Disbursement Procedures - Islamic Development Bank

that the execution and delivery of the Agreement on behalf of the Borrower
have been duly authorized or ratified by all necessary governmental actions;
(ii) The Borrower shall have furnished a Legal Opinion acceptable
to the Bank emanating from a Government Legal Authority declaring that the
Loan Agreement has been authorized and properly signed on behalf of the
Borrower. The declaration shall state that the Agreement constitutes a
binding obligation on the Borrower in accordance with its terms;
(B) A Letter of Authorization shall be issued by the Ministry of Finance or any other duly
authorized organ of the government to the Central Bank or the entity that performs
the functions of a Central Bank instructing the said Bank that payment by the
government under this Agreement of the loan and service fee installments shall be
effected by the Central Bank or the entity that performs the functions of a Central
Bank on the dates on which they fall due. A copy of this Letter of Authorization
together with an acknowledgement from the Central Bank or the entity that performs
the functions of a Central Bank indicating that it has received the said Letter of
authorization and that it will adhere to the instructions contained therein, shall be
forwarded by the Government to the Bank.
(C) All conditions precedent to the Borrower’s right to obtain funds under other loans
have been fulfilled (in case of co-financing with other financiers).
2.33.3 Declaration of Effectiveness of the Financing Agreement : Except as shall be
otherwise agreed by the Bank and the Borrower, the Loan Agreement and the Guarantee
Agreement shall come into force and effect on the date upon which the Bank dispatches to
the Borrower and to the Guarantor notice of its acceptance of the evidence required by
para 4.1.1. of …………..
Under IS, Leasing and Istisna’a financing
2.9 This type of financing requires that the beneficiary acts as an Agent of
the Bank for the implementation of the Agreement. The Agent should present to the Bank
(through a legal opinion) the following :
(a) that it is a Company/Corporation/Statutory body incorporated/
established under the Laws of the country of beneficiary/lessee
etc. and that it has the necessary power to enter into, exercise
its rights under and perform the obligations undertaken by it in
this Agreement and in the Lease Agreement (not required in
case the Agent is the Government);
(b) that all necessary actions legally required to enable it lawfully to
enter into, exercise its rights under and perform the obligations
undertaken by it in this Agreement and in the Lease
Agreement, have been duly taken and are in full force and
effect;
(c) that the obligations undertaken by it under this Agreement and
under the Lease Agreement are legal, valid and binding
obligations binding on it in accordance with their terms under
the Laws of the country of beneficiary/lessee etc., and that it is
not necessary for the legality, validity or enforceability of the
Agreements that they be filed, recorded or enrolled with any
court or government agency of the beneficiary/lessee etc.