3.02 Event before Effectiveness (a) OPEC Fund shall not be obliged to declare the Legal Agreement effective if any event occurs before the Date of Effectiveness which would have entitled OPEC Fund to suspend the Borrower’s right to withdraw any amount of the Loan Proceeds pursuant to Section 9.01 had the Legal Agreement been effective. (b) OPEC Fund may declare the Legal Agreement effective when the event ceases to exist, unless the Legal Agreement is terminated pursuant to Section 11.07 (a) of these General Conditions.
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Article 4 COVENANTS AND EXEMPTIONS
4.01 Loan Priority The Borrower undertakes to ensure that no other External Debt shall have priority over the Loan with respect to the allocation, realization or distribution of foreign exchange held under the control or for the benefit of the Borrower. 4.02 Liens If any Lien shall be created on any Public Assets as security for any Public Debt, which will or might result in a priority for the benefit of the creditor of the Public Debt in the allocation, realization or distribution of foreign exchange or the Borrower’s funds, the Lien shall, ipso facto , and at no cost to OPEC Fund, equally and rateably secure the principal of, interest, Service Charges, front-end and/or commitment fees, and any other fees or charges on, the Loan, and the Borrower, in creating or per- mitting the creation of such Lien, shall make express provision to that effect; provided that if for any constitutional or other legal reason that provision cannot be made with respect to any Lien created on specific Public Assets, the Borrower shall promptly and at no cost to OPEC Fund secure the principal of, interest, Service Charges and front-end and/or commitment fees on, the Loan, by an equivalent Lien on other Public Assets satisfactory to OPEC Fund.
4.03 Excepted Liens The Borrower’s undertaking described in Section 4.02 shall not apply to:
(a) any Lien created on property, at the time of purchase thereof, solely as security for payment of the purchase price of that property or as security for the payment of debt incurred for the purpose of financing the purchase of such property; and (b) any Lien arising in the ordinary course of banking transactions and securing a debt matur- ing not more than one year after its date. 4.04 On-Lending/Transfer of Loan Proceeds Where the Loan Proceeds are agreed to be made available to an Executing Agency, the Borrower undertakes to OPEC Fund to on-lend or transfer the Loan Proceeds to such Executing Agency on loan, grant or other basis and in accordance with such terms and conditions as may be stipulated in the Legal Agreement.
4.05 Fraud and Corruption The Borrower irrevocably and unconditionally undertakes to OPEC Fund to ensure that the imple-
OPEC FUND GENERAL CONDITIONS FOR PUBLIC SECTOR LOANS
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