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The loan will be used to pre-finance sales contracts for exporting organic rice for the season 2014-2015 as described in Annex 1, signed or to be signed between Borrower and its buyer(s) under these contracts for a minimum value of 200% of the disbursed Loan Amount (hereinafter called “Contract(s)”).
This Loan Agreement also applies to the financing of other contracts that the Borrower signs in the future within the Loan Period.
For each disbursement the Borrower shall submit contract(s) to the Lender. The Lender shall evaluate each proposed sales contract and, in accordance with the Central Bank regulations, perform an analysis of the Buyer’s payment capacity. The Lender’s, in its sole discretion, shall decide whether to accept the proposed contract for pre-financing. In case the Lender approves, the Lender will prepare payment instructions for the Contract(s) (hereinafter called Contract(s)), which shall be signed by authorized representatives of the Borrower and the Buyer.
By means of a pledge as arranged in this Loan Agreement and by signing the Payment Instructions, the Borrower pledges and endorses all of its receivable rights to the Lender with respect to the Contract(s), to be submitted to the Lender to the extent required to satisfy Borrower’s obligations under this Loan Agreement.
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