Direct Agreements Project Finance
The argument in favour of this position is that the third party should not worry about the length of the registration period, given that the designated representative assumes the obligations of the project company at this stage of the process. It should be remembered that this is the period during which lenders must save the project and / or find a permanent replacement at the project company. In addition, project finance guarantee packages often involve the assignment of project documents by the borrower to the lender/lender/security officer. The assignment of project documents generally takes the form of an assignment in securitatem debiti (assignment of security right) as opposed to assignment and assignment. In the context of a transfer of securities, the borrower assigns its individual rights with respect to the project documents to the lender/security representative as security for its obligations under the credit facility. While the borrower retains ownership of the assigned rights, the lender/security officer obtains the right to assert these rights vis-à-vis the counterparty of the project document in the event of a delay under the facility agreement. Insurers: Insurers are essential for a project. If there is a disaster affecting the project, sponsors and lenders will turn to insurers to cover the losses. Service contracts: Projectco concludes service contracts with service providers and transmits to these contractors the service obligations imposed on it under the project agreement. As noted above, service providers provide guarantees in favour of the Authority and the Authority has, in certain circumstances, registration fees – again subject to the rights of lenders. . . .