India - Third Industrial Credit And Investment Project : Loan 0269 - Loan Agreement - Conformed

LOAN NUMBER 269 IN Loan Agreement (Third Industrial Credit and Investment Project) BETWEEN INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT AND THE INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA LIMITED DATED OCTOBER 28, 1960 LOAN NUMBER 269 IN Loan Agreement (Third Industrial Credit and Investment Project) BETWEEN INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT AND THE INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA LIMITED DATED OCTOBER 28, 1960 AGREEMENT, dated October 28, 1960, between INTER- NATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (hereinafter called the Bank) and THE INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA LIMITED, a company duly incorporated under the Indian Companies Act, VII of 1913 (hereinafter called the Borrower). WHEREAS by a loan agreement (Industrial Credit and In- vestment Project) dated March 14, 1955 between the Bank and the Borrower (hereinafter called the First Loan Agree- ment), the Bank made a loan to the Borrower in an amount in various currencies equivalent to ten million dollars ($10,000,000) to finance part of the Borrower's program of providing credits to, and making other productive invest- ments in, private enterprises in India; WHEREAS by a loan agreement (Second Industrial Credit and Investment Project) dated July 15, 1959 between the Bank and the Borrower (hereinafter called the Second Loan Agreement), the Bank made a loan to the Borrower in an amount in various currencies equivalent to ten mil- lion dollars ($10,000,000) to assist in the continuation of said program; and WHEREAS the Borrower has requested the Bank to make a further loan for said program; Now THEREFORE the parties hereto hereby agree as fol- lows: ARTICLE I Loan Regulations; Special Definitions SECTION 1.01. The parties to this Loan Agreement ac- cept all the provisions of Loan Regulations No. 4 of the 4 Bank dated June 15, 1956, subject, however, to the modifi- cations thereof set forth in Schedule 2 to this Agreement (said Loan Regulations No. 4 as so modified being here- inafter called the Loan Regulations), with the same force and effect as if they were fully set forth herein. SECTION 1.02. Wherever used in this Loan Agreement, unless the context shall otherwise require, the following terms shall have the following meanings: 1. The term "rupees" and the symbol "Rs." shall mean rupees in the currency of India. 2. The term "subsidiary" shall mean a subsidiary of the Borrower within the meaning of the Indian Companies Act, 1956. 3. The term "Investment Enterprise" shall mean an en- terprise to which the Borrower shall have granted a credit, or in which it shall have made an investment, in accord- ance with and as provided in Section 3.01 of this Agree- ment. 4. The term "Investment Project" shall mean a specific development project to be carried out by an Investment Enterprise as shall be approved in writing by the Bank or in respect of which amounts shall have been credited to the Loan Account pursuant to the provisions of Section 2.02 (b) of this Agreement. 5. The term "First Government Agreement" shall mean the agreement dated January 29, 1955 between the Guar- antor and the Borrower providing for an advance by the Guarantor to the Borrower in the amount of seventy-five million rupees (Rs. 75,000,000), and shall include such changes in said. agreement as may from time to time be agreed by the parties thereto and the Bank. 6. The term "Second Government Agreement" shall mean the agreement dated October 26, 1959 between the Guarantor and the Borrower providing for a loan by the Guarantor to the Borrower in the amount of one hundred 5 million rupees (Rs. 100,000,000), and shall include such changes in said agreement as may from time to time be agreed by the parties thereto and the Bank. Words importing the singular number include the plural number and vice versa. ARTICLE II The Loan SECTION 2.01. The Bank agrees to lend to the Borrower, on the terms and conditions in this Agreement set forth or referred to, an amount in various currencies equivalent to twenty million dollars ($20,000,000). SECTION 2.02. The Bank shall open a Loan Account on its books in the name of the Borrower. The amount of the Loan shall be credited to the Loan Account in instalments as follows: (a) When any Investment Project shall be approved by the Bank as in Section 3.02 of this Agreement provided, there shall be so credited such amount as the Borrower shall request but not in excess of the estimated foreign cur- rency cost thereof as approved by the Bank. Except as the Bank and the Borrower shall otherwise agree, no amount shall be credited to the Loan Account pursuant to this para- graph (a) for any Investment Project in respect of which any amount has been credited or withdrawn pursuant to paragraph (b) of this Section. (b) There shall be so credited, in respect of the estimated foreign currency cost of any Investment Project, such amounts as the Borrower shall from time to time request, but not exceeding, with respect to any Investment Project or in the aggregate, such limits as shall from time to time be agreed by the Bank. Each request by the Borrower for credit to the Loan Account pursuant to this paragraph (b) shall state the Investment Project for which the amount to be credited is requested. No credit shall be made to the 6 Loan Account, and no withdrawal shall be made therefrom, pursuant to this paragraph (b) for any Investment Proj- ect in respect of which a credit has been made pursuant to paragraph (a) of this Section. (c) The Loan Account may, by agreement between the Bank and the Borrower, be reduced by any amount credited thereto pursuant to paragraph (a) or paragraph (b) of this Section. No such reduction shall be deemed ipso facto to be a cancellation of any part of the Loan. SECTION 2.03. Amounts credited to the Loan Account in respect of an Investment Project may be withdrawn from the Loan Account as provided in, and subject to the rights of cancellation and suspension set forth in, the Loan Regu- lations and this Agreement, and shall be applied exclu- sively for credits for, or investments in, the Investment Project in respect of which such amounts were credited to the Loan Account. SECTION 2.04. The Borrower shall pay to the Bank a commitment charge at the rate of three-fourths of one per cent (% of 1%) per annum on the amount of each part of the Loan standing to the credit of the Borrower from time to time in the Loan Account. Such commitment charge shall accrue from the several dates on which amounts shall be credited to the Loan Account, or from such other date or dates as shall have been agreed upon between the Bank and the Borrower, to the respective dates on which (a) they are withdrawn from the Loan Account or are cancelled pursuant to Article V of the Loan Regulations or (b) the Loan Account is reduced in respect of such amounts pur- suant to the provisions of Section 2.02 (c) of this Agree- ment. SECTION 2.05. The Borrower shall pay interest on the principal amount of each part of the Loan withdrawn from the Loan Account and outstanding from time to time at such rate as shall have been notified by the Bank to the 7 Borrower at the time when such part of the principal amount of the Loan was credited to the Loan Account, or at such other time or times as shall have been agreed upon between the Bank and the Borrower, as being the rate then generally applicable to new Bank loans of the same ma- turity. Interest shall accrue from the respective dates on which amounts shall be so withdrawn. SECTION 2.06. Except as the Bank and the Borrower shall otherwise agree, the charge payable for special com- mitments entered into by the Bank at the request of the Borrower pursuant to Section 4.02 of the Loan Regulations shall be at the rate of one-half of one per cent (1/2 of 1%0) per annum on the principal amount of any such special com- mitments outstanding from time to time. SECTION 2.07. Interest and other charges shall be pay- able semi-annually on May 1 and November 1 in each year. SECTION 2.08. (a) The Borrower shall repay the principal amount of the Loan in accordance with the amortization schedule set forth in Schedule 1 to this Agreement; pro- vided, however, that the Bank and the Borrower may agree, at the time when an amount is credited to the Loan Account, to extend the amortization schedule for not more than four years in respect of the amount so credited to the Loan Ac- count. (b) Each payment of principal shall be applied pro rata to the several parts of the Loan then outstanding. ARTICLE III Description of the Project; Use of Proceeds of the Loan SECTION 3.01. The Project for which the Loan is granted is a program to contribute to the industrial development of India by providing credits for productive purposes to enterprises in India which are or will be controlled by pri- vate capital, and by making other productive investments 8 in such enterprises, all for specific development projects, in accordance with the Memorandum and Articles of Associa- tion of the Borrower, as amended from time to time, and in furtherance of the corporate purposes of the Borrower as therein set forth. SECTION 3.02. The proceeds of the Loan shall be applied exclusively to the cost of goods required to carry out such Investment Projects as shall from time to time be approved in writing by the Bank or in respect of which amounts have been credited to the Loan Account pursuant to the provi- sions of Section 2.02 (b) of this Agreement. Notwithstand- ing the provisions of Section 4.01 of the Loan Regulations, except as the Bank and the Borrower shall otherwise agree, no withdrawals shall be made on account of expenditures made for any such Investment Project more than ninety days prior to the submission of the Investment Project to the Bank for approval or, in the case of credits to the Loan Account pursuant to the provisions of Section 2.02 (b) of this Agreement, more than ninety days prior to the re- quest for credit to the Loan Account. SECTION 3.03. (a) When submitting an Investment Proj- ect to the Bank for approval, the Borrower shall furnish to the Bank an application, in form satisfactory to the Bank, containing a description of such Investment Project and such other information as the Bank shall reasonably re- quest. (b) Whenever the Borrower shall have requested an amount to be credited to the Loan Account in respect of an Investment Project pursuant to the provisions of Section 2.02 (b) of this Agreement, the Borrower shall submit to the Bank, within thirty days from the date on which such amount was credited to the Loan Account, a brief descrip- tion, in form satisfactory to the Bank, of such Invest- ment Project and of the terms and conditions upon which credit has been granted by the Borrower for such Invest- ment Project in respect of the amount so credited to the Loan Account. 9 (c) Except as the Bank and the Borrower shall other- wise agree, requests for approval of Investment Projects pursuant to the provisions of Section 2.02 (a) of this Agree- ment and for credits to the Loan Account pursuant to the provisions of Section 2.02 (b) of this Agreement shall be submitted on or before December 31, 1962. ARTICLE IV Bonds SECTION 4.01. The Borrower shall execute and deliver Bonds representing the principal amount of each part of the Loan as provided in the Loan Regulations. SECTION 4.02. Any two Directors for the time being of the Borrower are hereby designated as authorized repre- sentatives of the Borrower for the purposes of Section 6.12 (a) of the Loan Regulations. The foregoing shall be in ad- dition to any other designation by the Borrower for such * purpose. ARTICLE V Particular Covenants SECTION 5.01. The Borrower shall carry out the Project and conduct its operations and affairs in accordance with sound financial and investment standards and practices, un- der the supervision of qualified and experienced manage- ment and in accordance with its Memorandum and Articles of Association, as amended from time to time. SECTION 5.02. (a) The Borrower shall exercise its rights in relation to each Investment Project financed in whole or in part out of the proceeds of the Loan in such manner as to protect the interests of the Bank and the Borrower. (b) The Borrower undertakes that any credit granted by it to, or other investment made by it in, an Investment Enterprise for an Investment Project to be financed out of the proceeds of the Loan will be granted or made on terms whereby the Borrower shall obtaiii, by the written agree- ment of such Investment Enterprise or other appropriate 10 legal means, rights adequate to protect the interests of the Bank and the Borrower, including the right to require such Investment Enterprise to carry out and operate the In- vestment Project with due diligence and efficiency and in accordance with sound engineering and financial standards, including the maintenance of adequate records; the right to require that the goods to be financed with the proceeds of the Loan shall be used exclusively in the carrying out of such Investment Project; the right of the Bank and the Borrower to inspect such goods and the sites, works and construction included in such Investment Project, the oper- ation thereof and any relevant records and documents; the right to require that such Investment Enterprise shall take out and maintain such insurance, against such risks and in such amounts, as shall be consistent with sound business practice, and that, except as the Bank may otherwise agree, insurance covering marine and transit hazards on the goods financed out of the proceeds of the Loan shall be payable in dollars or in the currency in which the cost of the goods insured thereunder shall be payable; and the right to ob- tain all such information as the Bank and the Borrower shall reasonably request relating to the foregoing and to the financial condition and operations of such Investment Enterprise. Such rights shall include appropriate provi- sion whereby further access by such enterprise to use of the proceeds of the Loan may be suspended or terminated by the Borrower upon failure by such Investment Enter- prise to carry out the terms of such credit or other invest- ment. SECTIoN 5.03. (a) The Borrower shall furnish to the Bank all such information as the Bank shall reasonably request concerning the expenditure of the proceeds of the Loan, the Project, the Investment Enterprises, the Investment Projects and the financial condition and operations of the Borrower. (b) The Borrower shall maintain records adequate to record the progress of the Project and of each Investment Project (including the cost thereof) and to reflect in ac- 11 cordance with consistently maintained sound accounting practices the financial condition and operations of the Bor- rower. The Borrower shall enable the Bank's representa- tives to examine such records. SECTION 5.04. (a) The Bank and the Borrower shall co- operate fully to assure that the purposes of the Loan will be accomplished. To that end, each of them shall furnish to the other all such information as it shall reasonably re- quest with regard to the general status of the Loan. (b) The Bank and the Borrower shall from time to time exchange views through their representatives with regard to matters relating to the purposes of the Loan and the maintenance of the service thereof. The Borrower shall promptly inform the Bank of any condition of substantial importance which interferes with, or threatens to interfere with, the accomplishment of the purposes of the Loan or * the maintenance of the service thereof. SECTION 5.05. The Borrower undertakes that, except as the Bank shall otherwise agree, if any lien shall be created on any assets of the Borrower as security for any debt, such lien will ipso facto equally and ratably secure the payment of the principal of, and interest and other charges on, the Loan and the Bonds, and that in the creation of any such lien express provision will be made to that effect; provided, however, that the foregoing provisions of this Section shall not apply to: (i) any lien created on property, at the time of purchase thereof, solely as security for the payment of the purchase price of such property; (ii) any lien on c6m- mercial goods to secure a debt maturing not more than one year after the date on which it is originally incurred and to be paid out of the proceeds of sale of such commercial goods; or (iii) any lien arising in the ordinary course of banking transactions to secure a debt maturing not more than one year after its date. 12 SECTION 5.06. The Borrower shall pay or cause to be paid all taxes (including duties, fees or impositions), if any, imposed under the laws of the Guarantor or laws in effect in its territories on or in connection with the execution, issue, delivery or registration of this Loan Agreement, the Guarantee Agreement or the Bonds, or the payment of prin- cipal, interest or other charges thereunder; provided, how- ever, that the provisions of this Section shall not apply to taxes (including duties, fees or impositions) on payments under any Bond to a holder thereof other than the Bank when such Bond is beneficially owned by an individual or corporate resident of India. SECTIoN 5.07. The Borrower shall pay or cause to be paid all taxes (including duties, fees and impositions), if any, imposed under the laws of the country or countries in whose currency the Loan and the Bonds are payable or laws in effect in the territories of such country or countries on or in connection with the execution, issue, delivery or registra- tion of this Loan Agreement, the Guarantee Agreement or the Bonds. SECTION 5.08. The Borrower shall not amend its Memo- randum or Articles of Association or abrogate, waive, or amend, or agree to the amendment of any provision of the First Government Agreement or the Second Government Agreement without the approval of the Bank. SECTION 5.09. Without the approval of the Bank no pay- ment shall be made to the Guarantor in respect of the ad- vance under the First Government Agreement or of the loan under the Second Government Agreement, except at the times and in the amounts therein provided. SECTION 5.10. The Borrower shall procure that each of its subsidiaries (if any) shall observe and perform the obligations of the Borrower hereunder to the extent to which the same may be applicable thereto as though such obligations were binding upon each of such subsidiaries. 13 SECTION 5.11. The Borrower shall duly perform all obli- gations to be performed by it under the First Government Agreement and the Second Government Agreement. ARTICLE VI Remedies of the Bank SECTION 6.01. (i) If any event specified in paragraph (a), paragraph (b), paragraph (e), paragraph (f) or para- graph (j) of Section 5.02 of the Loan Regulations shall occur and shall continue for a period of thirty days, or (ii) if any event specified in paragraph (c) of Section 5.02 of the Loan Regulations shall occur and shall continue for a period of sixty days after notice thereof shall have been given by the Bank to the Borrower, then at any subsequent time during the continuance thereof, the Bank, at its op- tion, may declare the principal of the Loan and of all the Bonds then outstanding to be due and payable immediately, and upon any such declaration such principal shall become due and payable immediately, anything in this Agreement or in the Bonds to the contrary notwithstanding. ARTICLE VII Modifications of First Loan Agreement and Second Loan Agreement SECTION 7.01. For the purposes of the First Loan Agree- ment, paragraph (c) of Section 5.02 of Loan Regulations No. 4 of the Bank, dated October 15, 1952, is hereby amended to read as follows: " (c) A default shall have occurred in the performance of any other covenant or agreement on the part of the Borrower or the Guarantor under (i) the Loan Agree- ment, the Guarantee Agreement or the Bonds; or (ii) the loan agreement dated July 15, 1959, between the Bank and the Borrower, the guarantee agreement of even date therewith between the Guarantor and the Bank or the bonds therein provided for; or (iii) the 14 loan agreement dated October 28, 1960, between the Bank and the Borrower, the guarantee agreement of even date therewith between the Guarantor and the Bank or the bonds therein provided for." and the term "Loan Regulations" as used for the purposes of the First Loan Agreement shall mean Loan Regulationsi No. 4 of the Bank, dated October 15, 1952, as modified by Schedule 2 to the First Loan Agreement and as further amended hereby. SECTION 7.02. For the purposes of the Second Loan Agreement, paragraph (c) of Section 5.02 of Loan Regula- tions No. 4 of the Bank, dated June 15, 1956, is hereby amended to read as follows: " (c) A default shall have occurred in the perform- ance of any other covenant or agreement on the part of the Borrower or the Guarantor under (i) the Loan Agreement, the Guarantee Agreement or the Bonds; or (ii) the loan agreement dated March 14, 1955, be- tween the Bank and the Borrower, the guarantee agree- ment of even date therewith between the Guarantor and the Bank or the bonds therein provided for; or (iii) the loan agreement dated October 28, 1960, between the Bank and the Borrower, the guarantee agreement of even date therewith between the Guarantor and the Bank or the bonds therein provided for." and the term "Loan Regulations" as used for the purposes of the Second Loan Agreement shall mean Loan Regula- tions No. 4 of the Bank, dated June 15, 1956, as modified by Schedule 2 to the Second Loan Agreement and as further amended hereby. ARTICLE VIII Miscellaneous SECTION 8.01. The Closing Date shall be October 31, 1963. 15 SECTION 8.02. A date ninety days after the date of this agreement is hereby specified for the purposes of Section 9.04 of the Loan Regulations. SECTION 8.03. The following addresses are specified for the purposes of Section 8.01 of the Loan Regulations: For the Bank: International Bank for Reconstruction and Development 1818 H Street, N.W. Washington 25, D. C. United States of America Alternative address for cablegrams and radiograms: Intbafrad Washington, D. C. For the Borrower: The Industrial Credit and Investment Corporation of India Limited 163, Backbay Reclamation Bombay 1 India Alternative address for cablegrams and radiograms: Credcorp Bombay IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Loan Agreement to be signed in their respective 16 names and delivered in the District of Columbia, United States of America, as of the day and year first above writ- ten. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By EUGENE R. BLACK President THE INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA LIMITED By H. T. PAREKH Authorized Representative 17 SCHEDULE 1 Amortization Schedule Payment of Principal Date Payment Due (expressed in dollars)* November 1, 1963 $1,085,000 May 1, 1964 1,116,000 November 1, 1964 1,149,000 May 1, 1965 1,182,000 November 1, 1965 1,216,000 May 1, 1966 1,250,000 November 1, 1966 1,286,000 May 1, 1967 1,323,000 November 1, 1967 1,361,000 May 1, 1968 1,401,000 November 1, 1968 1,441,000 May 1, 1969 1,482,000 November 1, 1969 1,525,000 May 1, 1970 1,569,000 November 1, 1970 1,614,000 * To the extent that any portion of the Loan is repayable in a currency other than dollars (see Loan Regulations, Section 3.02), the figures in this column represent dollar equivalents determined as for purposes of withdrawal. 18 Premiums on Prepayment and Redemption The following percentages are specified as the premiums payable on repayment in advance of maturity of any por- tion of the principal amount of the Loan pursuant to Sec- tion 2.05 (b) of the Loan Regulations or on the redemption of any Bond prior to its maturity pursuant to Section 6.16 of the Loan Regulations: Time of Prepayment or Redemption Premium Not more than two years before maturity of 1% More than two years but not more than four years before maturity .......... 2% More than four years but not more than six years before maturity .......... 3 % More than six years but not more than eight years before maturity ........ .4%% More than eight years before maturity. . 5%% 19 SCHEDULE 2 Modifications of Loan Regulations No. 4 For the purposes of this Agreement the provisions of Loan Regulations No. 4 of the Bank, dated June 15, 1956, shall be deemed to be modified as follows: (a) Sections 2.01, 2.02 and 2.03 and paragraph (a) of Section 2.05 are deleted. (b) Paragraph (b) of Section 2.05 and Sections 3.02, 3.03 and 3.05 are amended by substituting for the word "part", wherever it occurs, the word "portion". (c) Paragraph (b) of Section 2.05 is further amended by substituting for the words "said amortization schedule" the words "the amortization schedule to the Loan Agree- ment". (d) The following new paragraph is added as paragraph (d) of Section 2.05: " (d) The Bank and the Borrower may from time to time agree upon arrangements for prepayment and the application thereof in addition to, or in substitu- tion for, those set forth in the provisions of paragraph (b) of this Section and of Section 6.16." (e) Section 5.01 is amended to read as follows: " Section 5.01. Cancellation by the Borrower. The Borrrower may by notice to the Bank (i) cancel all or any portion of the Loan which shall not have been credited to the Loan Account, or (ii) cancel all or any portion of any part or parts of the Loan which shall have been credited to the Loan Account and which the Borrower shall not have withdrawn prior to the giving of such notice." 20 (f) The first five lines of Section 5.02 are amended to read as follows: "Section 5.02. Suspension by the Bank. If any of the following events shall have happened and be continu- ing, the Bank may at any time or from time to time by notice to the Borrower suspend in whole or in part the right of the Borrower to make withdrawals from the Loan Account:" (g) Paragraph (c) of Section 5.02 is amended to read as follows: " (c) A default shall have occurred in the performance of any other covenant or agreement on the part of the Borrower or the,Guarantor under (i) the Loan Agree- ment, the Guarantee. Agreement or the Bonds; or (ii) the First Loan Agreement, the guarantee agreement of even date therewith between the Guarantor and the Bank or the bonds therein provided for; or (iii) the Second Loan Agreement, the guarantee agreement of even date therewith between the Guarantor and the Bank or the bonds therein provided for." (h) Paragraph (j) of Section 5.02 is amended to read as follows: " (j) The advance provided for in the First Govern- ment Agreement shall have become repayable pursuant to the provisions of Clause 7 thereof, or the loan pro- vided for in the Second Government Agreement shall have become repayable pursuant to the provisions of Clause 9 thereof, or otherwise prior to the agreed matu- rity thereof, or an order is made or a resolution passed for the winding up of the Borrower." (i) The last paragraph of Section 5.02 is amended to read as follows: "The right of the Borrower to make withdrawals from the Loan Account shall continue to be suspended in 21 whole or in part, as the case may be, until the event or events which gave rise to such suspension shall have ceased to exist or until the Bank shall have notified the Borrower that the right to make withdrawals has been restored, whichever is the earlier; provided, how- ever, that in the case of any such notice of restoration, the right to make withdrawals shall be restored only to the extent and subject to the conditions specified in such notice, and no such notice shall affect or impair any right, power or remedy of the Bank in respect of any other or subsequent event described in this Section." (j) Section 5.03 is amended to read as follows: "Section 5.03. Cancellation by the Bank. (a) If any of the events described in Section 5.02 shall have happened and be continuing the Bank may by notice to the Borrower (i) cancel all or any portion of the Loan which shall not have been credited to the Loan Account, or (ii) cancel all or any portion of any part or parts of the Loan which shall have been credited to the Loan Account and which the Borrower shall not have withdrawn prior to the giving of such notice. (b) If the Borrower shall not at the Closing Date have withdrawn the full amount of the Loan, the Bank may by notice to the Borrower cancel the amount of the Loan not withdrawn." (k) Section 6.01 is amended by inserting the words "of each part" after the word "amount". (1) Section 6.02 is amended by substituting for the words "the Loan", wherever they occur, the words "the part of the Loan represented by such Bonds". (m) Section 6.04 is amended to read as follows: "Section 6.04. Interest on Bonds; Service Charge. Each Bond shall bear interest at such rate as the Bank 0 22 shall request, not in excess, however, of the rate of interest on the part of the Loan in respect of which such Bond has been issued. If the rate of interest on any Bond shall be less than the rate of interest on the part of the Loan in respect of which such Bond has been issued, the Borrower shall, in addition to the inter- est payable on such Bond, pay to the Bank a service charge on the principal amount of such part of the Loan at a rate equal to the difference between the interest rate on such part of the Loan and the interest rate on such Bond. Such service charge shall be pay- able on the dates on which and in the currency in which such interest is payable." (n) Section 6.05 is amended to read as follows: "Section 6.05. Currency in Which Bonds are Payable. Bonds shall be payable as to principal and interest in the several currencies in which the part of the Loan represented by such Bonds is repayable. Each Bond delivered pursuant to any request under Section 6.03 shall be payable in such currency as the Bank shall specify in such request except that the aggregate prin- cipal amount of Bonds representing a part of the Loan and payable in any currency shall at no time exceed the outstanding amount of such part of the Loan repay- able in such currency." (o) The last sentence of Section 6.09 is amended by subsituting for the words "of the Loan represented by such Bonds" the words "of the part of the Loan in respect of which such Bonds have been issued". (p) The first sentence of paragraph (a) of Section 6.11 is amended to read as follows: " (a) Bonds issued in respect of a part of the Loan and bearing interest at one rate may be exchanged for Bonds bearing interest at any other rate not in excess of the rate of interest on such part of the Loan." 23 (q) Paragraph (b) of Section 6.16 is amended to read as follows: " (b) If any Bond so to be redeemed shall bear interest at a rate less than the rate of interest on the part of the Loan in respect of which it is issued, the Borrower shall pay to the Bank on the date fixed for redemption the service charge provided for in Section 6.04 accrued and unpaid to such date on the principal amount of the part of the Loan represented by such Bond." (r) The following words in the fourth and fifth lines of paragraph (c) of Section 7.04 shall be deleted, that is to say: "or, if they shall not agree, by the Guarantor (s) Section 9.03 is amended to read as follows: "Section 9.03. Effective Date. Nothwithstanding the provisions of Section 8.01 and except as shall be other- wise agreed by the Bank and the Borrower, the Loan Agreement and the Guarantee Agreement shall come into force and effect on the date upon which the Bank dispatches to the Borrower and to the Guarantor notice of its acceptance of the evidence required by Section 9.01.1" (t) Paragraph 4 of Section 10.01 is amended to read as follows: "4. The term 'Loan' means the loan provided for in the Loan Agreement; and the term 'part of the Loan' means the portion of the Loan credited to the Loan Account in respect of an Investment Project." (u) Paragraph 6 of Section 10.01 is amended to read as follows: "6. The term 'Borrower' means The Industrial Credit and Investment Corporation of India Limited; and the term ' Guarantor' means India, acting by its Presi- dent." 0 24 (v) Paragraph 11 of Section 10.01 is amended to read as follows: "11. The term 'Loan Account' means the account on the books of the Bank to which the amount of each part of the Loan is to be credited as provided in the Loan Agreement." (w) Paragraph 12 of Section 10.01 is amended to read as follows: "12. The term 'Project' means the project for which the Loan is granted, as described in Section 3.01 of the Loan Agreeme-nt and as the description thereof shall be amended from time to time by agreement between the Bank and the Borrower." (x) The first sentence of paragraph 13 of Section 10.01 is amended to reads as follows: "The term 'goods' means equipment, supplies and services required for Investment Projects financed out of the proceeds of the Loan." (y) Paragraph 14 of Section 10.01 is amended to read as follows: "14. The term 'external debt' means any debt payable in any medium other than currency of the Guarantor, whether such debt is or may become payable absolutely or at the option of the creditor in such other medium." 0