Great Plains Gasification Associates, A Partnership, Transco Coal Gas Company, A Partner Other Than The Tax Matters Partner - Page 10

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          this Agreement * * * shall be limited to the assets of the                  
          Borrower and such Partner’s interests in such assets”.                      
               Loan Guarantee Agreement                                               
               Pursuant to a loan guarantee agreement, also dated January             
          29, 1982, DOE agreed to guarantee the entire amount of principal            
          and interest on the debt incurred by the partnership under the              
          credit agreement.8  DOE’s guarantee was based on its                        
          determination that the guarantee was necessary to encourage the             
          partners’ financial participation in the project.                           
               Pursuant to the loan guarantee agreement, FFB was to make no           
          disbursements to the partnership until DOE reviewed and                     
          authorized the proposed disbursements.  DOE retained the right,             
          under specified circumstances, to terminate the Government’s                
          participation in guaranteeing additional disbursements for the              
          project.  Pursuant to the loan guarantee agreement, if the                  
          partnership failed to pay FFB principal or interest on the                  
          indebtedness when due, the Secretary was authorized to cause the            
          principal amount of all the guaranteed indebtedness, with accrued           
          interest, to become due and payable from the partnership.  If the           
          partnership failed to cure the default, the Secretary, upon                 
          payment of the indebtedness to FFB, was authorized to take action           

               8 DOE was granted authority to guarantee the partnership’s             
          debt pursuant to the Federal Nonnuclear Energy Research and                 
          Development Act of 1974, Pub. L. 93-577, 88 Stat. 1878, as                  
          amended by the Department of Energy Act of 1978, Pub. L. 95-238,            
          92 Stat. 47.                                                                

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