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Loan NO 513-T-065
THE INSTITUTE FOR THE FINANCING OF COOPERATIVES, THE REPUBLIC OF CHILE and THE UNITED STATES OF AMERICA for AGRICULTURAL COOPERATIVE DEVELOPMENT
LOAN AGREEMENT dated
,airong the (IFICOOP 1,tda.
Institute for the Financing of Cooperatives, ("Borrower"), and the
the Government of the Republic of Chile ("Cover,rl-nt") States of America, acting through the Age:.,-y for
International Development ("A. I. D.").
ARTICLE I The Loan
SECTION 1. 01. The Loan. A. I. D. agrees to lend to :he
Borrower in furtherance of the Alliance for Progress and P'J.ua:t to the Foreign Assistance Act of 1961, as anended, an amount no! to exceed fifteen million United States dollars (US$ 15,000,000) ("Loan") to assist the Borrower in carrying out the Project refer-red to in Section 1. 02 ("Project"). The Loan shall be used xchLui.vel to finance United States dollar costs of goods and service, equired for the Project ("Dollar Costs") and the local currency costs of goods and services required for the Project ("Local Currency Costs"). The aggregate amount of disbursements under the Loan is herein.fter referred to as "Principal".
SECTION 1. 02..
The Project will assist the
Government in its program to increase food production by providing funds to the Borrower for technical assistance, feasibility studies, equipment, and relending to agricultural, fishing and other
The Project is more
fully described in Annex I attached hereto, which annex may be modified in writing by mutual
of the Borrower and A.I.D.
Loan Terms SECTION 2.01. Payment Obliations of Borrover. The
obligation of the Borrower to make payments of interest and
Principal hereunder shall be stated in terrn:s of
dollars. (a) Interest. The Borrower shall pay to Government
interest which shall accrue at the rate of two percent (2%) per annum for ten (10) years following the date of the first dis bursement hereunder and at the rate of three percent (3%) per annum thereafter on the outstanding balance of Principal and on any due and unpaid interest. Interest on the outstanding
balance of Principal shall accrue from the date of each
-3 respective disbursement (as such date is defined in Section 7.0-1), and shall be computed on the basis oi a 365-day year. shall be payable semiannually. Intcre st
The first payment of interest
shall be due and payable no later than
six (6) months after the first disbur.sement hereunder, (b) on a date to be specified by A.I.D. The Borrower shall repay to (25) years from the
Repayment of Principal.
Governmnent the Principal within twentyfive
date of the first disbursement hereunder in thirtyone (31)
approximately equal installments
of Principal and interest. The
first installment of Principal shall be payable nine and one-.aif
(9-1/2) years after the date on
which the first interest pay:n-nt
is due in accordance with sub-section 2.01(a) hereof. A.I.D.
the Borrower and Government with an amortization
schedule in accordance with this sub-section after the final
bursement under the Loan.
(c) Application Currency and Place of Payment. All
payments of interest and Principal by Borrower under this Agree ment shall be made in the currency of Chile and shall be applied first to the payment of interest due and then to the repayment of Principal. All such payments shall be made to Government with
notice to A. I. D. and at, such place as Government may designate.
oun-ts due from Borrower to Government shall be determined by applying that rate of exchange between the currency of Chile and United States dollars which is applicable at the time of payment in accordance with the paymert plan presented to A. consistent with the goals as shall be agreed upon by Government or its designee and A. I.D. of the Alliance for Progress. (e) Rate of Exchang .D.D. currency of Chile of the United States dollar an. D. as such plan may be modified in writing from time Lo time with the approval of A.I.-4 (d) Use of Borrower's Payments. may otherwise agree in writing.I.I. pursuant to subsection 3.D. the payments required from the Borrower The equivalent in the will be stated in United States dollars. . 01(f) of this Agreement. pursuant to this Agreement and (ii) for such purposes beneficial to the economic and social development of the Republic of Chile. Except as A. Although Borrower is obligated to make all payments of interest and Principal to Government in the currency of Chile. payments from Borrower made pursuant to this Section shall be credited to a separate account and may be drawn upon by C-overnment (i) for the purpose of meetig payment obligations to A.I.
04) and shall be computed on the basis of a 365-day year. interest which shall accrue at the rate of two percent (2%. D. due and punctual payment in United States dollars of the Principal of and the interest on this Loan.ately equal The first of Principal and interest.02. I. Government shall repay to A. per annun thereafter on a1l Interest on the outstanding balance of Principal shall accrue from the date of each respective disburse ment (as such date is defined in Section 7. D. Government shall pay to A.. I. payable semiannually. I. installment of Principal shall be payable nine and one half 9-1/2 years after the date on which the first interest payment . (b) Repayment. (a) Interest. Government hereby unconditionally and absolutely undertakes to make to A. in accordance with the terms of this Agrecmnent. Payment Obligations of Government. Interest shall be The first payment of interest shall be due and payable no later than six (6) months after the first dis bursement hereunder. the Principal within forty (40) years from the date of the first disbursement hereunder in sixtyone (61) semiannual installments approxim. on a date to be specified by A.I.D.-5- SECTION 2.) per annum for ten years followving the date of the first disbursement hereunder and at the rate of three percent (3%o) outstanding balances. D.
Principal and refunds then due. in writing. SECTION 2. D. Attention International Development.02(a) hereof. In the light of the undertakings and the other signatories of the Act of BogotA and the Charter of Punta del Este to forge an Alliance for Progress. of the United States of America. D.04. an acceleration of the payments required from it .. Cashier SA 12.D. without any other charges. the Borrower or Government may all or any part of the prepay.vhen receivcd by the Cashier. Renegotiation of the Terms of the Loan. All payments of interest and Principal by Government under this Agreement shall be made in United States dollars and shall be applied first Lo the payment of interest due and then to the repayment of Principal. may request. .I.D.I. shall provide Government and Borrower with an amortization schedule in accordance with this subsection after the final disbursement under the Loan.-6 is due in accordance with subsection 2 .03. Government agrees to negotiate with A. at such time or times as A. Office of the and shall be deemed made . 20523. may otherwise specify all such payments shall be made to the Agency for Washington.I. Currency and Place of Payment. (c) Application. SECTION 2. Upon paymnent of all interest.D. Principal in the inverse order of their maturity. Prepayment. I. A. C. Except as A.
(b) A statement of the name of the persons holding or acting in the offices of the Borrower and Government specified in Section 9. the Borrower shall present to A. . taking into consideration the relative capital requirements of Chile and of the other signatories of the Act of Bogota and the Charter of Punta del Este. D. Conditions Precedent to Initial Disbursement. ARTICLE III Conditions Precedent to Disbursement SECTION 3. Borrower and Government and that it constitutes a valid and legally binding obligation of the Borrower and Government in accordance with all of its terms. authorized and/or ratified by and executed on behalf of. D. I. 01. in form and substance satisfactory to A.D. I.-7 pursuant to this Agreement in the event that there is any significant improvement in the internal and external economic and financial position and prospects of Chile. Prior to the first disbursement or to the issuance of any comi-nitment documents under the Loan.02 and specimen signatures of the persons specified in that statement appropriatel~r certified as to their authenticity.: (a) An opinion of the Minister of Justice of Chile or other that this agreernet has been duly the counsel acceptable to A. I.
include. a time-phased staffing plan for the first year of the Project.02.. and (f) A payment plan agreed upon by the Borrover and Government setting forth the method by which Borrov. 000. evidence that Borrower has .I.aki feasibility studies undc-r the Project.01 SECTION 3. (d) Guidelines for contract formats to be used in . A detailed Loan implementation plan which shall.2 Other than Technical Assistance. interest rates and readjustment formulae applicable to subloans to be made with Loan funds. rules. 000) of the Loan.D. Borrower shall present to A. and plans for identifying subprojects and furnishing technical assistance to sub borrowers. fcr Conditions Precedent to Disbjrse. Prior to the first disbursement or the issuance of any commitment documents under the Loan or any purpose other than to finance costs of technical assistance. regulations.n.er will meet its payment obligations to Government in the currency o! Chile pursuant to Section 2.-8 (c) inter alia. of this Agreement. (e) Evidence oi arrangements with Government to permit Borrower to capitalize up to five million dollars ($ 5. criteria for eligibility of subloans to be made with Loan funds.
D. may agree to in writing. at its option.I. D. I.I. SECTION 3. (b) IY all the conditions specified in Section 3. I. I. SECTION 3.. A. may terminate this Agreement by giving written notice to the Borrower and Government. at its option. Terminal Dates for Meeting Condtio-s Precedent to Disbursement.D. or by such later date as A. (a) If all of the conditions specified in Section 3. Upon the giving of such notice.03. 01 shall not have been met within onehundred twenty (120) days from the date of this Agreement.D. may agree in writing.04. A..-9 adequately staffed planning. any individual subloan. and technical assistance sections of its Development Department. a certification .in form and substance satisfactory to A. Conditions Precedent to Disbursements for Prior to any disbursement under the Loan for Borrower will furnish to A. project study. that an adequate feasibility study has been performed with respect to such subloan. this Agreement and all obligations of the parties hereunder shall terminate. 02 shall not have been met within onehundred eighty (180) days from the date of this Agreement. D. may cancel the then undisbursed balance of the amount of the Loan in whole or in part or may terminate this Agreement by giving written notice to the Borrower . D. I. or by such later date as A. Individual Subloans.
approved by A. In the event of a termination. financial and administrative practices. as the case may be. to Disbursement. (a) Execution of the Proiect.I. engineering. shall notify the Borrower and Government when the conditions precedent to disbursement specified in Sections 3. upon receipt of such payment in full. ARTICLE IV General Covenants arid Warranties SECTION 4. Notification of Meeting Conditions Precedent A. of notice. and with all material modifications pursuant to this Agreement. 01. upon the giving the Borrower and Government shall immediately repay the Principal then outstanding and shall pay any accrued interest and. and other arrangements. . (b) construction.02 and 3.01 and.I. in conformity with all of the plans. 3.D. The Borrower shall cause the Project to be carried out specifications.03 of this Loan Agreement have been met. 05.-10 and Government. schedules.D. regulations. The Borrower shall cause the Project to be carried out and in conformity with sound with due diligence and efficiency. therein. SECTION 3. contracts. this Agreement and all obligations of the parties hereunder shall terminate.
the performance by the parties to this Agreement of their obligations under this Agreement.I.(c) Borrower shall seek to minimize any harmlul effects upon the natural environment which might be caused by any proposed activity under the Project. exchange representatives with regard to the progress of the Project. The Borrower shall cause to be provided qualified and experienced management for the Project and shall cause to be trained such staff as may be appropriate for the successful implementation of the Project. SECTION 4. Funds and Other Resources to be Provided Borrower shall provide promptly as needed all and all resources required for the including but -funds. The Borrower.'s through their the request of any party. Borrower.I. Continuina Consultation.04. 03.01 hereof. and other matters relating to the Projec-. SECTION 4.D. shall from time to time. punctual and effective carrying out of the Project. shall cooperate fully to assure that the To this end. Government and A. by the Borrower. Government and A. the at purpose of the Loan will be accomplished. Management.D. . not limited to the contribution stated in Section 5. in addition to the Loan.02. SECTION 4. vie-.
pursuant to Implementation Letters. and the Principal and interest shall be paid without deduction for and free from. are not exempt from identifiable and other levies imposed under laws in effect as and to the extent prescribed in and in Chile. SECTION 4. duties. This Agreement. Goods and services financed under the Loan shall be except as Borrower and A. Taxation.I.D. (b) Except as A. pay or reimburse the same under Section 4. To the extent any personnel including any consulting firm. may otherwise agree in writing. and any evidence of indebtedness issued in connection herewith shall be free from. and any property or tran sactions relating to such contract and (b) any commodity procurernent transaction financed hereunder. tariffs. the Loan. taxes. used exclusively for the Project.I.-12SECTION 4.D. any taxation or fees imposed under the laws in effect within the Republic of Chile.05. no goods or services financed under the Loan shall be used to promote or assist any foreign aid project or activity associated . Borrower shall. 02 of this Agreement with funds other than those provided under the Loan. may otherwise agree in writing.that (a) any contractor. .06. (a) Utilization of Goods and Services. of such contractor financed hereunder.
D. Disclosure of 'Material Facts and SECTION 4. or other payments .to be disclosed to A. the Project or the discharge their obligations under this Agreement.-13 with or financed by.any country not included in Code 935 of the A. all facts and circumstances that might accurately and completely. SECTION 4. believe might materially affect. Fees. Borrower and Government shall promptly of any facts and circumstances that may hereafter or that it is reasonable to of arise that might materially affect. not pay or agree to pay. Geographic Code Book as in effect at the time of such use.I. Circumstances.I. Borrower and Government warrant and covenant that or taking any action under and will in connection with obtaining the Loan. inform A.08.I. accurate and complete. nor to the best of their knowledge has there been paid nor will there be paid or agreed to be paid by any other person or entity. and Other Payments. D.. in the course of obtaining the Loan are and that they have disclosed to A. fees. or with respect to this Agreement. they have not paid.07. I. (a) Commissions. materially affect the Project and the discharge of their obligations under this Agreement. commissions. The Borrower and Government represent and warrant or caused that all facts and circumstances that they have disclosed .D.D.
in accordance with sound accounting principles and practices con sistently applied.D. or comparable services. and if the amount of any such payment is deemed unreasonable by A.I. the same shall be adjusted in a manner satisfactory to A. (b) Borrower and Government warrant and covenant that no pE.D.of any kind. be adequate to show: . or comparable services to which they are a party or of which they have knowledge (indicating whether such payment has been made or is to be made on a contingent basis).as regular compensation to Borrower's or Government's full time officers and employees or as compensation for bona fide professional.I. in connection with except the procurement of goods and services financed hereunder. payment or agreement to pay for such bona fide professional. technical. books and records relating both to the Project Such books and records shall without and to this Agreement. Maintenance and Audit of Records. or similar payments legally established in Chile. t: in. or cause to be maintained.yn-ents have been or will be received by the Borrower or Government. any Borrower and Government shall promptly report to A. technical. taxes. (a) The Borrower shall mai. SECTION 4. limitation. or any official either of them. I. fees. except. D.09.
D.I. .I.D. and (iv) the progress of the Project. whichever date shall first occur.successful bidders. (ii) the nature and extent of solicitations of prospective suppliers of goods and services acquired. in accordance with sound auditing standards. shall be maintained for five years after the date of th bursement by A. may require. or until all sums due A. (b) Government shall maintain or cause to be rnaintained in accordance with sound accounting principles adequate to identify the payments hereof and the books and records. Such books and records shall be regularly audited by auditors acceptable to A. (iii) the basis of the award of contracts and orders to .-15 (i) the receipt and use made of goods and services acquired with funds disbursed pursuant to this Agreement. under this Agreement have been paid. may require.D.I. last dis. and for such period and at such intervals as A.D.I.D. received from Borrower pursuant to Section 2.I. Such books and records shall be maintained and audited for such period and in such manner as A.01 deposit and disposition of such payments. and practices consistently applied.
11.D.D.-16- SECTION 4.I. the equivalent of three million 3. Government shall cooperate with A. ARTICLE V Special Covenants and Warranties SECTICN 5. of Chile for any purpose relating to the Loan. .I.01. Reports.I. and the books.D. 500. Inspection. of A. tions and shall permit representatives The Borrower and to facilitate such inspec to visit any part of A.I. shall have the right at all reasonable times to inspect the Project.D.I. The authorized representatives the Loan and the Project as A. 000).I. the utilization of all goods andi services financed records. United States dollars (US$ Except as A. may otherwise agree in writing.000.000) will be contributed by Borrower and the remainder by the cooperatives participating in the Project. Borrower covenants to provide or cause to be provided as contribution to the Project the equivalent of at least seven million five hundred thousand United States dollars (US$ 7. The Borrower and Government such information and reports relating to may request. the Borrower or Government or any of its constituent agencies relating to the Project and the Loan. SECTION 4.D.D. shall furnish to A. Borrower's Contribution.10. and other documents of under the Loan.
Borrower agrees that no A. Sublending Limitation. 000).D. all repayments later than one year -from the date of this Agreement it will confer with A.zients. SECTION 5. Annual Review.D. Borrower agrees that in carrying out the Project it will devote particular attention to activities which are designed to increase the income and productivity of the small farmer and artisan fisherman. SECTION 5. Use of Sub-loan Rei. may otherwise agree in writing. may otherwise agree in writing.04.02. . Except as of principal derived from Project subloans will be used throughout the Borrower's repayment period of the Loan for relending on the same terms and conditions originally applicable to such Project subloans and for the same general purpose for which funds from this Loan may be used. I. any individual subborrower when the face value of the proposed new subloan added to the outstanding balances of other loans from the -Borrower to the proposed subborrower exceeds the equivalent of two hundred and fifty thousand United States -1ollars (US$ 250.D.I. Except as A. SECTION 5.I. Focus of Assistance. review and concurrence Borrower shall present for the prior all proposals for sublending to of A. .D.03. for the purpose of establishing a long-range policy concerning the ratio of Borrower's debt to its capital and reserves.05.I.-17SECTION 5.
D. . may otherwise agree in writing. SECTION 6. Procurement from Selected Free World Except as A.I. Procurement from Chile. under the Loan shall have both its source and origin in countries included in Code 941 of the A.01.I.I.01 shall be used exclusively to finance the procurement for the Project of goods and services having their source and origin in countries included in Code 941 of the A.D. Countries.ARTICLE VI Procurement SECTION 6.02. 6 and except as provided in sub-section -marine insurance. Except as may otherwise agree in writing disbursements made pursuant to Section 7.08(c) with respect to disbursements made pursuant to Section 7.I. . herein. A. ('Selected Free World Notwithstanding any other provision: motor vehicles to be procured with Loan funds must be All ocean shipping financed manufactured in the United States.D.02 shall be used exclusively to finance the procurement for the Project of goods and services having both their source and origin in Chile. Geographic Code Book as in effect at the time orders are placed or contracts are entered into for such goods and services Goods and Services"). Geographic Code Book as in effect at the time of shipment.D.
04 will be set forth in detail in Lnplernentaticn Letters. the Plans. .I. may other no goods or services may be financcd u11.01. the Loan.05. whether or not the goods and services to which they relate are financed under the Loan. SECTION 6.D. shall have their source and origin in countries included Geographic Code Book as in effect at the in Code 935 of the A.I. SECTION 6. (a) Except as A. Specifications. The definitions applicable to the eligibility requirements of Section 6. 03. bit not financed under Goods and services procured for the Project. Personnel.I. 6.-19- SECTION 6.04. and contracts relating to the Project. wise agree in writing Eligibility Date. Except as A. Contracts and Borrower shall furnish to A. and any modifications therein. promptly upon preparation all plans.D. Implementation of Procurement Pecuirenerts.02 and 6.I.D.(1 the Loan which are procured pursuant to orders or contracts firmly placed or entered into prior to the date of this Agreement. bid documents. specifications. SECTION 6. construction schedules.D. time orders are placed for such goods and services.06. may otherwise agree in writing. Goods and Services nrit Financed under Loan.
D. I. In the case of any of the above contracts for services. (i) services. writing.D.I.I. for such other services as A. . may specify.I. shall also approve in writing the contractor and such contractor personiel as A. may (iii) contracts specify.D. may otherwise agree in writing. A. their issuance.solicitations of proposals relating to goods and services financed under the Loan shall be approved by A. specifications and construction schedules furnished in pursuant to subsection (a) above shall be approved by A. and (iv) contracts for such equipment and materials as A. may specify. all of the plans. Material modifications in any of such contracts and changes in any of such personnel shall also be approved by A.D.I.D.I.D.I. (d) The following contracts financed under the Loan shall in writing prior to their execution: in writing prior to be approved by A. (c) All bid documents and documents related to the .I. prior to their becoming effective. D.D. (ii) contracts for engineering and other professional contracts for construction services.-20 (b) Except as A.D.I.
the scope of their services and such of their personnel assigned to the Project A. or in part. and construction contractors used by the Borrower for the Project but not financed under the Loan shall be acceptable to A. Such items shall be procured on a fair and. SECTION 6. on a competitive basis in accordance with procedures therefor prescribed in Implementation Letters. except for professional services. as in effect at the time of shipment. (a) Shipping and Insurance. SECTION 6. No more than reasonable in whole prices shall be paid for any goods or services financed.D.I. Reasonable Price. as more fully described in Lrnplementation Letters.I..I.(e) Consulting firms used by the Borrower for the Project but not financed under the Loan. reserves the right to approve all personnel employed by contract or otherwise to render technical assistance under the Project.D. (b) Unless A.08. under the Loan. Selected Free World Goods financed under the Loan shall be transported to the Republic of Chile on flag carriers of any country included in Code 935 of the A. (f) A. may specify. shall determine that privately owned Geographic Code Book United States flag commercial vessels are not available at fair and reasonable rates for such vessels: .07.I.D.I.D.D.
dry cargo liners. No such goods may be transported on any ocean vessel (or aircraft) which (i) A..pri':d on ocean vessels from United States ports (computed separately for dry bulk carriers. and at least fifty percent (50%) of the gross freight revenue generated by ocean shipments on dry cargo liners from United States ports shall be paid to or for the benefit of privately-ow-ned United States flag commercial vessels. has designated as ineligible to carry . and tankers) shall be trans ported on privately owned United States flag commercial vessels.D. and at least fifty percent (50%) of the gross freight revenue generated by ocean shipments of Selected Free World Goods financed under the Loan and transported on dry cargo liners from nonUnited States ports shall be paid to or for the benefit of privaely owned United States flag commercial vessels.I. (computed dry cargo liners and tankers) shall be transported on privately owned United States flag commercial vessels. in a notice to the Borrower. and (ii) At least fifty percent (50%) of the gross tonnage of all Selected Free World Goods financed under the Loan and trans ported on ocean vessels from non-United States ports separately for dry bulk carriers.-2Z (i) At least fifty percent (50%) of the gross tonnage of Selected Free World Goods financed under the Loan and tral.
If in connection with the placement of marine insurance on shipment financed under United States legislation authorizing assistance to other nations.merica.L. or regulation favors any marine insurance company of any country over any marine insurance company authorized to do business in any state of the United States of America. rule. Chile. Geographic Code Book as in effect at the time of placement. financed goods unless such charter has becn app'oved by A.Section 7.01. I.I..-23A. decree. financed good s or (ii) has been chartered for the carrij''. and (ii) claims thereunder are payable in freely convertible currency. by statute. Selected Free World Goods financed under the Loan shall during the continuance of such discrimination be insured against marine risk in the United States of America with a company or companies authorized to do marine insurance business in any state of the United States of A. I. of A.D. provided (i) such insurance is placed at the lowest available competitive rate in Chile or in a country included in Code 941 of the A.I. D.D.D. . (c) Marine insurance on Selected Free World Goods may be financed under the Loan with disbursements made pursuant to .
this Agreeri-ent. SECTION 6.I.09.D. Such insurance shall be issued upon terms and conditions consistent with sound commercial practice. o.D. Geographic Code Bock as in effect at the time orders are placed or contracts are entered into for such replacements. Ln order and shall be otherwise subject to the provisions of that all United States firms shall have the opportunity to participate in furnishing goods and services to be financed under the Loan. and at such times. shall insure the full value of the and shall be payable in the currency in which such goods Any were financed or in any freely convertible currency.I. Notification to Potential Suo:!Iers. indemnification received by the Borrower under such insurance shall be used to replace or repair any material damage or any loss of the goods insured or shall be used to reimburse the Borrower for the replacement or repair of such goods. the such information with regard there may request in Implementation Letters.goods. . Any such replacement shall have its source and origin in countries included in Code 941 of the A.-24 (d) The Borrower shall insure. as A. or cause to be insured. .I. Borrower shall furnish to A.D. all Selected Free World Goods financed under the Loan against risks incident to their transit to the point of their use in the Proj(:ct.
committing A. .-25- SECTION 6. as prescribed in Implementation Letters. Disbursement for United States Dollar Costs Upon satisfaction .I. Letter of Credit or otherwise. Borrower shall give publicity to the Loan and the Project as a joint undurtaking of the United States and Chile in furtherance of the Alliance for Progress and shall identify the Project sites and mark goods financed under the Loan.D.I. of conditions precedent.01. ARTICLE VJI Disbursements SECTION 7. the Borrower may. for dollar costs of goods and services procured for the Project in accordance with the terms and conditions of this Agreement.I. to reimburse such bank or banlks for payments through the use of made by them to contractors or suppliers. to issue Letters of CommiLment for specified amounts satisfactory to A. to one or more United States banks. Information and Marking.Letter of Commitment to United States Banks.10.I. request A.D. may prescribe in Letters of Commitment United States banking charges incurred and Implementation Letters. from time to time.D. Payment by a bank to a contractor or supplier will be made by the bank upon presentation of such support:ng documentation as A. in connection with Letters of Commitment and Letters of Credit shall be for the account of the Borrower and may be financed under the Loan.D..
02.D. case of disbursements pursuant to Section 7.D. .D. SECTION 7. A. frioil. Disbursements for Local Currency Costs. with United States dollars.03.I. of local currency for local currency costs of goods and services procured for the Project in accordance with the terms and conditions of this Agreement by submitting to A.ents of the Loan may also be made through such other means as the Borrower and A. D. Government and obtained by A. I.D. shall S. to its designee.-26SECTION 7.I. make such disbursements from local currency owned by the U.D. time to time.I.I. on the date on which A. 04. The United States dollar equivalent of the local currency rnade available hereunder will be the amount of United States dollars required by A.l.ents makes a pursuant to Section 7. SECTION 7. 02. such supporting documentation as A. Upon satisfaction of conditions precedent. Date of Disbursement.I. may agree to in writing.I. Other Forms of Disbursemnent. the Borrower may. request disbursement by A. may prescribe in Implementation Letters.01. disbursement to the Borrower. or to a bank'ing and (b) in the on the date on institution pursuant to a Letter of Commitment.I. to obtain the local currency. Disburse:. A.D. Disbursement by shall be deemed to occur. (a) in the case of disburser.D.D.
I.'o (52) the date of this Agreement reduce the Loan by all or any part thereof for which documentation was not received by such date.D.-27 which A. no Letter of Commit or other commitment document which may be called for by . may otherwise agree in writing.03. Except disburses the local currency to the Borrower or as A.n than fiftytwo (52) months from the date of this Agreement. Terminal Date for Disbursement.D. ment.I.I.D. its designee. shall be issued in response to requests received by later than fortysLx (46) months from the date of this Agreement and no disbursement shall be made against clocunentation received by A.D.05.D.I. at its option may at any time or times after fiftytw. ARTICLE VIII Cancellation and Susnension SECTION 8. A.I. months fror.. or any bank described in Section 7. has not disbursed or committed itself to of such notice. may.I. SECTION 7. Cancellation by the Borrov. cancel any part of the Loan (i) which. by written notice to A. prior to the giving A.D.01.. D.I.I.another form of disbursement under Section 7. The Borrower with the prior written consent of A. or amendment thereto.01 later A.I). ..er.
give to the Borrov. then A. but Vit.D. If any one or more of the following events ("Events of Default") shall occur: (a) The Borrower or Government shall have failed to pay when due any interest or installment of Principal required under this Agreement. or any other agreement between the Borrower or Government or any of its agencies and A. (b) The Borrower or Government. at its option. shall have failed to comply including. and unless the Event of Default is cured within such sixty (60) days: .out with any other provision of this Agreement.02. limitation. the obligation to carry out the Project in the manner hereby agreed upon. or (ii) which has not then been utilized through the issuance of irrevocable Letters of Credit or through bank payments made other than under irrevocable Letters of Credit.-28 disburse.I. Events of Default : Acceleration. SECTION 8. The Borrower or Government shall have failed to pay when due any interest or any installment of Principal o7 any otner payment required under any other loan agreement.D. or any of its predecessor agencies.-er and (c) Government notice that all or any part of the unrepaid Principal shall be due and payable sixty (60) days thereafter.I. may.
then A. 03.D. determines to be an Suspension of Disbursement. at its option: . may. that at any time: (a) (b) An Event of Default has occurred.. and (ii) the amount of any further disbursements made under outstanding irrevocable Letters of Credit or otherwise shall become due ard payable as soon as made. (c) Any disbursement by A. SECTION 8.I.I. or (d) The Borrower or Government shall have failed to pay when due any interest or any installment of Principal or any other payment required under any other loan agreement. An event occurs that A.D.D. or any of its agencies and the Government of the United States or any of its agencies. In the event extraordinary situation that makes it improbable either that the purpose of the Loan will be attained or that the Borrower or Government will be able to perform their obligations under this Agreement.I.I. or any other agreement between the Borrower or Government.-29 (i) hereun such unrepaid Principal and any accrued interest shall be due and payable immediately.D. would be in violation of the legislation concerning A.
D. are in a deliverable state Any dis and have not been offloaded in ports of entry of Chile. I.-30 (i) suspend or cancel outstanding commitment docurnonts to the extent that they have not been utilized through the issuance of irrevocable Letters of Credit or through bank payments made other than under irrevocable Letters of Credit.D. at its option. (iii) (iv) decline to issue additional commitment documc.-its. in which event shall give notice to the Borrower and Government promptly the re afte r. 's expense.I. direct that title to goods if the financed under the Loan shall be transferred to A.D. (ii) decline to make disbursements other than under outstanding commitment documents.I.I. D. 03. at any time or cancel all or any part of the Loan that is not then either disbursed or subject to irrevocable Letters of Credit.D. A. Cancellation by A. Following any suspension of disbursements pursuant to Section 8. at A. A. goods are from a source outside Chile. may. . if the cause or causes for such suspension of disbursements shall no: have been eliminated or corrected within sixty (60) days from the date of such suspension. SECTION 8. 04. I. bursement made or to be made under the Loan with respect to such transferred goods shall be deducted from Principal. times thereafter.
notwithstanding the availability of exercise of any of the other remedies provided for under this Agreement. the provisions of this Agreement shall continue in full force and effect until the payment in full to A. Continued Effectiveness of Agreement. .05. Such amount shall be made available first for the cost of goods and services procured for the Project hereunder. to the extent justified.. may require the Borrower or Government to refund such amount in United States dollars to A. A. I. Notwithstanding any other provision in this Agreement. D.-31- SECTION 8. A. SECTION 8. D. D. I. In the case of any disbursement not supported by valid documentation in accordance with the terms of this Agreement. I. . within thirty (30) days after receipt of a request therefor.. acceleration of repayment. suspension of disburserment. the remainder. or Not withstanding any cancellation.06. (a) Refunds. right to require a refund with respect to any disbursement under the Loan shall continue for five (5) years following the date of such disbursement. if any. shall be applied to the installments of Principal in the inverse order of their maturity and the amount of the Loan shall be reduced by the amount of such remainder. I. of all Principal and any accrued interest hereunder has been made. or of any disbursement not made or used in accordance with the ternms of this Agreement. D.
or from any uth. as appropriate. with respect to goods or services financed under the Loan. SECTION 8. justified. the remainder to be applied to the installments of Principal in the inverse order of their maturity and the amount of Loan shall be reduced by the amount of such remainder.D.I. .. and reimbursed to A. a waiver of any such rights. receives a refund fo ni Wty.I. shall first make such refund available for the cost of goods to the extent and services procured for the Project hereunder.I.I.02 may be charged to the Borrower or Government. In the event that A. may specify.D.D.r pr banking institution.08. Expenses of Collection. or to goods that did not conform to specifications. A. and such refund relates to an unreasonable price for goods or services. No delay in exercising or omission to exercise any right. in connection with the collection of any refund or in connection with amounts due A. other than salaries of its staff. third party connected with the Loan. supplier.D.I. SECTION 8. or to services that were inadequate. 07.-32 (b) contractor.D. power or remedy under this Agreement shall be construed as powers.I.I. -All reasonable costs incurred by A. or remedies. by reason of the occurrence of any of the events specified in Section 8.D. in such manner as A. accruing to A.D. Non-waiver of Remedies.
Chile MINHACIENDA Santiago.01. or sent by the Government or A.I. Chile Cable Address: . document or other communication given. made. Communications. Casilla 118 Santiago.-33- U-J. telegram. Any notice.be in writing or by telegram. cable or radiogram at the following addresses: TO BORROWER Mail Address: Instituto de Financiamiento Cooperativo (IFICOOP) Ltda. request.ICLE IX Miscellaneous SECTION 9. Cable Address: Chile TO GOVERNMENT Mail Address: Ministerio de Hacienda Santiago. pursuant to this Agreement shall . Borrower. cable or radiogram and shall be deemed to have been duly given.D. made or sent to the party to which it is addressed when it shall be delivered to such party by hand or by mail. Chile IFICOOP Santiago.
02. will be represented by the individual holding or acting in the office of the Director. Mail Address: United States AID Mission to Chilu Ca. shall submit a statement of the representative's name and specimen signature in . requests.I. 1). All notices. I. Borrower or Government. require in writing. USAID/Chile. ment will be represented by the individual holding or acting in the office of the Minister of Finance. may otherwise the Borrower will be represented by the Govern individual holding or acting in the office of the President. hereunder may be in Spanish and shall refer to "Loan 513-T-065".D. Such representatives shall have the authority to In the event designate additional representatives by written notice. Chile Cable Address: Other address'es 'may be substituted for the above upon the giving of notice.I.D. Chile USAID.I. to this Agreement. SECTION 9. of ary replacement or other designation of a representative here under. and A. AmEmbassy Santiago. communications. and documents submitted to A.-34- TO A. as the case may be. For all purposes relative except as A. Representatives.silla 13120 Sar tiago.D.
D. the Borrower or Government shall issue promissory notes or such other evidences of indebtedness with respect to the Loan. designated pursuant to this Section. of the Principal and of any accrued interest.D.-35 form and substance satisfactory to A. .I. Upon payrmer this supported by such legal opinion as A. I. A. I.D. Until receipt by A. SECTION 9. Government and Agreement and all obligations of the Borrower.I. in full to A.03. At such time or times as A. Promissory Notes. Implementation Letters. the case may be.04. SECTION 9. of written notice of revocation of the authority of any of the duly authorized representatives of the Borrower or of Government.D. I. may request.D. as it may accept on any the signature of any such representative or representatives instrument as conclusive evidence that any action effected by such instrument is duly authorized. SECTION 9. in such form. containing such terms and may reasonably request. Termination upon Full Payment. D. 05.I. D. shall from time to time issue Implementation Letters that will prescribe the procedures applicable hereunder in connection with the implementation of this Agreement. A.I. under this Loan Agreement shall terminate.
Van Dyke Director. at Kurt Ullrich-B-. By: By: Joige Joannon S. THE REPUBLIC OF CHILE By: __-______ Jorge Cauas Lamas Minister of Finance THE INSTITUTE FOR THE FINANCING OF COOPERATIVES LTD. USAID . ' S. have caused this Agreement to be signed in their names and delivered as of the day and year first above written. Popper ' U. UNITED STATES OF AMERICA By: .By: David H.IN WITNESS WHEREOF./"General Manager . the Institute for the Financing of (IFICOOP Ltda. Cooperatives Ltda. President . Ambassador to Chile Stuart H. ). authorized representatives. the Republic of Chile and the each acting through its respective duly United States of America.
D. I. The subprojects selected by IFICOOP for financing will be designed to maximize benefits to the low income farmers and artisan fishermen and will emphasize cooperative enterprises of producers of food goods. The A. A. Loan funds may finance the costs of the feasibility studies approved and arranged for by IFICOOP.D.D. The advisor selected by IFICOOP shall have extensive experience in the management and the business appraisal of agro-enterprises. and/or distribution of agricultural and fish products. Activities involving the production. processing or marketing of financing. financed under the Loan only with the prior approval of A.I.ANNEX I PROJECT DESCRIPTION The Project will assist in the establishment or expansion of cooperatively owned enterprises involving the production. 1975.I. of plant or equipment existing prior to January 1. processing. .D. Loan may also fund the costs of an advisor to assist primarily with the development of an expanded capacity within IFICOOP to arrange for and supervise the preparation of feasibility studies for prospective IFICOOP subprojects.I. Purchases may be alcoholic beverages are not eligible for A.
D. IFICOOP shall identify the technical assistance requirements necessary to assure the success of the enterprises financed. IFICOOP shall develop a technical assistance ui-: staffed with experienced permanent professional personnel. 000 towards the costs of the enterprises and $ 900. The total costs of the Project are estimated to be the equivalent of US$ 22. In order to carry out this activity. Loan is estimated as follows: .I. 600.000 ($ 2. Of this amount. 500.D. D.I.000 towards operating costs and acquisition of office equipment and vehicles).000 in subloans and $ 1. IFICOOP's subloans to participating cooperatives will be conditioned upon arrangements satisfactory to IFICOOP for meeting the technical assistance -requirements.I.000.-2- As part of its project appraisal function. the salary costs of whom may initially also be financed under the A. 500. 000. IFICOOP's contribution to the Project is estimated to be the equivalent of US$ 3. 000 ($ 3. the participating cooperatives are estimated to provide the equivalent of US$ 4. success of the enterprises).000. Loan. Loan. The breakdowvn of the use of the A.000. The cost of such arrangements may be financed under the A. 000 attributable to the technical assistance activities necessary to assure the.
......000 3...... The evaluation plan developed by IFICOOP to gauge the overall effectiveness of the Project will also be considered at these joint reviews. 000 4...000 TOTAL ...... .. Salaries of professional staff of technical assistance unit .....-3 1.200... ... The reviews will consider the financial and institutional aspects of IFICOOP as well as the achievement of targets and objectives of the individual cooperative activities financed by the A. .. $ 15. 125.I....D. 2... will have joint reviews every six months to assess the progress in executing the Project.. Loan.000 5.. costs... Purchase of imported equipment for IFICOOP .......I.....D..000 . 000... financing exceed two thirds of the total Projec.. Credit costs ... ..o event will A... 000 The estimates shown above are subject to refinement and modification during the four year implementation period of the Project................ Specialized technical assistance for cooperatives ... 175.... 40.... 460...... $ 14.... Feasibility studies (including advisor) ". .....I.D.............. IFICOOP and A....... In ..... ..
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