Terms and Conditions of Sub-loans and Lease Financing Sample Clauses
The 'Terms and Conditions of Sub-loans and Lease Financing' clause defines the specific rules and requirements that govern how sub-loans and lease financing arrangements are structured and managed under an agreement. It typically outlines eligibility criteria for borrowers, permissible uses of funds, repayment schedules, interest rates, and any collateral requirements. By clearly setting these parameters, the clause ensures that all parties understand their obligations and rights, thereby reducing the risk of disputes and promoting consistent, fair lending practices.
Terms and Conditions of Sub-loans and Lease Financing. The provisions of this Section I.C shall be for the purposes of paragraph 5 (b) of Section
I. B of this Schedule.
(a) Each Sub-loan shall be made on terms and conditions, including those relating to the maturity, foreign currency denomination, interest rate and other charges determined in accordance with the Participating Bank’s investment and lending policies and practices, provided, however, that the interest rate to be charged on the principal amount thereof withdrawn and outstanding from time to time, shall equal at least the rate of interest applicable from time to time to the Subsidiary Loan pursuant to Section I.B.3 of this Schedule plus the administrative costs and an appropriate credit risk margin.
(b) Each Lease Financing shall be made on terms and conditions, including those relating to the duration and schedule of lease payments and other charges determined in accordance with the Leasing Company’s investment and financial leasing policies and practices, provided, however, that each lease payment in such schedule shall consist in part of an amortization component, which component shall be calculated as if: (A) the Lease Financing were a loan for the amount of the leased vehicles’ equipment’s and/or machinery’s value; (B) each lease payment were a payment of interest and principal under such loan; and (C) each amortization component were the principal amount included in each such payment of interest and principal. The interest rate to be charged on the principal amount of the Lease Financing withdrawn and outstanding from time to time, shall equal at least the rate of interest applicable from time to time to the Subsidiary Loan pursuant to Section I.B.3 of this Schedule plus the administrative costs and an appropriate credit risk margin.
2. No expenditures for a Sub-project by a PFI shall be eligible for financing out of the proceeds of the Loan:
(a) unless the first two Sub-loans or Lease Financing by the said PFI (other than PFIs which participated in the credit line facility under Loan 7213-TU, Loan 7295- TU and Loan 7538-TU) for such Sub-projects shall have been approved by the Bank and such expenditures shall have been made not earlier than one hundred eighty (180) days prior to the date on which the Borrower shall have received the application and information required under paragraph 3 (a) of this Section in respect of such Sub-loan or Lease Financing; or
(b) unless the Sub-loan or Lease Financing by the said PFI for such Sub-project shall ...