, facilities, services and other resources, necessary or appropriate to enable such Project Company to perform such obligations; and (iii) not take or permit to be taken any action which would prevent or interfere with such performance.
(b) Exercise its rights under each Subsidiary Loan Agreement in such manner as to protect the interests of the Borrower, the Bank and Shanghai, and to accomplish the purposes of the Loan.
(c) Except as the Bank shall otherwise agree, not assign, amend, abrogate or waive any Subsidiary Loan Agreement or any provision thereof.