Cap. 574 Art. 15Terms and conditions for direct loans and guarantees.

In the case of direct loans made or participated in or loans guaranteed by the Bank, the contract shall establish, in conformity with the operating principles set forth in article 14 and subject to the other provisions of this Act, the terms and conditions for the loan or the guarantee concerned, including those relating to payment of principal, interest and other charges, maturities, and dates of payment in respect of the loan, or the fees and other charges in respect of the guarantee, respectively. Guarantees by the Bank will be issued only with a fixed term of maturity and shall provide that the Bank may terminate its liability with respect to interest if, upon default by the borrower and the borrower’s guarantor, if any, the Bank offers to purchase, at or below par and interest accrued (or part thereof) to a date designated in the offer, the bonds or other obligations guaranteed.