Common use of Suspension by the Association Clause in Contracts

Suspension by the Association. If any of the following events shall have occurred and be continuing, the Association may, by notice to the Recipient, suspend in whole or in part the right of the Recipient to make withdrawals from the Grant Account: (a) The Recipient shall have failed to make payment (notwithstanding the fact that such payment may have been made by a third party) of any charges or any other amount due to the Association or the Bank: (i) under the Development Grant Agreement, or (ii) under any other agreement between the Recipient and the Association, or (iii) under any agreement between the Recipient and the Bank, or (iv) in consequence of any guarantee or other financial obligation of any kind extended by the Bank to any third party with the agreement of the Recipient. (b) The Recipient shall have failed to perform any other obligation under the Development Grant Agreement. (i) The Association or the Bank shall have suspended in whole or in part the right of the Recipient to make withdrawals under any agreement between the Recipient and the Association because of a failure by the Recipient to perform any of its obligations under such agreement; or (ii) the Bank shall have suspended in whole or in part the right of any borrower to make withdrawals under a loan agreement with the Bank guaranteed by the Recipient because of a failure by such borrower to perform any of its obligations under such agreement. (d) As a result of events which have occurred after the date of the Development Grant Agreement, an extraordinary situation shall have arisen which shall make it improbable that the Project can be carried out or that the Recipient will be able to perform its obligations under the Development Grant Agreement. (e) After the date of the Development Grant Agreement and prior to the Effective Date, any event shall have occurred which would have entitled the Association to suspend the Recipient’s right to make withdrawals from the Grant Account if the Development Grant Agreement had been effective on the date such event occurred. (f) A representation made by the Recipient, in or pursuant to the Development Grant Agreement, or any statement furnished in connection therewith, and intended to be relied upon by the Association in making the Grant, shall have been incorrect in any material respect. (g) The Recipient or any Project implementation entity shall, without the consent of the Association, have: (i) assigned or transferred, in whole or in part, any of its obligations arising under the Development Grant Agreement; or (ii) sold, leased, transferred, assigned, or otherwise disposed of any property or assets financed wholly or in part out of the proceeds of the Grant, except with respect to transactions in the ordinary course of business which, in the opinion of the Association: (A) do not materially and adversely affect the ability of the Recipient to perform any of its obligations under the Development Grant Agreement or to achieve the objectives of the Project, or the ability of the Recipient or the Project implementation entity to perform any of its obligations arising under, or entered into pursuant to, the Development Grant Agreement, or to achieve the objectives of the Project; and (B) do not materially and adversely affect the financial condition or operation of the Recipient or the Project implementation entity. (h) The Recipient or any Project implementation entity shall have ceased to exist in the same legal form as that prevailing as of the date of the Development Grant Agreement. (i) Any action shall have been taken for the dissolution, disestablishment or suspension of operations of the Recipient or any Project implementation entity. (j) In the opinion of the Association, the legal character, ownership or control of the Recipient or any Project implementation entity shall have changed from that prevailing as of the date of the Development Grant Agreement so as to materially and adversely affect: (i) the ability of the Recipient to perform any of its obligations under the Development Grant Agreement or to achieve the objectives of the Project; or

Suspension by the Association. If any of the following events shall have occurred and be continuing, the Association may, by notice to the Recipient, suspend in whole or in part the right of the Recipient to make withdrawals from the Grant Account: (a) The Recipient shall have failed to make payment (notwithstanding the fact that such payment may have been made by a third party) of any principal, interest, service charges or any other amount due to the Association or the Bank: (i) under any trust fund credit agreement between the Development Grant AgreementRecipient, or any agency thereof, and the Association; or (ii) under any other loan or guarantee agreement between the Recipient Recipient, or any agency thereof, and the Association, Bank; or (iii) under any agreement between the Recipient and the Bank, or (iv) in consequence of any guarantee or other financial obligation of any kind extended by the Bank to any third party with the agreement of the Recipient. (b) The Recipient shall have failed to perform any other obligation under the Development Trust Fund Grant Agreement. (i) The Association or the Bank shall have suspended in whole or in part the right of the Recipient or any agency thereof to make withdrawals under any trust fund credit agreement between the Recipient and with the Association or any loan agreement with the Bank because of a failure by the Recipient or any other agency thereof, as the case may be, to perform any of its obligations under such agreement; or (ii) the Bank shall have suspended in whole or in part the right of any borrower to make withdrawals under a loan agreement with the Bank guaranteed by the Recipient because of a failure by such borrower to perform any of its obligations under such agreement. (d) As a result of events which have occurred after the date of the Development Trust Fund Grant Agreement, an extraordinary situation shall have arisen which shall make it improbable that the Project can be carried out or that the Recipient will be able to perform its obligations under the Development Trust Fund Grant Agreement. (e) After the date of the Development Trust Fund Grant Agreement and prior to the Effective Date, any event shall have occurred which would have entitled the Association to suspend the Recipient’s right to make withdrawals from the Grant Account if the Development Trust Fund Grant Agreement had been effective on the date such event occurred. (f) A representation made by the Recipient, in or pursuant to the Development Trust Fund Grant Agreement, or any statement furnished in connection therewith, and intended to be relied upon by the Association in making the Grant, shall have been incorrect in any material respect. (g) The Recipient or any Project implementation entity shall, without the consent of the Association, have: have (i) assigned or transferred, in whole or in part, any of its obligations arising under the Development Trust Fund Grant Agreement; or (ii) sold, leased, transferred, assigned, or otherwise disposed of any property or assets financed wholly or in part out of the proceeds of the Grant, except with respect to transactions in the ordinary course of business which, in the opinion of the Association: , (A) do not materially and adversely affect the ability of the Recipient to perform any of its obligations under the Development Trust Fund Grant Agreement or to achieve the objectives of the Project, or the ability of the Recipient or the Project implementation entity to perform any of its obligations arising under, or entered into pursuant to, the Development Trust Fund Grant Agreement, or to achieve the objectives of the Project; and (B) do not materially and adversely affect the financial condition or operation of the Recipient or the Project implementation entity. (h) The Recipient or any Any Project implementation entity shall have ceased to exist in the same legal form as that prevailing as of the date of the Development Trust Fund Grant Agreement. (i) Any action shall have been taken for the dissolution, disestablishment or suspension of operations of the Recipient or any Project implementation entity. (j) In the opinion of the Association, the legal character, ownership or control of the Recipient or any Project implementation entity shall have changed from that prevailing as of the date of the Development Trust Fund Grant Agreement so as to materially and adversely affect: affect (i) the ability of the Recipient to perform any of its obligations under the Development Trust Fund Grant Agreement or to achieve the objectives of the Project; oror (ii) the ability of the Project implementation entity to perform any of its obligations arising under, or entered into pursuant to, the Trust Fund Grant Agreement, or to achieve the objectives of the Project. (k) Any other event specified in the Trust Fund Grant Agreement for the purposes of this Section shall have occurred. The right of the Recipient to make withdrawals from the Grant Account shall continue to be suspended in whole or in part, as the case may be, until the event or events which gave rise to suspension shall have ceased to exist, unless the Association shall have notified the Recipient that the right to make withdrawals has been restored in whole or in part, as the case may be.

Suspension by the Association. If any of the following events shall have occurred and be continuing, the Association may, by notice to the Recipient, suspend in whole or in part the right of the Recipient to make withdrawals from the Grant Account: (a) The Recipient shall have failed to make payment (notwithstanding the fact that such payment may have been made by a third party) of any charges or any other amount due to the Association or the Bank: (i) under the Development Grant Agreement, or (ii) under any other agreement between the Recipient and the Association, or (iii) under any agreement between the Recipient and the Bank, or (iv) in consequence of any guarantee or other financial obligation of any kind extended by the Bank to any third party with the agreement of the Recipient. (b) The Recipient shall have failed to perform any other obligation under the Development Grant Agreement. (i) The Association or the Bank shall have suspended in whole or in part the right of the Recipient to make withdrawals under any agreement between the Recipient and the Association because of a failure by the Recipient to perform any of its obligations under such agreement; or (ii) the Bank shall have suspended in whole or in part the right of any borrower to make withdrawals under a loan agreement with the Bank guaranteed by the Recipient because of a failure by such borrower to perform any of its obligations under such agreement. (d) As a result of events which have occurred after the date of the Development Grant Agreement, an extraordinary situation shall have arisen which shall make it improbable that the Project can be carried out or that the Recipient will be able to perform its obligations under the Development Grant Agreement. (e) After the date of the Development Grant Agreement and prior to the Effective Date, any event shall have occurred which would have entitled the Association to suspend the Recipient’s 's right to make withdrawals from the Grant Account if the Development Grant Agreement had been effective on the date such event occurred. (f) A representation made by the Recipient, in or pursuant to the Development Grant Agreement, or any statement furnished in connection therewith, and intended to be relied upon by the Association in making the Grant, shall have been incorrect in any material respect. (g) The Recipient or any Project implementation entity shall, without the consent of the Association, have: (i) assigned or transferred, in whole or in part, any of its obligations arising under the Development Grant Agreement; or (ii) sold, leased, transferred, assigned, or otherwise disposed of any property or assets financed wholly or in part out of the proceeds of the Grant, except with respect to transactions in the ordinary course of business which, in the opinion of the Association: (A) do not materially and adversely affect the ability of the Recipient to perform any of its obligations under the Development Grant Agreement or to achieve the objectives of the Project, or the ability of the Recipient or the Project implementation entity to perform any of its obligations arising under, or entered into pursuant to, the Development Grant Agreement, or to achieve the objectives of the Project; and (B) do not materially and adversely affect the financial condition or operation of the Recipient or the Project implementation entity. (h) The Recipient or any Project implementation entity shall have ceased to exist in the same legal form as that prevailing as of the date of the Development Grant Agreement. (i) Any action shall have been taken for the dissolution, disestablishment or suspension of operations of the Recipient or any Project implementation entity. (j) In the opinion of the Association, the legal character, ownership or control of the Recipient or any Project implementation entity shall have changed from that prevailing as of the date of the Development Grant Agreement so as to materially and adversely affect: (i) the ability of the Recipient to perform any of its obligations under the Development Grant Agreement or to achieve the objectives of the Project; oror (ii) the ability of the Project implementation entity to perform any of its obligations arising under, or entered into pursuant to, the Development Grant Agreement, or to achieve the objectives of the Project. (k) Any other event specified in the Development Grant Agreement for the purposes of this Section shall have occurred. The right of the Recipient to make withdrawals from the Grant Account shall continue to be suspended in whole or in part, as the case may be, until the event or events which gave rise to suspension shall have ceased to exist, unless the Association shall have notified the Recipient that the right to make withdrawals has been restored in whole or in part, as the case may be.