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PAI Section

4. Disbursements

PAI No.

4.05

Paragraph No/s.

Q/A No.

0146

QUESTION: Can the bank accept contracts under a loan whose termination date is after the loan closing date e.g loan closing - 31/12/2007, Contract signing - 12/09/2005, Contract closing - 04/04/2008. What if the EA is willing to finance the cost beyond the loan closing date?

ANSWER: Bank can approve the contract on the condition that Borrower/EA will finance the cost beyond the loan closing date if the loan closing is not extended. "