Tripartite Escrow Agreement Draft
ADVERTISEMENT
1
2
3
4
5DRAFT
TRIPARTITE ESCROW AGREEMENT
This Agreement is made on the ____________ day of _______2010 at ___________ amongst
Power
Finance
Corporation
Ltd.
(a
Govt.
of
India
undertaking)
having
its
Registered Office at Urja Nidhi, 1, Barakhamba Lane, Connaught Place, New Delhi – 110001
(hereinafter referred to as “the Corporation” which expression shall include its successors or
assigns) of the first part and
________________Company Constituted under the Companies Act 1956 having its Registered
Office at _____________________ / ___________Board constituted under Electricity (Supply)
Act,1948 having its Head Office at__________(hereinafter referred to “the Borrower” which
expression shall include its successors or assigns) of the second part* and
__________________, a Bank / body corporate constituted under the___________, having its
Head Office at __________ and several branches throughout the country and abroad including
branch at _________________________, (hereinafter referred to as the “Escrow Agent” which
term shall include its successors or assigns) of the third part.
AND WHEREAS the borrower has taken/proposes to take various financial assistance by way of
Rupee Term Loan / Foreign Currency Loan / Bill Discounting Facility / Lease Financing /
Working Capital Loan / Short Term loan/ MSTL/ Loan for Purchase of Power through Power
Exchange schemes etc. for different projects / schemes from the Corporation as specified in
Schedule-I & II respectively.
And Whereas the Corporation has sanctioned the above facility to the borrower on the terms and
conditions contained in the respective sanction letters and the borrower has accepted the said terms
and conditions of the respective sanction letters.
And Whereas the Borrower has also executed respective Memorandum of Agreement and other
documents in respect of the facilities mentioned above in Schedule-I.
AND WHEREAS the Borrower has agreed for establishing Escrow mechanism for availing
financial assistance on Current Account No._______ of Bank Code No. _______ (hereinafter
referred to as an “Escrow Account”) maintained with Escrow Agent for revenue collection and to
pay to the Corporation the amount due but not paid by the borrower immediately on receipt of
notice of demand for payment from the Corporation.
AND WHEREAS the Borrower has irrevocably and unconditionally authorised Escrow Agent to
collect and receive all its receivables which include all monies including but not limiting to
revenue accruing to the Borrower by sale of electricity or otherwise collected and deposited in the
Escrow Account to be maintained with Escrow Agent.
And WHEREAS the Borrower declares and undertakes that any cash receipt towards payment of
any receivables of the borrower shall be deposited in the Escrow Account with Escrow Agent in
entirety within reasonable time before utilising the same for any other purpose.
AND WHEREAS the Borrower also declares and undertakes that it shall not collect credit or make
any adjustment against receivables directly or through any other person except as provided under
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Business