Subcontractor Direct Agreement

The credit agreement is discussed in more detail in our separate OUT-LAW guide on key issues for lenders in project finance agreements. In addition to the agreement that the counterparty agrees not to terminate the contract if it has the right to do so in accordance with the project document, it will also accept that the step-by-step process may be triggered by the notification by lenders of notification of a project company`s default under the Facility Agreement, by implementing the guarantee or accelerating the loan. Although it is clear that a direct payment agreement that creates a stand-alone obligation for financiers to make advance payments directly to contractors and independently of the owner, is that an owner makes a payment due directly to the subcontractor as part of a subcontract, but would make that payment more clearly on behalf of the contractor. .