\
A.I.D.
LoanNo. 497-H-021
LOAN AGREEMENT
BE'.rWEEN THE
GOVERNMENT OF INDONESIA
AND THE
UNITED STATES OF AMERICA
Section Number
ARTICLE I
SECTION 1.1.
SECTION 1.2.
ARTICLE II
SECTION 2.1.
SECTION
2.2.SECTION
2.3.
SECTION
2.4.
ARTICLE III
SECTION
3.1.
SECTION
3.2.
SECTION
3.3.
ARTICLE IV
SECTION
4.1.
SECTION
4.2.
SECTION
ｌｾＮ＠3 .
ARTICLE
V
SECTION
5 .1.ARTICLE
VISECTION
6.1.
SECTION
6.2.
SECTION
6.3.
SECTION
6.
!1 .•SECTION
6.5.
SECTION
6.6.
SECTION
6.7.
SECTION
6.8.
SECTION
6.9.
SECTION
6.10.TABLE OF CONTENTS
The Loan
The Loan
The Project
Borrower Repayment Terms and Interest
Interest
Principal
Application and Place of
ｐ｡ｹｾ･ｮｴ＠Prepa;ylllent
1
1
l 2 2 2 23
Conditions Precedent
3
Conditions Precedent to Financing
3
Terminal Dates for Fulfillment of
Conditions Precedent
4
No·cification of Meeting of Condi tioo.s
Precedent
4
Disbursements
5
Requests for Letter of Commitment
5
Other Forms of Disbursement
5
Terminal Date for Requests for Commitment
Documents and for Disbursements
5
Particular Covenants and Warran-cies
Concerning the ProJect
5
Borrower's Covenants
5General Covenants , Warranties and
Agreements
7
Utilization of Eligible Items
7
Information and Marking
8
Disclosure of Mai;erial Facts a.nd
Circumstances
8
Inspections
8
Truces
andDuties
9
Commissions, Fees and Other Payments
9Renegotiation of Terms
10Local Sales Agents Commissions and
Service Payments
10Maintenance and Audit of Records
11
Section Number
ARTICLE VII
SECTION 7.1.
SECTION ('.2.
SECTION
7.3.
SECTION
7.4.
SECTION
7.5.
SECTION
7.6.
SECTION 7.7.
SECTION
?.8.
ARTICLE VIII
SECTION
8.1.
SECTION 8.2.
SECTION
8.3.
SECTION
8.4.
SECTION
8.5.
ARTICLE IX
SECTION
9.
l .SECTION 9.2.
SECTION
9.3.
.. 2
-Covenants Concerning Procurement
Procurement Source and Origin
Date of Procurement
Port Charges
Small Business Notification
Ocean Shipment
Discrimination in Marine Insurance
F.mployment of Contract Personnel
Uni·bed
States Government Excess Property
Remedies of A.I.D.
Events of Default; Acceleration
Termina"t;ion of Disbursements; Transfer
of Goods to A.I.D.
Refunds
Waivers
Expenses of Collection
:Miscellaneous
Designation of Representatives
Implementation Letters
AGREEMKNT, dated the
:2
0
'f)\ day ofR
/;f&-hS/.
1970
oetween the GOVERNMENT OF INDONESIA (hereinafter called the "Borrower"), and the UNITED STATES OF ArriERICA, acting ·chrough the AGENCY FeR INTER-NATIONAL ｄｅｖｅｌｏｾｊｔ＠ (hereinafter called "A.I.D. ") .
ARTICLE I . The Loan
SECTH>N l.l. The Loan. A.I.D. hereby· agrees to lend t o the Borrower , pursuant 'Go the Foreign Assista.nce Ac·c of
1961,
as amended , up to eight hundred thousand United States dollars ＨＤＸＰＰ ｾＰＰ ＰＩ＠ co assist in financing the reasona•)le U.1ited S,vates dollar cos ·:·.s of certain goods and services required for ·i.;he Project as defined in Section 1. 2 hereof. Goods and services financed hereunder are here ·· inafter referred ·co as "Eligible Items" , and the aggregate amount dis oursed hereunder is hereinafter referred ·co as "Principal" .SEQTION 1.2. The Project. As used in ,.;his agreement, t he "Project" shall mean the consul·cing engineering services for final design for approximately fif·cy kilometers of four-lane limited access highway with provision for expansion to six lanes from Djakart a pas t Bogor to Tjiawi, Republic of Indonesia. Said engi i1eering services
'
shall include the completion of analytical studies with respect to the location of interchanges and ｲｩｧｨｴｳＭｯｦＭｷ｡ｹｾ＠ preparation of detailed construction cost estimates and construction bid ､ｯ｣ｵｭ･ｮｴｳ ｾ＠
2 -ARTICLE II.
Borrower Repayment Terms and Interest
SECTION 2 . 1. Interest . The Borrower shall pay semi - annually to A.I.D. in United States dollars on the unpaid Principal, interest which shall accrue from the dates of the r espective disbursements hereunder , the first such int er est payment to be due and payable no later than s ix (6) months after the first such disbursement on a date to be s pecified by A.I.D. Principal and interest due but not
(
\
paid shall accrue interest at the maximum rate hereunder until fully paid. Interest shall accrue at the rate of t wo percent ( z;/o) per ｡ｮｮｵＬｾ＠ for ten (10) years after the first disbursement hereunder and at arate of three percent
(3%)
per annum ther eafter , computed on the basist
of a three hundred sixty- five (365) day year . Disbursements hereundershall be deemed to occur on the date on which payment by A.I.D . is made either directly to the Borrower or its designee or to a banking inst i tution pursuant to a ｣ｯｉｔｵ ｾ ｩｴｭ ･ ｮｴ＠ document .
SECTION 2 . 2 . Principal . Borrower shall r epay the Principal to A. I . D. in United States dollars within forty (40 ) years from the date of first disbursement hereunder in sixty- one
(61)
level semi -annual installments of principal and interest, the first installment to be due and payable nine and one - half ( 9-1/2) years after the first inter est payment is due.3
-and then to the repayment of Principal. All payments shall be made to the Controller, United St ates Agency for International Development
(hereinafter called 11
USAID"), Djakarta, Indonesia, or to such other payee or at such other address as A.I.D. may designate, and shall be deemed to have been paid when there received.
SECTION 2 .4. Prepayment. The Borrower shall have the right to prepay, without penalty, on any date on which interest is due , all or any part of the Principal. Any pr epayment shall be appli ed first t o the payment of any accrued and unpai d interest and then to the remaining installments of Principal in the inverse order of their maturity.
ARTICLE III. Conditions Precedent
SECTION 3 . 1. Conditions Precedent to Financing . Unless A.I.D. otherwise agrees in writing, prior to the issuance of the
l etter sof commitment or other commitment documents, the Borrower shall f u rni sh A.I.D., in form and substance satisfactory to A.I. D.:
(a) An opinion of the Minister of Justice of the
Borrower that this Loan Agreement has been duly author i zed or ratified by, and executed on behalf of the Borrower and that it is a valid
4
-than the person designated in said Section, together with evidence of his authority and a specimen signature of said person, certified as to its authenticii({by the person rendering the legal opinion pursuant to Section 3 . l(a) herein, or the person executing this Loan Agreement;
(c) Contractual arrangements with an engineering consultant firm acceptable to A. I . D. ;
(d) Evidence of the establishment of a reserve fund in Indonesian currency equal to the total estimated Indonesian currency
cost of the Project. .,,
SECTION 3.2. Terminal Dates for Fulfillment of Conditions Precedent. Except as A.I.D. may otherwise agree in writing , if the conditions required by Section 3.1 have not been satisfied within thlree(3) months after the date of execution of this Loan Agreement, A.I.D. may at any time thereafter terminate this Agreement by giving notice to the Borrower . Upon such termination, and notwithstanding any other provisions of this Loan Agreement , the Borrower shall repay to A.I.D. the unpaid Principal, if any, and any accrued interest . Upon full payment in accordance with the foregoing , all other obliga-tions of the Borrower and A. I . D. under this Agreement shall cease .
SECTION 3 , 3 . Notification of Meeting of Conditions Precedent . A. I.;D. shall notify the Borrower upon its determination that the
conditions precedent specified in Section 3.1 have been met .
I
I
5
-ARTI CLE IV . Disbursements
SECTION 4 . 1. Requests for Letter of Commitment . To obtain disbursements, the Borrower may request A. I. D. to i ssue , and subject t o the provisions of this Loan Agreement A. I.D. shall issue , a letter of commitment to a bank in the United States designated by the Borrower and satisfactory to A. I . D. , committing A. I . D. to reimburse such bank for payments made , through letters of credit or otherwise , to the f
\ Borr ower or any designee of the Borrower, pursuant to such documentation or r equir ements as A.I.D . may specify.
SECTION 4 . 2 . Other Forms of Disbursement. Disbursements may al so be made through such other means as the Borrower and A.I.D. may agree in writing .
SECTION
4.3 .
Terminal Date for Requests for Commitment Documents and for Disbursements. Except as A. I . D. may otherwiseagree in writing, no letter of commitment or other commitment documents shall be issued in response to requests received by A.I . D. after
nine (9) months from the date of execution of this Loan Agreement, and no disbursements shall be made against documentation received after fourteen (14) months from the date of execution of this Loan Agreement .
ARI'ICLE V.
Particular Covenants and Warranti es Concerning the Proj ect
.. 6
-and agree s thut it shall:
(a. ) Ca.us e ·che Project to be ca.rrie1 out through its Ministry of Public Works a.nd Ele ctric Powe r ; Direc·cora.tc General of Highwa.ys (he r e i nafter cn.lled "Bina. Mnrga.");
(b) Curry out the P.r-.1ject through Bi na. Mnrga with due diligenc e and efficiency, a.nd i n conformi·i:.y with sound engi neeri ug,
fina.ncia.l and administrative pra.ctices;
(c) Ca.us e the Project to ·oe carried ou"i;. b y Bina. lfnrga. i n conformi·cy with the coatra.cts schcr'l.ules a.nd other a.rrangom..;nts , with all moc1ifica.tions therein , approved by A.I.D. pursu.ant ·co this Agreemon·c;
(:i.) Mn.kc n.va.ila.blc a.ny I ndonesia.a currency necessary
f or the complct.ioi:.t cf the Project :'!.escribe:-1 i n Section l. 2 herein;
( e ) Ivin.kc nv nilnbl c i n a t imelJ fashi on such rights of way o.s will be necessary for ·cha ｣ｶｾｮｴｵ｡Ｎｬ＠ construct i on of the highwa.y
describcj in SGc t i on 1 .2 herein:
(f) Ca.use Bina. Mn.rga. to prepare c1etai1Gd plans fo r the fina.l1cing , ､ｾ ｳｩｧｮｩｮｧ Ｌ＠ cons ·cruc t i on .::i.r.d mo.intcaa.ncc of a.11 feeder r oa.ds a.nd related facilities naccssa.ry to permit ·che optimum utilization of the highway dcscri•Jed in S-.?ction l. 2 herein. The s e pl ans will provide for f uture ·cra.ffic r cquiromcnts n.s further rtofir.c'1 by the engineering
- 7 ..
(i) a. ring roa.a. or equivalent a<lequatc surface street capo.city i n ·i:.he vicinity of the city of Bogor;
(ii)
a.clequo.te through connections to Bc.nclun.ga.nrl Sul\:"a.bumi (including o.dequa.te provisioti for cliversG o.nd l ocal t:ra.ffic at the Tjia.wi Termi nus) ;
(iii) adequat e ｾｹＲ｡ｳｳ＠ or ring road
co.pa.city or equiva.lcnt surf::i.ce s t r eet co.pa.city at the Dja.ko.rta. Terminus; (iv) adequate road access to t he docki ng ,
stora.ge commcrcio.l am'\ i ndustria.l a.rca.s of Tni11.jung Priok;
( v) o.0.cqua.te feeder roa::ls ena.·oli ng the highwa.y de scribci i n Secti on 1.2 her e in to s e rve i;hc Industria l a.rea.s proJectcd for the vicinity of Tjibinoug; nnc',
(vi) a.dcqua.tc feed.er r oads t o any othe r in:i:.ercho.nges for the highwo.y descri bc'l i n Section 1. 2 herein.
ARTICLE VI.
Gene ral Coveno.nts., Wa.rra.ntics a.nc.1 Aareemct'lts
This restriction shall a.pply only until such time as such goo(l.S can no longer be usefully employec1 for the Project ;. provided that no gOO' tS
ｦｩｮｯＮｮ｣･ ｾ Ｑ＠ hereunjcr shall be exportefl from the R\.!public of Indonesia. without the prior written approval of A.I.D. , and provid.or1 further that
ｾ＠ ! _...._ J
8
-SECTION
6. 2.
Information and Marking . The Borrower shall give publicity to the loan provided for herein and the Project as a program of United States aid, identify the Project site , and mark goods financed under such Loan, as prescribed in implementation letters .SECTION
6.3.
Disclosure of Material Facts and Circumstances. The Borrower represents and warrants that all facts and circumstances that it has disclosed or caused to be disclosed to A. I. D. in the course of obtaining the loan provided for herein are accurate and complete,and it has disclosed to A.I.D . , accurately and completely, all facts and circumstances that might materially affect the Project and the discharge of its obligations under this Loan Agreement . The Borrower shall promptly inform A.I.D. of any facts and circumstances that may hereafter arise that might materially affect , or that it is reasonable to believe might materi ally affect, the Project or the discharge of the Borrower 's obligations under this Loan Agreement .
SECTION
6.4.
Inspections . The authorized representatives of A.I.D. shall have the right at all reasonable times, whether prior to completion of the Project or subs equent thereto , to inspect the Project, the utilization of all Eligible Items, the books and records referred to in Section6. 9 ,
and any other documents,, .
..-.-...--
_,.__._-
ＮＺＮＮﾷｾﾷ＠9
-SECTION
6.5.
Taxes and Duties. The Borrower covenants and agrees that this Loan Agreement and the Loan provided for herein shall be free from, and the Principal and interest shall be paid to A.I.D. without deduction for and free from, any taxation or fees imposed under any laws or decrees in effect within the Republic of Indonesia or any such taxes or fees so imposed or payable shall be reimbursed by the Borrower . The importation of any Eligible Items, including theprovision of services, shall be free from all import duties, fees and taxes of whatever nature or kind .
SECTION
6.6.
Commissions, Fees and Other Payments. The Borrower warrants and covenants that in｣ｯｮｾ･｣ｴｩｯｮ＠
1rlth obtaining the Loan provided for herein or taking any action under or with respect to this Loan Agreement it has not paid and will not pay or agree to pay nor to the best of its knowledge has there been paid or will there be paid or agreed. to be paid by any other person orentity, commissions, fees or other payments of any kind, except as regular compensation to the Borrower's full-time officers and employees or as compensation for bona fide professional, technical or other
10
-.such payment is deemed unreasonable by A.I.D., the party concerned shall cause a reduction satisfactory to A.I.D. to be made therein.
SECTION
6.7.
Renegotiation of Terms. The Borrower agrees that, at any time or times when it is required to do so by A.I.D., but not sooner than six (6) months prior to the date the first repay-ment of Principal is due, it will negotiate with A.I.D. with respect to acceleration of the repayment of Principal by the Borrower. Itf is agreed that the Borrower and A.I. D. shall mutually determine to
I
what extent repayment of such Principal should be accelerated on the basis of one or more of the following criteria:
(a) significant improvement in the internal economic and financial situation of the Republic of
Indonesia;
(b) favorable trends in the balance of payments and foreign exchange holdings of the Republic of Indones i a;
(c) ability of the Republic of Indonesia to make
future repayment of A.I.D. l oans without interfering with the service of debts owing 'to any United
States Government agency or any international organization of which the United States is a member.
11
-to local sales agents are not Eligible Items and therefore will not be financed under the Loan, and that it will apply such rules and
procedures with respect thereto as A. I.D . may prescribe in Impl ementation Letters .
SECTION
6. 9o
Maintenance and Audit of Records. The Borrower shall maintain , or cause to be maintained, in accordance with sound accounting principles and practices consistently appli ed , books and records relating both to the Project and to this Loan Agreement .Such books and records shall, without limitation, be adequate to show: ( a) the receipt and use made of Eligible Items;
(b) the progress
of
the Project;(c) the nature and extent of solicitation of prospective suppliers of Eligible Items;
( d) the basis of the award of contracts and orders to s uccessful bidders •
Such books and records shall be regularly audited. by independent certified public accountants, in accordance with sound auditing
standards, on an annual basis or for such period and at such intervals as A. I.D . may require, and shall be maintained for five years after the date of the l ast disbursement by A.I. D. or until all sums due A.I.D. under this Loan Agreement have beeri paid, whichever date shall first occur .
. . 12 ..
ARTICLE VII . Covona.nts Co ncerning ｐｲ ｯ ｣ｹＮＮＡ｟ｾｾｬ＠
SECTION
7
.L Procurement ｓｯｵｲ｣ｾ＠ ｡Ｎ ｾＱＺＱ＠ Orit,;;i<:!_. Except o.s1\, I.D. rJn/ otherwise ｡Ｎｾｲ･ＮＺ［＠ i n wri cing , a.11 Eli::;iblc I·cCIJs, inclu-:-U".:G tro.nsportati0G services ai1d r:nrine insura.i.1c e, shall ho.ve uoth their s ource anc1 orig in ia tho U::-ti'Ger1 Sta.tcs . Tro.n.spor ·ca:ci on services shall bo ·:'.l.ccno:1 to ho.ve ·chcir s ciurce o.nc1 orig in in the Unitec1 St ates if procure 1 i'ro.ra o. Uni·cec1 Sta.·:;cs flo.G carrier . .Mn.rino insurance sha.11 °i:>c ｾ｣｣ｮ･ ｾ ＱＮ＠ t o hci.v0 its s ource o.nr'l.. oris in itl tho Unitc(1. Sto.·ccs if issuc·1 i n ｾ ｨ･＠ U 1.itcc1 S-':;a.tes 'bJ 0. COL1j_)O.llY authorizcc1 to Jo a r.1n.ri LlO insurance business ii1 o.ay s ·co:c0 of the ｕＮ､Ｎ ﾷｩｾ ｣ Ｚ Ｑ＠ Sto.·ccs. All other ge;ods Q.C.j s.Jrvices ob'ca.i t1c·'1 for ·chc Projcc"'.,, ｯｸ｣･ ｰﾷ ｾｾ＠ ｴｲ｡Ｎｮｳｰｾ Ｇ ｲｴｯＺ｣ｩｯｮ＠
SG:rviccs 9 sho..11 have their s ourc8 a.D.L1 orL::;i.n in cour:tries ｩｮ｣ｬｵ､･ Ｎ ｾ＠
in Corte
93-'5
c)f the ,'LI.D. Geoc;ro.phic Co,k B'>Ok a.s in ､ ｦ｣｣ｾ＠ o:C.the tine such GCKYls or services o.r<} procurcr1. i\11 Eligible !tens sha.11 oe transported t 8 In-1on0sio.. ) i l co..rriors ｾＩ ｦ＠ ccuo:crics ｩｮ｣ＱｵｾＱ｣ｲＱ＠ in che
ｳｯＮｩ ｾｬ＠ Co,-'l.e 935 a.s fr. effect a.·c the tine such tra.nspor Go.tion is procured. This covcna.r1t sha.11
oe
c oc.struc1 i n a.ccor .-1.:J.nce wHh 1\.I.D. rc1:3ula.tio i1s, a.s fron tine to t i ne ｾｮ｣ｮ［ Ｑ･ﾷ ﾷＱＮ＠SECTION
7.
2 . Do:cc of Proc urencn-t . Except Q.S A. I. D.13
-SECTION 7 . 3 . Port Char ges. With respect to transportation services that const itute Eligible Items, A.I.D. will finance under t he Loan ninety percent (9lfl/o) of all ocean freight costs of each shipment, and ninety-eight percent (98%) of such costs on any shipment under free-out terms. The r emaining ten percent (llfl/o), or two percent (2%) of free-out shipments , represent port charges in Indone sia, and Borrower covenants that it shall make available foreign exchange t o finance said port charges in accordance with
.
such rules and procedures as A.I.D. may prescribe in Implementation Letters.
SECTION 7.4. Small Business Notification . In order that American small business shall have the opportunity to participate
in furnishing Eligible Items, Borrower shall, at such time prior to ordering or contra cting for any Eli gible Item estimated to cost more than the equivalent of Five Thousand United States dollars
($5,000) as A.I.D. may specify, cause to be received by A.I.D. such information concerning Eligible Items as A.I.D. may require.
14
-been chartered for the carriage of A. I.D. - financed commodities unless such charter has been approved in advance by A.I . D.
SECTION
7.6.
Discrimination in Marine Insurance. If in connection with the placement of marine insurance on shipments financed under United States l egislation authorizing assistance to other nations, the Republic of Indones i a , by statute , decree , rule or regulation, favors any insurance company of any country over any marine insurance company authorized to do business in any state of the United States, goods financed hereunder shall during thecontinuance of such discrimination be so insured in t he United States with a company or compa..Dies authorized to do a marine insurance
business in any state of the Uni ted States .
SECTION
7,7 ,
Employment of Contract Personnel . Theemployment of personnel to perform services under contracts financed hereunder, in whole or in part , will be subject to all applicable Uni ted States legislation and such requirements, including security clearances and limitations on the employment of third country
nationals, as A. I.D . may from time to time promulgate or specify and, except as A. I . D. may otherwise direct, all such contracts shall include provisions necessary to implement such legislation and requirements .
require 15 require
-ment s of the Project and as may be available within a reasonable period of time. The Borrower shall seek assistance from A. I.D . and A. I . D. will assist the Borrower in ascertaining the availab i lity
of and in obtaining such excess property. A.I.D. will make arrangements for any necessary inspection of such property by the Borrower or its r epresentatives. The costs of inspection and of acquisition, and al l charges incident to the transfer to the Borrower of such excess property may be financed under the Loan. Prior to the procurement of any goods, other than excess property, financed under the Loan and having sought such A.I . D. assistance, the Borrower shall indicate to A.I.D. in writing, on the basis of information then available to it, either that such goods cannot be made available fr om
reconditioned United States Government excess property on a timely basis or that the goods that can be made available are not technically suitable for use in the Project .
ARTICLE VIII. Remedies of A. I.D .
SECTION 8 . 1 . Events of Default; Acceleration . If any one or more of the following events ("Events of Default") shall occur :
( a ) the Borrower shall fail to pay
in full any interest payment or installment of principal of the Loan when the same shall become payable by it;
(b) the Borrower shall fail to
comply with any other provision contained h erein applicable to it;
( c) any r-.!pr oscn·cr:.cion ()r wo.r:co.:rty .'.:ln.·1e by or oc:i. beho.lf
·y[ the B-·rrowcr with :cc si:ect to Dbto.ii1i nc -Che Lonn pr ovic1'-.?"• for hcrt.:i n or no.'10 or require 1 t o be .r.nc1e hcn:mn 1cr is i nc orrect i n n.t1y r.>n.tcria.l r e spcc·c; ( ''.) n.ny othe r indcbtcrlaoss or a'Jlica.ti on of the B'.Jrrowur
f o r the payr,1cnt of. borrow0c1 .DDney shall h.a.ve becoric
ＭｾＮｴｷ＠ o.nc1 po.,. o.ble n.n:1 n0·t ·:x:cu p::i.ic'. ;
( c ) a .wo.terio.l :1..:fa.uH sho.11 ho.ve occurcd o.ftor the
un::l.er o.;-iy other l oo.n ｯＮ Ｚｾ ｲ ･｣ＮｬＮ･ｵＮ ｴ＠ octwccn the Borrowe r
o.r'.-:'. A.I.D. ;
!:.hoc A. I.D ., o.·v i t s op·i.;i o •!. r.JJJ.y ｾ ｬ｣｣ ｬ ｡ ｲ ｣＠ o.11 :::ir a.ny pa.r t of the unpai·1 p ri nci.pa.l under ·the l 0an p r ovided f or h e rein to be :1ue ｮｭｾ＠ Ｎｩ＿ｏＮｊ｡Ｎ｢ ｬ ｾ＠
ir.'lrilc:'.l.io.tel y D..<li ｵｰｯ｣ ｾｬ＠ o.n-:,r such :::ccl o.r o.ti oi1. ｭｾ ｬ｣ｳｳ＠ Urn c1c:fn.ul t r.1.'1.Y be cur cl. a.nrl is cure::l witlliu s ixtJ (60) r:l.O..}' S thcrco.f·l;cr such
pri nc i p n.l o.n:'l :ill int0res·i.; o.ccruerl the reon sho.11 bcc on.e iD.r:1c .3.iatcl y du e a.nd .DO.ya.bl-::.
SECTION
3.
2 . Tur nL10.ti on of Disburseucnts; Tra.nsf.:::r ofｇｯｯｲｾｳ＠ to ll.. I.D. I n the ever:.t that a.·;; O.l1J' t ioc.
( a.) o.r: Evi..:nt 0f Dcfo.ul·c hc.s occurec1 nnd ha.s net bcci1 r CJ.1crl.ic.l o.s p r ovir1...:J a.'.Jovc ;
(b) o.n ovont occurs tho.t A.I. D. cl.etor .oincs to bu O.i1 e:x:tr::.i.c,rrli,10.ry sHu::i.tion whi ch i.1'.lkes it ｌＱｾＩｲ ｯ ｢ＺＺＺＮ｢ ｬ ｣＠
t ha.·c the p ur :_:icscs c f th0 l oan v r ovi 1.e<'l for ｨ･ ｲｾｩｮ＠
will be a.ttuinei e r tll::tt t he Borr ower
"'\'Jill be a.'ol c to o r will pcr fo r n i ts oblie;o.tL><t.S
17
-( c) any disbursement would be in violation of the legislation governing A. I . D.;
then A.I.D. at its option, after notice to the Borrower w..ay.
(i}
decline to issue further letters of commitment or other commitment documents,(ii) suspend or cancel outstanding letters ｯｾ＠ commitment . or other commitment documents to the extent that they have not been utilized through the issuance of irrevocable letters of ｣ｲｾ､ｩｴ＠ or through bank payments made other than under irrevocable letters of credit,
I
\ gi ving notice to the Borrower thereof, (iii) decline to make disburse-ments other than under l etters of commitment; and (iv) at A.I.D. •s
expense, direct that title to goods financed under disbursements hereunder shall be transferred to A.I . D. at cost to the Borrower,
provided the goods are from a source outside the Republic of Indonesia, are in a deliverable state and have not been off-loaded in ports of entry of the Republic of Indonesia. To the extent that any costs connected with the purchase and transportation of these goods have been financed hereunder, these amounts shall be deducted from Principal.
SECTION
8. 3.
Refund s . If A. I . D. determines that any di sbursement is not supported by valid documentation in accordance with the terms of this Loan Agreement, or is not made or used in18
-Borrower to pay t o A.I.D. in United States dollars within thirty
(30) days after receipt of a request therefor, an amount not to exceed t he amount of such disbursement; provided that such request by A.I .D. shall be made not lat er than five (5) years after t he date of the f inal di sbursement hereunder. Any such refund received by A.I.D. shall be applied f i rst to any accrued interest, and then t o installments of Princ ipal in inverse order of their maturity .
SECTION
8.4.
Waivers. No delay in exercising or omissi on to exercise any right, power or remedy accruing to A.I.D. under this Loan Agreement shall be construed as a waiver of any such right, power or remedy.SECTION
8.5.
Expenses of Collection. All reas onable c osts incurr ed by A.I . D. ( other than salaries of its staff) after anEvent of Default has oc cur red, i n connection with the collection of amounts due under this Loan Agreement, may be charged to the Borrower and re i mbursed as A. I.D . shall specify.
ARTICLE IX. Mi scellaneous
SECTION
9. 1.
Designat i on of Representatives... 19
-(!.:> )
The Borrower herch:'/ O.e si3na.t c s Mr . Widj oJ..2.ｎｩｴｩｾ｡Ｎｳｩｾｲｯ＠ as its r epr0s c;yl;a.·c ivc with
o.u·chorHy-to
losi 3nate in writing CJther rl..!pre scnta.tivcs in his ·'J.calin!js wHh .'\.I.D . The rep r esetrco.·Givc -:.1csic;no.tc,_1 in or pursumrc ·co the prccc,lit1c;sentence, unless iLI.D. is c;iven notic e othurwise sha.11 have authority ·l;o a.3re::c on behal f of the Brirrower ·co a.ny f.l'.:xlifica.tion of this Loan At;r coi:ient which r1oc s n::it suus·c1J.i1"cia.lly i ncrease its
ci0li[pti ons ｨ･ｲ ｯｵｮｾＱ｣ ｲ Ｎ＠ Ut:.til r e ceipt ·oy A.I .D. of ·written noticu of r uvoca.tion of the .::i.uthority o:J:' .::i.ny such r cprose nta.tiv0 , l\ . I.D. no.:1 a cc ept ·chc si3na.tur0 of such ru_Lirosunto:Givc on o.ny
instrw:icnt .::i.s conclusive eviclence ＭｾＭＮｨ｡Ｎｴ＠ .::i.ny a.ct.ion cffecte:l ｢ｾｲ＠ such i ns·crw:1cnt is a.uthorizccl '0.J
the party on whos e ﾷｾＱｾ ｨ｡Ｎｬｦ＠ such represent.a.ti vc J)U.rports ·co ::i.c t .
SECTION
9.2 .
!!_J,j,)lenent!ltion Lct·cars . ..1\.I.D. sha ll fro.a t im0 t o tine ｩｳＮｾｵ ｣＠ I .i.ipl er.ionta.t i o«1 L3ttcrs t ha.t ｾＧＱｩｬｬ＠ pr0scri bG theｰ ｲ ｾＮｩ ｣ ｣ｴｬｵ ｲ･ ｳ＠ nrplico.:)1c hcrounc1cr in c 0 unection with the ｾｰ ｬ ･ｮ･ｮｴ｡Ｎｴ ｩ ｣ｭ＠
of this Lonn 11.c;r ccucnt.
SECTION
9. 3.
Ccn.r.J.ut'lications. .1\ny car.ir.mnico.t i on or 1.o CQJ.cmt..
.. 20 ..
i ·i; s hall · . .ic :1cli v c r ccl. 1)y ha.rJl ·>r b:,i r.10.il ; :ccl c;jrn.r.:; co.ol c or r o..J.i
o-0ro.r1 to such Iia.r·c:,r a:\:. U:.s ｩＧｯ ｬｬ ｣ ｍｩｮｩ ｾ＠ a:l.1ress : To ·\;h e Borr ow or :
.---Mnil ,\ ｾＭＧｬｲＮＮＺｬｳｳＺ＠
Dc_pa.r t ci:1cn L unr ｎＮＮＺｲ ｾ ｵ ｲｩ＠
ｔ ｎＮｾＧ Ｇ ﾷ＠ Pc -:-lja.c.0on
6
Djo.lmr ·ca., I L,bn<:!sio.Dc;ilu DJo.ko.r tn
To A.I.D.:
Mail A 1:1.r c ss:
Uni tec1 S"Gncos ａ｣ ｾ ｣［［Ｎ ｣ ｹ＠ fur I ntcrnat i o;10.l ｄ Ｐｶ｣ ＱＧＮＺＱｰｲＮＭＬＮｾ ｮｴ＠
A!:lcrico.n Enb o.ssy Djn.ko.r ·i:.o., 11::1.oaGs i:::i.
ｃ ｮＮｾ ｬ ｣＠ t.r1.clr e s s : UMID 1\IV.IEMB DJ!l.KARTA
Other o.1r1r c ss c s ｲＮｩＮＺＺｩＮｾ ［＠ . .ie subs t itutci f or the a.Jove upon c ivi nc; of
noti ce o.s p r cv i '1cc1
. hureL1 .
ｨ｣ ｲ ｣ ｵ ｮ､ｾ ｲ＠ s lln.11 be i n Ei.1Glish ｾ＠ -'lnJ o.11 tcchnicol o.r1c1 Ｈ［ｮ･［ ｩ ｮ｣｣ ｲｩ ｮｾ＠
o.oov c writ i:;Jn.
.. 21 ..
&'Cccutc'1
. o.t Dj a ka.rto., In'1.on'3 sia, en ·i:;hc .late first
THE REPUBLIC OF INDONESiti.
Signed
Ti·i:;le : Dircc t0r Gcncro.l f or Foroi r@.
ｅ｣ ｵ Ｎ ｜ｬｯｩＺｾＮｴ ｣Ｚ［Ｎ＠ Relations
Ul'i!ITED STnTES OF
AMERICASigned
.
__
...
__
._____
ｾ ＮＮＮＮＮＮＮＮＮＮＮＮ｟＠__ _
By : i\lexo.i).::1ur Sha.kuw
