(ii) After the two governments sign the exchange of notes concerned with the cooperation program, the OECF prepares a draft L/A then negotiates its details with the borrower.
Loan Procedures up to the Exchange of Notes
(2) The L/A - signing and Coming into Effect
(i) The L/A not only includes the amount and terms and conditions of the loan, and the scope and details of the project, but also the procedures required for implementation and management of the loan, such as the procedures for procurement and disbursement of funds.
(ii) When the date of signing is confirmed, the OECF produces the final form of the L/A and prepares for the signing. Two copies of the L/A are prepared in English, the official language of the text. As a rule, signing takes place at OECF headquarters in Tokyo.
(iii) The L/A does not necessarily come into effect upon its signing; this only happens after the recipient country has taken the necessary legislative steps. The L/A may need to be ratified by the country's national assembly, or Cabinet approval may suffice.
The recipient country must provide OECF with a legal opinion, evidence of authority and specimen signatures in order to make the L/A effective. After the OECF has reviewed these legal documents and declared them free of flaws, the L/A becomes effective. The intent of having a legal opinion prepared by the Minister of Justice or similar authority of the recipient country is to ensure that all the procedures required for bringing the L/A into effect have been duly completed.
An evidence of authority (including specimen signatures) is a document containing the name and certificated signature of the person responsible for issuing the documents concerned with the L/A. Receipt of this document is made a prerequisite for the L/A becoming effective because it is indispensable for confirming the validity of the documents submitted to the OECF.