Philippines - Maria Cristina Project : Loan 0325 - Guarantee Agreement - Conformed

LOAN NUMBER 3- Guarantee Agreement (Maria Cristina Project) BETWEEN REPUBLIC OF THE PHILIPPINES AND INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT DATED NOVEMBER 7, 1962 LOAN NUMBER i? P? Guarantee Agreement (Maria Cristina Project) BETWEEN REPUBLIC OF THE PHILIPPINES AND INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT DATED NOVEMBER 7, 1962 Marate Agreetrtt AGREEMENT, dated November 7, 19612, bCtween REPUBL o OF THE IHLIPPINRs (hereiafter called the Ouarantor) and INTERNATIONAL iBANK FoR ECONSTIU 'CTI> N A N1) D E?LOPM E NT (hercinafter called 1the Bank). IEKEAS by an agieeieiit of even (Li te h,-rewith between the Bank aind National Power Corporation (hereinafter called the BorAower) whilch agreemnent and the sclied-les therein referred to arc, hereina fter called the Loan Agrec- nicf, tie Bank has agreed to make to the iBorrower a loan in various currencies equivalent to Ihree million seven hundred thousand dollars ($3,700,000) on the terns and coniditiois set forth in the Loan Agreement, but only on condition that the Guariantor agrev to guarantee the obli- gations of the Borrower in respect of sucli loan as here- inafter provided; and WirEREAs the Guarantor, in consideration of the Bank's entering into 1ie Loan Agreenient with the Borrower, has agreed so to guarantee such obligations of the Borrower; INow TlERErt 10 e parties bereto hereby agrec as follows: ARTICLE I Sicc'rou *N 1.01. T1 paftic s to 1his Guarantee Agreement accept ai l th e provisionis of loni R,gulations No. 4 of tho Bauk dated February 15, 1961 (said Lm-m Regulations No. 4 being hereinafter called tie Loan Regulations), with the smne force and effect as if flhey were fully set forth herein. S )ers 1 .02. Wherev er used in this Agreement, uless thie confflext. shal.Il othelrwise requ1irFe, tic several t11eri de- finet1 in the Lon Agreement sial Iave tie respective lmeanings therein set forth. 4 ARTICLE II 8I«[',r)N 2.01. W itilOlut lillitn ion r rest or 1sriciion any of the olher coveIanls oil its pii in this Agreemenlt con- tained, fhe Guarannf t hre by ulncolnditionlly gurtees, as primary obligor Ind not as sIrety meel, te due ald Imun'tlal payment of the prineild of , and tHe i nh rest .1nd er clarwges oil, tlLn, the priencipl of ail ind rest on hlie Bous, thl prmiun, il anly, wn 1he prepaynyllt of 11he Loan or the reeljulption o tlh ods, Hwa fitæ ter 1gllar- nte'es the ptIehual ()Inof .1lhe11 c ovenan and greemeOts 0f tl(, B rrow r i tlle territis of o i, i (H h - n I llt, al s set forfl in tH 2 A \grIeie t 1111 ill Hw l~li 1,. M;«.1 rN > ' 2.02. Wi Juh i t li ii 11 t il)] r rest iet ricion uøn1 h 1)1r\ iSionIs of Setion (> l of1 ut Ihis A igremnt , the Guara tntour spleiIi(elyt umlertks, w henever tre is reisona;bl r vnos for erying 0ut th1le Proj(t. to make aagn s, sutis- fctory to the Banlk, promp,y to proid th e Borrower ur ennse lte Borrower to.he pruvidd wil l seli fiuids s Iear nleeded !o met suh expenditres. ARTICLE III Hra-ios 01. It is theiý m1111n.-1 in1io f 1e(um an l the Bink that n uthr 'rnal debt shall Hwjo an 1 1ly w li' I~ ~ 1:1 I ('11.il.111t i 11.4l <i .lii v absol~() 1.Ti h t1l , ' o ntI j rni l,r 1g11 (1 al ldep oth l nr . h rg s on1), tii Illon and th i and 111t11 inl tihe, cr1eltionof any sleli lin xres11 s prwvi-ion w ill , tio t hat effti ; provided, 110oweer, t11 hati t rgoing provisiols 5 of this ecton slhall not apply to: (i) any lien created on prop)rt y, at Ihe time of purehase thereof, solely as; s,curity for the payment of Ith ireh-se pric of sih property; (ii) anien on commericial goods to secure a debt maturing not more than ome year aller the date oi which il is origi- n1ally nure and lo bc pa.id1 outf of 1'11( proce'eds of salc of sluil lonneial ,oods; or (iii) n lien arising ill the on'(hilm inr course ol b-anikiiig I ralsatl ions aind seuing a lebt matulrinig not nore fihan oie v,r after its date. Tli er "r 'sset s ftl Gi arantr'' as uised in this Section ineludes assets of lite( Guaranir or of auny of its polienI subdi\isin or of any' 'geny of th'e GIuarantor or of any such politicI saiivision, iincIudiing Cenfr al Bank of th1e Philippins or any other insliltution performing tIhe functions of a central banik. 3EenJs 3.02. (n Th eli Gmarantor aud tihe Bank shall co- operfe fully to assure thnt th Imr of th1 Lian will be accomplished. To tihat end, eahel of then shall furnish to 111 other' all shei informnintion as it shall reasonably re- qunest with regnrd to thle geieral status of Ilhe Loan, On Ite part of Ith,' (harantor, suh11 ilf('mltion shall inude ifor ioN0 with !espect lo financial and econiomic condi- ions in t he ierrito ries of the uarnor' and the interna- tional balanec of payments position of he f Garantor. (b) TIe Glaranlor and thle llnnk sl fron fiime to tiime exchaniige view's thoh rutimIheir' representatli ves w i tegnard lo m l ers relaling to time pulrpo(",;ses 1df tihe [,()n1 .an1md thIe minlmmee Iofhe service tereof. Thwn, e øaranor' shl promlptiy infomf rite of any colnitiol wi'l inl'rfrees with, or threatens to interfere Villi, I1he aéecomlplisihmeint of tIhe puirposes of' 1the i Loan or llte maiiølnnce u the se rvie t hereof. (e) Thle Guarantor slall fford all r-e'a.lsonable opportuni ty for acrediled rmepIesentatives of tie Bank to visit any part of Ihle terriories uf ihe Ghrantor lor purposes reled to the Loan. 」 7 (c) to leave a sUrphis, for fmancing a reasonable portion of future expansion of its power fapilities. ARTICLE IV SECTION 4.01. The Guarantor shall endorse, in accord- ance with the provisions of the. Loan Ytegulations, its g'-uar- antee oil the Bonds to be executed - ' ind delivered by the Borrower. The Secretary of Finance of the Guarantor ' , and such person or persons as he tiliall designate in writing are designated as the authorized representatives of the Guar- antor for the purposes of Section 6.12 (b) of the Loan Regulations. ARTICLE V SECTION 5.01. The folloN -ing addresses are specified for the purposes of Section 8.01 of the Loan Regulations: For the Guarantor: Central Bank of the Philippines Manila Philippines Alternative address for cablegrams and radiograms: Philcenbank Manila For the Bank: Intematimial Bajik for Recoil's fril Cti oil and Development ISIS H Street, N.W. Washington 25, D. C. United Stcates of Anierica, Alternative address for cablegrams and radiograms: Intbafrad Washington, D. C. 긔