Treaty Series Recueil des Traites - United Nations Treaty Collection

254 Unitea Nations - Treaty Series 1969
drawn from the Credit Account is to be used only for the purposes specified in the
Development Credit Agreement.
SECTION 5.07. Payment by the Association. Payment by the Association of
amounts which the Borrower is entitled to withdraw from the Credit Account shall
be made to or on the order of the Borrower.
Article VI
CANCELLATION AND SUSPENSION
SECTION 6.01. Cancellation by the Borrower. The Borrower may by notice
to the Association cancel any amount of the Credit which the Borrower shall not
have withdrawn prior to the giving of such notice, except that the Borrower may
not so cancel any amount of the Credit in respect of which the Association shall
have entered into a special commitment pursuant to Section 5.02.
SECTION 6.02. Suspension by the Association. If any of the following events
shall have occurred and be continuing, the Association may by notice to the Borrower
suspend in whole or in part the right of the Borrower to make withdrawals from the
Credit Account :
(a) The Borrower shall have failed to make payment (notwithstanding the fact
that such payment has been made by a third party) of principal, interest, service
charges or any other payment required under: (i) the Development Credit
Agreement, or (ii) any other development credit agreement the Association,
or (iii) any loan agreement or guarantee agreement with the Bank or any bond
or any similar instrument delivered pursuant to any such agreement.
(b) The Borrower shall have failed to perform any other obligation under the Development
Credit Agreement.
(c) (i) The Association or the Bank shall have suspended in whole or in part the
right of the Borrower to make withdrawals under any development credit agreement
with the Association or any loan agreement with the Bank because of
a failure by the Borrower to perform any of its obligations under such agreement;
or (ii) the Bank shall have suspended in whole or in part the right of the Borrower
to make withdrawals under any loan agreement with the Bank guaranteed by
the Borrower because of a failure by the Borrower to perform any of its obligations
under such agreement.
(d) An extraordinary situation shall have arisen which shall make it improbable
that the Project can be carried out or that the Borrower will be able to perform
its obligations under the Development Credit Agreement.
(e) The Borrower: (i) shall have been suspended from membership in or ceased to
be a member of the Association, or (ii) shall have ceased to be a member of the
International Monetary Fund or shall have become, or shall have been declared
ineligible to use the resources of said Fund.
(f After the date of the Development Credit Agreement and prior to the Effective
Date any event shall have occurred which would have entitled the Association
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