AGREEMENT, dated June 14, 1955, between the Republic of Austria (hereinafter called the Guarantor) and International Bank for Reconstruction and Development (hereinafter called the Bank).
Whereas by an agreement of even date herewith between the Bank and Vorarlberger Illwerke Aktiengesellschaft (hereinafter called the Borrower), which agreement and the schedules therein referred to are hereinafter called the Loan Agreement,[2] the Bank has agreed to make to the Borrower a loan in various currencies in an aggregate principal amount equivalent to ten million dollars ($10,000,000), on the terms and conditions set forth in the Loan Agreement, but only on condition that the Guarantor agree to guarantee the payment of the principal, interest and other charges on such loan and the obligations of the Borrower in respect thereof; and
Whereas the Guarantor, in consideration of the Bank's entering into the Loan Agreement with the Borrower, has agreed to guarantee the payment of the principal, interest and other charges on such loan and the obligations of the Borrower in respect thereof;
Now THEREFORE the parties hereto hereby agree as follows:
Article I
Section 1.01. The parties to this Guarantee Agreement accept all the provisions of Loan Regulations No. 4[3] of the Bank dated February 15, 1955, subject, however, to the modifications thereof set forth in Schedule 3[4] to the Loan Agreement (such Loan Regulations No.4 as so modified being hereinafter called the Loan Regulations), with the same force and effect as if they were fully set forth herein.
