Article 2
Conversion of a completion guarantee into a repayment guarantee
No completion guarantee shall be converted into a repayment guarantee unless all of the following conditions are met:
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(a) |
the amount referred to in Article 1(12), point (b), becomes legally due immediately; |
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(b) |
where the protection provider pays the amount referred to in Article 1(12), point (b), through the obligor, the obligor is legally required to repay the received amount to the lending institution immediately once he or she has received the amount concerned from the protection provider; |
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(c) |
no additional amounts of the exposure secured by the unfinished property can be drawn after the activation of the repayment guarantee, unless a new equivalent legal mechanism meeting all the criteria laid down in Article 1 is set in place before such drawings are possible. |