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Development Credit Agreement Template for India

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Key Requirements PROMPT example:

Development Credit Agreement

"I need a Development Credit Agreement for a 50 million USD renewable energy project in Gujarat, India, where the borrower is a state-owned enterprise and specific environmental compliance clauses are required."

Document background
The Development Credit Agreement serves as the primary legal framework for development financing transactions in India, typically used when development finance institutions provide credit facilities for public infrastructure, social development, or economic growth projects. This agreement type is specifically designed to comply with Indian legal requirements while incorporating international development finance standards. The document encompasses crucial elements such as credit terms, project implementation frameworks, monitoring mechanisms, and compliance requirements. Development Credit Agreements are particularly important in the Indian context as they bridge the gap between international development funding and local project implementation, ensuring proper governance and accountability in development initiatives. The agreement structure accommodates various development sectors and can be customized based on project scope, implementing agency requirements, and specific regulatory considerations.
Suggested Sections

1. Parties: Identification of the credit provider and the borrower, including their legal status and registered addresses

2. Background: Context of the development project, purpose of the credit facility, and brief overview of the arrangement

3. Definitions and Interpretation: Definitions of key terms used in the agreement and rules of interpretation

4. The Credit Facility: Details of the credit amount, purpose, and basic terms of the facility

5. Conditions Precedent: Conditions that must be satisfied before the credit facility becomes effective or disbursements can be made

6. Disbursement Procedures: Mechanisms and procedures for drawing down the credit facility

7. Repayment Terms: Schedule and methods of repayment, including principal and interest calculations

8. Interest and Fees: Interest rate provisions, calculation methods, and applicable fees

9. Representations and Warranties: Statements of fact and assurances given by the borrower

10. Covenants: Positive and negative obligations of the borrower during the term of the agreement

11. Project Implementation: Requirements and obligations regarding the implementation of the development project

12. Monitoring and Reporting: Requirements for project monitoring and periodic reporting

13. Events of Default: Circumstances constituting default and consequences thereof

14. Remedies: Rights and remedies available to the lender in case of default

15. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction for disputes

Optional Sections

1. Security: Required if the credit facility is secured by any assets or guarantees

2. Environmental and Social Requirements: Include when the project has significant environmental or social impact considerations

3. Procurement Procedures: Required when the credit facility involves specific procurement requirements for project implementation

4. Anti-Corruption Provisions: Enhanced provisions when required by institutional policies or high-risk contexts

5. Force Majeure: Detailed force majeure provisions when project implementation faces significant external risks

6. Assignment and Transfer: Include when either party may need to transfer rights or obligations

7. Technical Assistance: Required when the credit facility includes technical support components

8. Currency and Exchange Rate Provisions: Include for facilities involving multiple currencies or exchange rate risks

Suggested Schedules

1. Project Description: Detailed description of the development project, its components, and implementation plan

2. Disbursement Schedule: Detailed schedule of planned disbursements and associated conditions

3. Repayment Schedule: Detailed amortization schedule showing principal and interest payments

4. Security Details: Description of security arrangements, if applicable

5. Project Implementation Schedule: Timeline and milestones for project implementation

6. Reporting Requirements: Formats and templates for required project reports

7. Environmental and Social Management Plan: Detailed plans for managing environmental and social impacts

8. Procurement Guidelines: Detailed procurement procedures and requirements

9. Forms of Notices: Standard forms for various notices under the agreement

10. Key Personnel: List of key project personnel and their responsibilities

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions

















































Clauses








































Relevant Industries

Infrastructure Development

Urban Development

Rural Development

Healthcare

Education

Agriculture

Renewable Energy

Water and Sanitation

Transportation

Housing

Social Infrastructure

Environmental Protection

Digital Infrastructure

Industrial Development

Public Services

Relevant Teams

Legal

Finance

Project Management

Risk Management

Compliance

Treasury

Credit

Environmental and Social

Operations

Technical Advisory

Contract Administration

Procurement

Relevant Roles

Chief Financial Officer

Project Director

Legal Counsel

Finance Manager

Compliance Officer

Project Manager

Risk Manager

Development Finance Specialist

Environmental Compliance Officer

Social Impact Specialist

Treasury Manager

Contract Administrator

Financial Controller

Credit Risk Officer

Program Director

Industries









Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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