Common use of Mode of Disbursement Clause in Contracts

Mode of Disbursement. The Bank may disburse the Loan either in lump sum or in suitable installments to be decided by the Bank with reference to the need or progress of project sought to be funded by the Borrower, which decision shall be final and binding on the Borrower. The disbursement shall be made by the Bank by issuing a Banker's Pay Order or a Demand Draft crossed as "A/c Payee only" or through a credit to a designated bank account, details whereof are specified in the Schedule hereto. The charges in relation to the disbursement (including charges of issuance or collection of proceeds by the beneficiary of such pay order or demand draft) shall be borne by the Borrower. The Bank may, by giving reasonable notice to the Borrower, suspend or cancel further disbursements of the Loan if the Loan amount shall not have been fully drawn within a reasonable time or due to any other reason whatsoever, as deemed fit by the Bank.