29.3.22 In the Direct Agreement (see Section 26.5(Funders Direct Agreement)), Clause 11 (d)(iv) may be amended to reflect the different reporting arrangements for a bond financing, as follows:
11 (d)(iv) [The Contractor shall promptly notify the Authority] on each [Payment Date]15 on which any Additional Permitted Borrowing is, or may be, subsisting, the Amount outstanding under the Senior Financing Agreements and to the extent it is aware (having made reasonable and proper enquiry):
(a) on each [Payment Date] and the first Business Day of each calendar month following a Distribution, the amount of any Distribution made by the Contractor; and
(b) on each [Payment Date] and on the first Business Day of each calendar month following 5 Business Days written notice from the Authority, the amount of any credit balance on any account of the Contractor.
29.3.23 Authority legal advisers will need to check the relevant bond documentation to ensure that the obligations of the representative of the Senior Lenders (which may be a trustee) under the Direct Agreement (for instance, any covenants to act reasonably) flow through to the party or parties which will direct such representative (for example, a monoline insurer or the bondholders).
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15 To correspond with Bond payment dates.