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INTERNATIONAL DEVELOPMENT ASSOCIATION ACT 1960 - SECT 6
Issue of securities
- (1)
- To the extent to which the Association is prepared to accept from
Australia, in place of any payment that Australia has made or is required to
make to the Association, notes or similar obligations issued by Australia, the
Governor-General may authorize the issue of securities.
- (2)
- Securities issued
under the last preceding subsection:
- (a)
- shall be payable to
the Association;
- (b)
- shall be non-negotiable and non-interest-bearing; and
- (c)
- shall be payable at their par value on demand.
INTERNATIONAL DEVELOPMENT ASSOCIATION ACT 1960
The Schedule
Section 3
ARTICLES OF AGREEMENT
OF THE
INTERNATIONAL DEVELOPMENT
ASSOCIATION
The Governments on whose behalf this Agreement is signed,
"Considering":
That mutual cooperation for constructive economic purposes,
healthy development of the world economy and balanced growth of international
trade foster international relationships conducive to the maintenance of peace
and world prosperity;
That an acceleration of economic development which will
promote higher standards of living and economic and social progress in the
less-developed countries is desirable not only in the interests of those
countries but also in the interests of the international community as a whole;
That achievement of these objectives would be facilitated by an increase in
the international flow of capital, public and private, to assist in the
development of the resources of the less-developed countries,
do hereby agree
as follows:
INTRODUCTORY ARTICLE
The INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called "the
Association") is established and shall operate in accordance with the
following provisions:
ARTICLE I
Purposes
The purposes of the Association
are to promote economic development, increase productivity and thus raise
standards of living in the less-developed areas of the world included within
the Association's membership, in particular by providing finance to meet their
important developmental requirements on terms which are more flexible and bear
less heavily on the balance of payments than those of conventional loans,
thereby furthering the developmental objectives of the International Bank for
Reconstruction and Development (hereinafter called
"the Bank ") and supplementing its activities.
The Association shall be
guided in all its decisions by the provisions of this Article.
ARTICLE II
Membership; Initial Subscriptions
Section 1. Membership
(a) The
original members of the Association shall be those members of the Bank listed
in Schedule A hereto which, on or before the date specified in Article XI,
Section 2 (c), accept membership in the Association.
(b) Membership
shall be open to other members of the Bank at such times and in accordance
with such terms as the Association may determine.
Section 2. Initial
Subscriptions
(a) Upon accepting membership, each member shall subscribe
funds in the amount assigned to it. Such subscriptions are herein referred to
as initial subscriptions.
(b) The initial subscription assigned to each
original member shall be in the amount set forth opposite its name in Schedule
A, expressed in terms of United States dollars of the weight and fineness in
effect on January 1, 1960.
(c) Ten percent of the initial subscription of
each original member shall be payable in gold or freely convertible currency
as follows: fifty percent within thirty days after the date on which
the Association shall begin operations pursuant to Article XI, Section 4,
or on the date on which the original member becomes a member, whichever shall
be later; twelve and one-half percent one year after the beginning of
operations of the Association; and twelve and one-half percent each year
thereafter at annual intervals until the ten percent portion of the initial
subscription shall have been paid in full.
(d) The remaining ninety percent
of the initial subscription of each original member shall be payable in gold
or freely convertible currency in the case of members listed in Part I of
Schedule A, and in the currency of the subscribing member in the case of
members listed in Part II of Schedule A. This ninety percent portion of
initial subscriptions of original members shall be payable in five equal
annual instalments as follows: the first such instalment within thirty days
after the date on which the Association shall begin operations pursuant to
Article XI, Section 4, or on the date on which the original member
becomes a member, whichever shall be later; the second instalment one year
after the beginning of operations of the Association, and succeeding
instalments each year thereafter at annual intervals until the ninety percent
portion of the initial subscription shall have been paid in full.
(e)
The Association shall accept from any member, in place of any part of the
member's currency paid in or payable by the member under the preceding
subsection (d) or under Section 2 of Article IV and not needed by
the Association in its operations, notes or similar obligations issued by the
government of the member or the depository designated by such member, which
shall be non-negotiable, non-interest-bearing and payable at their par value
on demand to the account of the Association in the designated depository.
(f) For the purposes of this Agreement the Association shall regard as "freely
convertible currency":
(i) currency of a member which the Association
determines, after consultation with the International Monetary Fund, is
adequately convertible into the currencies of other members for the purposes
of the Association's operations; or
(ii) currency of a member which such
member agrees, on terms satisfactory to the Association, to exchange for the
currencies of other members for the purposes of the Association's operations.
(g) Except as the Association may otherwise agree, each member listed in
Part I of Schedule A shall maintain, in respect of its currency paid in
by it as freely convertible currency pursuant to subsection (d) of this
Section, the same convertibility as existed at the time of payment.
(h) The
conditions on which the initial subscriptions of members other than original
members may be made, and the amounts and the terms of payment thereof, shall
be determined by the Association pursuant to Section 1 (b) of this
Article.
Section 3. Limitation on Liability
No member shall be liable,
by reason of its membership, for obligations of the Association.
ARTICLE III
Additions to Resources
Section 1. Additional Subscriptions
(a)
The Association shall at such time as it deems appropriate in the light of the
schedule for completion of payments on initial subscriptions of original
members, and at intervals of approximately five years thereafter, review the
adequacy of its resources and, if it deems desirable, shall authorize a
general increase in subscriptions. Notwithstanding the foregoing, general or
individual increases in subscriptions may be authorized at any time, provided
that an individual increase shall be considered only at the request of the
member involved. Subscriptions pursuant to this Section are herein referred to
as additional subscriptions.
(b) Subject to the provisions of
paragraph (c) below, when additional subscriptions are authorized, the
amounts authorized for subscription and the terms and conditions relating
thereto shall be as determined by the Association.
(c) When any additional
subscription is authorized, each member shall be given an opportunity to
subscribe, under such conditions as shall be reasonably determined by
the Association, an amount which will enable it to maintain its relative
voting power, but no member shall be obligated to subscribe.
(d) All
decisions under this Section shall be made by a two-thirds majority of the
total voting power.
Section 2. Supplementary Resources Provided by a
Member in the Currency of Another Member
(a) The Association may enter into
arrangements, on such terms and conditions consistent with the provisions of
this Agreement as may be agreed upon, to receive from any member, in addition
to the amounts payable by such member on account of its initial or any
additional subscription, supplementary resources in the currency of another
member, provided that the Association shall not enter into any such
arrangement unless the Association is satisfied that the member whose currency
is involved agrees to the use of such currency as supplementary resources and
to the terms and conditions governing such use. The arrangements under which
any such resources are received may include provisions regarding the
disposition of earnings on the resources and regarding the disposition of the
resources in the event that the member providing them ceases to be a member or
the Association permanently suspends its operations.
(b) The Association
shall deliver to the contributing member a Special Development Certificate
setting forth the amount and currency of the resources so contributed and the
terms and conditions of the arrangement relating to such resources. A Special
Development Certificate shall not carry any voting rights and shall be
transferable only to the Association.
(c) Nothing in this Section shall
preclude the Association from accepting resources from a member in its own
currency on such terms as may be agreed upon.
ARTICLE IV
Currencies
Section 1. Use of Currencies
(a) Currency of any member listed in
Part II of Schedule A, whether or not freely convertible, received by
the Association pursuant to Article II, Section 2 (d), in payment of the
ninety percent portion payable thereunder in the currency of such member, and
currency of such member derived therefrom as principal, interest or other
charges, may be used by the Association for administrative expenses incurred
by the Association in the territories of such member and, insofar as
consistent with sound monetary policies, in payment for goods and services
produced in the territories of such member and required for projects financed
by the Association and located in such territories; and in addition when and
to the extent justified by the economic and financial situation of the member
concerned as determined by agreement between the member and the Association,
such currency shall be freely convertible or otherwise usable for projects
financed by the Association and located outside the
territories of the member.
(b) The usability of currencies received by
the Association in payment of subscriptions other than initial subscriptions
of original members, and currencies derived therefrom as principal, interest
or other charges, shall be governed by the terms and conditions on which such
subscriptions are authorized.
(c) The usability of currencies received by
the Association as supplementary resources other than subscriptions, and
currencies derived therefrom as principal, interest or other charges, shall be
governed by the terms of the arrangements pursuant to which such currencies
are received.
(d) All other currencies received by the Association may be
freely used and exchanged by the Association and shall not be subject to any
restriction by the member whose currency is used or exchanged; provided that
the foregoing shall not preclude the Association from entering into any
arrangements with the member in whose territories any project financed by
the Association is located restricting the use by the Association of such
member's currency received as principal, interest or other charges in
connection with such financing.
(e) The Association shall take appropriate
steps to ensure that, over reasonable intervals of time, the portions of the
subscriptions paid under Article II, Section 2 (d) by members listed in
Part I of Schedule A shall be used by the Association on an approximately
pro rata basis, provided, however, that such portions of such subscriptions as
are paid in gold or in a currency other than that of the subscribing member
may be used more rapidly.
Section 2. Maintenance of Value of Currency
Holdings
(a) Whenever the par value of a member's currency is reduced or the
foreign exchange value of a member's currency has, in the opinion of
the Association, depreciated to a significant extent within that member's
territories, the member shall pay to the Association within a reasonable time
an additional amount of its own currency sufficient to maintain the value, as
of the time of subscription, of the amount of the currency of such member paid
in to the Association by the member under Article II, Section 2 (d), and
currency furnished under the provisions of the present paragraph, whether or
not such currency is held in the form of notes accepted pursuant to Article
II, Section 2 (e), provided, however, that the foregoing shall apply only
so long as and to the extent that such currency shall not have been initially
disbursed or exchanged for the currency of another member.
(b) Whenever the
par value of a member's currency is increased, or the foreign exchange value
of a member's currency has, in the opinion of the Association, appreciated to
a significant extent within that member's territories, the Association shall
return to such member within a reasonable time an amount of that member's
currency equal to the increase in the value of the amount of such currency to
which the provisions of paragraph (a) of this Section are applicable.
(c) The provisions of the preceding paragraphs may be waived by
the Association when a uniform proportionate change in the par value of the
currencies of all its members is made by the International Monetary Fund.
(d)
Amounts furnished under the provisions of paragraph (a) of this Section
to maintain the value of any currency shall be convertible and usable to the
same extent as such currency.
ARTICLE V
Operations
Section 1. Use of
Resources and Conditions of Financing
(a) The Association shall provide
financing to further development in the less-developed areas of the world
included within the Association's membership.
(b) Financing provided by
the Association shall be for purposes which in the opinion of the Association
are of high developmental priority in the light of the needs of the area or
areas concerned and, except in special circumstances, shall be for specific
projects.
(c) The Association shall not provide financing if in its opinion
such financing is available from private sources on terms which are reasonable
for the recipient or could be provided by a loan of the type made by the Bank.
(d) The Association shall not provide financing except upon the recommendation
of a competent committee, made after a careful study of the merits of the
proposal. Each such committee shall be appointed by the Association and shall
include a nominee of the Governor or Governors representing the member or
members in whose territories the project under consideration is located and
one or more members of the technical staff of the Association. The requirement
that the committee include the nominee of a Governor or Governors shall not
apply in the case of financing provided to a public international or regional
organization.
(e) The Association shall not provide financing for any project
if the member in whose territories the project is located objects to such
financing, except that it shall not be necessary for the Association to assure
itself that individual members do not object in the case of financing provided
to a public international or regional organization.
(f) The Association shall
impose no conditions that the proceeds of its financing shall be spent in the
territories of any particular member or members. The foregoing shall not
preclude the Association from complying with
any restrictions on the use of funds imposed in accordance with the provisions
of these Articles, including restrictions attached to supplementary resources
pursuant to agreement between the Association and the contributor.
(g)
The Association shall make arrangements to ensure that the proceeds of any
financing are used only for the purposes for which the financing was provided,
with due attention to considerations of economy, efficiency and competitive
international trade and without regard to political or other non-economic
influences or considerations.
(h) Funds to be provided under any financing
operation shall be made available to the recipient only to meet expenses in
connection with the project as they are actually incurred.
Section 2.
Form and Terms of Financing
(a) Financing by the Association shall take the
form of loans. The Association may, however, provide other financing, either
(i) out of funds subscribed pursuant to Article III, Section 1, and funds
derived therefrom as principal, interest or other charges, if the
authorization for such subscriptions expressly provides for such financing; or
(ii) in special circumstances, out of supplementary resources furnished to the
Association, and funds derived therefrom as principal, interest or other
charges, if the arrangements under which such resources are furnished
expressly authorize such financing.
(b) Subject to the foregoing paragraph,
the Association may provide financing in such forms and on such terms as it
may deem appropriate, having regard to the economic position and prospects of
the area or areas concerned and to the nature and requirements of the project.
(c) The Association may provide financing to a member, the government of a
territory included within the Association's membership, a political
subdivision of any of the foregoing, a public or private entity in the
territories of a member or members, or to a public international or regional
organization.
(d) In the case of a loan to an entity other than a member,
the Association may, in its discretion, require a suitable governmental or
other guarantee or guarantees.
(e) The Association, in special cases, may
make foreign exchange available for local expenditures.
Section 3.
Modifications of Terms of Financing
The Association may, when and to the
extent it deems appropriate in the light of all relevant circumstances,
including the financial and economic situation and prospects of the member
concerned, and on such conditions as it may determine, agree to a relaxation
or other modification of the terms on which any of its financing shall have
been provided.
Section 4. Cooperation with Other International
Organizations and Members Providing Development Assistance
The Association
shall cooperate with those public international organizations and members
which provide financial and technical assistance to the less-developed areas
of the world.
Section 5. Miscellaneous Operations
In addition to the
operations specified elsewhere in this Agreement, theAssociation may:
(i)
borrow funds with the approval of the member in whose currency the loan is
denominated;
(ii) guarantee securities in which it has invested in order to
facilitate their sale;
(iii) buy and sell securities it has issued or
guaranteed or in which it has invested;
(iv) in special cases, guarantee
loans from other sources for purposes not inconsistent with the provisions of
these Articles;
(v) provide technical assistance and advisory services at the
request of a member; and
(vi) exercise such other powers incidental to its
operations as shall be necessary or desirable in furtherance of its purposes.
Section 6. Political Activity Prohibited
The Association and its
officers shall not interfere in the political affairs of any member; nor shall
they be influenced in their decisions by the political character of the member
or members concerned. Only economic considerations shall be relevant to their
decisions, and these considerations shall be weighed impartially in order to
achieve the purposes stated in this Agreement.
ARTICLE VI
Organization and
Management
Section 1. Structure of the Association
The Association
shall have a Board of Governors, Executive Directors, a President and such
other officers and staff to perform such duties as the Association may
determine.
Section 2. Board of Governors
(a) All the powers of
the Association shall be vested in the Board of Governors.
(b) Each Governor
and Alternate Governor of the Bank appointed by a member of the Bank which is
also a member of the Association shall ex officio be a Governor and Alternate
Governor, respectively, of the Association. No Alternate Governor may vote
except in the absence of his principal. The Chairman of the Board of Governors
of the Bank shall ex officio be Chairman of the Board
of Governors of the Association except that if the Chairman of the Board of
Governors of the Bank shall represent a state which is not a member of the
Association, then the Board of Governors shall select one of the Governors as
Chairman of the Board of Governors. Any Governor or Alternate Governor shall
cease to hold office if the member by which he was appointed shall cease to be
a member of the Association.
(c) The Board of Governors may delegate to the
Executive Directors authority to exercise any of its powers, except the power
to:
(i) admit new members and determine the conditions of their admission;
(ii) authorize additional subscriptions and determine the terms and conditions
relating thereto;
(iii) suspend a member;
(iv) decide appeals from
interpretations of this Agreement given by the Executive Directors;
(v) make
arrangements pursuant to Section 7 of this Article to cooperate with
other international organizations (other than informal arrangements of a
temporary and administrative character);
(vi) decide to suspend permanently
the operations of the Association and to distribute its assets;
(vii)
determine the distribution of the Association's net income pursuant to
Section 12 of this Article; and
(viii) approve proposed amendments to
this Agreement.
(d) The Board of Governors shall hold an annual meeting and
such other meetings as may be provided for by the Board of Governors or called
by the Executive Directors.
(e) The annual meeting of the Board of Governors
shall be held in conjunction with the annual meeting of the Board of Governors
of the Bank.
(f) A quorum for any meeting of the Board of Governors shall be
a majority of the Governors, exercising not less than two-thirds of the total
voting power.
(g) The Association may by regulation establish a procedure
whereby the Executive Directors may obtain a vote of the Governors on a
specific question without calling a meeting of the Board of Governors.
(h)
The Board of Governors, and the Executive Directors to the extent authorized,
may adopt such rules and regulations as may be necessary or appropriate to
conduct the business of the Association.
(i) Governors and Alternate
Governors shall serve as such without compensation from the Association.
Section 3. Voting
(a) Each original member shall, in respect of its
initial subscription, have 500 votes plus one additional vote for each $5,000
of its initial subscription. Subscriptions other than initial subscriptions of
original members shall carry such voting rights as the Board of Governors
shall determine pursuant to the provisions of Article II, Section 1 (b)
or Article III, Section 1 (b) and (c), as the case may be. Additions to
resources other than subscriptions under Article II, Section 1 (b) and
additional subscriptions under Article III, Section 1, shall not carry
voting rights.
(b) Except as otherwise specifically provided, all matters
before the Association shall be decided by a majority of the votes cast.
Section 4. Executive Directors
(a) The Executive Directors shall be
responsible for the conduct of the general operations of the Association, and
for this purpose shall exercise all the powers given to them by this Agreement
or delegated to them by the Board of Governors.
(b) The Executive Directors
of the Association shall be composed ex officio of each Executive Director of
the Bank who shall have been (i) appointed by a member of the Bank which is
also a member of the Association, or (ii) elected in an election in which the
votes of at least one member of the Bank which is also a member of
the Association shall have counted toward his election. The Alternate to each
such Executive Director of the Bank shall ex officio be an Alternate Director
of the Association. Any Director shall cease to hold office if the member by
which he was appointed, or if all the members whose votes counted toward his
election, shall cease to be members of the Association.
(c) Each Director who
is an appointed Executive Director of the Bank shall be entitled to cast the
number of votes which the member by which he was appointed is entitled to cast
in the Association. Each Director who is an elected Executive Director of
the Bank shall be entitled to cast the number of votes which the member or
members of the Association whose votes counted toward his election in the Bank
are entitled to cast in the Association. All the votes which a Director is
entitled to cast shall be cast as a unit.
(d) An Alternate Director shall
have full power to act in the absence of the Director who shall have appointed
him. When a Director is present, his Alternate may participate in meetings but
shall not vote.
(e) A quorum for any meeting of the Executive Directors shall
be a majority of the Directors exercising not less than one-half of the total
voting power.
(f) The Executive Directors shall meet as often as the business
of the Association may require.
(g) The Board of Governors shall adopt
regulations under which a member of the Association not entitled to appoint an
Executive Director of the Bank may send
a representative to attend any meeting of the Executive Directors of the
Association when a request made by, or a matter particularly affecting, that
member is under consideration.
Section 5. President and Staff
(a) The
President of the Bank shall be ex officio President of the Association. The
President shall be Chairman of the Executive Directors of the Association but
shall have no vote except a deciding vote in case of an equal division. He may
participate in meetings of the Board of Governors but shall not vote at such
meetings.
(b) The President shall be chief of the operating staff of
the Association. Under the direction of the Executive Directors he shall
conduct the ordinary business of the Association and under their general
control shall be responsible for the organization, appointment and dismissal
of the officers and staff. To the extent practicable, officers and staff of
the Bank shall be appointed to serve concurrently as officers and staff of
the Association.
(c) The President, officers and staff of the Association, in
the discharge of their offices, owe their duty entirely to the Association and
to no other authority. Each member of the Association shall respect the
international character of this duty and shall refrain from all attempts to
influence any of them in the discharge of their duties.
(d) In appointing
officers and staff the President shall, subject to the paramount importance of
securing the highest standards of efficiency and of technical competence, pay
due regard to the importance of recruiting personnel on as wide a geographical
basis as possible.
Section 6. Relationship to the Bank
(a)
The Association shall be an entity separate and distinct from the Bank and the
funds of the Association shall be kept separate and apart from those of the
Bank. The Association shall not borrow from or lend to the Bank, except that
this shall not preclude the Association from investing funds not needed in its
financing operations in obligations of the Bank.
(b) The Association may make
arrangements with the Bank regarding facilities, personnel and services and
arrangements for reimbursement of administrative expenses paid in the first
instance by either organization on behalf of the other.
(c) Nothing in this
Agreement shall make the Association liable for the acts or obligations of
the Bank, or the Bank liable for the acts or obligations of the Association.
Section 7. Relations with Other International Organizations
The Association shall enter into formal arrangements with the United Nations
and may enter into such arrangements with other public international
organizations having specialized responsibilities in related fields.
Section 8. Location of Offices
The principal office of the Association
shall be the principal office of the Bank. The Association may establish other
offices in the territories of any member.
Section 9. Depositories
Each
member shall designate its central bank as a depository in which the
Association may keep holdings of such member's currency or other assets of the
Association, or, if it has no central bank, it shall designate for such
purpose such other institution as may be acceptable to the Association. In the
absence of any different designation, the depository designated for the Bank
shall be the depository for the Association.
Section 10. Channel of
Communication
Each member shall designate an appropriate authority with which
the Association may communicate in connection with any matter arising under
this Agreement. In the absence of any different designation, the channel of
communication designated for the Bank shall be the channel for
the Association.
Section 11. Publication of Reports and Provision of
Information
(a) The Association shall publish an annual report containing an
audited statement of its accounts and shall circulate to members at
appropriate intervals a summary statement of its financial position and of the
results of its operations.
(b) The Association may publish such other reports
as it deems desirable to carry out its purposes.
(c) Copies of all reports,
statements and publications made under this Section shall be distributed to
members.
Section 12. Disposition of Net Income
The Board of Governors
shall determine from time to time the disposition of the Association's net
income, having due regard to provision for reserves and contingencies.
ARTICLE VII
Withdrawal; Suspension of Membership; Suspension of Operations
Section 1. Withdrawal by Members
Any member may withdraw from membership
in the Association at any time by transmitting a notice in writing to
the Association at its principal office. Withdrawal shall become effective
upon the date such notice is received.
Section 2. Suspension of
Membership
(a) If a member fails to fulfill any of its obligations to
the Association, the Association may suspend its membership by decision of a
majority of the
Governors, exercising a majority of the total voting power. The member so
suspended shall automatically cease to be a member one year from the date of
its suspension unless a decision is taken by the same majority to restore the
member to good standing.
(b) While under suspension, a member shall not be
entitled to exercise any rights under this Agreement except the right of
withdrawal, but shall remain subject to all obligations.
Section 3.
Suspension or Cessation of Membership in the Bank
Any member which is
suspended from membership in, or ceases to be a member of, the Bank shall
automatically be suspended from membership in, or cease to be a member of,
the Association, as the case may be.
Section 4. Rights and Duties of
Governments Ceasing to be Members
(a) When a government ceases to be a
member, it shall have no rights under this Agreement except as provided in
this Section and in Article X (c), but it shall, except as in this Section
otherwise provided, remain liable for all financial obligations undertaken by
it to the Association, whether as a member, borrower, guarantor or otherwise.
(b) When a government ceases to be a member, the Association and the
government shall proceed to a settlement of accounts. As part of such
settlement of accounts, the Association and the government may agree on the
amounts to be paid to the government on account of its subscription and on the
time and
currencies of payment. The term "subscription" when used in relation to any
member government shall for the purposes of this Article be deemed to include
both the initial subscription and any additional subscription of such member
government.
(c) If no such agreement is reached within six months from the
date when the government ceased to be a member, or such other time as may be
agreed upon by the Association and the government, the following provisions
shall apply:
(i) The government shall be relieved of any further liability to
the Association on account of its subscription, except that the government
shall pay to the Association forthwith amounts due and unpaid on the date when
the government ceased to be a member and which in the opinion of
the Association are needed by it to meet its commitments as of that date under
its financing operations.
(ii) The Association shall return to the government
funds paid in by the government on account of its subscription or derived
therefrom as principal repayments and held by the Association on the date when
the government ceased to be a member, except to the extent that in the opinion
of the Association such funds will be needed by it to meet its commitments as
of that date under its financing operations.
(iii) The Association shall pay
over to the government a pro rata share of all principal repayments received
by the Association after the date on which the government ceases to be a
member on loans contracted prior thereto, except those made out of
supplementary resources provided to the Association under arrangements
specifying special liquidation rights. Such share shall be such proportion of
the total principal amount of such loans as the total amount paid by the
government on account of its subscription and not returned to it pursuant to
clause (ii) above shall bear to the total amount paid by all members on
account of their subscriptions which shall have been used or in the opinion of
the Association will be needed by it to meet its commitments under its
financing operations as of the date on which the government ceases to be a
member. Such payment by the Association shall be made in instalments when and
as such principal repayments are received by the Association, but not more
frequently than annually. Such instalments shall be paid in the currencies
received by the Association except that the Association may in its discretion
make payment in the currency of the government concerned.
(iv) Any amount due
to the government on account of its subscription may be withheld so long as
that government, or the government of any territory included within its
membership, or any political subdivision or any agency of any of the foregoing
remains liable, as borrower or guarantor, to the Association, and such amount
may, at the option of the Association, be applied against any such liability
as it matures.
(v) In no event shall the government receive under this
paragraph (c) an amount exceeding, in the aggregate, the lesser of the
two following: (a) the amount paid by the government on account of its
subscription, or (b) such proportion of the net assets of the Association, as
shown on the books of the Association as of the date on which the government
ceased to be a member, as the amount of its subscription shall bear to the
aggregate amount of the subscriptions of all members.
(vi) All calculations
required hereunder shall be made on such basis as shall be reasonably
determined by the Association.
(d) In no event shall any amount due to a
government under this Section be paid until six months after the date upon
which the government ceases to be a member. If within six months of the date
upon which any government ceases to be a member the Association suspends
operations under Section 5 of this Article, all rights of such government
shall be determined by the provisions of such Section 5 and such
government shall be considered a member of the Association for purposes of
such Section 5, except that it shall have no voting rights.
Section 5. Suspension of Operations and Settlement of Obligations
(a)
The Association may permanently suspend its operations by vote of a majority
of the Governors exercising a majority of the total voting power. After such
suspension of operations the Association shall forthwith cease all activities,
except those incident to the orderly realization, conservation and
preservation of its assets and settlement of its obligations. Until final
settlement of such obligations and distribution of such assets,
the Association shall remain in existence and all mutual rights and
obligations of the Association and its members under this Agreement shall
continue unimpaired, except that no member shall be suspended or shall
withdraw and that no distribution shall be made to members except as in this
Section provided.
(b) No distribution shall be made to members on account of
their subscriptions until all liabilities to creditors shall have been
discharged or provided for and until the Board of Governors, by vote of a
majority of the Governors exercising a majority of the total voting power,
shall have decided to make such distribution.
(c) Subject to the foregoing,
and to any special arrangements for the disposition of supplementary resources
agreed upon in connection with the provision of such resources to
the Association, the Association shall distribute its assets to members pro
rata in proportion to amounts paid in by them on account of their
subscriptions. Any distribution pursuant to the foregoing provision of this
paragraph (c) shall be subject, in the case of any member, to prior
settlement of all outstanding claims by the Association against such member.
Such distribution shall be made at such times, in such currencies, and in cash
or other assets as the Association shall deem fair and equitable. Distribution
to the several members need not be uniform in respect of the type of assets
distributed or of the currencies in which they are expressed.
(d) Any member
receiving assets distributed by the Association pursuant to this Section or
Section 4 shall enjoy the same rights with respect to such assets as
the Association enjoyed prior to their distribution.
ARTICLE VIII
Status,
Immunities and Privileges
Section 1. Purposes of Article
To enable
the Association to fulfill the functions with which it is entrusted, the
status, immunities and privileges provided in this Article shall be accorded
to the Association in the territories of each member.
Section 2. Status
of the Association
The Association shall possess full juridical personality
and, in particular the capacity:
(i) to contract;
(ii) to acquire and
dispose of immovable and movable property;
(iii) to institute legal
proceedings.
Section 3. Position of the Association with Regard to
Judicial Process
Actions may be brought against the Association only in a
court of competent jurisdiction in the territories of a member in which
the Association has an office, has appointed an agent for the purpose of
accepting service or notice of process, or has issued or guaranteed
securities. No actions shall, however, be brought by members or persons acting
for or deriving claims from members. The property and assets of
the Association shall, wheresoever located and by whomsoever held, be immune
from all forms of seizure, attachment or execution before the delivery of
final judgment against the Association.
Section 4. Immunity of Assets
from Seizure
Property and assets of the Association, wherever located and by
whomsoever held, shall be immune from search, requisition, confiscation,
expropriation or any other form of seizure by executive or legislative action.
Section 5. Immunity of Archives
The archives of the Association shall be
inviolable.
Section 6. Freedom of Assets from Restrictions
To the
extent necessary to carry out the operations provided for in this Agreement
and subject to the provisions of this Agreement, all property and assets of
the Association shall be free from restrictions, regulations, controls and
moratoria of any nature.
Section 7. Privilege for Communications
The
official communications of the Association shall be accorded by each member
the same treatment that it accords to the official communications of other
members.
Section 8. Immunities and Privileges of officers and Employees
All Governors, Executive Directors, Alternates, officers and employees of the
Association
(i) shall be immune from legal process with respect to acts
performed by them in their official capacity except when the Association
waives this immunity;
(ii) not being local nationals, shall be accorded the
same immunities from immigration restrictions, alien registration requirements
and national service obligations and the same facilities as regards exchange
restrictions as are accorded by members to the representatives, officials, and
employees of comparable rank of other members;
(iii) shall be granted the
same treatment in respect of travelling facilities
as is accorded by members to representatives, officials and employees of
comparable rank of other members.
Section 9. Immunities from Taxation
(a) The Association, its assets, property, income and its operations and
transactions authorized by this Agreement, shall be immune from all taxation
and from all customs duties. The Association shall also be immune from
liability for the collection or payment of any tax or duty.
(b) No tax shall
be levied on or in respect of salaries and emoluments paid by the Association
to Executive Directors, Alternates, officials or employees of the Association
who are not local citizens, local subjects or other local nationals.
(c) No
taxation of any kind shall be levied on any obligation or security issued by
the Association (including any dividend or interest thereon) by whomsoever
held
(i) which discriminates against such obligation or security solely
because it is issued by the Association; or
(ii) if the sole jurisdictional
basis for such taxation is the place or currency in which it is issued, made
payable or paid, or the location of any office or place of business maintained
by the Association.
(d) No taxation of any kind shall be levied on any
obligation or security guaranteed by the Association (including any dividend
or interest thereon) by whomsoever held
(i) which discriminates against such
obligation or security solely because it is guaranteed by the Association; or
(ii) if the sole jurisdictional basis for such taxation is the location of any
office or place of business maintained by the Association.
Section 10.
Application of Article
Each member shall take such action as is necessary in
its own territories for the purpose of making effective in terms of its own
law the principles set forth in this Article and shall inform the Association
of the detailed action which it has taken.
ARTICLE IX
Amendments
(a) Any
proposal to introduce modifications in this Agreement, whether emanating from
a member, a Governor or the Executive Directors, shall be communicated to the
Chairman of the Board of Governors who shall bring the proposal before the
Board. If the proposed amendment is approved by the Board, the Association
shall, by circular letter or telegram, ask all members whether they accept the
proposed amendment. When three-fifths of the members, having four-fifths of
the total voting power, have accepted the proposed amendments, the Association
shall certify the fact by formal communication addressed to all members.
(b)
Notwithstanding (a) above, acceptance by all members is required in the case
of any amendment modifying
(i) the right to withdraw from the Association
provided in Article VII, Section 1;
(ii) the right secured by Article
III, Section 1 (c);
(iii) the limitation on liability provided in
Article II, Section 3.
(c) Amendments shall enter into force for all
members three months after the date of the formal communication unless a
shorter period is specified in the circular letter or telegram.
ARTICLE X
Interpretation and Arbitration
(a) Any question of interpretation of the
provisions of this Agreement arising between any member and the Association or
between any members of the Association shall be submitted to the Executive
Directors for their decision. If the question particularly affects any member
of the Association not entitled to appoint an Executive Director of the Bank,
it shall be entitled to representation in accordance with Article VI,
Section 4 (g).
(b) In any case where the Executive Directors have given
a decision under (a) above, any member may require that the question be
referred to the Board of Governors, whose decision shall be final. Pending the
result of the reference to the Board of Governors, the Association may, so far
as it deems necessary, act on the basis of the decision of the Executive
Directors.
(c) Whenever a disagreement arises between the Association and a
country which has ceased to be a member, or between the Association and any
member during the permanent suspension of the Association, such disagreement
shall be submitted to arbitration by a tribunal of three arbitrators, one
appointed by the Association, another by the country involved and an umpire
who, unless the parties otherwise agree, shall be appointed by the President
of the International Court of Justice or such other authority as may have been
prescribed by regulation adopted by the Association. The umpire shall have
full power to settle all questions of procedure in any case where the parties
are in disagreement with respect thereto.
ARTICLE XI
Final Provisions
Section 1. Entry into Force
This Agreement shall enter into force when
it has been signed on behalf of governments whose subscriptions comprise not
less than sixty-five percent of the total subscriptions set forth in Schedule
A and when the instruments
referred to in Section 2 (a) of this Article have been deposited on their
behalf, but in no event shall this Agreement enter into force before
September, 15, 1960.
Section 2. Signature
(a) Each government on whose
behalf this Agreement is signed shall deposit with the Bank an instrument
setting forth that it has accepted this Agreement in accordance with its law
and has taken all steps necessary to enable it to carry out all of its
obligations under this Agreement.
(b) Each government shall become a member
of the Association as from the date of the deposit on its behalf of the
instrument referred to in paragraph (a) above except that no government
shall become a member before this Agreement enters into force under
Section 1 of this Article.
(c) This Agreement shall remain open for
signature until the close of business on December 31, 1960, at the principal
office of the Bank, on behalf of the governments of the states whose names are
set forth in Schedule A, provided that, if this Agreement shall not have
entered into force by that date, the Executive Directors of the Bank may
extend the period during which this Agreement shall remain open for signature
by not more than six months.
(d) After this Agreement shall have entered into
force, it shall be open for signature on behalf of the government of any state
whose membership shall have been approved pursuant to Article II,
Section 1 (b).
Section 3. Territorial application
By its signature
of this Agreement, each government accepts it both on its own behalf and in
respect of all territories for whose international relations such government
is responsible except those which are excluded by such government by written
notice to the Association.
Section 4. Inauguration of the Association
(a) As soon as this Agreement enters into force under Section 1 of this
Article the President shall call a meeting of the Executive Directors.
(b)
The Association shall begin operations on the date when such meeting is held.
(c) Pending the first meeting of the Board of Governors, the Executive
Directors may exercise all the powers of the Board of Governors except those
reserved to the Board of Governors under this Agreement.
Section 5.
Registration
The Bank is authorized to register this Agreement with the
Secretariat of the United Nations in accordance with Article 102 of the
Charter of the United Nations and the Regulations thereunder adopted by the
General Assembly.
DONE at Washington, in a single copy which shall remain
deposited in the archives of the International Bank for Reconstruction and
Development, which has indicated by its signature below its agreement to act
as depository of this Agreement, to register this Agreement with the
Secretariat of the United Nations and to notify all governments whose names
are set forth in Schedule A of the date when this Agreement shall have entered
into force under Article XI, Section 1 hereof.
SCHEDULE A-INITIAL
SUBSCRIPTIONS
(US $ Millions)
Part I
Australia
|
20.18
|
Japan
|
33.59
|
Austria
|
5.04
|
Luxembourg
|
1.01
|
Belgium
|
22.70
|
Netherlands
|
27.74
|
Canada
|
37.83
|
Norway
|
6.72
|
Denmark
|
8.74
|
Sweden
|
10.09
|
Finland
|
3.83
|
Union of South Africa
|
10.09
|
France
|
52.96
|
United Kingdom
|
131.14
|
Germany
|
52.96
|
United States
|
320.29
|
Italy
|
18.16
|
|
763.07
|
Part II
Afghanistan
|
1.01
|
Israel
|
1.68
|
Argentina
|
18.83
|
Jordan
|
0.30
|
Bolivia
|
1.06
|
Korea
|
1.26
|
Brazil
|
18.83
|
Lebanon
|
0.45
|
Burma
|
2.02
|
Libya
|
1.01
|
Ceylon
|
3.03
|
Malaya
|
2.52
|
Chile
|
3.53
|
Mexico
|
8.74
|
China
|
30.26
|
Morocco
|
3.53
|
Colombia
|
3.53
|
Nicaragua
|
0.30
|
Costa Rica
|
0.20
|
Pakistan
|
10.09
|
Cuba
|
4.71
|
Panama
|
0.02
|
Dominican Republic
|
0.40
|
Paraguay
|
0.30
|
Ecuador
|
0.65
|
Peru
|
1.77
|
El Salvador
|
0.30
|
Philippines
|
5.04
|
Ethiopia
|
0.50
|
Saudi Arabia
|
3.70
|
Ghana
|
2.36
|
Spain
|
10.09
|
Greece
|
2.52
|
Sudan
|
1.01
|
Guatemala
|
0.40
|
Thailand
|
3.03
|
Haiti
|
0.76
|
Tunisia
|
1.51
|
Honduras
|
0.30
|
Turkey
|
5.80
|
Iceland
|
0.10
|
United Arab Republic
|
6.03
|
India
|
40.35
|
Uruguay
|
1.06
|
Indonesia
|
11.10
|
Venezuela
|
7.06
|
Iran
|
4.54
|
Viet-Nam
|
1.51
|
Iraq
|
0.76
|
Yugoslavia
|
4.04
|
Ireland
|
3.03
|
|
|
236.93
|
|
|
Total
|
1000.00
|
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