Document

Funders Direct Agreement

Project Document

A Funders Direct Agreement creates a direct contractual bridge between the public authority or grantor, the project company and the representative of the project lenders. It prevents the authority from exercising specified termination or comparable remedies under the Project Agreement before funders receive notice and a defined opportunity to cure, intervene or arrange an eligible replacement. It also coordinates security enforcement, change of control, Project Agreement substitution and the payment of termination compensation without transferring the Project Agreement's primary commercial bargain into the direct agreement.