Section 5: Functions and obligations of participating banks

(1) The participating banks shall-
(a) provide the working capital required by eligible enterprises and projects under this Act;
(b) evaluate eligible enterprises and projects and approve loans in accordance with the practice of the particular banks and be responsible for the disbursement, monitoring and recovery of the loans;
(c) collect from its customers all loan repayments and agreed interest and pay to the Fund the amounts due to it on or before the due date;
(d) be responsible for any commercial or market risk involved in any loan granted pursuant to this Act.
(2) Each participating bank shall disburse funds to approved enterprises or projects not later than three working days of release of the funds by the Fund to the participating bank.
(3) Loan agreements showing disbursement and repayment schedules shall be deposited by each participating bank with the monitoring office.
(4) For loans disbursed in foreign currency, repayment by the participating banks shall be the naira equivalent of the amount of repayment due, at the prevailing exchange rate on the date of repayment in the inter-bank dealing of the Autonomous Foreign Exchange Market.