Common use of Project Finance Clause in Contracts

Project Finance. (a) The Lessee may hypothecate, create charge, or create mortgage or other encumbrances for the limited purpose of raising funds for the Project in favour of a bank or financial institution, for securing any amount and payable by it to such bank or financial institution. Provided, however, all such hypothecations, charges, mortgages, charges or encumbrances shall be subject to the rights of the Lessor under this Lease Deed, the RFP Documents and any modification or amendment thereof. It is specified that all such funds raised shall be deposited in an escrow account with the sole purpose of use of such funds implementation of the Project. It is agreed that the Lessor shall have first charge on the Hotel Premises at all times during the Term. (b) The Lessee undertakes to intimate the Lessor the details of finance(s) raised on the security as set out above within 7 (seven) days from the date of signing of the definitive documents in relation to such financing. In the event of any default by the Lessee under the terms of the loan with the bank of financial institution, the Lessee shall intimate the Lessor, in writing, within 24 (twenty four) hours along with relevant documents. (c) The bank or financial institution which finances to the Lessee for the Project, shall inform the Lessor the details of finance(s) from time to time till the loan(s) is/are repaid by the Lessee and also comply the terms and conditions of no objection certificate, issued by the Lessor on the request of the Lessee and the bank or financial institution.