Conformed Copy - L3088 - National Agricultural Credit Project - Loan Agreement

Page 1 CONFORMED COPY LOAN NUMBER 3088 MOR (National Agricultural Credit Project) between INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT and NATIONAL BANK FOR AGRICULTURAL CREDIT Dated July 21, 1989 LOAN NUMBER 3088 MOR LOAN AGREEMENT AGREEMENT, dated July 21, 1989 between INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (the Bank) and NATIONAL BANK FOR AGRICULTURAL CREDIT (the Borrower). WHEREAS (A) Kingdom of Morocco (the Guarantor) and the Borrower, having been satisfied as to the feasibility and priority of the Project described in Schedule 2 to this Agreement, have requested the Bank to assist in the financing of the Project; (B) by an agreement (the Guarantee Agreement) of even date herewith between the Guarantor and the Bank, the Guarantor has agreed to guarantee the obligations of the Borrower in respect of the Loan and to undertake such other obligations as set forth in the Guarantee Agreement; (C) the Borrower intends to contract from other external sources of funds (the Cofinanciers) loans (the Cofinance) in an aggregate amount equivalent to about $298,000,000 dollars to Page 2 assist in financing part of the Project on the terms and conditions to be set forth in agreements (the Cofinancing Agreements) to be entered into between the Borrower and the Cofinanciers; and WHEREAS the Bank has agreed, on the basis, inter alia, of the foregoing, to extend the Loan to the Borrower upon the terms and conditions set forth in this Agreement; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The "General Conditions Applicable to Loan and Guarantee Agreements" of the Bank, dated January 1, 1985, with the last sentence of Section 3.02 deleted (the General Conditions) constitute an integral part of this Agreement. Section 1.02. Unless the context otherwise requires, the several terms defined in the General Conditions and in the Preamble to this Agreement have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "Beneficiary" means a farmer, a household, a fisherman, an artisan or an enterprise to which the Borrower proposes to make or has made a Sub-loan; (b) "Sub-loan" means a loan made or proposed to be made by the Borrower out of part of the proceeds of the Loan to a Beneficiary for an Investment Project; (c) "free-limit Sub-loan" means a Sub-loan, as so defined, which qualifies as a free-limit Sub-loan pursuant to the provisions of paragraph 2 (b) of Schedule 7 to this Agreement; (d) "Investment Project" means any on-farm or forestry investment or other investment project under Part A of the Project to be carried out by a Beneficiary utilizing the proceeds of a Sub-loan; (e) "CLCA" means any local branch of the Borrower; (f) "Borrower's Legislation" means the Guarantor's Law (Dahir) No. 1-60-106 dated December 4, 1961, and Decree (D