Mexico - Mexican Light And Power Company, Ltd. : Loan 0024 - Guarantee Agreement - Conformed

LOAN NUMBER 24 ME Guarantee Agreement BETWEEN UNITED MEXICAN STATES AND INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT DATED APRIL 28, 1950 Pasus or Braox S. AnAs. Wasmta?oN. D. C. LOAN NUMBER 24 ME Guarantee Agreement BETWEEN UNITED MEXICAN STATES AND INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT DATED APRIL 28, 1950 Pasns or BYaox S. ADAmS. WASEINGTON. D. C. 0uarantee iatreeent AGREEMENT dated April 28, 1950, between UNITED MEXICAN STATES (hereinafter called the Guarantor) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOP- MENT (hereinafter called the Bank). WHEREAS by an agreement of even date herewith be- tween the Bank and The Mexican Light and Power Com- pany, Limited (hereinafter called the Borrower), which agreement and the schedules therein referred to are here- inafter called the Loan Agreement, the Bank has agreed to make to the Borrower a loan in the aggregate principal amount of twenty-six million dollars ($26,000,000), or the equivalent thereof in other currencies, on the terms and conditions set forth in the Loan Agreement, but only on condition that the Guarantor agree to guarantee such loan as herein provided; and WHEREAS the Guarantor, in consideration of the Bank's entering into the Loan Agreement with the Borrower, has agreed to guarantee such loan as herein provided; Now THEREFORE the parties hereto hereby agree as follows: ARTICLE I Wherever used in this Guarantee Agreement, unless the context shall otherwise require, the respective terms which are defined in Article I of the Loan Agreement shall have the respective meanings therein set forth. ARTICLE II Without limitation or restriction upon any of the other covenants on its part in this Guarantee Agreement con- tained, the Guarantor hereby unconditionally guarantees, as primary obligor and not as surety merely, the due and 2 punctual payment of the principal of, and the interest, commitment charge and service charge on, the Loan, and the principal of and interest on the Bonds, all as provided in the Loan Agreement and the Bonds and the Indenture. ARTICLE III SECTION 1. The Guarantor covenants that, unless the Bank shall otherwise agree in writing, any privilege or priority (including any mortgage, pledge or charge) on any property, assets, revenues or receipts of the Guaran- tor or any of its political subdivisions or any agency of any of them which the Guarantor or any such political sub- division or agency shall create or permit to be created as security for the payment of any external debt shall by the creation thereof equally and ratably secure the pay- ment of the principal of, and the interest, premium, com- mitment and service charges on, the Loan and the Bonds, and, in the creation of any such privilege or priority, ex- press provision shall be made to that effect; provided, how- ever, that this Section shall not apply (a) to any mort- gage, pledge or other charge or priority created on any property purchased at the time of purchase solely as secur- ity for the payment of the purchase price of such prop- erty; or (b) to any pledge of commercial goods given to secure debt maturing not more than one year after its date and to be paid out of the proceeds of sale of such commer- cial goods. SECTION 2. The Guarantor covenants that, if the Guar- antor or any of its political subdivisions or any agency of any of them shall propose to incur, assume or guarantee any external debt (which term as used in this Guarantee Agreement shall include any debt payable in any currency other than currency of the Guarantor, whether such debt is payable absolutely or at the option of the creditor in such other currency) or substantially to modify the terms 3 of payment of any then existing external debt incurred, assumed or guaranteed by any of them, the Guarantor will notify the Bank promptly of the particular proposal and prior to taking the proposed action will afford to the Bank all opportunity which is reasonably practicable under the circumstances to exchange views with the Guarantor with regard to such proposal; provided, however, that the fore- going provisions shall not apply to either of the following: (a) the incurring of additional external debt through utilization, in accordance with the terms of any credit established prior to the date of this Agreement, of any un- used amounts available under such credit; or (b) the enter- ing into international payments or similar agreements the term of which is not more than one year and under which the transactions on each side are expected to balance over the period of the agreement. SECTION 3. In order that the Bank and the Guarantor may cooperate to the fullest extent in assuring that the purposes of the Loan shall be accomplished the Guarantor covenants that it will afford to the Bank, from time to time as the Bank shall reasonably request: (a) All reasonable opportunity for exchanges of views between accredited representatives of the Bank and officials empowered to represent the Guarantor in such exchanges of views with regard to matters re- lating to the purposes of the Loan and the mainte- nance of the service of the Loan and the Bonds and other matters of mutual interest, it being under- stood that both the Bank and the Guarantor will re- ceive from one another suggestions and observa- tions in regard to all such matters in a spirit of mutual cooperation; and (b) All reasonable opportunity for accredited repre- sentatives of the Bank to visit freely any part of the territories of the Guarantor for the purpose of 4 performing the functions set forth in Section 5 of Article VI of the Loan Agreement and for the pur- pose of studying the financial and economic condi- tions of the Guarantor and all other matters relat- ing to the purposes of the Loan. SECTON 4. The Guarantor covenants that, if any condi- tion shall arise which shall prevent, obstruct or interfere with, or threaten to prevent, obstruct or interfere with the accomplishment of the purposes df the Loan or the maintenance of the service of the Loan, the Guarantor will promptly inform the Bank of such condition and will afford to the Bank a reasonable opportunity to exchange views with the Guarantor with regard thereto. SECTION 5. The Guarantor covenants that it will furnish to the Bank all such information, at such times and in such detail as the Bank shall reasonably request, relating to financial and economic conditions in the territories of the Guarantor and the international balance of payments posi- tion of the Guarantor. SECTION 6. The Guarantor covenants that the principal of, and the interest and other charges on, the Loan and the Bonds and the premium, if any, on the redemption of Bonds, as specified in the Loan Agreement and the Bonds, shall be paid without deduction for and shall be free from all taxes, imposts, levies and duties imposed by the Guar- antor or by any taxing authority thereof or therein and shall b paid free from all restrictions of the Guarantor, its olitical subdivisions or its agencies. SECTION 7. The Guarantor covenants that this Guaran- tee Agreement, the Loan Agreement, the Indenture, the Indenture of Guarantee and the Bonds shall be free of any issue, stamp or other tax imposed by the Guarantor or any taxing authority thereof or therein. 5 SECTION 8. The Guarantor covenants that it will not take or permit any of its political subdivisions or any agency of any of them to take any action which would prevent or interfere with the performance by the Borrower of any of the covenants, agreements and obligations of the Borrower in the Loan Agreement contained, and will take or cause to be taken all reasonable action which shall be necessary in order to enable the Borrower to perform such covenants, agreements and obligations. ARTICLE IV SECTION 1. The Guarantor agrees to execute and deliver to the Trustee in office under the Indenture, when and if requested by the Bank, an Indenture of Guarantee sub- stantially in the form annexed hereto and marked "An- nex 1". Such Indenture of Guarantee shall not limit or impair the rights of the Bank under this Guarantee Agree- ment. SECTION 2. The Guarantor agrees to endorse its guaran- tee hereunder on the Bonds as more fully set forth in the form of Indenture of Guarantee annexed hereto and marked "Annex 1". ARTICLE V SECTION 1. No holder of any Bond other than the Bank shall by virtue of being the holder thereof be entitled to exercise any of the rights conferred, or be subject to any of the conditions or obligations imposed, upon the Bank under this Guarantee Agreement except as shall be pro- vided in such Bond or in the guarantee of the Guarantor endorsed thereon or in the Indenture of Guarantee. SECTION 2. At any time or from time to time, upon the request of the Bank, the Guarantor will, at its own ex- pense, do any and all such things as the Bank shall reason- 6 ably request to comply with any laws or regulations of any country, or of any state or political subdivision thereof, or of any securities exchange therein, in order to enable the Bank to sell or offer for sale any of the Bonds, by public sale or otherwise, in any country or to list any of the Bonds for trading on any securities exchange. To that end the Guarantor will execute and deliver all regis- tration statements, applications and other documents and furnish to the Bank all information which shall be re- quired in order so to comply with any such law or regula- tion. The Bank will give to the Guarantor not less than four months' notice of any such request. SECTION 3. The Guarantor agrees that if the Bank shall at any time sell any of the Bonds and shall then or there- after guarantee the payment in whole or in part of the principal thereof and the interest thereon in accordance with the terms thereof, the Guarantor will indemnify the Bank against liability arising out of such guarantee. ARTICLE VI ScMON 1. The respective rights and obligations of the parties hereto under this Guarantee Agreement and under the Bonds shall be valid and enforceable in accordance with their terms anything in any statute, law or regula- tion of any nation or state or political subdivision thereof to the contrary notwithstanding. Neither of such parties shall be entitled in any proceeding under this Article to assert any claim that any provision of this Guarantee Agreement, of the Loan Agreement or of the Bonds is in- valid or unenforceable because of any provision of the Articles of Agreement of the Bank or for any other reason. SEcTION 2. The provisions of this Guarantee Agreement shall be interpreted in accordance with the law of the State of New York, United States, as at the time in effect. 7 SECTION 3. Any controversy between the parties to this Guarantee Agreement and any clhim by either party to this Guarantee Agreement against the other party thereto arising under this Gua. itee Agreement or the Bonds which shall not be determined by agreement of such par- ties shall be submitted to and determined by arbitration by an Arbitral Tribunal in accordance with the provisions of Loan Regulations No. 1 of the Bank, dated May 9, 1947, a copy of which has been furnished to the Guarantor. The parties to this Guarantee Agreement accept and agree to the provisions of said Loan Regulations No. 1 with the same force and effect as if fully set forth herein; provided, however, that the Bank shall not be entitled to enter any judgment against the Guarantor in any court for the en- forcement of any award rendered pursuant to said Loan Regulations No. 1, or to enforce by execution against the Guarantor any judgment entered upon any such award or any judicial mandate or order made in any proceeding to enforce any such award, except as any such remedy may be available to the Bank against the Guarantor otherwise than by reason of the provisions of said Loan Regulations No. 1. ARTICLE VII If the Guarantor shall default in the performance of any agreement on its part in this Guarantee Agreement con- tained, the Bank, at its option, may by notice to the Guar- antor require that the Guarantor pay the principal amount of all the Bonds which shall then be outstanding and un- paid, and the interest accrued and unpaid thereon to the date of payment thereof, and forthwith upon the giving of such notice such principal and interest shall become im- mediately due and payable by the Guarantor, anything in this Guarantee Agreement, the Loan Agreement, the In- denture, the Indenture of Guarantee or the Bonds to the contrary notwithstanding. Such principal and interest in respect of any Bond shall be paid at the place designated 8 in the Indenture for the payment of principal thereof and interest thereon, upon surrender of such Bond at said place in bearer form, or accompanied by such instruments of assignment as shall be necessary to vest in the Guaran- tor all the right, title and interest of the holder thereof, together with all unpaid coupons (if any) appurtenant thereto. If and when any such Bond shall have been so surrendered and such payment shall have been made with respect thereto, the Guarantor shall succeed to all rights of the holder of such Bond thereunder and under the In- denture; provided, however, that nothing herein contained shall be deemed to confer upon the Guarantor or any suc- cessor in interest to the Guarantor any right to declare the principal of any such Bond to be due and payable by the Borrower or to require payment thereof prior to the maturity date specified therein, except upon the occurrence of an Event of Default as provided in the Indenture; and provided further that neither the Guarantor nor any suc- cessor in interest to the Guarantor shall succeed to any right of any such holder under any guarantee by the Bank. The exercise by the Bank of its right hereunder to require payment by the Guarantor of the principal of, and interest on, the Bonds shall not impair or affect any right of the Bank under the Loan Agreement in respect of the commit- ment charge or service charge on the Loan or any other right, power or remedy which the Bank may have under this Guarantee Agreement or the Loan Agreement, none of which shall accrue to the Guarantor by reason of such payment by it. ARTICLE VIII The Guarantor agrees that its obligations under any agreements on its part contained in this Guarantee Agree- ment and the right of the Bank under Article VII hereof to require payment of the principal of the Bonds and of the interest thereon are not subject to any prior notice to, de- mand upon or action against the Borrower or to any prior 9 notice to or demand upon the Guarantor with regard to any default by the Borrower in respect to any obligations on its part contained in the Loan Agreement, the Indenture or the Bonds and shall not be affected by any enforcement of any mortgage, lien, priority or charge created by the Indenture or by any exercise or enforcement of any right or power thereby conferred. No extension of time or for- bearance given to the Borrower in respect to the perform- ance of any of its obligations under the Loan Agreement, the Indenture or the Bonds, and no failure of the Bank or of any holder of the Bonds or of the Trustee under the Indenture to give any notice or to make any demand or protest whatsoever, or strictly to assert any right or pur- sue any remedy against the Borrower in respect of the Loan Agreement, the Indenture or the Bonds or to enforce any mortgage, lien, priority or charge created by the In- denture or otherwise, and no modification of the provisions of the Loan Agreement which shall not increase the ag- gregate principal amount of the Loan or the rates of inter- est and other charges thereon, and no modification of the Indenture permitted by the terms thereof, and no failure of the Borrower to comply with any requirement of any law, regulation or order of the Guarantor or any of its political subdivisions or agencies, shall in any way termi- nate, diminish or limit the unconditional guarantee of the Guarantor hereunder, or the right of the Bank under Article VII hereof to require payment of the principal of, and interest on, the Bonds, it being. the intent of the parties hereto that the obligations of the Guarantor shall not be discharged except by performance and then only to the extent of such performance. No delay by the Bank in exercising or omission of the Bank to exercise its right under Article VII hereof to require payment of the prin- cipal of, and interest on, the Bonds or to exercise any other right under this Guarantee Agreement shall impair any such right or be construed to be a waiver thereof or a waiver of or acquiescence in any default by the Guaran- tor under this Guarantee Agreement; nor shall any action 10 by the Bank in respect of any such default or in respect of the waiver of any such default affect or impair any such right in respect of any other or subsequent default on the part of the Guarantor. ARTICLE IX SECTION 1. Any notice, demand or request required or permitted to be given under this Guarantee Agreement shall be in writing and shall be deemed to have been duly given when it shall be delivered in writing or by telegram, cable or radiogram to the party to which such notice, demand or request is required or permitted to be given -t its ad- dress hereinafter specified, or at such other address as such party shall have designated by notice in writing to the party giving or making such notice, demand or request. The addresses so specified are: (a) For the Guarantor: United Mexican States, c/o Nacional Financiera, S. A., Avenida Venustiano Carranza 25, Mexico, D. F., Mexico. (b) For the Bank: International Bank for Reconstruction and Develop- ment, 1818 H Street, N. W., Washington 25, District of Columbia, United States of America. SECTION 2. This Guarantee Agreement may be executed in several counterparts, each of which shall be an original and all collectively but one instrument. SECTION 3. Any action required or permitted to be taken, and any documents required or permitted to be executed, under this Guarantee Agreement on behalf of the Guaran- tor may be taken or executed by Nacional Financiera, S. A., or any person thereunto authorized in writing by it. Any 11 modification or amplification of the provisions of this Guar- antee Agreement may be agreed to on behalf of the Guar- antor by written instrument executed on behalf of the Guar- antor by Nacional Financiera, S. A., or any person there- unto authorized in writing by it; provided that in the opin- ion of Nacional Financiera, S. A., such modification or amplification is reasonable in the circumstances and will not substantially increase the obligations of the Guarantor here- under. The Bank may accept the execution by Nacional Financiera, S. A., or such other person of any such instru- ment as conclusive evidence that, in the opinion of Nacional Financiera, S. A., any modification or amplification of the provisions of this Guarantee Agreement effected by such instrument is reasonable in the circumstances and will not substantially increase the obligations of the Guarantor here- under. SECTION 4. The Guarantor shall furnish to the Bank suf- ficient evidence of the authority of the person or persons who will, on behalf of the Guarantor, take any action or ex- ecute any documents required or permitted to be taken or executed by the Guarantor pursuant to any of the pro- visions of this Guarantee Agreement and the authenticated specimen signature of each such person. ARTICLE X SECTION 1. This Guarantee Agreemeiqt shall come into force and effect on the Effective Date fixed as provided in the Loan Agreement. If, pursuant to Section 4 of Article X of the Loan Agreement, the Bank shall terminate the Loan Agreement, the Bank shall promptly notify the Guarantor thereof and upon the giving of such notice, this Agreement and all obligations of the parties hereunder shall forthwith cease and determine. SECTION 2. If and when the principal amount of the Loan and the interest and all other charges which shall have 12 accrued on the Loan and the Bonds shall have been paid, this Guarantee Agreement and all obligations of the Guar- antor hereunder shall forthwith terminate. IN WITNESS WHEREOF the parties hereto have caused this Agreement to be signed in their respective names by their representatives thereunto duly authorized as of the day and year first above written. UNITED MEXICAN STATES by NACIONAL FINANCIERA, S.A. AlfONSO CORTINA INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT by R. L. GARNER Vice President 13 ANNEX 1 INDENTURE OF GUARANTEE dated , 1950, between UNITED MEXICAN STATES (hereinafter called the Guarantor), party of the first part, and NATIONAL TRUST COMPANY, LIMITED, a corporation duly organized and ex- isting under the laws of the Province of Ontario, Canada, as trustee (hereinafter called the Trustee), party of the second part. WHEREAS The Mexican Light and Power Company, Lim- ited, a corporation duly organized and existing under the laws of the Dominion of Canada (bereinafter called the Company) and certain of its subsidiary companies have executed with the Trustee an Indenture dated as of Feb- ruary 1, 1950 (hereinafter called the Indenture), which In- denture provides, among other things, for the issuance, authentication and delivery of First Mortgage and Collat- eral Trust Bonds of Series B of the Company; and WHEREAS by a guarantee agreement (hereinafter called the Guarantee Agreement) dated , 1950, be- tween the Guarantor and International Bank for Recon- struction and Development (hereinafter called the Bank), a copy of which Guarantee Agreement has been lodged with the Trustee, the Guarantor has agreed, among other things, to guarantee the due and punctual payment of the principal of and the interest on all First Mortgage and Col- lateral Trust Bonds of Series B issued and authenticated under the Indenture and delivered to the Bank pursuant to an agreement (hereinafter called the Loan Agreement) dated , 1950, between the Bank and the Company, a copy of which Loan Agreement has been lodged with the Trustee; and WHEREAS by said Guarantee Agreement, the Guarantor has further agreed, among other things, to execute an in- denture of guarantee substantially in the form of this In- denture of Guarantee; 14 Now THEREFORE the parties hereto hereby agree as fol- lows: FIRST: Wherever used in this Indenture of Guarantee, unless the context shall otherwise require, the term First Mortgage and Collateral Trust Bonds or First Mortgage and Collateral Trust Bond means First Mortgage and Col- lateral Trust Bonds or a First Mortgage and Collateral Trust Bond of Series B issued and authenticated pursuant to the Indenture; and the term Guaranteed Bonds or Guar- anteed Bond means First Mortgage and Collateral Trust Bonds or a First Mortgage and Collateral Trust Bond of Series B entitled to the benefit of this Indenture of Guar- antee as in Article Ninth hereof provided. SECOND: Without limitation or restriction upon any of the other covenants on its part in this Indenture of Guar- antee contained, the Guarantor hereby unconditionally guarantees, as primary obligor and not as surety merely, the due and punctual payment of the principal of the Guar- anteed Bonds and the interest thereon, all as provided in the Loan Agreement, in the Guaranteed Bonds and in the In- denture. THIRD: The Guarantor hereby covenants as follows: Section 1. The principal of the Guaranteed Bonds, the interest accruing thereon, and the premium, if any, on the redemption thereof, as specified in the Loah Agreement, the Guaranteed Bonds and the Indenture, shall be paid with- out deduction for and shall be free from all taxes, imposts, levies and duties imposed by the Guarantor or by any tax- ing authority thereof or therein, including income taxes, and shall be paid free from all restrictions of the Guar- antor, its political subdivisions or its agencies. Section 2. This Indenture of Guarantee, the Indenture and the Guaranteed Bonds shall be free of any issue, 15 stamp or other tax imposed by the Guarantor or any tax- ing authority thereof or therein. FoURTH: If the Guarantor shall default in the perform- ance of any agreement on its part in the Guarantee Agree- ment contained and if the Bank, at its option, shall by notice to the Guarantor as provided in the Guarantee Agreement require that the Guarantor pay the principal amount of all the Guaranteed Bonds which shall then be outstanding and unpaid, and the interest accrued and un- paid thereon to the date of payment thereof, then forth- with upon the giving of such notice such principal and in- terest shall become immediately due and payable by the Guarantor and, in respect of any such Guaranteed Bond, shall be paid at the place designated in such Guaranteed Bond for the payment of principal thereof and interest thereon, upon surrender of such Guaranteed Bond at said place in appropriate form, together with all unpaid coupons (if any) appurtenant thereto; all as, and with such effect as, more fully set forth in the Guarantee Agreement. FIFTH: The Guarantor agrees that its obligations under any agreements on its part contained in this Indenture of Guarantee are not subject to any prior notice to, demand upon or action against the Company or to any prior notice to or demand upon the Guarantor with regard to any de- fault by the Company in respect of any obligations on its part contained in the Indenture or the Guaranteed Bonds and shall not be affected by any enforcement of any mort- gage, lien, priority or charge created by the Indenture or by any exercise or enforcement of any right or power thereby conferred. No extension of time or forbearance given to the Company in respect of the performance of any of its obligations under the Indenture or the Guaranteed Bonds, and no failure of any holder of such Bonds or of the Trustee under the Indenture to give any notice or to make any demand or protest whatsoever, or strictly to assert any right or pursue any remedy against the Company in 16 respect of the Indenture or such Bonds or to enforce any mortgage, lien, priority or charge created by the Inden- ture or otherwise, and no modification of the provisions of the Indenture in accordance with the terms thereof, and no failure of the Company to comply with any requirement of any law, regulation or order of the Guarantor or any of its political subdivisions or agencies, shall in any way terminate, diminish or limit the unconditional guarantee of the Guarantor hereunder, or any other obligation of the - Guarantor hereunder, it being the intent of the parties here- to that the obligations of the Guareator shall not be dis- charged except by performance and then only to the extent of such performance. SiXTH: The Guarantor agrees to endorse its guarantee hereunder upon (a) each First Mortgage and Collateral Trust Bond of Series B issued for delivery to the Bank pursuant to the Loan Agreement and (b) each First Mort- gage and Collateral Trust Bond of Series B issued in ex- change for, on transfer of or (subject to the provisions of Article Seventh hereof) in substitution for First Mortgage and Collateral Trust Bonds of Series B specified in clause (a) or clause (c) of this Article, and (c) each First Mort- gage and Collateral Trust Bond of Series B issued in ex- change for, on transfer of or (subject to the provisions of Article Seventh hereof) in substitution for First Mortgage and Collateral Trust Bonds of Series B specified in clause (b) of this Article. Such endorsement of guarantee shall be in substantially the following form: The United Mexican States, for value received, as primary obligor and not as surety merely, hereby ab- solutely and unconditionally guarantees to the holder of the within Bond, and pledges its full faith and credit for, the due and punctual payment of the principal 17 of said Bond, and the interest thereon, all in accordance with the provisions of the Indenture in said Bond men- tioned. In the event specified in Article Fourth of an Indenture of Guarantee dated February 1, 1950, be- tween the undersigned and National Trust Company, Limited, as Trustee, International Bank for Recon- struction and Development may require the under- signed forthwith to pay the principal of the within Bond, together with interest thereon accrued and un- paid to the date of payment, at the place specified in the Indenture for the payment of principal thereof and interest thereon, upon surrender of said Bond to the Guarantor at said place in negotiable form, together with all unpaid coupons (if any) appurtenant thereto; all in the manner and with the effect provided in said Indenture of Guarantee. UNITED MEXICAN STATES by Countersigned by Authorized Representative Such endorsement of guarantee shall be executed by Nacional Financiera, S. A., in the name and on behalf of the Guarantor with the facsimile signature of the Director General of Nacional Financiera, S. A., or any successor to any such Director General and shall be countersigned by the authorized representative of the Guarantor. In case any Director General of Nacional Financiera, S. A., or any such successor, whose facsimile signature shall be affixed to any 18 such endorsement of guarantee shall cease to be such Di- rector General, or such successor, before such endorsement shall have been authenticated as provided in Article Eighth of this Indenture of Guarantee, such endorsement may nevertheless be authenticated as provided in said Article Eighth as though such Director General or successor, whose facsimile signature was affixed to such endorsement, had not ceased to be such Director General or successor. In case any such authorized representative of the Guarantor who shall have countersigned any such endorsement shall cease to be such authorized representative of the Guarantor before such endorsement shall have been authenticated as provided in said Article Eighth, such endorsement may nevertheless be authenticated as provided in said Article Eighth as though such authorized representative who coun- tersigned such endorsement had not ceased to be such au- thorized representative of the Guarantor and any such en- dorsement may be so countersigned by any person who at the time of countersigning shall be the authorized represen- tative of the Guarantor although at the date of the Guar- anteed Bond bearing such endorsement such person may not have been such authorized representative of the Guarantor. The Guarantor shall furnish to the Trustee from time to time the names and sufficient evidence of the authority of each person by whose signature or facsimile signature such endorsement of guarantee is to be executed or counter- signed as aforesaid, together with the authenticated speci- men signature of each such person. SEVENTH: Whenever the Company shall execute a new First Mortgage and Collateral Trust Bond of Series B in substitution for a mutilated, lost, destroyed or stolen Guar- anteed Bond and its coupons, the Guarantor shall not be obligated to endorse its guarantee thereon unless and until the Guarantor shall be indemnified to its satisfaction. 19 EIGHTH: The Trustee shall authenticate the guarantee endorsed upon each First Mortgage and Collateral Trust Bond of Series B pursuant to Article Sixth hereof by coun- tersignature in substantially the following form: Countersigned for authentication: NATIoNAL TRUST COMPANY, LIMITED, As Trustee, by Authorized Officer provided, however, that the aggregate principal amount of such First Mortgage and Collateral Trust Bonds of Series B so authenticated outstanding at any time shall not ex- ceed $26,000,000 or the equivalent thereof in other cur- rencies determined as provided in the Loan Agreement, plus the amount of any Guaranteed Bonds issued in substi- tution for lost, destroyed, stolen or mutilated Guaranteed Bonds. The Trustee shall be entitled to rely upon a cer- tificate signed by the Chairman of the Board or the President or a Vice President and by the Secretary or an Assistant Secretary of the Company that any First Mort- gage and Collateral Trust Bond of Series B for which such countersignature is requested will be delivered to the Bank pursuant to the provisions of the Loan Agreement and the Trustee shall not be required, as a condition of executifi such countersignature, to satisfy itself otherwise than by such certificate that such First Mortgage and Collateral Trust Bond of Series B will be or has been so delivered. NINTH: All First Mortgage and Collateral Trust Bonds of Series B which shall have endorsed thereon the guar- antee of the Guarantor as provided in Article Sixth hereof authenticated as provided in Article Eighth hereof shall be entitled to the benefit of this Indenture of Guarantee; 20 and no other First Mortgage and Collateral Trust Bond of Series B shall be entitled to the benefit of this Indenture of Guarantee. TENTH: The Guarantor shall not be liable for any corn- pensation, charges, fees and expenses which the Trustee or any successor trustee from time to time in office under this Indenture of Guarantee shall make for or incur in the performance of its duties hereunder. ELEVENTH: All covenants and agreements on the part of the Guarantor herein contained are made for the benefit of the Trustee, as trustee of an express trust for the several holders from time to time of the Guaranteed Bonds, and for the benefit of such holders. Such covenants and agree- ments shall inure to the benefit of any successor of the Trustee. All covenants and agreements on the part of the Trustee herein contained shall be binding upon any suc- cessor of the Trustee. Any successor trustee duly acting as such under the terms of the Indenture shall be deemed to be a successor of the Trustee under the provisions of this Indenture of Guarantee. IN WITNESS WHEREOI, the Guarantor has caused this In- denture of Guarantee to be signed by its representative thereunto duly authorized, and the Trustee has caused this Indenture of Guarantee to be executed by its corporate officers thereunto duly authorized and. its corporate seal to be thereunto affixed and attested, as of-the day and year first above written. UNIrED MEXICAN STATES by NATIONAL TRUST COMPANY, LIMITED by