A condition precedent is an event or state of affairs that is required before something else will occur. In contract law, a condition precedent is an event which must occur, unless its non-occurrence is excused, before performance under a contract becomes due, i.e., before any contractual duty exists. In project finance transactions the contractual duty in question will be the provision by the lenders of funds under the agreed loan. The conditions precedent to the first drawdown of a loan will include signature of the loan and security documents, provision of a full set of executed Project Documents and the grant of all approvals and consents required for construction. There will also be a list – usually somewhat shorter – of conditions precedent to subsequent drawdowns.