India - Fourth Ardc Credit Project : Loan 2095 - Loan Agreement - Conformed

l0OCUMi LOAN NUMBER,,90 IN Loan Agreement (Fourth ARDC Credit Project) between INDIA and INTERNATIONAL BANK FOR RECONSTRUCTION AND IDEVELOPMENT Dated c-4 " 414 , 1982 LOAN NUMBER ) 05 IN LOAN AGREEMENT AGREEMENT, dated A& tt Au Q -Al , 1982, between INDIA, acting by its President (hereinffter called the Borrower) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (herein- after called the Bank). WHEREAS (A) the Borrower has requested the Bank to assist in the financing of the Project described in Schedule 2 to the Development Credit Agreement of even date herewith between the Borrower and the International Development Association (the Asso- ciation) (hereinafter called the Development Credit Agreement), by making the Loan as hereinafter provided; (B) the Borrower has also requested the Association to pro- vide additional financial assistance towards the financing of the Project and by the Development Credit Agreement the Association is agreeing to provide such assistance in an aggregate principal amount equivalent to one hundred thirty-nine million Special Drawing Rights (SDR 139,000,000); (C) the Borrower and the Bank intend, to the extent practi- cable, that the proceeds of the Credit provided for in the Deve- lopment Credit Agreement be disbursed on account of expenditures on the Project before disbursements of the proceeds of the Loan provided for in this Agreement are made; (D) the Project will be carried out by the Agricultural Refinance and Development Corporation, a statutory corporation established and operating under the laws of the Borrower (here- inafter called ARDC), or any successor thereof, with the Bor- rower's assistance and, as part of such assistance, the Borrower will make available to ARDC the proceeds of the Loan as herein- after provided and the proceeds of the Credit as provided in the Development Credit Agreement; and WHEREAS the Bank has agreed, on the basis inter alia of the foregoing, to make the Loan available to the Borrower upon the terms and conditions set forth hereinafter and in the Project Agreement of even date herewith among the Association, the Bank and ARDC; NOW THEREFORE the parties hereto hereby agree as follows: - 2 - ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Loan and Guarantee Agreements of the Bank, dated October 27, 1980, with the same force and effect as if they were fully set forth herein, subject, however, to the following modification thereof (s,aid General Conditions Applicable to Loan and Guarantee Agreements of the Bank, as so modified, being hereinafter called the General Conditions), namely, that paragraph 11 of Section 2.01 is deleted and the following substituted therefor: "11. The term 'Project' means the Fourth ARDC Credit Project, as described in the Development Credit Agreement (Fourth ARDC Credit Project) between the Borrower and the Association of even date with the Loan Agreement and as the description thereof may be amended from time to time by Agreement among the Borrower, the Bank and the Association." Section 1.02. Wherever used in this Agreement, unless the context otherwise cequires, the several terms defined in the General Conditions, in the Development Credit Agreement and in the General Conditions applicable thereto have the respective meanings therein set forth and the term "Development Credit Agreement" means the agreement of even date herewith between the Borrower and the Association for the purpose of the Project, as such agreement may be amended from time to time, and such term includes the General Conditions Applicable to Development Credit Agreements of the Association, dated June 30, 1980, as made applicable to such agreement, all agreements supplemental to the Development Credit Agreement and all schedules to the Development Credit Agreement. ARTICLE II The Loan Section 2.01. The Bank agress to lend to the Borrower, on the terms and conditions in the Loan Agreement set forth or referred to, an amount in various currencies equivalent to one hundred ninety million dollars ($190,000,000). Section 2.02. The amount of the Loan may be withdrawn from the Loan Account in accordance with the provisions of Schedule 1 -3- to the Development Credit Agreement, as such Schedule may be amended from time to time, for expenditures made (or, if the Bank shall so agree, to be made) in respect of the reasonable cost of goods and services required for the Project and to be financed out of the proceeds of the Loan. Section 2.03. The Closing Date shall be June 30, 1984 or such later date as the Bank shall establish. The Bank shall promptly notify the Borrower of such later date. Section 2.04. The Borrower shall pay to the Bank a commit- ment charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Loan not withdrawn from time to time. Section 2.05. The Borrower shall pay interest at the rate of eleven and three-fifths per cent (11-3/5%) per annum on the principal amount of the Loan withdrawn and outstanding from time to time. Section 2.06. Interest and other charges shall be payable semiannually on February 15 and August 15 in each year. Section 2.07. The Borrower shall repay the principal amount of the Loan in accordance with the amortization schedule set forth in the Schedule to this Agreement. ARTICLE III Execution of the Project; Other Covenants Section 3.01. (a) Subject to paragraph (b) of this Section, Section 2.03 and Article III of, and Schedules 1 and 2 to, the Development Credit Agreement are incorporated in, and made a part of, the Loan Agreement, provided that the terms "Association" and "Credit", whenever they appear in such Section, Article and Schedules shall be read, respectively, "Bank" and "Loan". (b) As long as the Bank has not given notice to the contrary to the Borrower and so long as the Development Credit Agreement shall have not terminated prior to the termination of this Agreement: (i) the obligations of the Borrower to consult with and to furnish or cause to be furnished, information, documents, plans, reports, records and statements to the Bank -4- shall be satisfied to the extent performance in respect of such obligations is rendered to the Association; (ii) the obligations of the Bank to consult with and to furnish information to the Borrower shall be satisfied to the extent such obligations are fulfilled by the Association; and (iii) all actions taken (in- cluding the giving of approvals or the granting of waivers) by the Association pursuant to the Develoment Credit Agreement shall be deemed to be taken pursuant to both the Development Credit Agreement and the Loan Agreement and in the name and on behalf of both the Association and the Bank. Section 3.02. (a) It is the policy of the Bank, in making loans to, or with the guarantee of, its members not to seek, in normal circumstances, special security from the member concerned but to ensure that no other external debt shall have priority over its loans in the allocation, realization or distribution of foreign exchange held under the control or for the benefit of such member. To that end, if any lien shall be created on any public assets (as hereinafter defined), as security for any external debt, which will or might result in a priority for the benefit of the creditor of such external debt in the allocation, realization or distribution of foreign exchange, such lien shall, unless the Bank shall otherwise agree, ipso facto and at no cost to the Bank, equally and ratably secure the principal of, and interest and other charges on, the Loan, and the Borrower, in creating or permitting the creation of such lien, shall make express provision to that effect; provided, however, that, if for any constitutional or other legal reason such provision cannot be made with respect to any lien created on assets of any of its political or administrative subdivisions, the Borrower shall promptly and at no cost to the Bank secure the principal of, and interest and other charges on, the Loan by an equivalent lien on other public assets satisfactory to the Bank. (b) The foregoing undertaking shall not apply to: (i) any lien created on property, at the time of purchase thereof, solely as security for payment of the purchase price of such property; and (ii) any lien arising in the ordinary course of banking transactions and securing a debt maturing not more than one year after its date. (c) As used in this Section, the term "public assets" means assets of the Borrower, of any political or administrative subdivision thereof and of any entity owned or controlled by, or operating for the account or benefit of, the Borrower or any such -5- subdivision, including gold and foreign exchange assets held by any institution performing the functions of a central bank or exchange stabilization fund, or similar functions, for the Borrower. ARTICLE IV Remedies of the Bank Section 4.01. For the purposes of Section 6.02 of the General Conditions, the events set out in Section 4.01 of the Development Credit Agreement are specified pursuant to paragraph (k) thereof. Section 4.02. For the purposes of Section 7.01 of the General Conditions, the events set out in Section 4.02 of the Development Credit Agreement are specified pursuant to paragraph (h) thereof. ARTICLE I Effective Date; Termination Section 5.01. The following event is specified as an addi- tional condition to the effectiveness of the Loan Agreement within the meaning of Section 12.01 (c) of the General Condi- tions, namely, that all conditions precedent to the effectiveness of the Development Credit Agreement have been fulfilled, except for the effectiveness of this Agreement. Section 5.02. The date a d6, 298), is hereby specified for the purposes of Section 12.04 of the General Conditions. Section 5.03. If the Development Credit Agreement terminates prior to the termination of this Agreement, the provisions of the Development Credit Agreement referred to in this Agreement shall continue in full force and effect between the Borrower and the Bank. ARTICLE VI Representatives of the Borrower; Addresses Section 6.01. The Secretary of, or any Additional Secretary, Joint Secretary, Director, Deputy Secretary and Under Secretary -6- in, the Department of Economic Affairs of the Ministry of Finance of the Borrower is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. Section 6.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions. For the Borrower: The Secretary to the Government of India Ministry of Finance Department of Economic Affairs New Delhi 110001 India Cable address: Telex: ECOFAIRS 953-31354 New Delhi For the Bank: International Bank for Reconstruction and Development 1818 H Street, N.W, Washington, D.C. 20433 United States of America Cable address: Telex: INTBAFRAD 440098 (ITT) Washington, D.C. 248423 (RCA) or 64145 (WUI) -7- IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agreement to be signed in their respective names in the District of Columbia, United States of America, as of the day and year first above written. INDIA B y Authorized Representative INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By {/a.Q~ ~-A Regional Vice President South Asia ... ....I -8- SCHEDULE Amortization Schedule Payment of Principal Date of Payment Due (Expressed in dollars)* On Each February 15 and August 15 beginning August 15, 1987 through August 15, 2001 6,335,000 On February 15, 2002 6,285,000 * The figures in this column represent dollar equivalents determined as of the respective dates of withdrawal; see General Conditions, Section 3.04. - 9 - Premiums on Prepayment The following percentages are specified as the premiums payable on repayment in advance of maturity of any portion of the principal amount of the Loan pursuant to Section 3.04 (b) of the General Conditions: Time of Prepayment Premium Not more than three years before maturity 1.75% More than three years but not more than six years before maturity 3.50% More than six years but not more than eleven years before maturity 6.40% More than eleven years but not more than sixteen years before maturity 9.30% More than sixteen years but not more than eighteen years before maturity 10.45% More than eighteen years before maturity 11.60% INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the Interna- tional Bank for Reconstruction and Develop- ment. In witness whereof I have signed this Certifi- cate and affixed the Seal of the Bank thereunto this 44 day of ,198 7. RY