Common use of Subloans Clause in Contracts

Subloans. (a) Except as ADB may otherwise agree, each of Bangladesh Bank, BASIC, and Eastern Bank shall ensure that the proceeds of each part of the Loan shall be used by the Participating MFI for making a Subloan to the Qualified ▇▇▇▇▇▇, and shall be applied exclusively to the cost of Goods, Works and Consulting Services required to carry out the Qualified Subproject in respect of which such part of the Loan was withdrawn from the Loan Account. (b) In the carrying out of the Project, each of Bangladesh Bank, BASIC Bank and Eastern Bank shall ensure that the eligibility criteria with respect to Participating MFIs, Qualified Farmers, Qualified Subprojects, and Subloans as set out in Schedule 5 to the Loan Agreement are satisfied at all times. (c) Except as ADB may otherwise agree, all Goods, Works and Consulting Services to be financed out of the proceeds of the Subloans shall be procured in accordance with the provisions of Schedule 4 to the Loan Agreement. (d) All Subloans made by the Participating MFIs and approved by the Wholesale Banks shall be subject to post monitoring and review by ADB. Section 2.02. Each of Bangladesh Bank, BASIC Bank and Eastern Bank shall cause each Participating MFI with which it concludes an Onlending Agreement to ensure that: (a) the interest rate on the Subloan to the Qualified ▇▇▇▇▇▇ will fully take into account the recovery cost of lending including any increase due to inflation, plus a spread to cover administration expenses including project and technical support, the provision of grace periods to Qualified Farmers, and Qualified Small Borrower credit risk provided that Bangladesh Bank regulation may apply to set a ceiling acceptable to ADB on the interest rate to Subborrowers; (b) the maximum principal amount of any Subloan shall not exceed Tk300,000; and (c) the term and schedule of repayments of the Subloans shall be adopted to take into account the schedule for harvesting and post-harvesting activities, and seasonal patterns of income-generation typical for the particular HVC to be financed. Section 2.03. Without limiting the foregoing provisions of Section

Subloans. (a) Except as ADB may otherwise agree, each of Bangladesh Bank, BASIC, and Eastern Bank shall ensure that agree the proceeds of each part of the Loan shall shall: (i) be used by only for onlending Subloans to Eligible Beneficiaries for Eligible Subprojects under and in accordance with the Participating MFI for making a Subloan to the Qualified ▇▇▇▇▇▇, Agreements; and shall (ii) be applied exclusively to the cost of Goods, Goods and Works and Consulting Services other items of expenditure required to carry out such Eligible Subprojects and the Qualified Subproject FIs shall ensure that any facilities and services financed out of such proceeds are used exclusively in respect of which such part of the Loan was withdrawn from the Loan Account. (b) In the carrying out of the Project, each of Bangladesh Bank, BASIC Bank and Eastern Bank shall ensure that the eligibility criteria with respect to Participating MFIs, Qualified Farmers, Qualified Subprojects, and Subloans as set out in Schedule 5 to the Loan Agreement are satisfied at all times. (cb) Except as ADB may otherwise agree, all Goods, Goods and Works and Consulting Services to be financed out of the proceeds of the Subloans shall be procured in accordance with the provisions of Schedule 4 to the Loan Agreement. (d) All Subloans made by the Participating MFIs and approved by the Wholesale Banks shall be subject to post monitoring and review by ADB. Section 2.02. Each of Bangladesh BankIn addition to any other provisions which a prudent lender would request, BASIC Bank and Eastern Bank each Subloan Agreement shall cause each Participating MFI with which it concludes an Onlending Agreement include provisions to ensure the effect that: (ai) the interest rate on Eligible Beneficiary shall carry out and operate the Subloan to Eligible Subproject with due diligence and efficiency and in accordance with the Qualified ▇▇▇▇▇▇ will fully take into account requirements of the recovery cost Subproject Eligibility Criteria, sound applicable technical, financial, business and development practices, including maintenance of lending including any increase due to inflation, plus a spread to cover administration expenses including project adequate accounts and technical support, the provision of grace periods to Qualified Farmers, and Qualified Small Borrower credit risk provided that Bangladesh Bank regulation may apply to set a ceiling acceptable to ADB on the interest rate to Subborrowersrecords; (bii) the maximum principal amount proceeds of any the Subloan shall not exceed Tk300,000be used only for procurement in member countries of ADB, in accordance with procedures acceptable to ADB, of Goods which are produced in and supplied from, and Works which are supplied from, such countries; (iii) the Goods and Works procured for an Eligible Subproject shall be used exclusively in the carrying out of that Eligible Subproject; (iv) ADB and the FI shall each have the right to inspect such Goods and Works, the Eligible Beneficiary, the Eligible Subproject and any relevant records and documents; (v) the Eligible Beneficiary shall take out and maintain with responsible insurers insurance against such risks and in such amounts as shall be consistent with sound business practice, and without any limitation upon the foregoing, such insurance shall cover hazards incident to the acquisition, transportation and delivery of Goods to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable to replace or repair such Goods; (vi) ADB and the FI shall each be entitled to obtain all such information as each shall reasonably request relating to the Subloan, the Goods, Works, the Eligible Subproject, the Eligible Beneficiary and other related matters; and (cvii) the term and schedule of repayments FI shall be entitled to suspend or terminate further access by the Eligible Beneficiary to the use of the Subloans shall be adopted proceeds of the Subloan upon failure by the Eligible Beneficiary to take into account perform its obligations under its Subloan Agreement with the schedule for harvesting and post-harvesting activities, and seasonal patterns of income-generation typical for the particular HVC to be financedFI. Section 2.03. Without limiting Each FI shall promptly and effectively exercise its rights in relation to an Eligible Subproject in accordance with the foregoing provisions standards of Sectiona prudent lender and in such manner as to protect the interests of the Borrower, the relevant FI and ADB. (a) Each FI shall submit for prior review and clearance by ADB: (i) a draft and final version of the first Subloan Agreement financing the construction of a small biogas plant, (ii) a draft and final version of the first Subloan Agreement financing the construction of a medium biogas plant and a draft and final version of the first Subloan Agreement financing the construction of a large biogas plant; and (iii) each Subloan proposal financing the construction of a large biogas plant for which the principal amount of the Subloan borrowed by an Eligible Beneficiary is equal to or exceeds $187,000.

Subloans. (a) Except as ADB may otherwise agree, each of Bangladesh Bank, BASIC, and Eastern Bank BB shall ensure that the proceeds of each part of the Loan shall be used by the Participating MFI PFI for making a Subloan to the Qualified ▇▇▇▇▇▇Enterprise, and shall be applied exclusively to the cost of Goods, Works and Consulting Services consulting services required to carry out the Qualified Subproject in respect of which such part of the Loan was withdrawn from the Loan Account. (b) In the carrying out of the Project, each of Bangladesh Bank, BASIC Bank and Eastern Bank BB shall ensure that the eligibility criteria with respect to Participating MFIsPFI, Qualified FarmersEnterprise, Qualified SubprojectsSubproject, and Subloans Subloan as set out in Schedule 5 3 to the Loan Agreement are is satisfied at all times. (c) Except as ADB may otherwise agree, all Goods, Works and Consulting Services consulting services to be financed out of the proceeds of the Subloans Subloan shall be procured in accordance with the provisions of Schedule 4 2 to the Loan Agreement. (d) All Subloans made by the Participating MFIs and PFIs approved by the Wholesale Banks BB shall be subject to post post- monitoring and review by ADB. Section 2.023.02. Each of Bangladesh Bank, BASIC Bank and Eastern Bank BB shall cause each Participating MFI with which it concludes an Onlending Agreement PFI to ensure that: (ai) each Subloan carries interest at an appropriate rate that reflects the interest rate on the Subloan to the Qualified ▇▇▇▇▇▇ will fully take into account the recovery cost of lending including any increase due to inflation, funds plus a spread that covers transaction costs and risk adjusted returns, and shall be made on terms whereby the PFI shall obtain, by a written agreement with the Qualified Enterprise in form acceptable to cover administration expenses including project and technical supportADB, with rights adequate to protect the interests of the Borrower, the provision of grace periods to Qualified FarmersPFI, and Qualified Small Borrower credit risk provided that Bangladesh Bank regulation may apply to set a ceiling acceptable to ADB on the interest rate to SubborrowersADB; (bii) each Subloan, along with BB's own contribution, finances not more than 75% of the maximum principal amount cost of any the Qualified Subproject, and that the PFI finances at least 15%, and the Qualified Enterprise finances at least 10%, of the cost of the Qualified Subproject; (iii) subject to the provisions of paragraph (ii) of this Section 3.02 to the Project Agreement, each Subloan shall is not exceed Tk300,000in excess of Taka 7 million for a single borrower, or for a term of less than 2 years; (iv) qualified female entrepreneurs are given preference to access financing under the Project by earmarking a minimum of 15% of the Subloans for lending to women entrepreneurs; and in the event these funds are not utilized within a period of 2 years from the Effective Date, such funds revert to the general pool; and (cv) the term a wide geographical and schedule of repayments sectoral dispersion of the Subloans shall be adopted is achieved and preference is given to take into account underdeveloped areas and priority sectors as outlined in the schedule for harvesting and post-harvesting activities, and seasonal patterns Industrial Policy of income-generation typical for the particular HVC to be financedBorrower. Section 2.033.03. Without limiting the foregoing provisions of SectionSection 3.02 of this Project Agreement and in addition to any other provisions which a prudent lender would request, each Subloan agreement shall include provisions to the effect that: (i) the Qualified Enterprise shall carry out and operate the Qualified Subproject with due diligence and efficiency and in accordance with sound administrative, financial, business and environmental practices, including maintenance of adequate accounts and records; (ii) the proceeds of the Loan shall be used only for procurement in eligible source countries as specified by ADB, in accordance with procedures acceptable to ADB; (iii) the Goods, Works and consulting services to be financed out of the proceeds of the Loan shall be used exclusively in the carrying out of the Qualified Subproject; (iv) ADB, BB and the PFI shall each have the right to inspect such Goods and Works, the Qualified Enterprise, the Qualified Subproject and any relevant records and documents; (v) the Qualified Enterprise shall take out and maintain with responsible insurers insurance against such risks and in such amounts as shall be consistent with sound business practice, and without any limitation upon the foregoing, such insurance shall cover hazards incident to the acquisition, transportation and delivery of Goods financed out of the proceeds of the Loan to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable to replace or repair such Goods; (vi) ADB, BB and the PFI shall each be entitled to obtain all such information as each shall reasonably request relating to the Subloan, the Goods, Works, and consulting services financed out of the proceeds of the Loan, the Qualified Subproject, the Qualified Enterprise and other related matters; and (vii) the PFI shall be entitled to suspend or terminate further access by the Qualified Enterprise to the use of the proceeds of the Loan upon failure by the Qualified Enterprise to perform its obligations under its agreement with the PFI. Section 3.04. BB shall ensure that each PFI promptly and effectively exercises its rights in relation to each Qualified Subproject in accordance with the standards of a prudent lender and in such manner as to protect the interests of the Borrower, BB, the PFI, and ADB.

Subloans. (a) Except as ADB may otherwise agree, each of Bangladesh Bank, BASIC, and Eastern Bank shall ensure that the proceeds of each part of the Loan Grant made available to IMON International shall be used by the Participating MFI only for making a Subloan Subloans to the Qualified ▇▇▇▇▇▇, Subborrowers for Qualified Subprojects and shall be applied exclusively to the cost of Goods, Works and Consulting Services and other items of expenditure required to carry out the such Qualified Subproject in respect of which such part of the Loan was withdrawn from the Loan AccountSubprojects. (b) In the carrying out of the Project, each of Bangladesh Bank, BASIC Bank and Eastern Bank shall ensure that the eligibility criteria with respect to Participating MFIs, Qualified Farmers, Qualified Subprojects, and Subloans as set out in Schedule 5 to the Loan Agreement are satisfied at all times. (c) Except as ADB may otherwise agree, all Goods, Works and Consulting Services to be financed out of the proceeds of the Subloans shall be procured in accordance with the provisions of Schedule 4 3 to the Loan Grant Agreement. (d) All Subloans made by the Participating MFIs and approved by the Wholesale Banks shall be subject to post monitoring and review by ADB. Section 2.02. Each of Bangladesh Bank, BASIC Bank and Eastern Bank IMON International shall cause each Participating MFI with which it concludes an Onlending Agreement to ensure that: (a) the interest rate on the Subloan to the Qualified ▇▇▇▇▇▇ will fully take into account the recovery cost of lending including any increase due to inflation, plus a spread to cover administration expenses including project and technical support, the provision of grace periods to Qualified Farmers, and Qualified Small Borrower credit risk provided that Bangladesh Bank regulation may apply to set a ceiling acceptable provide to ADB on the interest rate to Subborrowers; (b) the maximum principal amount of any Subloan shall not exceed Tk300,000; and (c) the term and schedule of repayments for its prior written approval, full particulars of the first three proposed Subloans shall be adopted to take into account the schedule for harvesting and post-harvesting activities, and seasonal patterns of income-generation typical for the particular HVC proposed to be financedissued by IMON International. Section 2.03. IMON International shall ensure that except as ADB may otherwise agree, each Subloan: (a) carries interest at an appropriate rate that takes into account the cost of funds, administrative costs, credit and other applicable risks associated with the Subloan and an adequate profit margin for IMON International charged on a declining balance basis; (b) has a repayment period not exceeding 60 months from the date on which such Subloan is approved or authorized for withdrawals from the Grant Account; and (c) confers upon IMON International rights adequate to protect the interests of the Recipient, IMON International and ADB pursuant to a written agreement with the Qualified Subborrower in form acceptable to ADB. Section 2.04. Without limiting the generality of the foregoing provisions of SectionArticle II of this Project Agreement and in addition to any other provisions which a prudent lender would request, each Subloan agreement shall include provisions to the effect that: (i) the Qualified Subborrower shall carry out and operate the Qualified Subproject with due diligence and efficiency and in accordance with sound applicable technical, financial, business and development practices, including maintenance of adequate accounts and records; (ii) the Goods, Works and Consulting Services shall be used exclusively in the carrying out of the Qualified Subproject; (iii) ADB and IMON International shall each have the right to inspect such Goods and Works, the Qualified Subborrower, the Qualified Subproject and any relevant records and documents; (iv) the Qualified Subborrower shall take out and maintain with responsible insurers insurance against such risks and in such amounts as shall be consistent with sound business practice, and without any limitation upon the foregoing, such insurance shall cover hazards incident to the acquisition, transportation and delivery of Goods to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable to replace or repair such Goods; (v) ADB and IMON International shall each be entitled to obtain all such information as each shall reasonably request relating to the Subloan, the Goods, Works and Consulting Services, the Qualified Subproject, the Qualified Subborrower and other related matters; and (vi) IMON International shall be entitled to suspend or terminate further access by the Qualified Subborrower to the use of the proceeds of the Grant upon failure by the Qualified Subborrower to perform its obligations under its agreement with IMON International. Section 2.05. IMON International shall promptly and effectively exercise its rights in relation to each Qualified Subproject in accordance with the standards of a prudent lender and in such manner as to protect the interests of the Recipient, IMON International and ADB.