Th e Loan Sample Clauses
The 'The Loan' clause defines the fundamental terms and conditions of the loan being provided under the agreement. It typically specifies the principal amount, the currency, and the purpose for which the loan is being extended. This clause may also outline how and when the loan will be disbursed to the borrower. Its core function is to clearly establish the basic parameters of the loan, ensuring both parties understand the financial commitment and the intended use of the funds.
Th e Loan a) Section 1.01 delete in its entirety and substitute the following:
Section 1.01 Canada s hall make available to Guyana on the term3 and conditions hereinafter set forth a loan in an amount not to exceed five hundred and fifty thousand Canadian dollars ($550,000.00).
b) Section 1.04 deJete in its entirety arrl substitute the followine:
Th e Loan. The Bank agrees to leild to the Borrower from
Th e Loan. 2.01 The Fund hereby extends to the Borrower c1 lo clil in t.he amount of Ten Million Dollars ($10,000,000) according to the terms and conditions set forth in this Agreerent.
2.02 The Borrower shall pay from time to ti!OO into the Fund I s account designated for this pqrpose by the Fund Management, intere�t at rate of four per cent (4%) per ·annum and service charges at the rate of one half of one per cent(! of 1%) per annum on the principal amount of the Loan actually withdra.m and outs t;▇▇▇▇▇▇. Such charges shall be due and payable in Dollars semi-annuc1lly on April 1 S and October 1 S of each year.
2.03 After this Agreement has been declared .. effective pursuant to Section S.01, an amount equivalent to half the proceeds of the l,,oa.IJ. shall be transferred by ▇▇▇.▇▇▇▇ to an account which the Borrower shall open in the name of the Fund for this ·purpose in its· Central Bank or a similar institution performing the ·functions of a central bank. The Loan proceeds shall be deerrEd, for the purposes of Section 2.02, to have beE;!n withdrawn by the Borrower from the date of transfer of each .. portion of the Loan amount and shall coifstitute a Dollcir account which, along wit;h the interest payable in respect thereof by tbe depository bank, shall·be governed by the provisions of this Atsreement. Such interest shall not constitute part of the principal Loan amount for the purposes of repayment of the Loan.
2.04 The representative of the Borrower designated i�, �r in accord- ance with, Section 7.02 shall 'Je authorized to make withdrawals from the Fund's Dollar account operEd pursuant ▇▇.▇▇�tion 2.03.
2.05 The Borrower agrees that withdrawals from the Fund's above- '· rentioned. Dollar account, including the amounts of interest to be paid by the depository bank, shall be effected within ore hundred and eighty days of the date of transfer of each portion of the Loan amount and shall be used exclusively to meet reasonable expenditures to be madE3 by the Borrower for t-he following economic purposes:
a) The importation or capital goods, spare part;:; and inputs required for Di..,rrricultural ·or civilian industrial production.
b) The importation of foodstuffs and other essential consurrer �oods.
Th e Loan