2005 Ruling 2005-0124081R3 - Withholding Tax Exemption -- summary under Subparagraph 212(1)(b)(vii)

Permissible events of default in a project financing included events that involved parties not subject to the loan agreement, e.g., parent entities merging or consolidating without lender approval, direct or indirect interests in the Borrower being sold to certain restricted persons without prior consent and various defaults by project contractors or material adverse events in respect of them. Also, an expansive illegality clause permitted; and Borrower is required to offer to repay the loan on various specified events including on receipt of insurance or expropriation proceeds or upon receiving a notice of illegality from the lenders' agent.