The Spanish practice is to execute the credit facility contract before a notary or stockbroker in order to obtain summary legal action in case of late payment. In accordance with Section 1429 of the Spanish Procedure Act, holders of certain credits documented in public documents (i.e. documented in the form of an authentic act or a policy certified by a stockbroker) benefit from an expedited enforcement procedure that allows few defences against the debtor. Thus, banks will require that the entire loan financing be executed before a notary or stockbroker. The Spanish practice is to finance the loan to non-eligible third parties, i.e. the guarantee is assumed exclusively through the capital of the project. The entire guarantee is provided by the members of the credit consortium who participate in all security measures. This is because, according to Spanish law, there is no equivalent to the concept of a security guard who holds the guarantee on behalf of all lenders. However, it is true that credit facility agreements include inter-creditor agreements in which one of the banks takes the position of a representative or central bank before the project company for the calculation of the interest rate, the distribution of payments between all participating banks and the control of the project accounts.
The Spanish government has used the concession in the context of BOT projects as a means of developing basic infrastructure (highways, bridges, tunnels, etc.). Concession contracts are governed by the Government Contracts Act 13/1995 of 18 May. Law 13/1995 sets the regime of concessions for public works and sets rules for public procurement for concessions. Our lenders understand that VAT bills can cause regular financial hardship, so it is possible to use a VAT loan as a continuous credit facility. This removes the requirement to save funds for an unknown VAT bill, but you will be able to spread credit refunds over an affordable period. In an appeal agreement, the postman is transferred to the responsibility of the loading lines on the customer. If the debtor is late, the factor will re-take the liability back to the client. If, as an insurer, the commission or commission collected for your services is adjusted to reflect the eligibility to purchase your securities awarded at a special price, the value of the correction (or “discount”) must be considered part of the consideration of your exempt insurance benefit. As an underwriter, however, you may be forced to purchase other securities that are not sold. The insurance agreement may allow you to purchase these unsold securities at a price below the offer price. This discount is not considered a consideration for the technical service and you, as an insurer, should consider it to be outside the scope of UK VAT. In addition, the project company will grant as collateral the benefit of all project agreements (i.e.
the proceeds from the sale of the project proceeds, liquidated damages). For the assignment of project contracts to be effective vis-à-vis third parties, it must be certified by a notary or stockbroker.