Cap. 574 Art. 8Conduct of business.

(1)The Bank may offer financing under article 6(1) directly on its own or in syndication with other financial institutions where it is determined that -

(a) the financial market is failing to provide adequate financing to certain lines of business, categories of clients, or types of enterprises that meet the Bank’s social and economic mission, or

(b) such financing, though provided by the market, is not appropriate to reach its purpose further to article 4: Provided that, in general, the Bank’s direct financing on its own shall -

(i) not exceed 25 per centum of its overall lending,

(ii) be provided under schemes tailored for the lines of business, categories of business, or types of enterprises concerned.

(2) The Bank’s loans will generally be directly or indirectly secured by customary banking security or other security acceptable to the Bank. In taking collateral, the Bank is relying on such assets as a second form of repayment in the event the project’s primary cash flow is weakened.