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CONFORMED COPY  
CREDIT NUMBER 3037 TJ
Development Credit Agreement
(Post-Conflict Emergency Reconstruction Project)
between
REPUBLIC OF TAJIKISTAN
and
INTERNATIONAL DEVELOPMENT ASSOCIATION
Dated February 17, 1998
CREDIT NUMBER 3037 TJ 
DEVELOPMENT CREDIT AGREEMENT 
AGREEMENT, dated February 17, 1998, between REPUBLIC OF TAJIKISTAN (the 
Borrower) and the INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association).
WHEREAS (A) the Borrower, having satisfied itself as to the feasibility and 
priority of the Project described in Schedule 2 to this Agreement, has requested the 
Association to assist in the financing of the Project; and
WHEREAS the Association has agreed, on the basis, inter alia, of the foregoing, 
to extend the Credit to the Borrower upon the terms and conditions set forth in this 
Agreement;
NOW THEREFORE the parties hereto hereby agree as follows:
ARTICLE I
General Conditions; Definitions
Section 1.01. The “General Conditions Applicable to Development Credit 
Agreements” of the Association, dated January 1, 1985, with the modifications set 
forth below (the General Conditions) constitute an integral part of this Agreement:
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(a)
The last sentence of Section 3.02 is deleted.
(b)
The second sentence of Section 5.01 is modified to read:
“Except as the Association and the Borrower shall otherwise agree, no 
withdrawals 
shall be made: (a) on account of expenditures in the territories 
of any country which is not 
a member of the Bank or for goods produced in, or 
services supplied from, such territories; 
or (b) for the purpose of any payment to 
persons or entities, or for any import of goods, if 
such payment or import, to the 
knowledge of the Association, is prohibited by a decision of 
the United Nations 
Security Council taken under Chapter VII of the Charter of the United 
Nations.”
(c)
Section 6.03 is modified to read:
“Section 6.03.  Cancellation by the Association.  If (a) the right 
of the Borrower 
to make withdrawals from the Credit Account shall have been 
suspended with respect to any 
amount of the Credit for a continuous period of 
thirty (30) days, or (b) at any time, the 
Association determines, after 
consultation with the Borrower, that an amount of the Credit 
will not be required 
to finance the Project’s costs to be financed out of the proceeds of 
the Credit, 
or (c) at any time, the Association determines, with respect to any contract to 
be financed out of the proceeds of the Credit, that corrupt or fraudulent practices 
were 
engaged in by representatives of the Borrower or of a beneficiary of the 
Credit during the 
procurement or the execution of such contract, without the 
Borrower having taken timely and  appropriate action satisfactory to the Association to 
remedy the situation, and establishes 
the amount of expenditures in respect of such 
contract which would otherwise have been 
eligible for financing out of the 
proceeds of the Credit, or (d) at any time, the 
Association 
determines that the procurement of any contract to be financed out of the 
proceeds of the Credit is inconsistent with the procedures set forth or referred to in 
the 
Credit Agreement and establishes the amount of expenditures in respect of such 
contract 
which would otherwise have been eligible for financing out of the 
proceeds of the Credit, or 
(e) after the Closing Date, an amount of the Credit 
shall remain unwithdrawn from the Credit 
Account, the Association may, by  notice 
to the Borrower, terminate the right of the 
Borrower to make withdrawals with 
respect to such amount. Upon the giving of such notice, 
such amount of the Credit 
shall be canceled.”
Section 1.02. Unless the context otherwise requires, the several terms defined 
in the General Conditions have the respective meanings therein set forth and the 
following additional terms have the following meanings:
(a)
“Special Account” means the account referred to in Section 2.02 (b) of 
this Agreement; and
(b)
“PCU” means the Project Coordination Unit, established under the 
Government of the Republic of Tajikistan, Resolution No. 571 dated December 31, 1997, 
in the Office of the Prime Minister of the Borrower.
ARTICLE II
The Credit
Section 2.01. The Association agrees to lend to the Borrower, on the terms and 
conditions set forth or referred to in the Development Credit Agreement, an amount in 
various currencies equivalent to seven million four hundred thousand Special Drawing 
Rights (SDR 7,400,000).
Section 2.02. (a) The amount of the Credit may be withdrawn from the Credit 
Account in accordance with the provisions of Schedule 1 to this Agreement for 
expenditures made (or, if the Association shall so agree, to be made) in respect of 
the reasonable cost of goods and services required for the Project described in 
Schedule 2 to this Agreement and to be financed out of the proceeds of the Credit.
(b)
The Borrower may, for the purposes of the Project, open and maintain in 
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Dollars a special deposit account in a commercial bank on terms and conditions 
satisfactory to the Association including appropriate protection against set-off, 
seizure and attachment.  Deposits into, and payments out of, the Special Account shall 
be made in accordance with the provisions of Schedule  4 to this Agreement.
Section 2.03. The Closing Date shall be  September 30 , 2000 or such later date 
as the Association shall establish.  The Association shall promptly notify the 
Borrower of such later date.
Section 2.04. (a) The Borrower shall pay to the Association a commitment charge 
on the principal amount of the Credit not withdrawn from time to time at a rate to be 
set by the Association as of June 30 of each year, but not to exceed the rate of 
one-half of one percent (1/2 of 1%) per annum.
(b)
The commitment charge shall accrue: (i) from the date sixty (60) days 
after the date of this Agreement (the accrual date) to the respective dates on which 
amounts shall be withdrawn by the Borrower from the Credit Account or canceled; and 
(ii) at the rate set as of the June 30 immediately preceding the accrual date and at 
such other rates as may be set from time to time thereafter pursuant to paragraph (a) 
above. The rate set as of June 30 in each year shall be applied from the next date in 
that year specified in Section 2.06 of this Agreement.
(c)
The commitment charge shall be paid: (i) at such places as the 
Association shall reasonably request; (ii) without restrictions of any kind imposed 
by, or in the territory of, the Borrower; and (iii) in the currency specified in this 
Agreement for the purposes of Section 4.02 of the General Conditions or in such other 
eligible currency or currencies as may from time to time be designated or selected 
pursuant to the provisions of that Section.
Section 2.05. The Borrower shall pay to the Association a service charge at the 
rate of three-fourths of one percent (3/4 of 1%) per annum on the principal amount of 
the Credit withdrawn and outstanding from time to time.
Section 2.06. Commitment charges and service charges shall be payable 
semiannually on January 1 and July 1 in each year. \0cSection 2.07. (a) Subject to 
paragraphs (b), (c) and (d) below, the Borrower shall repay the principal amount of 
the Credit in semi-annual installments payable on each January 1 and July 1 commencing 
July 1, 2008 and ending January 1, 2038. Each installment to and including the 
installment payable on January 1, 2018 shall be one percent (1%) of such principal 
amount, and each installment thereafter shall be two percent (2%) of such principal 
amount.
(b)
Whenever: (i) the Borrower’s per capita gross national product (GNP), as 
determined by the Association, shall have exceeded for three consecutive years  the 
level established annually by the Association for determining eligibility to access 
the Association's resources; and (ii) the Bank shall consider the Borrower 
creditworthy for Bank lending, the Association may, subsequent to the review and 
approval thereof by the Executive Directors of the Association and after due 
consideration by them of the development of the Borrower's economy, modify the 
repayment of installments under paragraph (a) above by: (A) requiring the Borrower to 
repay twice the amount of each such installment not yet due until the principal amount 
of the Credit shall have been repaid; and (B) requiring the Borrower to commence 
repayment of the principal amount of the Credit as of the first semiannual payment 
date referred to in paragraph (a) above falling six (6) months or more after the date 
on which the Association notifies the Borrower that the events set out in this 
paragraph (b) have occurred, provided, however, that there shall be a grace period of 
a minimum of five years on such repayment of principal.
(c)
If so requested by the Borrower, the Association may revise the 
modification referred to in paragraph (b) above to include, in lieu of some or all of 
the increase in the amounts of such installments, the payment of interest at an annual 
rate agreed with the Association on the principal amount of the Credit withdrawn and 
outstanding from time to time, provided that, in the judgment of the Association, such 
revision shall not change the grant element obtained under the above-mentioned 
repayment modification.
(d)
If, at any time after a modification of terms pursuant to paragraph (b) 
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above, the Association determines that the Borrower's economic condition has 
deteriorated significantly, the Association may, if so requested by the Borrower, 
further modify the terms of repayment to conform to the schedule of installments as 
provided in paragraph (a) above. \0c Section 2.08. The currency of the United States of 
America is hereby specified for the purposes of Section 4.02 of the General 
Conditions.
ARTICLE III
Execution of the Project
Section 3.01. The Borrower declares its commitment to the objectives of the 
Project as set forth in Schedule 2 to this Agreement, and, to this end, shall carry 
out the Project through PCU with due diligence and efficiency and in conformity with 
appropriate administrative, financial, engineering, environmental, and technical 
practices, and shall provide, promptly as needed, the funds, facilities, services and 
other resources required for the Project.
Section 3.02. Except as the Association shall otherwise agree, procurement of 
the goods and works required for the Project and to be financed out of the proceeds of 
the Credit shall be governed by the provisions of Schedule 3 to this Agreement.
Section 3.03. For the purposes of Section 9.07 of the General Conditions and 
without limitation thereto, the Borrower shall:
(a)
prepare, on the basis of guidelines acceptable to the Association and 
furnish to Association not later than six (6) months after the Closing Date or such 
later date as may be agreed for this purpose between the Borrower and the Association, 
a plan for the future operation of the Project; and 
(b)
afford the Association a reasonable opportunity to exchange views with 
the Borrower on said plan.
Section 3.04. The Borrower shall:
(a)
maintain policies and procedures adequate to enable it to monitor and 
evaluate on an ongoing basis, in accordance with indicators satisfactory to the 
Association, the carrying out of the Project and the achievement of the objectives 
thereof;
(b)
prepare, under terms of reference satisfactory to the Association and 
furnish to the Association on or about October 31 of each year, a report integrating 
the results of the monitoring and evaluation activities performed pursuant to 
paragraph (a) of this Section, on the progress achieved in the carrying out of the 
Project during the period preceding the date of said report and setting out the 
measures recommended to ensure the efficient carrying out of the Project and the 
achievement of the objectives thereof during the period following such date; and
(c)
review with the Association, by November 30 of each year, or such later 
date as the Association shall request, the report referred to in subparagraph (b) of 
this paragraph, and, thereafter, take all measures required to ensure the efficient 
completion of the Project and the achievement of the objectives thereof, based on the 
conclusions and recommendations of the said report and the Association’s views on the 
matter.
Section 3.05. The Borrower shall maintain the PCU with powers , functions and 
staffing satisfactory to the Association.
ARTICLE IV
Financial Covenants
Section 4.01. (a) The Borrower shall maintain or cause to be maintained records 
and accounts adequate to reflect in accordance with sound accounting practices the 
operations, resources and expenditures in respect of the Project of the departments or 
agencies of the Borrower responsible for carrying out the Project or any part thereof.
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(b)
The Borrower shall:
(i)
have the records and accounts referred to in paragraph (a) of this 
Section 
including those for the Special Account for each 
fiscal year audited, in 
accordance with appropriate auditing 
principles consistently applied, by 
independent auditors 
acceptable to the Association;
(ii)
furnish to the Association as soon as available, but in any case 
not later 
than six (6) months after the end of each such year, 
the report of such audit 
by said auditors, of such scope and in such 
detail as the Association shall 
have reasonably requested; and
(iii)
furnish to the Association such other information concerning said 
records and 
accounts and the audit thereof as the Association shall from 
time to time 
reasonably request.
(c)
For all expenditures with respect to which withdrawals from the Credit 
Account were made on the basis of statements of expenditure, the Borrower shall:
(i)
maintain or cause to be maintained, in accordance with paragraph 
(a) of this 
Section, records and accounts reflecting such expenditures;
(ii)
retain, until at least one year after the Association has received 
the audit 
report for the fiscal year in which the last withdrawal from 
the Credit 
Account was made, all records (contracts, orders, 
invoices, bills, receipts 
and other documents) evidencing such 
expenditures;
(iii)
enable the Association’s representatives to examine such records; 
and
(iv)
ensure that such records and accounts are included in the annual 
audit 
referred to in paragraph (b) of this Section and that the 
report of such audit 
contains a separate opinion by said auditors 
as to whether the statements of 
expenditure submitted during such fiscal 
year, together with the procedures 
and internal controls involved in 
their preparation, can be relied upon to 
support the related 
withdrawals.
ARTICLE V
Termination
Section 5.01. The date ninety (90) days after the date of this Agreement is 
hereby specified for the purposes of Section 12.04 of the General Conditions.
ARTICLE VI
Representative of the Borrower; Addresses
Section 6.01. The Minister of Finance of the Borrower is designated as 
representative of the Borrower for the purposes of Section 11.03 of the General 
Conditions.
Section 6.02. The following addresses are specified for the purposes of Section 
11.01 of the General Conditions:
For the Borrower:
Ministry of Finance
3 Akademikov Radzabouykh
Dushanbe, 734025
Republic of Tajikistan
For the Association:
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International Development Association
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
Cable address: 
Telex:
INDEVAS
248423 (MCI) or
Washington, D.C.
 64145 (MCI)
IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized 
representatives, have caused this Agreement to be signed in their respective names in 
the District of Columbia, United States of America, as of the day and year first above 
written.
REPUBLIC OF TAJIKISTAN
By /s/ Rashid Alimov 
Authorized Representative
INTERNATIONAL DEVELOPMENT ASSOCIATION
By /s/ Ishrat Husain 
Acting Regional Vice President 
Europe and Central Asia
SCHEDULE 1
Withdrawal of the Proceeds of the Credit 
1.
The table below sets forth the Categories of items to be financed out of the 
proceeds of the Credit, the allocation of the amounts of the Credit to each Category 
and the percentage of expenditures for items so to be financed in each Category:
Amount of the
Credit Allocated
   % of
(Expressed in
Expenditures
Category
SDR Equivalent)
to be Financed
(1)
Works
    1,920,000
90%
(2)
Goods
    4,720,000
100% of foreign
expenditures, 100%
of local expendi-
tures (ex-factory
cost) and 90% of
local expenditures
for other items
procured locally
(3)
Unallocated
      760,000
TOTAL
    7,400,000
2.
For the purposes of this Schedule:
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(a)
the term “foreign expenditures” means expenditures in the currency of any 
country other than that of the Borrower for goods or services supplied from the 
territory of any country other than that of the Borrower ; and
(b)
the term “local expenditures” means expenditures in the currency of the 
Borrower or for goods or services supplied from the territory of the Borrower; and
3.
Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be 
made in respect of payments made for expenditures prior to the date of this Agreement, 
except that withdrawals, in an aggregate amount not exceeding the equivalent of 
SDR 600,000,  may be made in respect of Category (2) on account of payments made for 
expenditures before that date but after December 1, 1997.
4.
The Association may require withdrawals from the Credit Account to be made on 
the basis of statements of expenditure for expenditures for goods and works under 
contracts not exceeding $100,000 equivalent, under such terms and conditions as the 
Association shall specify by notice to the Borrower.
SCHEDULE 2
Description of the Project
The objective of the Project is to address the specific post-conflict 
reconstruction needs of the Karategin-Tavildara Valley area of Tajikistan in order to 
restore assets and productivity.
The Project consists of the following parts, subject to such modifications 
thereof as the Borrower and the Association may agree upon from time to time to 
achieve such objectives:
Part A:
(1)
The rehabilitation, repair or reconstruction of about 15 bridges in the rayons 
of Karategin-Tavildara and the Kalayhumb rayon of the Gorno-Bodakhshan Autonomous 
Oblast; and
(2)
the completion of a by-pass road for the town of Darband.
Part B:
(1)
The rehabilitation or repair of schools, health care facilities and other 
community facilities; and
(2)
the provision of essential equipment and supplies for schools, health care 
facilities and other community facilities.
Part C:
The provision of seeds and fertilizer for the 1998 Spring planting season in the 
Darband, Gharm, Jirgital Tavildara and Tojikobad rayons.
Part D:
The provision of goods and the carrying of works for repairs, selected with the 
prior approval of the Association, of: (i) power transmission lines; transmission 
stations and other electric installations; and (ii) agricultural infrastructure 
including rural roads and irrigation systems.
* * *
The Project is expected to be completed by March 30, 2000.
SCHEDULE 3
Procurement
Section I.
Procurement of Good and Works
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Part A:
General
Goods and works shall be procured in accordance with the provisions of Section I 
of the “Guidelines for Procurement under IBRD Loans and IDA Credits” published by the 
Bank in January 1995, and revised in January and August 1996, (the Guidelines) and the 
following provisions of this Section.
Part B:
Procurement Procedures
1.
National Competitive Bidding
Goods estimated to cost less than $250,000 equivalent per contract, up to an 
aggregate amount not to exceed $3,100,000 equivalent, may be procured under contracts 
awarded in accordance with the provisions of paragraphs 3.3 and 3.4 of the Guidelines.
2.
International Shopping
Goods estimated to cost less than $200,000 equivalent per contract, up to an 
aggregate amount not to exceed $4,100,000 equivalent, may be procured under contracts 
awarded on the basis of international shopping procedures in accordance with the 
provisions of paragraphs 3.5 and 3.6 of the Guidelines.
3.
National Shopping
Goods estimated to cost less than $50,000 equivalent per contract, up to an 
aggregate amount not to exceed $200,000 equivalent, may be procured under contracts 
awarded on the basis of national shopping procedures in accordance with the provisions 
of paragraphs 3.5 and 3.6 of the Guidelines.
4.
Direct Contracting
Works which are required to respond to the emergency and costing $1,600,000 
equivalent or less in the aggregate, may, with the Association’s prior agreement, be 
procured in accordance with the provisions of paragraph 3.7 of the Guidelines.
5.
Procurement of Small Works
Works estimated to cost less than $50,000 equivalent per contract, up to an 
amount not to exceed $2,000,000 equivalent, may be procured under lump-sum, 
fixed-price contracts awarded on the basis of quotations obtained from three (3) 
qualified domestic contractors in response to a written invitation. The invitation 
shall include a detailed description of the works, including basic specifications, the 
required completion date, a basic form of agreement acceptable to the Association, and 
relevant drawings, where applicable. The award shall be made to the contractor who 
offers the lowest price quotation for the required work, and who has the experience 
and resources to complete the contract successfully.
Part D:
Review by the Association of Procurement Decisions
1.
Procurement Planning
Prior to the issuance of any invitations to prequalify for bidding or to bid for 
contracts, the proposed procurement plan for the Project shall be furnished to the 
Association for its review and approval, in accordance with the provisions of 
paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall 
be undertaken in accordance with such procurement plan as shall have been approved by 
the Association, and with the provisions of said paragraph 1.
2.
Prior Review 
(a)
With respect to each contract under Part B.1 of this Schedule estimated 
to cost the equivalent of $100,000 or more, the procedures set forth in paragraphs 2 
and 3 of Appendix 1 to the Guidelines shall apply.
(b)
With respect to the first two contracts and all subsequent contracts 
estimated to cost the equivalent of $100,000 or more under Part B.2 and estimated to 
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cost the equivalent of $50,000 or more under Part B.3 of this Schedule and with 
respect to each contract under Part B.4 of this Schedule estimated to cost the 
equivalent of $10,000 or more, the following procedures shall apply: 
(i)
prior to the selection of any supplier under shopping procedures 
the Borrower 
shall provide to the Association a report on the comparison 
and evaluation of 
quotations received;
(ii)
prior to the execution of any contract procured under direct 
contracting or 
shopping procedures, the Borrower shall provide to 
the Association a copy of 
the specifications and the draft contract;
(iii)
in addition, the procedures set forth in paragraphs 2 (f) and 2 
(g) and 3 of 
Appendix 1 to the Guidelines shall apply.
3.
Post Review
With respect to each contract not governed by paragraph 2 of this Part, the 
procedures set forth in paragraph 4 of Appendix 1 to the Guidelines shall apply.
SCHEDULE 4
Special Account
1.
For the purposes of this Schedule:
(a)
the term “eligible Categories” means Categories (1) and (2) set forth in 
the table in paragraph 1 of Schedule 1 to this Agreement;
(b)
the term “eligible expenditures” means expenditures in respect of the 
reasonable cost of goods and services required for the Project and to be financed out 
of the proceeds of the Credit allocated from time to time to the eligible Categories 
in accordance with the provisions of Schedule 1 to this Agreement; and
(c)
the term “Authorized Allocation” means an amount equivalent to $500,000 
to be withdrawn from the Credit Account and deposited into the Special Account 
pursuant to paragraph 3 (a) of this Schedule, provided, however, that unless the 
Association shall otherwise agree, the Authorized Allocation shall be limited to an 
amount equivalent to $200,000 until the aggregate amount of withdrawals from the 
Credit Account plus the total amount of all outstanding special commitments entered 
into by the Association pursuant to Section 5.02 of the General Conditions shall be 
equal to or exceed the equivalent of SDR 700,000.
2.
Payments out of the Special Account shall be made exclusively for eligible 
expenditures in accordance with the provisions of this Schedule.
3.
After the Association has received evidence satisfactory to it that the Special 
Account has been duly opened, withdrawals of the Authorized Allocation and subsequent 
withdrawals to replenish the Special Account shall be made as follows:
(a)
For withdrawals of the Authorized Allocation, the Borrower shall furnish 
to the Association a request or requests for deposit into the Special Account of an 
amount or amounts which do not exceed the aggregate amount of the Authorized 
Allocation. On the basis of such request or requests, the Association shall, on behalf 
of the Borrower, withdraw from the Credit Account and deposit into the Special Account 
such amount or amounts as the Borrower shall have requested.
(b)
(i)
For replenishment of the Special Account, the Borrower shall 
furnish to the 
Association requests for deposits into the Special 
Account at such intervals 
as the Association shall specify.
(ii)
Prior to or at the time of each such request, the Borrower shall 
furnish to 
the Association the documents and other evidence required 
pursuant to 
paragraph 4 of this Schedule for the payment or 
payments in respect of which 
replenishment is requested. On the basis 
of each such request, the Association 
shall, on behalf of the Borrower, 
withdraw from the Credit Account and deposit 
into the Special Account 
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such amount as the Borrower shall have requested and 
as shall have been 
shown by said documents and other evidence to have been 
paid 
out of the Special Account for eligible expenditures. All such deposits 
shall be withdrawn by the Association from the Credit Account under the 
respective eligible Categories, and in the respective equivalent amounts, as 
shall have been justified by said documents and other evidence.
4.
For each payment made by the Borrower out of the Special Account, the Borrower 
shall, at such time as the Association shall reasonably request, furnish to the 
Association such documents and other evidence showing that such payment was made 
exclusively for eligible expenditures.
5.
Notwithstanding the provisions of paragraph 3 of this Schedule, the Association 
shall not be required to make further deposits into the Special Account:
(a)
if, at any time, the Association shall have determined that all further 
withdrawals should be made by the Borrower directly from the Credit Account in 
accordance with the provisions of Article V of the General Conditions and paragraph 
(a) of Section 2.02 of this Agreement;
(b)
if the Borrower shall have failed to furnish to the Association, within 
the period of time specified in Section 4.01 (b) (ii) of this Agreement, any of the 
audit reports required to be furnished to the Association pursuant to said Section in 
respect of the audit of the records and accounts for the Special Account;
(c)
if, at any time, the Association shall have notified the Borrower of its 
intention to suspend in whole or in part the right of the Borrower to make withdrawals 
from the Credit Account pursuant to the provisions of Section 6.02 of the General 
Conditions; or
(d)
once the total unwithdrawn amount of the Credit allocated to the eligible 
Categories, minus the total amount of all outstanding special commitments entered into 
by the Association pursuant to Section 5.02 of the General Conditions with respect to 
the Project, shall equal the equivalent of twice the amount of the Authorized 
Allocation.  Thereafter, withdrawal from the Credit Account of the remaining 
unwithdrawn amount of the Credit allocated to the eligible Categories shall follow 
such procedures as the Association shall specify by notice to the Borrower.  Such 
further withdrawals shall be made only after and to the extent that the Association 
shall have been satisfied that all such amounts remaining on deposit in the Special 
Account as of the date of such notice will be utilized in making payments for eligible 
expenditures.
6.
(a)
If the Association shall have determined at any time that any payment out 
of the Special Account: (i) was made for an expenditure or in an amount not eligible 
pursuant to paragraph 2 of this Schedule; or (ii) was not justified by the evidence 
furnished to the Association, the Borrower shall, promptly upon notice from the 
Association: (A) provide such additional evidence as the Association may request; or 
(B) deposit into the Special Account (or, if the Association shall so request, refund 
to the Association) an amount equal to the amount of such payment or the portion 
thereof not so eligible or justified. Unless the Association shall otherwise agree, no 
further deposit by the Association into the Special Account shall be made until the 
Borrower has provided such evidence or made such deposit or refund, as the case may 
be.
(b)
If the Association shall have determined at any time that any amount 
outstanding in the Special Account will not be required to cover further payments for 
eligible expenditures, the Borrower shall, promptly upon notice from the Association, 
refund to the Association such outstanding amount.
(c)
The Borrower may, upon notice to the Association, refund to the 
Association all or any portion of the funds on deposit in the Special Account.
(d)
Refunds to the Association made pursuant to paragraphs 6 (a), (b) and (c) 
of this Schedule shall be credited to the Credit Account for subsequent withdrawal or 
for cancellation in accordance with the relevant provisions of this Agreement, 
including the General Conditions.
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