Article III
Use Of Proceeds of the Loan
Section 3.01. The Borrower shall apply the proceeds of the Loan exclusively to financing the cost of goods required to carry out the Project described in Schedule 2[1] to this Agreement. The specific goods to be financed out of the proceeds of the Loan shall be determined by agreement between the Bank and the Borrower, subject to modification by further agreement between them.
Section 3.02. The Borrower shall use or cause to be used all goods financed out of the proceeds of the Loan exclusively in the carrying out of the Project.
Article IV
Bonds
Section 4.01. The Borrower shall execute and deliver Bonds representing the principal amount of the Loan as provided in the Loan Regulations.
Section 4.02. In addition to the provisions prescribed by the Loan Regulations the Bonds shall contain provisions satisfactory to the Bank to the effect that the Mortgage will equally and ratably secure the payment of principal of, interest, premium, if any, on prepayment or redemption, and other charges on, the Loan and any of such Bonds; that the Assignment will equally and ratably secure the due half-yearly payments of principal of, and interest and other charges on, the Loan and the Bonds; and that any rights or powers under the Assignment or the Mortgage or both of any holder of the Bonds will be exercised by the trustee or trustees or fiduciary or fiduciaries contemplated in Sections 5.09, 5.10 and 5.11 hereof.
Section 4.03. For the period of the public administration of the Borrower the two public administrators of the Borrower are jointly designated as authorized representatives of the Borrower for the purposes of Section 6.12 (a) of the Loan Regulation; thereafter any two members of the Managing Board (Vorstand) of the Borrower are so designated for such purposes.
Article V
Particular Covenants
Section 5.01. (a) The Borrower shall carry out the Project with due diligence and efficiency and in conformity with sound engineering and financial practices.
(b) The Borrower shall promptly furnish to the Bank, as the Bank may from time to time request, the plans and specifications for the Project and any material modifications subsequently made therein.
- ↑ See p. 400 of this volume.
