cap_209

MT

MALTA MEMBERSHIP OF THE INTERNATIONAL MONETARY FUND ACT

13 Articles / Provisions · Malta

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Table of Provisions (13)

Preamble Art. 1 Short title. Schedule Art. 2 Interpretation. Skeda A. Art. 3 Authorisation for signing of and acceptance of the Fund Agreement. Art. 4 Authorisation for participation in the Special Drawing Account. Art. 5 Effect of signature. Art. 6 Financial provisions relating to membership in the Fund. Art. 7 Certain provisions of Fund Agreement given force of law in Malta. Art. 8 Powers of the Minister. Art. 11 Art. 12

Statutory Text (13 Articles)

Laws of Malta — Chapter 209 — MALTA MEMBERSHIP OF THE INTERNATIONAL MONETARY FUND ACT

Preamble — MALTA MEMBERSHIP OF THE INTERNATIONAL MONETARY FUND ACT Open official source

MALTA M EM BERS HI P OF THE I NT E R N AT I O N A L M O N E TA RY F U N D [CAP. 209.

CHAPTER 209

MALTA MEMBERSHIP OF THE

INTERNATIONAL MONETARY FUND ACT

To enable Malta to become a member of the International Monetary

Fund.

(31st July, 1968) *

Enacted by ACT XXI of 1968, as amended by Acts XXXI of 1969 and XIX

of 2011 and VII of 2023.

Laws of Malta — Chapter 209 — MALTA MEMBERSHIP OF THE INTERNATIONAL MONETARY FUND ACT

Art. 1 Short title. — MALTA MEMBERSHIP OF THE INTERNATIONAL MONETARY FUND ACT Open official source

This Act may be cited as the Malta Membership of the

International Monetary Fund Act.

Laws of Malta — Chapter 209 — MALTA MEMBERSHIP OF THE INTERNATIONAL MONETARY FUND ACT

Schedule — MALTA MEMBERSHIP OF THE INTERNATIONAL MONETARY FUND ACT Open official source

Substituted by

VII.2023.5.

ARTICLES OF AGREEMENT OF THE

INTERNATIONAL MONETARY FUND

Source: https://www.imf.org/external/pubs/ft/aa/

Version as amended effective January 26, 2016 by the modifications approved by

the Board of Governors of the International Monetary Fund in Resolution No. 66-2,

adopted December 15, 2010, as reproduced hereunder

ARTICLES OF

AGREEMENT

ARTICLES OF

AGREEMENT

© 2020 International Monetary Fund

Cataloging-in-Publication Data

IMF Library

Names: International Monetary Fund, publisher. | United Nations

Monetary and Financial Conference (1944 : Bretton Woods, N.H.).

Title: Articles of agreement of the International Monetary Fund : adopted

at the United Nations Monetary and Financial Conference, Bretton Woods,

New Hampshire, July 22, 1944 … amended effective January 26, 2016 by

the modifications approved by the Board of Governors in Resolution

No. 66–2, adopted December 15, 2010.

Other titles: IMF articles of agreement.

Description: Washington, DC : International Monetary Fund, 2020. |

Includes index.

Identifiers

ISBN 978-1-51352-124-4 (paper)

ISBN 978-1-51353-081-9 (ePub)

ISBN 978-1-51353-082-6 (PDF)

Subjects: LCSH: International Monetary Fund—Membership. | International

Monetary Fund—By-laws.

Classification: LCC HG3881.5.I58 I578 2020

Reprinted, March 2020

Articles of Agreement

of the

International Monetary Fund

Adopted at the United Nations Monetary and

Financial Conference, Bretton Woods, New Hamp

shire, July 22, 1944. Entered into force December

27, 1945. Amended effective July 28, 1969, by the

modifications approved by the Board of Governors

in Resolution No. 23–5, adopted May 31, 1968;

amended effective April 1, 1978, by the modifica

tions approved by the Board of Governors in Reso

lution No. 31–4, adopted April 30, 1976; amended

effective November 11, 1992, by the modifications

approved by the Board of Governors in Resolution

No. 45–3, adopted June 28, 1990; amended effec

tive August 10, 2009, by the modifications approved

by the Board of Governors in Resolution No. 52–4,

adopted September 23, 1997; amended effective

February 18, 2011, by the modifications approved

by the Board of Governors in Resolution No. 63–3,

adopted May 5, 2008; amended effective March 3,

2011, by the modifications approved by the Board

of Governors in Resolution No. 63–2, adopted

April 28, 2008; amended effective January 26,

2016 by the modifications approved by the Board

of Governors in Resolution No. 66–2, adopted

December 15, 2010.

INTERNATIONAL MONETARY FUND

WASHINGTON, DC

T a b l e o f C o n t e n t s

Page

I n t r o d u c to ry A rt i c l e ��1

P u r p o s e s ��2

M e m b e r s h i p ��3

1. � Original members��3

2. � Other members ��3

Q uotas a n d S u b s c r i p t i o n s �� 3

1. � Quotas and payment of subscriptions��3

2. � Adjustment of quotas ��3

3. � Payments when quotas are changed ��4

4. � Substitution of securities for currency ��5

O b l i g at i o n s R egarding E x c h a n g e

A r r a n g e m e n t s ��5

1. � General obligations of members��5

2. � General exchange arrangements��6

3. � Surveillance over exchange arrangements ��6

4. � Par values ��7

5. � Separate currencies within a member’s

territories��7

O p e r at i o n s a n d T r a n s a c t i o n s o f t h e F u n d .��8

1. � Agencies dealing with the Fund��8

2. � Limitation on the Fund’s operations and

transactions��8

3. � Conditions governing use of the Fund’s general

resources��8

4. � Waiver of conditions��10

5. � Ineligibility to use the Fund’s general

resources��10

6. � Other purchases and sales of special

drawing rights by the Fund��11

7. � Repurchase by a member of its currency held

by the Fund��11

8. � Charges��13

9. � Remuneration ��14

10. � Computations ��16

Laws of Malta — Chapter 209 — MALTA MEMBERSHIP OF THE INTERNATIONAL MONETARY FUND ACT

Art. 2 Interpretation. — MALTA MEMBERSHIP OF THE INTERNATIONAL MONETARY FUND ACT Open official source

In this Act, unless the context otherwise requires -

"Central Bank of Malta" means the bank established by article 3

of the Central Bank of Malta Act;

"Fund" means the International Monetary Fund established by

the Fund Agreement;

"Fund Agreement" means the Articles of Agreement of the

International Monetary Fund (being the Articles of Agreement

adopted at the United Nations Monetary and Financial Conference

on the 22nd July, 1944) as set out in the Schedule to this Act, as

from time to time ratified by Malta;

"Malta" has the same meaning as is assigned to it in article 124

of the Constitution;

"Membership Resolution" means the resolution adopted by the

Board of Governors of the Fund, specifying the terms a nd

conditions upon which Malta shall be admitted to membership of

the Fund;

"Minister" means the Minister for the time being charged with

responsibility for finance;

"Special Drawing Account" means the Special Drawing Account

established by the Fund Agreement as modified by the amendments

approved by the Board of Governors of the Fund on the 31st May,

1968;

"special drawing rights" means any special drawing rights

ensuing from or in connection with participation in the Special

Drawing Account.

Liġijiet ta' Malta — Kapitolu 209 — ATT DWAR ID-DĦUL TA’ MALTA BĦALA MEMBRU TAL-FOND MONETARJU INTERNAZZJONALI

Skeda A. — ATT DWAR ID-DĦUL TA’ MALTA BĦALA MEMBRU TAL-FOND MONETARJU INTERNAZZJONALI Open official source

(Kwoti)

(F’miljuni ta’ dollari tal-Istati Uniti)

Awstralja ......................... 200

Iran ................................................................ 25

Belġju ............................. 225

Iraq ...................................................................8

Bolivja .............................. 10

Liberia .......................................................... .5

Brazil .............................. 150

Lussemburgo.................................................. 10

Kanada ............................ 300

Messiku.......................................................... 90

Ċili .................................... 50

Olanda ..........................................................275

Ċina ................................ 550

New Zealand ..................................................50

Kolumbja .......................... 50

Nikaragwa ...................................................... 2

Kosta Rika .......................... 5

Norveġja......................................................... 50

Kuba ................................. 50

Panama .......................................................... .5

Ċekoslovakkja ................ 125

Paragwaj ..........................................................2

Danimarka ...................... (*)

Peru ................................................................ 25

Repubblika Domenikana ..... 5

Filippini...........................................................15

Ekwador .............................. 5

Polonja...........................................................125

Eġittu ................................ 45

Unjoni tas-Sud Afrika ....................................l00

EI Salvador ......................... 2.5

Unjoni tar-Repubbliki Soċjalisti Sovjetiċi ..1,200

Etjopja ..................................6

Franza ............................. 450

Renju Unit ................................................. 1,300

Greċja ............................... 40

Stati Uniti .................................................. 2,750

Guatemala ........................... 5

Urugwaj.......................................................... 15

Haiti .................................... 5

Venezuela .......................................................15

Honduras ............................. 2.5

Jugoslavia....................................................... 60

Iżlandja ............................... 1

Indja ................................ 400

............................................................. Total 8,800

(*) Il-kwota tad-Danimarka għandha tkun stabbilita mill-Fond wara li l-Gvern Daniż ikun iddikjara li

huwa lest biex jiffirma dan il-Ftehim iżda qabel ma ssir il-firma.

Skeda B. Dispożizzjonijiet dwar Xiri mill-ġdid minn Membru

tal-Flejjes tiegħu Miżmuma mill-Fond

1. Biex jiġi stabbilit safejn xiri mill-ġdid ta’ flejjes ta’ membru mill-Fond

skont is-Sezzjoni V, Artikolu 7 (b), għandu jsir b’kull klassi ta’ riżerva monetarja,

jiġifieri f ’deheb u fi flejjes konvertibbli, ir-regola li ġejja, salv it-2 ta’ hawn taħt,

*L-Iskeda "Articles of Agreement of the International Monetary Fund" tinsab fil-verżjoni bl-Ingliż ta’

dan l-Att.

DĦUL TA’ MALTA BĦALA MEMBRU

TAL-FOND MONETARJU INTERNAZZJONALI

għandha tapplika

(a) Jekk ir-riżervi monetarji tal-membru ma jkunux żdiedu matul is-sena, l-

ammont li għandu jitħallas lill-Fond għandu jitqassam fost il-klassijiet kollha ta’

riżervi fi proporzjon tal-holdings tagħhom mill-membru fl-aħħar tas-sena.

(b) Jekk ir-riżervi monetarji tal-membru jkunu żdiedu matul is-sena, parti mill-

ammont li għandu jitħallas lill-Fond daqs nofs iż-żieda għandha titqassam fost dawk

il-klassijiet ta’ riżervi li jkunu żdiedu bi proporzjon għall-ammont li bih kull wieħed

minnhom ikun żdied. Il-bqija tas-somma li għandha titħallas lill-Fond għandha

titqassam fost il-klassijiet kollha ta’ riżervi fi proporzjon għal dik il-bqija tal-

holdings tal-membru.

(ċ) Jekk wara li x-xiri mill-ġdid kollu skont is-Sezzjoni V, Artikolu 7 (b), ikun

sar, ir-riżultat kien jeċċedi kull limiti speċifikati fis-Sezzjoni V, Artikolu 7 (ċ), il-

Fond jeħtieġ li dak ix-xiri mill-ġdid isir mill-membri proporzjonatament b’dak il-

mod illi l-limiti ma jiġux eċċeduti.

2. Il-Fond ma għandu jikseb ebda flejjes ta’ wieħed mhux membru skont is-

Sezzjoni V, Artikolu 7 (b) u (ċ).

3. Fil-kalkolu ta’ riżervi monetarji u fiż-żieda ta’ riżervi monetarji matul kull

sena għall-fini tas-Sezzjoni V, Artikolu 7 (b) u (ċ), ma għandu jittieħed ebda kont,

jekk ma jkunx sar tnaqqis xort’oħra mill-membru għal dawk il-holdings, ta’ kull

żieda f ’dawk ir-riżervi monetarji li jkunu dovuti għal flejjes li kienu qabel mhux

konvertibbli u li saru konvertibbli matul is-sena; jew għal holdings li huma r-rikavat

ta’ self ta’ terminu twil jew ta’ terminu medju kuntrattat matul is-sena; jew għal

holdings li ġew trasferiti jew imwarrba għall-ħlas mill-ġdid ta’ self matul is-sena ta’

wara.

4. Fil-każ ta’ membri li t-territorji metropolitani tagħhom ikunu ġew okkupati

mill-għadu, id-deheb prodott ġdid matul il-ħames snin wara li jibda jseħħ dan il-

Ftehim minn mini sitwati fit-territorji metropolitani tagħhom m’għandux jiġi inkluż

fil-kalkoli tar-riżervi monetarji tagħhom jew ta’ żidiet ta’ riżervi monetarji tagħhom.

Skeda Ċ. Elezzjoni ta’ Diretturi Esekuttivi

1. L-elezzjoni tad-diretturi esekuttivi li jiġu eletti tkun b’votazzjoni tal-

gvernaturi li jistgħu jivvotaw skont is-Sezzjoni XII, Artikolu 3 (b) (iii) u (iv).

2. Fil-votazzjoni għall-ħames diretturi li jiġu eletti skont is-Sezzjoni XII,

Artikolu 3 (b) (iii), kull wieħed mill-gvernaturi li jista’ jivvota għandu jivvota għal

persuna waħda l-voti kollha li għalihom huwa jkollu dritt skont is-Sezzjoni XII,

Artikolu 5 (a). Il-ħames persuni li jirċievu l-akbar numru ta’ voti jkunu diretturi,

basta li ebda persuna li tkun irċeviet anqas minn dsatax fil-mija tan-numru totali ta’

voti li jistgħu jingħataw (voti eliġibbli) ma għandha titqies eletta.

3. Meta ma jkunux eletti ħames persuni mal-ewwel votazzjoni, għandha

tinżamm it-tieni votazzjoni li fiha l-persuna li tkun irċeviet l-anqas numru ta’ voti

ma tkunx eliġibbli għall-elezzjoni u li fiha għandhom jivvotaw biss (a) dawk il-

gvernaturi li ivvotaw fl-ewwel votazzjoni għal persuna mhux eletta, u (b) dawk il-

gvernaturi li l-voti tagħhom għal persuna eletta huma meqjusa skont il-4 ta’ hawn

taħt li kabbru l-voti mogħtija lil dik il-persuna b’aktar minn għoxrin fil-mija tal-voti

eliġibbli.

4. Biex jiġi stabbilit jekk il-voti mogħtija minn gvernatur għandhomx jitqiesu

li kabbru t-total ta’ xi persuna b’aktar minn għoxrin fil-mija tal-voti eliġibbli, l-

għoxrin fil-mija għandhom jitqiesu li jinkludu, l-ewwel, il-voti ta’ gvernatur li ta l-

akbar numru ta’ voti lil dik il-persuna, umbagħad il-voti tal-gvernatur li ta l-akbar

numru warajħ, u hekk sakemm jintlaħaq l-għoxrin fil-mija.

5. Kull gvernatur li parti mill-voti tiegħu għandhom jingħaddu sabiex ikabbar

it-total ta’ xi persuna b’aktar minn dsatax fil-mija għandu jitqies bħala li ta l-voti

kollha tiegħu lil dik il-persuna wkoll jekk il-voti totali lil dik il-persuna b’hekk

jeċċedu l-għoxrin fil-mija.

6. Jekk, wara t-tieni votazzjoni, ma jkunux ġew eletti ħames persuni,

għandhom jinżammu votazzjonijiet oħra fuq l-istess prinċipji sakemm ikunu ġew

eletti ħames persuni, basta li wara li jkunu ġew eletti erba’ persuni, il-ħames wieħed

jista’ jiġi elett b’maġġoranza sempliċi tal-bqija tal-voti u għandu jitqies li ġie elett

b’dawk il-voti kollha.

7. Id-diretturi li għandhom jiġu eletti mir-Repubbliki Amerikani skont is-

Sezzjoni XII, Artikolu 3 (b) (iv) għandhom jiġu eletti kif ġej

(a)

Kull direttur għandu jiġi elett separatament.

(b) Fl-elezzjoni tal-ewwel direttur, kull gvernatur li jirrappreżenta Repubblika

Amerikana li tista’ tiehu sehem fl-elezzjoni għandu jagħti għal persuna waħda l-voti

kollha li għalihom huwa għandu dritt. Il-persuna li tirċievi l-akbar numru ta’ voti tiġi

eletta basta li tkun irċeviet mhux anqas minn ħamsa u erbgħin fil-mija tal-voti totali.

(ċ) Jekk ħadd ma jiġi elett mal-ewwel votazzjoni, għandhom jinżammu

votazzjonijiet oħra, u f’kull waħda minnhom il-persuna li tirċievi l-anqas numru ta’

voti tiġi eliminata, sakemm persuna waħda tirċievi numru ta’ voti biżżejjed biex tiġi

eletta skont il-(b) ta’ hawn fuq.

(d) Il-gvernaturi li l-voti tagħhom ikkontribwew għall-elezzjoni tal-ewwel

direttur ma għandhom jieħdu ebda parti fl-elezzjoni tat-tieni direttur.

(e) Persuni li ma kienux eletti fl-ewwel elezzjoni jkunu eliġibbli għal elezzjoni

tat-tieni direttur.

(f)

Maġġoranza tal-voti li tista’ tingħata tkun meħtieġa għall-elezzjoni tat-tieni

direttur. Jekk fl-ewwel votazzjoni ħadd ma jirċievi maġġoranza, għandhom

jinżammu votazzjonijiet oħra li f’kull waħda minnhom il-persuna li tirċievi l-anqas

numru ta’ voti tiġi eliminata, sakemm xi persuna tikseb maġġoranza.

(g) It-tieni direttur għandu jitqies li ġie elett bil-voti kollha li setgħu ingħataw

fil-votazzjoni biex tassigura l-elezzjoni tiegħu.

Skeda D. Likwidazzjoni ta’ Kontijiet ma’ Membri li Jirtiraw

1. Il-Fond ikun obbligat li jħallas lil membru li jirtira ammont daqs il-kwota

tiegħu, b’żieda ta’ kull ammonti oħra dovuti lilu mill-Fond, nieqes kull ammont

dovut lill-Fond, inklużi drittijiet li jakkumulaw wara d-data tal-irtir tiegħu; iżda ma

għandu jsir ebda ħlas qabel sitt xhur wara d-data tal-irtir tiegħu. Il-ħlasijiet

għandhom isiru bil-flejjes tal-membru li jirtira.

2. Jekk il-holdings tal-Fond tal-flejjes tal-membru li jirtira ma jkunux biżżejjed

biex jitħallas l-ammont nett dovut mill-Fond, il-bilanċ għandu jitħallas b’deheb, jew

b’dak il-mod ieħor li jista’ jiġi miftiehem. Jekk il-Fond u l-membru li jirtira ma

jiftehmux fi żmien sitt xhur mid-data tal-irtir, il-flejjes in kwistjoni miżmuma mill-

Fond għandhom jitħallsu minnufih lill-membru li jirtira. Kull bilanċ dovut għandu

jitħallas f’għaxar rati ta’ sitt xhur matul il-ħames snin ta’ wara. Kull rata bħal dik

għandha titħallas, kif jagħżel il-Fond, jew bil-flejjes tal-membru li jirtira miksuba

wara l-irtir tiegħu jew b’konsenja ta’ deheb.

3. Jekk il-Fond jonqos milli jħallas xi rata li tkun dovuta skont il-paragrafi ta’

DĦUL TA’ MALTA BĦALA MEMBRU

TAL-FOND MONETARJU INTERNAZZJONALI

qabel, il-membru li jirtira jkollu dritt li jitlob lill-Fond li jħallas ir-rata fi kwalunkwe

flejjes miżmuma mill-Fond barra minn f’xi flejjes li jkunu ġew dikjarati skarsi skont

is-Sezzjoni VII, Artikolu 3.

4. Jekk il-holdings tal-Fond tal-flejjes ta’ membru li jirtira jeċċedu l-ammont

dovut lilu, u jekk ma jintlaħaqx ftehim fuq kif għandhom jiġu likwidati l-kontijiet fi

żmien sitt xhur mid-data tal-irtir, dak li kien membru jkun obbligat li jifdi dawk il

flejjes żejda f’deheb jew, kif jagħżel hu, fil-flejjes ta’ membri li fiż-żmien tal-fidwa

jkunu konvertibbli. Il-fidwa għandha ssir bil-parità eżistenti fiż-żmien tal-irtir mill-

Fond. Il-membru li jirtira għandu jikkonkludi l-fidwa fi żmien ħames snin mid-data

tal-irtir, jew fi żmien dak il-perijodu itwal li jista’ jiġi stabbilit mill-Fond, iżda ma

jkunx meħtieġ li jifdi f’xi perijodu ta’ sitt xhur aktar minn wieħed minn għaxra tal-

holdings żejda tal-Fond tal-flejjes tiegħu fid-data tal-irtir b’żieda għal kull akkwisti

oħra tal-flejjes matul dak il-perijodu ta’ sitt xhur. Jekk il-membru li jirtira ma

jwettaqx l-obbligazzjoni tiegħu, il-Fond jista’ b’mod xieraq jillikwida f’kull suq l-

ammont tal-flejjes li missu ġie mifdi.

5. Kull membru li jixtieq jikseb il-flejjes ta’ membru li irtira għandu jiksibhom

b’xiri mingħand il-Fond safejn dak il-membru jkollu aċċess għar-riżorsi tal-Fond u li

dawk il-flejjes ikunu disponibbli skont il-4 ta’ hawn fuq.

6. Il-membru li jirtira jiggarantixxi l-użu illimitat fiż-żminijiet kollha tal-

flejjes imneħħija skont il-4 u 5 ta’ hawn fuq għax-xiri ta’ merkanzija jew għall-ħlas

ta’ somom dovuti lilu jew lil persuni fit-territorji tiegħu. Huwa għandu jikkompensa

lill-Fond għal kull telf li jirriżulta mid-differenza bejn il-valur pari u l-flejjes tiegħu

fid-data tal-irtir u l-valur realizzat mill-Fond mat-tneħħija skont il-4 u l-5 ta’ hawn

fuq.

7. Fil-każ li l-Fond imur f’likwidazzjoni skont is-Sezzjoni XVI, Artikolu 2, fi

żmien sitt xhur mid-data li fiha l-membru jirtira, il-kont bejn il-Fond u dak il-gvern

għandu jiġi likwidat skont is-Sezzjoni XVI, Artikolu 2, u l-Iskeda E.

Skeda E. Amministrazzjoni ta’ Likwidazzjoni

1. Fil-każ ta’ likwidazzjoni l-passiv tal-Fond barra mill-ħlas lura tas-

sottoskrizzjonijiet ikollhom preċedenza fit-tqassim tal-attiv tal-Fond. Biex jissodisfa

kull passiv bħal dak il-Fond għandu juża l-attiv tiegħu fl-ordni li ġej

(a)

il-flejjes li bihom il-passiv jitħallas;

(b)

deheb;

(ċ) il-flejjes l-oħra kollha f’xi proporzjon, safejn ikun prattikabbli, għall-kwoti

tal-membri.

2. Wara li jissodisfa l-passiv tal-Fond skont il-1 ta’ hawn fuq, il-bilanċ tal-attiv

tal-fond għandu jiġi mqassam u distribwit kif ġej

(a) Il-Fond għandu jqassam il-holdings tiegħu f’deheb fost il-membri li l-flejjes

tagħhom huma miżmuma mill-Fond f’ammonti anqas mill-kwoti tagħhom. Dawn il-

membri għandhom jaqsmu d-deheb hekk imqassam fi proporzjon tal-ammonti li

bihom il-kwoti tagħhom jeċċedu l-holdings tal-Fond tal-flejjes tagħhom.

(b) Il-Fond għandu jqassam lil kull membru nofs il-holdings tal-Fond tal-flejjes

tiegħu iżda dak it-tqassim ma għandux jeċċedi ħamsin fil-mija tal-kwota tiegħu.

(ċ) Il-Fond għandu jqassam fi proporzjon il-bqija tal-holdings tiegħu ta’ kull

flejjes fost il-membri kollha skont l-ammonti dovuti lil kull membru wara t-tqassim

taħt l-(a) u (b) ta’ hawn fuq.

3. Kull membru għandu jifdi l-holdings tal-flejjes tiegħu mqassma fi

proporzjon lil membri oħra skont it-2 (ċ) ta’ hawn fuq u għandu jiftiehem mal-Fond

fi żmien tliet xhur wara deċiżjoni biex jillikwidaw bi proċedura xierqa għal dik il-

fidwa.

4. Jekk membru ma jkunx laħaq ftehim mal-Fond fi żmien il-perijodu ta’ tliet

xhur imsemmi fit-3 ta’ hawn fuq, il-Fond għandu juża l-flejjes ta’ membri oħra

mqassma fi proporzjon lil dak il-membru skont it-2 (ċ) ta’ hawn fuq biex jifdi l-

flejjes ta’ dak il-membru mqassma fi proporzjon lil membri oħra. Kull flejjes

imqassma fi proporzjon lil membru li ma jkunx laħaq ftehim għandhom jiġu wżati,

kemm jista’ jkun possibbli, biex jifdu l-flejjes tiegħu imqassma fi proporzjon lill-

membri li jkunu għamlu ftehim mal-Fond skont it-3 ta’ hawn fuq.

5. Jekk membru jilħaq ftehim mal-Fond skont it-3 ta’ hawn fuq, il-Fond

għandu juża l-flejjes ta’ membri oħra mqassma fi proporzjon lil dak il-membru skont

it-2 (ċ) ta’ hawn fuq biex jifdi l-flejjes ta’ dak il-membru mqassma fi proprozjon lil

membri oħra li kienu għamlu ftehim mal-Fond skont it-3 ta’ hawn fuq. Kull ammont

hekk mifdi għandu jiġi mifdi fil-flejjes tal-membru li għalih kien imqassam fi

proporzjon.

6. Wara li jiġu esegwiti l-paragrafi ta’ qabel, il-Fond għandu jħallas lil kull

membru l-bqija tal-flejjes miżmuma akkont tiegħu.

7. Kull membru li l-flejjes tiegħu jkunu ġew imqassma lil membri oħra skont

is-6 ta’ hawn fuq għandu jifdi dawk il-flejjes f’deheb jew, kif jagħżel hu, fil-flejjes

tal-membru li jitlob il-fidwa, jew b’dak il-mod ieħor li jiġi miftiehem bejniethom.

Jekk il-membri interessati ma jiftehmux xort’oħra, il-membru obbligat li jifdi

għandu jikkonkludi l-fidwa fi żmien ħames snin mid-data tat-tqassim, iżda ma jkunx

meħtieġ li jifdi f’perijodu ta’ sitt xhur aktar minn wieħed minn għaxra tal-ammont

imqassam lil kull membru ieħor. Jekk il-membru ma jwettaqx din l-obbligazzjoni l-

ammont tal-flejjes li missu ġie mifdi jista’ jiġi likwidat b’mod xieraq fi kwalunkwe

suq.

8. Kull membru li l-flejjes tiegħu jkunu ġew imqassma lil membri oħra skont

is-6 ta’ hawn fuq jiggarantixxi l-użu illimitat ta’ dawk il-flejjes fiż-żmienijiet kollha

għax-xiri ta’ merkanzija jew għall-ħlas ta’ somom dovuti lilu jew lil persuni fit-

territorji tiegħu. Kull membru hekk obbligat jaċċetta li jikkompensa membri oħra

għal kull telf li jirriżulta mid-differenza bejn il-valur pari tal-flejjes tiegħu fid-data

tad-deċiżjoni biex jillikwida l-Fond u l-valur realizzat minn dawk il-membri mat-

tneħħija tal-flejjes tiegħu.

Laws of Malta — Chapter 209 — MALTA MEMBERSHIP OF THE INTERNATIONAL MONETARY FUND ACT

Art. 3 Authorisation for signing of and acceptance of the Fund Agreement. — MALTA MEMBERSHIP OF THE INTERNATIONAL MONETARY FUND ACT Open official source

The Minister is hereby authorised on behalf of the

Government of Malta to sign the Fund Agreement and to deposit

with the Government of the United States the instrument of

acceptance of the said Fund Agreement and of the terms and

conditions prescribed thereunder relating to the admission of Malta

to membership, or by instrument under his hand to empower such

person as may be named in such instrument to sign the said Fund

*See Government Notice No. 549 of 31st July, 1968.

2 CAP. 209.]

Agreement and to deposit the said instrument of acceptance as

aforesaid.

Laws of Malta — Chapter 209 — MALTA MEMBERSHIP OF THE INTERNATIONAL MONETARY FUND ACT

Art. 4 Authorisation for participation in the Special Drawing Account. — MALTA MEMBERSHIP OF THE INTERNATIONAL MONETARY FUND ACT Open official source

The Minister is hereby authorised on behalf of the

Government of Malta to take all such steps as may be necessary in

order that Malta may become a participant in the Special Drawing

Account and to that effect to deposit with the Fund such instrument

as is necessary for the purpose of the said participation.

Laws of Malta — Chapter 209 — MALTA MEMBERSHIP OF THE INTERNATIONAL MONETARY FUND ACT

Art. 5 Effect of signature. — MALTA MEMBERSHIP OF THE INTERNATIONAL MONETARY FUND ACT Open official source

The provisions of the following articles shall have effect

immediately that the Fund Agreement is signed as aforesaid except

as regards the provisions of paragraph (b) of sub-article (1) of

article 6, of sub-article (4) of the same article and of sub-article (2)

of article 7 of this Act, which shall have effect as from the date of

the deposit by Malta with the Fund of the instrument referred to in

article 4 of this Act * .

Laws of Malta — Chapter 209 — MALTA MEMBERSHIP OF THE INTERNATIONAL MONETARY FUND ACT

Art. 6 Financial provisions relating to membership in the Fund. — MALTA MEMBERSHIP OF THE INTERNATIONAL MONETARY FUND ACT Open official source

(1)

It shall be the function of the Central Bank of Malta -

(a) to pay the amounts from time to time payable to the

Fund on account of Malta under the provisions of the

Membership Resolution and Fund Agreement;

(b) on behalf of Malta to fulfil all its obligations, to

exercise all its rights and to perform all its functions

ensuing from Malta’s participation in the Special

Drawing Account.

(2) The Central Bank of Malta may, if it thinks fit, create and

issue to the Fund any such non-interest bearing and non-negotiable

notes or other obligations as are provided for by Section 4 of Article

III of the Fund Agreement (which Section relates to the acceptance

by the Fund of notes or similar obligations in place of currency).

(3) The Central Bank of Malta is hereby authorised to receive

from the Fund any sums relating to Malta’s subscription and any

sums to be received by reason of operations or transactions

between Malta and the Fund under Article V of the Fund

Agreement.

(4) Any interest due to Malta or any charge or assessment due

by Malta, as the case may be, by reason of Malta’s participation and

position in the Special Drawing Account, shall be payable to or by

the Central Bank of Malta on behalf of Malta.

Laws of Malta — Chapter 209 — MALTA MEMBERSHIP OF THE INTERNATIONAL MONETARY FUND ACT

Art. 7 Certain provisions of Fund Agreement given force of law in Malta. — MALTA MEMBERSHIP OF THE INTERNATIONAL MONETARY FUND ACT Open official source

(1) The provisions of Sections 2 to 9 inclusive of Article IX

of the Fund Agreement and the first sentence of Section 2 (b) of

Article VIII of the Fund Agreement shall have the force of law in

Malta, so, however, that nothing in Section 9 of Article IX of the

Fund Agreement shall be construed -

(a) as entitling the Fund to import goods free of customs

duty without any restriction on their subsequent sale in

Malta;

(b) as conferring on the Fund any exemption from taxes

and duties which form part of the price of goods

*The Fund Agreement was signed on the 11th September, 1968 and the instrument

referred to in article 4 of this Act was deposited on the 28th November, 1969.

MALTA M EM BERS HI P OF THE I NT E R N AT I O N A L M O N E TA RY F U N D [CAP. 209.

acquired by the Fund in Malta; or

(c) as conferring on the Fund any exemption from taxes or

duties which are in fact no more than charges for

services rendered.

(2) Notwithstanding the provisions of any other law, no tax of

any kind shall be levied on special drawing rights or on operations

or transactions in special drawing rights.

Laws of Malta — Chapter 209 — MALTA MEMBERSHIP OF THE INTERNATIONAL MONETARY FUND ACT

Art. 8 Powers of the Minister. — MALTA MEMBERSHIP OF THE INTERNATIONAL MONETARY FUND ACT Open official source

(1)

The Minister may by order make such provisions as

are necessary for carrying into effect any of the provisions of the Fund

Agreement.

(2)

The Minister may, from time to time, by order amend,

repeal or substitute the Schedules made under this Act.

(3) Any Schedules made under this Act and any amendment or

revocation of the said Schedules may be made in the English language

only..

4 CAP. 209.]

Laws of Malta — Chapter 209 — MALTA MEMBERSHIP OF THE INTERNATIONAL MONETARY FUND ACT

Art. 11 — MALTA MEMBERSHIP OF THE INTERNATIONAL MONETARY FUND ACT Open official source

� Maintenance of value ��16

Laws of Malta — Chapter 209 — MALTA MEMBERSHIP OF THE INTERNATIONAL MONETARY FUND ACT

Art. 12 — MALTA MEMBERSHIP OF THE INTERNATIONAL MONETARY FUND ACT Open official source

� Other operations and transactions��16

v

Table of Contents

Page

C a p i ta l T r a n s f e r s �� 20

1. � Use of the Fund’s general resources for

capital transfers�� 20

2. � Special provisions for capital transfers�� 20

3. � Controls of capital transfers �� 20

R e p l e n i s h m e n t a n d S c a r c e C u r r e n c i e s �� 21

1. � Measures to replenish the Fund’s holdings

of currencies�� 21

2. � General scarcity of currency�� 21

3. � Scarcity of the Fund’s holdings�� 21

4. � Administration of restrictions�� 22

5. � Effect of other international agreements on

restrictions�� 22

G e n e r a l O b l i g at i o n s o f M e m b e r s �� 22

1. � Introduction�� 22

2. � Avoidance of restrictions on current

payments�� 23

3. � Avoidance of discriminatory currency

practices �� 23

4. � Convertibility of foreign-held balances �� 23

5. � Furnishing of information�� 24

6. � Consultation between members regarding

existing international agreements�� 26

7. � Obligation to collaborate regarding policies

on reserve assets�� 26

S tat u s , I mm u n i t i e s , a n d P r i v i l e g e s �� 26

1. � Purposes of Article �� 26

2. � Status of the Fund�� 26

3. � Immunity from judicial process �� 27

4. � Immunity from other action �� 27

5. � Immunity of archives �� 27

6. � Freedom of assets from restrictions �� 27

7. � Privilege for communications�� 27

8. � Immunities and privileges of officers and

employees�� 27

9. � Immunities from taxation�� 28

10. � Application of Article�� 28

Table of Contents

Page

R e l at i o n s w i t h O t h e r I n t e r n at i o n a l

O r g a n i z at i o n s �� 29

R e l at i o n s w i t h N o n - M e m b e r C o u n t r i e s �� 2 9

1. � Undertakings regarding relations with

non-member countries ��29

2. � Restrictions on transactions with

non-member countries ��29

O r g a n i z at i o n a n d M a n a g e m e n t �� 30

1. � Structure of the Fund��30

2. � Board of Governors��30

3. � Executive Board ��31

4. � Managing Director and staff��33

5. � Voting ��33

6. � Reserves, distribution of net income, and

investment��34

7. � Publication of reports ��36

8. � Communication of views to members��36

O f f i c e s a n d D e p o s i to r i e s �� 37

1. � Location of offices��37

2. � Depositories��37

3. � Guarantee of the Fund’s assets��37

T r a n s i t i o n a l A r r a n g e m e n t s �� 38

1. � Notification to the Fund ��38

2. � Exchange restrictions ��38

3. � Action of the Fund relating to restrictions ��38

S p e c i a l D r aw i n g R i g h t s �� 39

1. � Authority to allocate special drawing rights��39

2. � Valuation of the special drawing right ��39

G e n e r a l D e pa rt m e n t a n d S p e c i a l

D r aw i n g R i g h t s D e pa rt m e n t �� 39

1. � Separation of operations and transactions��39

2. � Separation of assets and property��40

3. � Recording and information��40

P a rt i c i pa n t s a n d O t h e r H o l d e r s o f

S p e c i a l D r aw i n g R i g h t s �� 40

1. � Participants��40

2. � Fund as a holder ��41

3. � Other holders��41

vii

Table of Contents

Page

A l l o c at i o n a n d C a n c e l l at i o n o f S p e c i a l

D r aw i n g R i g h t s �� 42

1. � Principles and considerations governing

allocation and cancellation ��42

2. � Allocation and cancellation�� 42

3. � Unexpected major developments �� 43

4. � Decisions on allocations and cancellations�� 44

O p e r at i o n s a n d T r a n s a c t i o n s i n S p e c i a l

D r aw i n g R i g h t s �� 45

1. � Use of special drawing rights�� 45

2. � Operations and transactions between

participants�� 45

3. � Requirement of need�� 45

4. � Obligation to provide currency�� 46

5. � Designation of participants to provide

currency �� 46

6. � Reconstitution�� 47

7. � Exchange rates �� 47

S p e c i a l D r aw i n g R i g h t s D e pa rt m e n t

I n t e r e s t a n d C h a r g e s �� 48

1. � Interest�� 48

2. � Charges�� 48

3. � Rate of interest and charges �� 48

4. � Assessments �� 48

5. � Payment of interest, charges,

and assessments �� 49

A d m i n i s t r at i o n o f t h e G e n e r a l

D e pa rt m e n t a n d t h e S p e c i a l D r aw i n g

R i g h t s D e pa rt m e n t �� 49

G e n e r a l O b l i g at i o n s o f P a rt i c i pa n t s �� 51

S u s p e n s i o n o f O p e r at i o n s a n d

T r a n s a c t i o n s i n S p e c i a l D r aw i n g R i g h t s .�� 51

1. � Emergency provisions�� 51

2. � Failure to fulfill obligations�� 51

T e r m i n at i o n o f P a rt i c i pat i o n �� 52

1. � Right to terminate participation �� 52

2. � Settlement on termination�� 53

3. � Interest and charges�� 53

Table of Contents

Page

4. � Settlement of obligation to the Fund��54

5. � Settlement of obligation to a terminating

participant��54

6. � General Resources Account transactions ��54

XXV.

L i q u i d at i o n o f t h e S p e c i a l D r aw i n g

R i g h t s D e pa rt m e n t �� 55

XXVI.

W i t h d r awa l f r o m M e m b e r s h i p �� 56

1. � Right of members to withdraw��56

2. � Compulsory withdrawal ��56

3. � Settlement of accounts with members

withdrawing ��56

XXVII.

E m e r g e n c y P r o v i s i o n s �� 57

1. � Temporary suspension��57

2. � Liquidation of the Fund��57

XXVIII.

A m e n d m e n t s �� 58

XXIX.

I n t e r p r e tat i o n �� 59

XXX.

E x p l a n at i o n o f T e r m s �� 59

XXXI.

F i n a l P r o v i s i o n s �� 61

1. � Entry into force��61

2. � Signature��61

SCHEDULES

Q u o t a s �� 6 4

T ransitional P rovisions with R espect

t o R e p u r c h a s e , P ay m e n t o f A d d i t i o n a l

S u b s c r i p t i o n s , G o l d , a n d C e rta i n

O p e r at i o n a l M at t e r s �� 6 5

P a r V a l u e s �� 6 7

C o u n c i l �� 6 9

T ransitional P rovisions with R espect

t o E x e c u t i v e D i r e c t o r s �� 7 1

D e s i g n at i o n �� 7 2

R e c o n s t i t u t i o n �� 7 3

ix

Table of Contents

Page

T e r m i n at i o n o f P a r t i c i pat i o n �� 7 4

A d m i n i s t r at i o n o f L i q u i d at i o n o f t h e S p e c i a l

D r a w i n g R i g h t s D e pa r t m e n t �� 7 5

S ettlement of A ccounts with M embers

W i t h d r a w i n g �� 7 7

A d m i n i s t r at i o n o f L i q u i d at i o n �� 8 0

S u s p e n s i o n o f V o t i n g R i g h t s �� 8 2

S p e c i a l O n e - T i m e A l l o c at i o n o f S p e c i a l

D r a w i n g R i g h t s �� 8 4

I n d e x �� 9 1

A rt i c l e s o f A g r e e m e n t

of the

I n t e r n at i o n a l M o n e ta ry F u n d

The Governments on whose behalf the present Agreement is signed

agree as follows

Introductory Article

(i) The International Monetary Fund is established and shall

operate in accordance with the provisions of this Agree

ment as originally adopted and subsequently amended.

(ii) To enable the Fund to conduct its operations and transac

tions, the Fund shall maintain a General Department and

a Special Drawing Rights Department. Membership in the

Fund shall give the right to participation in the Special

Drawing Rights Department.

(iii) Operations and transactions authorized by this Agreement

shall be conducted through the General Department, con

sisting in accordance with the provisions of this Agreement

of the General Resources Account, the Special Disburse

ment Account, and the Investment Account; except that

operations and transactions involving special drawing

rights shall be conducted through the Special Drawing

Rights Department.

I. Purposes

A rticle I

Purposes

The purposes of the International Monetary Fund are

(i) To promote international monetary cooperation through a

permanent institution which provides the machinery for

consultation and collaboration on international monetary

problems.

(ii) To facilitate the expansion and balanced growth of inter

national trade, and to contribute thereby to the promotion

and maintenance of high levels of employment and real

income and to the development of the productive resources

of all members as primary objectives of economic policy.

(iii) To promote exchange stability, to maintain orderly

exchange arrangements among members, and to avoid

competitive exchange depreciation.

(iv) To assist in the establishment of a multilateral system of

payments in respect of current transactions between mem

bers and in the elimination of foreign exchange restrictions

which hamper the growth of world trade.

(v) To give confidence to members by making the general

resources of the Fund temporarily available to them under

adequate safeguards, thus providing them with opportunity

to correct maladjustments in their balance of payments

without resorting to measures destructive of national or

international prosperity.

(vi) In accordance with the above, to shorten the duration and

lessen the degree of disequilibrium in the international

balances of payments of members.

The Fund shall be guided in all its policies and decisions by the pur

poses set forth in this Article.

Art. II, Sec. 1–2

Art. III, Sec. 1–2

II. Membership

A rticle II

Membership

Section 1. Original members

The original members of the Fund shall be those of the countries

represented at the United Nations Monetary and Financial Conference

whose governments accept membership before December 31, 1945.

Section 2. Other members

Membership shall be open to other countries at such times and in

accordance with such terms as may be prescribed by the Board of

Governors. These terms, including the terms for subscriptions, shall be

based on principles consistent with those applied to other countries that

are already members.

A rticle III

Quotas and Subscriptions

Section 1. Quotas and payment of subscriptions

Each member shall be assigned a quota expressed in special drawing

rights. The quotas of the members represented at the United Nations

Monetary and Financial Conference which accept membership before

December 31, 1945, shall be those set forth in Schedule A. The quotas

of other members shall be determined by the Board of Governors. The

subscription of each member shall be equal to its quota and shall be paid

in full to the Fund at the appropriate depository.

Section 2. Adjustment of quotas

(a) The Board of Governors shall at intervals of not more than five

years conduct a general review, and if it deems it appropriate propose

an adjustment, of the quotas of the members. It may also, if it thinks fit,

consider at any other time the adjustment of any particular quota at the

request of the member concerned.

(b) The Fund may at any time propose an increase in the quotas of

those members of the Fund that were members on August 31, 1975,

in proportion to their quotas on that date in a cumulative amount not

Art. III, Sec. 3

III. Quotas and Subscriptions

in excess of amounts transferred under Article V, Section 12( f )(i) and

( j ) from the Special Disbursement Account to the General Resources

Account.

(c) An eighty-five percent majority of the total voting power shall

be required for any change in quotas.

(d ) The quota of a member shall not be changed until the member

has consented and until payment has been made unless payment is

deemed to have been made in accordance with Section 3(b) of this

Article.

Section 3. Payments when quotas are changed

(a) Each member which consents to an increase in its quota under

Section 2(a) of this Article shall, within a period determined by the

Fund, pay to the Fund twenty-five percent of the increase in special

drawing rights, but the Board of Governors may prescribe that this pay

ment may be made, on the same basis for all members, in whole or in

part in the currencies of other members specified, with their concur

rence, by the Fund, or in the member’s own currency. A non-participant

shall pay in the currencies of other members specified by the Fund, with

their concurrence, a proportion of the increase corresponding to the

proportion to be paid in special drawing rights by participants. The bal-

ance of the increase shall be paid by the member in its own currency.

The Fund’s holdings of a member’s currency shall not be increased

above the level at which they would be subject to charges under Article

V, Section 8(b)(ii), as a result of payments by other members under this

provision.

(b) Each member which consents to an increase in its quota under

Section 2(b) of this Article shall be deemed to have paid to the Fund an

amount of subscription equal to such increase.

(c) If a member consents to a reduction in its quota, the Fund shall,

within sixty days, pay to the member an amount equal to the reduction.

The payment shall be made in the member’s currency and in such

amount of special drawing rights or the currencies of other members

specified, with their concurrence, by the Fund as is necessary to prevent

the reduction of the Fund’s holdings of the currency below the new

quota, provided that in exceptional circumstances the Fund may reduce

its holdings of the currency below the new quota by payment to the

member in its own currency.

Art. III, Sec. 4

Art. IV, Sec. 1

IV. Obligations Regarding Exchange Arrangements

(d ) A seventy percent majority of the total voting power shall be

required for any decision under (a) above, except for the determination

of a period and the specification of currencies under that provision.

Section 4. Substitution of securities for currency

The Fund shall accept from any member, in place of any part of the

member’s currency in the General Resources Account which in the

judgment of the Fund is not needed for its operations and transactions,

notes or similar obligations issued by the member or the depository

designated by the member under Article XIII, Section 2, which shall be

non-negotiable, non-interest bearing and payable at their face value on

demand by crediting the account of the Fund in the designated deposi

tory. This Section shall apply not only to currency subscribed by mem

bers but also to any currency otherwise due to, or acquired by, the Fund

and to be placed in the General Resources Account.

A rticle IV

Obligations Regarding Exchange Arrangements

Section 1. General obligations of members

Recognizing that the essential purpose of the international monetary

system is to provide a framework that facilitates the exchange of goods,

services, and capital among countries, and that sustains sound economic

growth, and that a principal objective is the continuing development of

the orderly underlying conditions that are necessary for financial and

economic stability, each member undertakes to collaborate with the

Fund and other members to assure orderly exchange arrangements and

to promote a stable system of exchange rates. In particular, each mem-

ber shall

(i) endeavor to direct its economic and financial policies

toward the objective of fostering orderly economic growth

with reasonable price stability, with due regard to its

circumstances;

(ii) seek to promote stability by fostering orderly underlying

economic and financial conditions and a monetary system

that does not tend to produce erratic disruptions;

Art. IV, Sec. 2–3

IV. Obligations Regarding Exchange Arrangements

(iii) avoid manipulating exchange rates or the international

monetary system in order to prevent effective balance of

payments adjustment or to gain an unfair competitive

advantage over other members; and

(iv) follow exchange policies compatible with the undertakings

under this Section.

Section 2. General exchange arrangements

(a) Each member shall notify the Fund, within thirty days after the

date of the second amendment of this Agreement, of the exchange

arrangements it intends to apply in fulfillment of its obligations under

Section 1 of this Article, and shall notify the Fund promptly of any

changes in its exchange arrangements.

(b) Under an international monetary system of the kind prevailing

on January 1, 1976, exchange arrangements may include (i) the main

tenance by a member of a value for its currency in terms of the special

drawing right or another denominator, other than gold, selected by the

member, or (ii) cooperative arrangements by which members maintain

the value of their currencies in relation to the value of the currency or

currencies of other members, or (iii) other exchange arrangements of

a member’s choice.

(c) To accord with the development of the international monetary

system, the Fund, by an eighty-five percent majority of the total voting

power, may make provision for general exchange arrangements without

limiting the right of members to have exchange arrangements of their

choice consistent with the purposes of the Fund and the obligations

under Section 1 of this Article.

Section 3. Surveillance over exchange arrangements

(a) The Fund shall oversee the international monetary system in

order to ensure its effective operation, and shall oversee the compliance

of each member with its obligations under Section 1 of this Article.

(b) In order to fulfill its functions under (a) above, the Fund shall

exercise firm surveillance over the exchange rate policies of members,

and shall adopt specific principles for the guidance of all members with

respect to those policies. Each member shall provide the Fund with the

information necessary for such surveillance, and, when requested by

Art. IV, Sec. 4–5

IV. Obligations Regarding Exchange Arrangements

the Fund, shall consult with it on the member’s exchange rate policies.

The principles adopted by the Fund shall be consistent with cooperative

arrangements by which members maintain the value of their currencies

in relation to the value of the currency or currencies of other members,

as well as with other exchange arrangements of a member’s choice

consistent with the purposes of the Fund and Section 1 of this Article.

These principles shall respect the domestic social and political policies

of members, and in applying these principles the Fund shall pay due

regard to the circumstances of members.

Section 4. Par values

The Fund may determine, by an eighty-five percent majority of the

total voting power, that international economic conditions permit the

introduction of a widespread system of exchange arrangements based

on stable but adjustable par values. The Fund shall make the determina

tion on the basis of the underlying stability of the world economy, and

for this purpose shall take into account price movements and rates of

expansion in the economies of members. The determination shall be

made in light of the evolution of the international monetary system, with

particular reference to sources of liquidity, and, in order to ensure the

effective operation of a system of par values, to arrangements under

which both members in surplus and members in deficit in their balances

of payments take prompt, effective, and symmetrical action to achieve

adjustment, as well as to arrangements for intervention and the treat

ment of imbalances. Upon making such determination, the Fund shall

notify members that the provisions of Schedule C apply.

Section 5. Separate currencies within a member’s territories

(a) Action by a member with respect to its currency under this Article

shall be deemed to apply to the separate currencies of all territories in

respect of which the member has accepted this Agreement under Arti-

cle XXXI, Section 2(g) unless the member declares that its action

relates either to the metropolitan currency alone, or only to one or more

specified separate currencies, or to the metropolitan currency and one

or more specified separate currencies.

(b) Action by the Fund under this Article shall be deemed to relate to

all currencies of a member referred to in (a) above unless the Fund

declares otherwise.

Art. V, Sec. 1–3

V. Operations and Transactions of the Fund

A rticle V

Operations and Transactions of the Fund

Section 1. Agencies dealing with the Fund

Each member shall deal with the Fund only through its Treasury,

central bank, stabilization fund, or other similar fiscal agency, and the

Fund shall deal only with or through the same agencies.

Section 2. Limitation on the Fund’s operations and transactions

(a) Except as otherwise provided in this Agreement, transactions on

the account of the Fund shall be limited to transactions for the purpose

of supplying a member, on the initiative of such member, with special

drawing rights or the currencies of other members from the general

resources of the Fund, which shall be held in the General Resources

Account, in exchange for the currency of the member desiring to make

the purchase.

(b) If requested, the Fund may decide to perform financial and tech

nical services, including the administration of resources contributed by

members, that are consistent with the purposes of the Fund. Operations

involved in the performance of such financial services shall not be on

the account of the Fund. Services under this subsection shall not impose

any obligation on a member without its consent.

Section 3. Conditions governing use of the Fund’s general resources

(a) The Fund shall adopt policies on the use of its general resources,

including policies on stand-by or similar arrangements, and may adopt

special policies for special balance of payments problems, that will

assist members to solve their balance of payments problems in a manner

consistent with the provisions of this Agreement and that will establish

adequate safeguards for the temporary use of the general resources of

the Fund.

(b) A member shall be entitled to purchase the currencies of other

members from the Fund in exchange for an equivalent amount of its

own currency subject to the following conditions

(i) the member’s use of the general resources of the Fund

would be in accordance with the provisions of this Agree

ment and the policies adopted under them;

Art. V, Sec. 3

V. Operations and Transactions of the Fund

(ii) the member represents that it has a need to make the

purchase because of its balance of payments or its reserve

position or developments in its reserves;

(iii) the proposed purchase would be a reserve tranche pur

chase, or would not cause the Fund’s holdings of the

purchasing member’s currency to exceed two hundred

percent of its quota;

(iv) the Fund has not previously declared under Section 5 of

this Article, Article VI, Section 1, or Article XXVI, Sec

tion 2(a) that the member desiring to purchase is ineligible

to use the general resources of the Fund.

(c) The Fund shall examine a request for a purchase to determine

whether the proposed purchase would be consistent with the provisions

of this Agreement and the policies adopted under them, provided that

requests for reserve tranche purchases shall not be subject to challenge.

(d ) The Fund shall adopt policies and procedures on the selection of

currencies to be sold that take into account, in consultation with mem-

bers, the balance of payments and reserve position of members and

developments in the exchange markets, as well as the desirability of

promoting over time balanced positions in the Fund, provided that if a

member represents that it is proposing to purchase the currency of

another member because the purchasing member wishes to obtain an

equivalent amount of its own currency offered by the other member, it

shall be entitled to purchase the currency of the other member unless

the Fund has given notice under Article VII, Section 3 that its holdings

of the currency have become scarce.

(e)

(i) Each member shall ensure that balances of its currency

purchased from the Fund are balances of a freely usable

currency or can be exchanged at the time of purchase for

a freely usable currency of its choice at an exchange rate

between the two currencies equivalent to the exchange rate

between them on the basis of Article XIX, Section 7(a).

(ii) Each member whose currency is purchased from the Fund

or is obtained in exchange for currency purchased from

the Fund shall collaborate with the Fund and other mem-

bers to enable such balances of its currency to be

exchanged, at the time of purchase, for the freely usable

currencies of other members.

Art. V, Sec. 4–5

V. Operations and Transactions of the Fund

(iii) An exchange under (i) above of a currency that is not

freely usable shall be made by the member whose cur

rency is purchased unless that member and the purchasing

member agree on another procedure.

(iv) A member purchasing from the Fund the freely usable

currency of another member and wishing to exchange it

at the time of purchase for another freely usable currency

shall make the exchange with the other member if

requested by that member. The exchange shall be made

for a freely usable currency selected by the other member

at the rate of exchange referred to in (i) above.

( f ) Under policies and procedures which it shall adopt, the Fund may

agree to provide a participant making a purchase in accordance with this

Section with special drawing rights instead of the currencies of other

members.

Section 4. Waiver of conditions

The Fund may in its discretion, and on terms which safeguard its

interests, waive any of the conditions prescribed in Section 3(b)(iii) and

(iv) of this Article, especially in the case of members with a record of

avoiding large or continuous use of the Fund’s general resources. In

making a waiver it shall take into consideration periodic or exceptional

requirements of the member requesting the waiver. The Fund shall also

take into consideration a member’s willingness to pledge as collateral

security acceptable assets having a value sufficient in the opinion of the

Fund to protect its interests and may require as a condition of waiver

the pledge of such collateral security.

Section 5. Ineligibility to use the Fund’s general resources

Whenever the Fund is of the opinion that any member is using the

general resources of the Fund in a manner contrary to the purposes of

the Fund, it shall present to the member a report setting forth the views

of the Fund and prescribing a suitable time for reply. After presenting

such a report to a member, the Fund may limit the use of its general

resources by the member. If no reply to the report is received from the

member within the prescribed time, or if the reply received is unsat-

isfactory, the Fund may continue to limit the member’s use of the

general resources of the Fund or may, after giving reasonable notice

Art. V, Sec. 6–7

V. Operations and Transactions of the Fund

to the member, declare it ineligible to use the general resources of the

Fund.

Section 6. O

ther purchases and sales of special drawing rights by the

Fund

(a) The Fund may accept special drawing rights offered by a partici

pant in exchange for an equivalent amount of the currencies of other

members.

(b) The Fund may provide a participant, at its request, with special

drawing rights for an equivalent amount of the currencies of other

members. The Fund’s holdings of a member’s currency shall not be

increased as a result of these transactions above the level at which the

holdings would be subject to charges under Section 8(b)(ii) of this

Article.

(c) The currencies provided or accepted by the Fund under this Sec

tion shall be selected in accordance with policies that take into account

the principles of Section 3(d ) or 7(i) of this Article. The Fund may enter

into transactions under this Section only if a member whose currency is

provided or accepted by the Fund concurs in that use of its currency.

Section 7. Repurchase by a member of its currency held by the Fund

(a) A member shall be entitled to repurchase at any time the Fund’s

holdings of its currency that are subject to charges under Section 8(b)

of this Article.

(b) A member that has made a purchase under Section 3 of this Arti

cle will be expected normally, as its balance of payments and reserve

position improves, to repurchase the Fund’s holdings of its currency that

result from the purchase and are subject to charges under Section 8(b)

of this Article. A member shall repurchase these holdings if, in accor-

dance with policies on repurchase that the Fund shall adopt and after

consultation with the member, the Fund represents to the member that

it should repurchase because of an improvement in its balance of pay-

ments and reserve position.

(c) A member that has made a purchase under Section 3 of this

Article shall repurchase the Fund’s holdings of its currency that result

from the purchase and are subject to charges under Section 8(b) of this

Article not later than five years after the date on which the purchase

Art. V, Sec. 7

V. Operations and Transactions of the Fund

was made. The Fund may prescribe that repurchase shall be made by a

member in installments during the period beginning three years and

ending five years after the date of a purchase. The Fund, by an eighty-five

percent majority of the total voting power, may change the periods for

repurchase under this subsection, and any period so adopted shall apply

to all members.

(d ) The Fund, by an eighty-five percent majority of the total voting

power, may adopt periods other than those that apply in accordance with

(c) above, which shall be the same for all members, for the repurchase

of holdings of currency acquired by the Fund pursuant to a special pol-

icy on the use of its general resources.

(e) A member shall repurchase, in accordance with policies that the

Fund shall adopt by a seventy percent majority of the total voting power,

the Fund’s holdings of its currency that are not acquired as a result of

purchases and are subject to charges under Section 8(b)(ii) of this

Article.

( f ) A decision prescribing that under a policy on the use of the general

resources of the Fund the period for repurchase under (c) or (d) above

shall be shorter than the one in effect under the policy shall apply only

to holdings acquired by the Fund subsequent to the effective date of the

decision.

(g) The Fund, on the request of a member, may postpone the date of

discharge of a repurchase obligation, but not beyond the maximum

period under (c) or (d) above or under policies adopted by the Fund

under (e) above, unless the Fund determines, by a seventy percent

majority of the total voting power, that a longer period for repurchase

which is consistent with the temporary use of the general resources of

the Fund is justified because discharge on the due date would result in

exceptional hardship for the member.

(h) The Fund’s policies under Section 3(d) of this Article may be

supplemented by policies under which the Fund may decide after con

sultation with a member to sell under Section 3(b) of this Article its

holdings of the member’s currency that have not been repurchased in

accordance with this Section 7, without prejudice to any action that the

Fund may be authorized to take under any other provision of this

Agreement.

(i) All repurchases under this Section shall be made with special

drawing rights or with the currencies of other members specified by the

Art. V, Sec. 8

V. Operations and Transactions of the Fund

Fund. The Fund shall adopt policies and procedures with regard to the

currencies to be used by members in making repurchases that take into

account the principles in Section 3(d ) of this Article. The Fund’s hold-

ings of a member’s currency that is used in repurchase shall not be

increased by the repurchase above the level at which they would be

subject to charges under Section 8(b)(ii) of this Article.

(i) If a member’s currency specified by the Fund under (i)

above is not a freely usable currency, the member shall

ensure that the repurchasing member can obtain it at the

time of the repurchase in exchange for a freely usable

currency selected by the member whose currency has been

specified. An exchange of currency under this provision

shall take place at an exchange rate between the two cur

rencies equivalent to the exchange rate between them on

the basis of Article XIX, Section 7(a).

(ii) Each member whose currency is specified by the Fund for

repurchase shall collaborate with the Fund and other mem

bers to enable repurchasing members, at the time of the

repurchase, to obtain the specified currency in exchange

for the freely usable currencies of other members.

(iii) An exchange under ( j )(i) above shall be made with the

member whose currency is specified unless that member

and the repurchasing member agree on another procedure.

(iv) If a repurchasing member wishes to obtain, at the time

of the repurchase, the freely usable currency of another

member specified by the Fund under (i) above, it shall,

if requested by the other member, obtain the currency

from the other member in exchange for a freely usable

currency at the rate of exchange referred to in ( j)(i) above.

The Fund may adopt regulations on the freely usable

currency to be provided in an exchange.

Section 8. Charges

(a)

(i) The Fund shall levy a service charge on the purchase by

a member of special drawing rights or the currency of

another member held in the General Resources Account

in exchange for its own currency, provided that the Fund

may levy a lower service charge on reserve tranche

Art. V, Sec. 9

V. Operations and Transactions of the Fund

purchases than on other purchases. The service charge on

reserve tranche purchases shall not exceed one-half of

one percent.

(ii) The Fund may levy a charge for stand-by or similar arrange-

ments. The Fund may decide that the charge for an arrange-

ment shall be offset against the service charge levied under

(i) above on purchases under the arrangement.

(b) The Fund shall levy charges on its average daily balances of a

member’s currency held in the General Resources Account to the extent

that they

(i) have been acquired under a policy that has been the sub

ject of an exclusion under Article XXX(c), or

(ii) exceed the amount of the member’s quota after excluding

any balances referred to in (i) above.

The rates of charge normally shall rise at intervals during the period in

which the balances are held.

(c) If a member fails to make a repurchase required under Section 7

of this Article, the Fund, after consultation with the member on the

reduction of the Fund’s holdings of its currency, may impose such

charges as the Fund deems appropriate on its holdings of the member’s

currency that should have been repurchased.

(d ) A seventy percent majority of the total voting power shall be

required for the determination of the rates of charge under (a) and (b)

above, which shall be uniform for all members, and under (c) above.

(e) A member shall pay all charges in special drawing rights, pro

vided that in exceptional circumstances the Fund may permit a member

to pay charges in the currencies of other members specified by the Fund,

after consultation with them, or in its own currency. The Fund’s hold-

ings of a member’s currency shall not be increased as a result of pay-

ments by other members under this provision above the level at which

they would be subject to charges under (b)(ii) above.

Section 9. Remuneration

(a) The Fund shall pay remuneration on the amount by which the

percentage of quota prescribed under (b) or (c) below exceeds the

Art. V, Sec. 9

V. Operations and Transactions of the Fund

Fund’s average daily balances of a member’s currency held in the Gen

eral Resources Account other than balances acquired under a policy that

has been the subject of an exclusion under Article XXX(c). The rate of

remuneration, which shall be determined by the Fund by a seventy per-

cent majority of the total voting power, shall be the same for all mem-

bers and shall be not more than, nor less than four-fifths of, the rate of

interest under Article XX, Section 3. In establishing the rate of remu-

neration, the Fund shall take into account the rates of charge under

Article V, Section 8(b).

(b) The percentage of quota applying for the purposes of (a) above

(i) for each member that became a member before the second

amendment of this Agreement, a percentage of quota

corresponding to seventy-five percent of its quota on the

date of the second amendment of this Agreement, and for

each member that became a member after the date of the

second amendment of this Agreement, a percentage of

quota calculated by dividing the total of the amounts cor

responding to the percentages of quota that apply to the

other members on the date on which the member became

a member by the total of the quotas of the other members

on the same date; plus

(ii) the amounts it has paid to the Fund in currency or special

drawing rights under Article III, Section 3(a) since the

date applicable under (b)(i) above; and minus

(iii) the amounts it has received from the Fund in currency or

special drawing rights under Article III, Section 3(c) since

the date applicable under (b)(i) above.

(c) The Fund, by a seventy percent majority of the total voting power,

may raise the latest percentage of quota applying for the purposes of (a)

above to each member to

(i) a percentage, not in excess of one hundred percent, that

shall be determined for each member on the basis of the

same criteria for all members, or

(ii) one hundred percent for all members.

Art. V, Sec. 10–12

V. Operations and Transactions of the Fund

(d ) Remuneration shall be paid in special drawing rights, provided

that either the Fund or the member may decide that the payment to the

member shall be made in its own currency.

Section 10. Computations

(a) The value of the Fund’s assets held in the accounts of the General

Department shall be expressed in terms of the special drawing right.

(b) All computations relating to currencies of members for the pur

pose of applying the provisions of this Agreement, except Article IV and

Schedule C, shall be at the rates at which the Fund accounts for these

currencies in accordance with Section 11 of this Article.

(c) Computations for the determination of amounts of currency in

relation to quota for the purpose of applying the provisions of this

Agreement shall not include currency held in the Special Disbursement

Account or in the Investment Account.

Section 11. Maintenance of value

(a) The value of the currencies of members held in the General

Resources Account shall be maintained in terms of the special draw-

ing right in accordance with exchange rates under Article XIX, Sec-

tion 7(a).

(b) An adjustment in the Fund’s holdings of a member’s currency

pursuant to this Section shall be made on the occasion of the use of that

currency in an operation or transaction between the Fund and another

member and at such other times as the Fund may decide or the member

may request. Payments to or by the Fund in respect of an adjustment

shall be made within a reasonable time, as determined by the Fund, after

the date of adjustment, and at any other time requested by the

member.

Section 12. Other operations and transactions

(a) The Fund shall be guided in all its policies and decisions under

this Section by the objectives set forth in Article VIII, Section 7 and by

the objective of avoiding the management of the price, or the establish

ment of a fixed price, in the gold market.

Art. V, Sec. 12

V. Operations and Transactions of the Fund

(b) Decisions of the Fund to engage in operations or transactions

under (c), (d ), and (e) below shall be made by an eighty-five percent

majority of the total voting power.

(c) The Fund may sell gold for the currency of any member after con

sulting the member for whose currency the gold is sold, provided that the

Fund’s holdings of a member’s currency held in the General Resources

Account shall not be increased by the sale above the level at which they

would be subject to charges under Section 8(b)(ii) of this Article without

the concurrence of the member, and provided that, at the request of the

member, the Fund at the time of sale shall exchange for the currency of

another member such part of the currency received as would prevent such

an increase. The exchange of a currency for the currency of another mem-

ber shall be made after consultation with that member, and shall not

increase the Fund’s holdings of that member’s currency above the level

at which they would be subject to charges under Section 8(b)(ii) of this

Article. The Fund shall adopt policies and procedures with regard to

exchanges that take into account the principles applied under Section 7(i)

of this Article. Sales under this provision to a member shall be at a price

agreed for each transaction on the basis of prices in the market.

(d ) The Fund may accept payments from a member in gold instead

of special drawing rights or currency in any operations or transactions

under this Agreement. Payments to the Fund under this provision shall

be at a price agreed for each operation or transaction on the basis of

prices in the market.

(e) The Fund may sell gold held by it on the date of the second

amendment of this Agreement to those members that were members on

August 31, 1975 and that agree to buy it, in proportion to their quotas

on that date. If the Fund intends to sell gold under (c) above for the

purpose of ( f )(ii) below, it may sell to each developing member that

agrees to buy it that portion of the gold which, if sold under (c) above,

would have produced the excess that could have been distributed to it

under ( f )(iii) below. The gold that would be sold under this provision to

a member that has been declared ineligible to use the general resources

of the Fund under Section 5 of this Article shall be sold to it when the

ineligibility ceases, unless the Fund decides to make the sale sooner.

The sale of gold to a member under this subsection (e) shall be made in

exchange for its currency and at a price equivalent at the time of sale to

one special drawing right per 0.888 671 gram of fine gold.

V. Operations and Transactions of the Fund

( f ) Whenever under (c) above the Fund sells gold held by it on the

date of the second amendment of this Agreement, an amount of the

proceeds equivalent at the time of sale to one special drawing right per

0.888 671 gram of fine gold shall be placed in the General Resources

Account and, except as the Fund may decide otherwise under (g) below,

any excess shall be held in the Special Disbursement Account. The

assets held in the Special Disbursement Account shall be held separately

from the other accounts of the General Department, and may be used at

(i) to make transfers to the General Resources Account for

immediate use in operations and transactions authorized

by provisions of this Agreement other than this Section;

(ii) for operations and transactions that are not authorized by

other provisions of this Agreement but are consistent with

the purposes of the Fund. Under this subsection ( f )(ii)

balance of payments assistance may be made available

on special terms to developing members in difficult cir

cumstances, and for this purpose the Fund shall take into

account the level of per capita income;

(iii) for distribution to those developing members that were

members on August 31, 1975, in proportion to their quotas

on that date, of such part of the assets that the Fund

decides to use for the purposes of (ii) above as corresponds

to the proportion of the quotas of these members on the

date of distribution to the total of the quotas of all members

on the same date, provided that the distribution under this

provision to a member that has been declared ineligible

to use the general resources of the Fund under Section 5

of this Article shall be made when the ineligibility ceases,

unless the Fund decides to make the distribution sooner.

Decisions to use assets pursuant to (i) above shall be taken by a seventy

percent majority of the total voting power, and decisions pursuant to (ii)

and (iii) above shall be taken by an eighty-five percent majority of the

total voting power.

(g) The Fund may decide, by an eighty-five percent majority of the

total voting power, to transfer a part of the excess referred to in ( f )

above to the Investment Account for use pursuant to the provisions of

Article XII, Section 6( f ).

Art. V, Sec. 12

V. Operations and Transactions of the Fund

(h) Pending uses specified under ( f ) above, the Fund may use a

member’s currency held in the Special Disbursement Account for

investment as it may determine, in accordance with rules and regu

lations adopted by the Fund by a seventy percent majority of the total

voting power. The income of investment and interest received under ( f )

(ii) above shall be placed in the Special Disbursement Account.

(i) The General Resources Account shall be reimbursed from time to

time in respect of the expenses of administration of the Special Dis-

bursement Account paid from the General Resources Account by trans-

fers from the Special Disbursement Account on the basis of a reasonable

estimate of such expenses.

( j) The Special Disbursement Account shall be terminated in the

event of the liquidation of the Fund and may be terminated prior to

liquidation of the Fund by a seventy percent majority of the total voting

power. Upon termination of the account because of the liquidation of

the Fund, any assets in this account shall be distributed in accordance

with the provisions of Schedule K. Upon termination prior to liquidation

of the Fund, any assets in this account shall be transferred to the General

Resources Account for immediate use in operations and transactions.

The Fund, by a seventy percent majority of the total voting power, shall

adopt rules and regulations for the administration of the Special Dis-

bursement Account.

(k) Whenever under (c) above the Fund sells gold acquired by it after

the date of the second amendment of this Agreement, an amount of the

proceeds equivalent to the acquisition price of the gold shall be placed

in the General Resources Account, and any excess shall be placed in the

Investment Account for use pursuant to the provisions of Article XII,

Section 6( f ). If any gold acquired by the Fund after the date of the

second amendment of this Agreement is sold after April 7, 2008 but

prior to the date of entry into force of this provision, then, upon the entry

into force of this provision, and notwithstanding the limit set forth in

Article XII, Section 6( f )(ii), the Fund shall transfer to the Investment

Account from the General Resources Account an amount equal to the

proceeds of such sale less (i) the acquisition price of the gold sold, and

(ii) any amount of such proceeds in excess of the acquisition price that

may have already been transferred to the Investment Account prior to

the date of entry into force of this provision.

Art. VI, Sec. 1–3

VI. Capital Transfers

A rticle VI

Capital Transfers

Section 1. Use of the Fund’s general resources for capital transfers

(a) A member may not use the Fund’s general resources to meet a

large or sustained outflow of capital except as provided in Section 2 of

this Article, and the Fund may request a member to exercise controls to

prevent such use of the general resources of the Fund. If, after receiving

such a request, a member fails to exercise appropriate controls, the Fund

may declare the member ineligible to use the general resources of the

Fund.

(b) Nothing in this Section shall be deemed

(i) to prevent the use of the general resources of the Fund

for capital transactions of reasonable amount required for

the expansion of exports or in the ordinary course of trade,

banking, or other business; or

(ii) to affect capital movements which are met out of a mem

ber’s own resources, but members undertake that such

capital movements will be in accordance with the purposes

of the Fund.

Section 2. Special provisions for capital transfers

A member shall be entitled to make reserve tranche purchases to meet

capital transfers.

Section 3. Controls of capital transfers

Members may exercise such controls as are necessary to regulate

international capital movements, but no member may exercise these

controls in a manner which will restrict payments for current transac

tions or which will unduly delay transfers of funds in settlement of

commitments, except as provided in Article VII, Section 3(b) and in

Article XIV, Section 2.

Art. VII, Sec. 1–3

VII. Replenishment and Scarce Currencies

A rticle VII

Replenishment and Scarce Currencies

Section 1. Measures to replenish the Fund’s holdings of currencies

The Fund may, if it deems such action appropriate to replenish its

holdings of any member’s currency in the General Resources Account

needed in connection with its transactions, take either or both of the

following steps

(i) propose to the member that, on terms and conditions

agreed between the Fund and the member, the latter lend

its currency to the Fund or that, with the concurrence of

the member, the Fund borrow such currency from some

other source either within or outside the territories of the

member, but no member shall be under any obligation to

make such loans to the Fund or to concur in the borrow-

ing of its currency by the Fund from any other source;

(ii) require the member, if it is a participant, to sell its cur-

rency to the Fund for special drawing rights held in the

General Resources Account, subject to Article XIX, Sec-

tion 4. In replenishing with special drawing rights, the

Fund shall pay due regard to the principles of designation

under Article XIX, Section 5.

Section 2. General scarcity of currency

If the Fund finds that a general scarcity of a particular currency is

developing, the Fund may so inform members and may issue a report

setting forth the causes of the scarcity and containing recommendations

designed to bring it to an end. A representative of the member whose

currency is involved shall participate in the preparation of the report.

Section 3. Scarcity of the Fund’s holdings

(a) If it becomes evident to the Fund that the demand for a mem-

ber’s currency seriously threatens the Fund’s ability to supply that cur-

rency, the Fund, whether or not it has issued a report under Section 2 of

this Article, shall formally declare such currency scarce and shall

Art. VII, Sec. 4–5

Art. VIII, Sec. 1

VIII. General Obligations of Members

thenceforth apportion its existing and accruing supply of the scarce cur-

rency with due regard to the relative needs of members, the general

international economic situation, and any other pertinent considera

tions. The Fund shall also issue a report concerning its action.

(b) A formal declaration under (a) above shall operate as an authori

zation to any member, after consultation with the Fund, temporarily to

impose limitations on the freedom of exchange operations in the scarce

currency. Subject to the provisions of Article IV and Schedule C, the

member shall have complete jurisdiction in determining the nature of

such limitations, but they shall be no more restrictive than is necessary

to limit the demand for the scarce currency to the supply held by, or

accruing to, the member in question, and they shall be relaxed and

removed as rapidly as conditions permit.

(c) The authorization under (b) above shall expire whenever the Fund

formally declares the currency in question to be no longer scarce.

Section 4. Administration of restrictions

Any member imposing restrictions in respect of the currency of any

other member pursuant to the provisions of Section 3(b) of this Article

shall give sympathetic consideration to any representations by the other

member regarding the administration of such restrictions.

Section 5. Effect of other international agreements on restrictions

Members agree not to invoke the obligations of any engagements

entered into with other members prior to this Agreement in such manner

as will prevent the operation of the provisions of this Article.

A rticle VIII

General Obligations of Members

Section 1. Introduction

In addition to the obligations assumed under other articles of this

Agreement, each member undertakes the obligations set out in this

Article.

Art. VIII, Sec. 2–4

VIII. General Obligations of Members

Section 2. Avoidance of restrictions on current payments

(a) Subject to the provisions of Article VII, Section 3(b) and Article

XIV, Section 2, no member shall, without the approval of the Fund,

impose restrictions on the making of payments and transfers for current

international transactions.

(b) Exchange contracts which involve the currency of any member

and which are contrary to the exchange control regulations of that mem-

ber maintained or imposed consistently with this Agreement shall be

unenforceable in the territories of any member. In addition, members

may, by mutual accord, cooperate in measures for the purpose of mak-

ing the exchange control regulations of either member more effective,

provided that such measures and regulations are consistent with this

Agreement.

Section 3. Avoidance of discriminatory currency practices

No member shall engage in, or permit any of its fiscal agencies

referred to in Article V, Section 1 to engage in, any discriminatory cur

rency arrangements or multiple currency practices, whether within or

outside margins under Article IV or prescribed by or under Schedule C,

except as authorized under this Agreement or approved by the Fund. If

such arrangements and practices are engaged in at the date when this

Agreement enters into force, the member concerned shall consult with

the Fund as to their progressive removal unless they are maintained or

imposed under Article XIV, Section 2, in which case the provisions of

Section 3 of that Article shall apply.

Section 4. Convertibility of foreign-held balances

(a) Each member shall buy balances of its currency held by another

member if the latter, in requesting the purchase, represents

(i) that the balances to be bought have been recently acquired

as a result of current transactions; or

(ii) that their conversion is needed for making payments for

current transactions.

VIII. General Obligations of Members

The buying member shall have the option to pay either in special draw

ing rights, subject to Article XIX, Section 4, or in the currency of the

member making the request.

(b) The obligation in (a) above shall not apply when

(i) the convertibility of the balances has been restricted con-

sistently with Section 2 of this Article or Article VI,

Section 3;

(ii) the balances have accumulated as a result of transactions

effected before the removal by a member of restrictions

maintained or imposed under Article XIV, Section 2;

(iii) the balances have been acquired contrary to the exchange

regulations of the member which is asked to buy them;

(iv) the currency of the member requesting the purchase has

been declared scarce under Article VII, Section 3(a); or

(v) the member requested to make the purchase is for any

reason not entitled to buy currencies of other members

from the Fund for its own currency.

Section 5. Furnishing of information

(a) The Fund may require members to furnish it with such informa

tion as it deems necessary for its activities, including, as the minimum

necessary for the effective discharge of the Fund’s duties, national data

on the following matters

(i) official holdings at home and abroad of (1) gold, (2) for

eign exchange;

(ii) holdings at home and abroad by banking and financial

agencies, other than official agencies, of (1) gold, (2) foreign

exchange;

(iii) production of gold;

(iv) gold exports and imports according to countries of desti

nation and origin;

(v) total exports and imports of merchandise, in terms of local

currency values, according to countries of destination and

origin;

Art. VIII, Sec. 5

VIII. General Obligations of Members

(vi) international balance of payments, including (1) trade in

goods and services, (2) gold transactions, (3) known capi

tal transactions, and (4) other items;

(vii) international investment position, i.e., investments within

the territories of the member owned abroad and invest

ments abroad owned by persons in its territories so far as

it is possible to furnish this information;

(viii) national income;

(ix) price indices, i.e., indices of commodity prices in whole

sale and retail markets and of export and import prices;

(x) buying and selling rates for foreign currencies;

(xi) exchange controls, i.e., a comprehensive statement of

exchange controls in effect at the time of assuming mem

bership in the Fund and details of subsequent changes as

they occur; and

(xii) where official clearing arrangements exist, details of

amounts awaiting clearance in respect of commercial and

financial transactions, and of the length of time during

which such arrears have been outstanding.

(b) In requesting information the Fund shall take into consideration

the varying ability of members to furnish the data requested. Members

shall be under no obligation to furnish information in such detail that

the affairs of individuals or corporations are disclosed. Members under-

take, however, to furnish the desired information in as detailed and

accurate a manner as is practicable and, so far as possible, to avoid mere

(c) The Fund may arrange to obtain further information by agreement

with members. It shall act as a centre for the collection and exchange of

information on monetary and financial problems, thus facilitating the

preparation of studies designed to assist members in developing policies

which further the purposes of the Fund.

Art. VIII, Sec. 6–7

Art. IX, Sec. 1–2

IX. Status, Immunities, and Privileges

Section 6. C

onsultation between members regarding existing interna

tional agreements

Where under this Agreement a member is authorized in the special or

temporary circumstances specified in the Agreement to maintain or

establish restrictions on exchange transactions, and there are other

engagements between members entered into prior to this Agreement

which conflict with the application of such restrictions, the parties to

such engagements shall consult with one another with a view to making

such mutually acceptable adjustments as may be necessary. The provi-

sions of this Article shall be without prejudice to the operation of Article

VII, Section 5.

Section 7. O

bligation to collaborate regarding policies on reserve assets

Each member undertakes to collaborate with the Fund and with other

members in order to ensure that the policies of the member with respect

to reserve assets shall be consistent with the objectives of promoting

better international surveillance of international liquidity and making

the special drawing right the principal reserve asset in the international

monetary system.

A rticle IX

Status, Immunities, and Privileges

Section 1. Purposes of Article

To enable the Fund to fulfill the functions with which it is entrusted,

the status, immunities, and privileges set forth in this Article shall be

accorded to the Fund in the territories of each member.

Section 2. Status of the Fund

The Fund shall possess full juridical personality, and in particular, the

capacity

(i) to contract;

(ii) to acquire and dispose of immovable and movable prop

erty; and

(iii) to institute legal proceedings.

Art. IX, Sec. 3–8

IX. Status, Immunities, and Privileges

Section 3. Immunity from judicial process

The Fund, its property and its assets, wherever located and by whom

soever held, shall enjoy immunity from every form of judicial process

except to the extent that it expressly waives its immunity for the purpose

of any proceedings or by the terms of any contract.

Section 4. Immunity from other action

Property and assets of the Fund, wherever located and by whom

soever 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 Fund shall be inviolable.

Section 6. Freedom of assets from restrictions

To the extent necessary to carry out the activities provided for in this

Agreement, all property and assets of the Fund shall be free from restric-

tions, regulations, controls, and moratoria of any nature.

Section 7. Privilege for communications

The official communications of the Fund shall be accorded by mem-

bers the same treatment as the official communications of other

members.

Section 8. Immunities and privileges of officers and employees

All Governors, Executive Directors, Alternates, members of commit

tees, representatives appointed under Article XII, Section 3( j), advisors

of any of the foregoing persons, officers, and employees of the Fund

(i) shall be immune from legal process with respect to acts

performed by them in their official capacity except when

the Fund waives this immunity;

(ii) not being local nationals, shall be granted the same immu

nities from immigration restrictions, alien registration

requirements, and national service obligations and the

same facilities as regards exchange restrictions as are

Art. IX, Sec. 9–10

IX. Status, Immunities, and Privileges

accorded by members to the representatives, officials, and

employees of comparable rank of other members; and

(iii) shall be granted the same treatment in respect of traveling

facilities as is accorded by members to representatives,

officials, and employees of comparable rank of other

members.

Section 9. Immunities from taxation

(a) The Fund, 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 Fund 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 Fund to Executive Directors, Alternates, officers, or employ-

ees of the Fund who are not local citizens, local subjects, or other local

nationals.

(c) No taxation of any kind shall be levied on any obligation or secu

rity issued by the Fund, including any dividend or interest thereon, by

whomsoever held

(i) which discriminates against such obligation or security

solely because of its origin; 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 main-

tained by the Fund.

Section 10. Application of Article

Each member shall take such action as is necessary in its own ter

ritories for the purpose of making effective in terms of its own law the

principles set forth in this Article and shall inform the Fund of the

detailed action which it has taken.

Art. X

Art. XI, Sec. 1–2

X. Relations with Other International Organizations

A rticle X

Relations with Other International Organizations

The Fund shall cooperate within the terms of this Agreement with any

general international organization and with public international organi-

zations having specialized responsibilities in related fields. Any arrange-

ments for such cooperation which would involve a modification of any

provision of this Agreement may be effected only after amendment to

this Agreement under Article XXVIII.

A rticle XI

Relations with Non-Member Countries

Section 1. Undertakings regarding relations with non-member countries

Each member undertakes

(i) not to engage in, nor to permit any of its fiscal agencies

referred to in Article V, Section 1 to engage in, any trans-

actions with a non-member or with persons in a non

member’s territories which would be contrary to the

provisions of this Agreement or the purposes of the Fund;

(ii) not to cooperate with a non-member or with persons in

a non-member’s territories in practices which would be

contrary to the provisions of this Agreement or the pur-

poses of the Fund; and

(iii) to cooperate with the Fund with a view to the application

in its territories of appropriate measures to prevent trans-

actions with non-members or with persons in their terri-

tories which would be contrary to the provisions of this

Agreement or the purposes of the Fund.

Section 2. Restrictions on transactions with non-member countries

Nothing in this Agreement shall affect the right of any member to

impose restrictions on exchange transactions with non-members or with

persons in their territories unless the Fund finds that such restrictions

prejudice the interests of members and are contrary to the purposes of

the Fund.

Art. XII, Sec. 1–2

XII. Organization and Management

A rticle XII

Organization and Management

Section 1. Structure of the Fund

The Fund shall have a Board of Governors, an Executive Board, a

Managing Director, and a staff, and a Council if the Board of Governors

decides, by an eighty-five percent majority of the total voting power,

that the provisions of Schedule D shall be applied.

Section 2. Board of Governors

(a) All powers under this Agreement not conferred directly on the

Board of Governors, the Executive Board, or the Managing Director

shall be vested in the Board of Governors. The Board of Governors shall

consist of one Governor and one Alternate appointed by each member

in such manner as it may determine. Each Governor and each Alternate

shall serve until a new appointment is made. No Alternate may vote

except in the absence of his principal. The Board of Governors shall

select one of the Governors as Chairman.

(b) The Board of Governors may delegate to the Executive Board

authority to exercise any powers of the Board of Governors, except the

powers conferred directly by this Agreement on the Board of

Governors.

(c) The Board of Governors shall hold such meetings as may be pro-

vided for by the Board of Governors or called by the Executive Board.

Meetings of the Board of Governors shall be called whenever requested

by fifteen members or by members having one-quarter of the total vot-

ing power.

(d ) A quorum for any meeting of the Board of Governors shall be a

majority of the Governors having not less than two-thirds of the total

voting power.

(e) Each Governor shall be entitled to cast the number of votes allot

ted under Section 5 of this Article to the member appointing him.

( f ) The Board of Governors may by regulation establish a procedure

whereby the Executive Board, when it deems such action to be in the

best interests of the Fund, may obtain a vote of the Governors on a

specific question without calling a meeting of the Board of Governors.

Art. XII, Sec. 3

XII. Organization and Management

(g) The Board of Governors, and the Executive Board to the extent

authorized, may adopt such rules and regulations as may be necessary

or appropriate to conduct the business of the Fund.

(h) Governors and Alternates shall serve as such without compensa

tion from the Fund, but the Fund may pay them reasonable expenses

incurred in attending meetings.

(i) The Board of Governors shall determine the remuneration to be

paid to the Executive Directors and their Alternates and the salary and

terms of the contract of service of the Managing Director.

( j) The Board of Governors and the Executive Board may appoint

such committees as they deem advisable. Membership of committees

need not be limited to Governors or Executive Directors or their

Alternates.

Section 3. Executive Board

(a) The Executive Board shall be responsible for conducting the

business of the Fund, and for this purpose shall exercise all the powers

delegated to it by the Board of Governors.

(b) Subject to (c) below, the Executive Board shall consist of twenty

Executive Directors elected by the members, with the Managing Direc

tor as chairman.

(c) For the purpose of each regular election of Executive Directors,

the Board of Governors, by an eighty-five percent majority of the total

voting power, may increase or decrease the number of Executive Direc

tors specified in (b) above.

(d ) Elections of Executive Directors shall be conducted at intervals

of two years in accordance with regulations which shall be adopted by

the Board of Governors. Such regulations shall include a limit on the

total number of votes that more than one member may cast for the same

candidate.

(e) Each Executive Director shall appoint an Alternate with full

power to act for him when he is not present, provided that the Board of

Governors may adopt rules enabling an Executive Director elected by

more than a specified number of members to appoint two Alternates.

Such rules, if adopted, may only be modified in the context of the regu-

lar election of Executive Directors and shall require an Executive

XII. Organization and Management

Director appointing two Alternates to designate: (i) the Alternate who

shall act for the Executive Director when he is not present and both

Alternates are present and (ii) the Alternate who shall exercise the pow-

ers of the Executive Director under ( f ) below. When the Executive

Directors appointing them are present, Alternates may participate in

meetings but may not vote.

( f ) Executive Directors shall continue in office until their successors

are elected. If the office of an Executive Director becomes vacant more

than ninety days before the end of his term, another Executive Director

shall be elected for the remainder of the term by the members that

elected the former Executive Director. A majority of the votes cast shall

be required for election. While the office remains vacant, the Alternate

of the former Executive Director shall exercise his powers, except that

of appointing an Alternate.

(g) The Executive Board shall function in continuous session at the

principal office of the Fund and shall meet as often as the business of

the Fund may require.

(h) A quorum for any meeting of the Executive Board shall be a

majority of the Executive Directors having not less than one-half of the

total voting power.

(i)

(i) Each Executive Director shall be entitled to cast the num

ber of votes which counted towards his election.

(ii) When the provisions of Section 5(b) of this Article are

applicable, the votes which an Executive Director would

otherwise be entitled to cast shall be increased or decreased

correspondingly. All the votes which an Executive Direc

tor is entitled to cast shall be cast as a unit.

(iii) When the suspension of the voting rights of a member is

terminated under Article XXVI, Section 2(b), the member

may agree with all the members that have elected an

Executive Director that the number of votes allotted to

that member shall be cast by such Executive Director,

provided that, if no regular election of Executive Directors

has been conducted during the period of the suspension,

the Executive Director in whose election the member had

participated prior to the suspension, or his successor

elected in accordance with paragraph 3(c)(i) of Schedule

L or with ( f ) above, shall be entitled to cast the number

Art. XII, Sec. 4–5

XII. Organization and Management

of votes allotted to the member. The member shall be

deemed to have participated in the election of the Execu

tive Director entitled to cast the number of votes allotted

to the member.

( j) The Board of Governors shall adopt regulations under which a

member may send a representative to attend any meeting of the Execu

tive Board when a request made by, or a matter particularly affecting,

that member is under consideration.

Section 4. Managing Director and staff

(a) The Executive Board shall select a Managing Director who shall

not be a Governor or an Executive Director. The Managing Director

shall be chairman of the Executive Board, but shall have no vote except

a deciding vote in case of an equal division. He may participate in meet-

ings of the Board of Governors, but shall not vote at such meetings. The

Managing Director shall cease to hold office when the Executive Board

so decides.

(b) The Managing Director shall be chief of the operating staff of

the Fund and shall conduct, under the direction of the Executive Board,

the ordinary business of the Fund. Subject to the general control of the

Executive Board, he shall be responsible for the organization, appoint

ment, and dismissal of the staff of the Fund.

(c) The Managing Director and the staff of the Fund, in the discharge

of their functions, shall owe their duty entirely to the Fund and to no

other authority. Each member of the Fund shall respect the international

character of this duty and shall refrain from all attempts to influence any

of the staff in the discharge of these functions.

(d ) In appointing the staff the Managing Director 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 5. Voting

(a) The total votes of each member shall be equal to the sum of its

basic votes and its quota-based votes.

(i) The basic votes of each member shall be the number of

votes that results from the equal distribution among all

Art. XII, Sec. 6

XII. Organization and Management

the members of 5.502 percent of the aggregate sum of

the total voting power of all the members, provided that

there shall be no fractional basic votes.

(ii) The quota-based votes of each member shall be the num

ber of votes that results from the allocation of one vote

for each part of its quota equivalent to one hundred thou-

sand special drawing rights.

(b) Whenever voting is required under Article V, Section 4 or 5, each

member shall have the number of votes to which it is entitled under (a)

above adjusted

(i) by the addition of one vote for the equivalent of each four

hundred thousand special drawing rights of net sales of

its currency from the general resources of the Fund up to

the date when the vote is taken, or

(ii) by the subtraction of one vote for the equivalent of each

four hundred thousand special drawing rights of its net

purchases under Article V, Section 3(b) and ( f ) up to the

date when the vote is taken,

provided that neither net purchases nor net sales shall be deemed at any

time to exceed an amount equal to the quota of the member involved.

(c) Except as otherwise specifically provided, all decisions of the

Fund shall be made by a majority of the votes cast.

Section 6. Reserves, distribution of net income, and investment

(a) The Fund shall determine annually what part of its net income

shall be placed to general reserve or special reserve, and what part, if

any, shall be distributed.

(b) The Fund may use the special reserve for any purpose for which

it may use the general reserve, except distribution.

(c) If any distribution is made of the net income of any year, it shall

be made to all members in proportion to their quotas.

(d ) The Fund, by a seventy percent majority of the total voting power,

may decide at any time to distribute any part of the general reserve. Any

such distribution shall be made to all members in proportion to their

quotas.

Art. XII, Sec. 6

XII. Organization and Management

(e) Payments under (c) and (d ) above shall be made in special draw

ing rights, provided that either the Fund or the member may decide that

the payment to the member shall be made in its own currency.

(i) The Fund may establish an Investment Account for the

purposes of this subsection ( f ). The assets of the Invest

ment Account shall be held separately from the other

accounts of the General Department.

(ii) The Fund may decide to transfer to the Investment Account

a part of the proceeds of the sale of gold in accordance

with Article V, Section 12(g) and, by a seventy percent

majority of the total voting power, may decide to transfer

to the Investment Account, for immediate investment,

currencies held in the General Resources Account. The

amount of these transfers shall not exceed the total amount

of the general reserve and the special reserve at the time

of the decision.

(iii) The Fund may use a member’s currency held in the

Investment Account for investment as it may determine,

in accordance with rules and regulations adopted by the

Fund by a seventy percent majority of the total voting

power. The rules and regulations adopted pursuant to this

provision shall be consistent with (vii), (viii), and (ix)

below.

(iv) The income of investment may be invested in accordance

with the provisions of this subsection ( f ). Income not

invested shall be held in the Investment Account or may

be used for meeting the expenses of conducting the busi

ness of the Fund.

(v) The Fund may use a member’s currency held in the

Investment Account to obtain the currencies needed to

meet the expenses of conducting the business of the Fund.

(vi) The Investment Account shall be terminated in the event

of liquidation of the Fund and may be terminated, or the

amount of the investment may be reduced, prior to liqui

dation of the Fund by a seventy percent majority of the

total voting power.

(vii) Upon termination of the Investment Account because of

liquidation of the Fund, any assets in this account shall be

Art. XII, Sec. 7–8

XII. Organization and Management

distributed in accordance with the provisions of Sched-

ule K, provided that a portion of these assets corresponding

to the proportion of the assets transferred to this account

under Article V, Section 12(g) to the total of the assets

transferred to this account shall be deemed to be assets held

in the Special Disbursement Account and shall be distributed

in accordance with Schedule K, paragraph 2(a)(ii).

(viii) Upon termination of the Investment Account prior to

liquidation of the Fund, a portion of the assets held in

this account corresponding to the proportion of the assets

transferred to this account under Article V, Section 12(g)

to the total of the assets transferred to the account shall

be transferred to the Special Disbursement Account if it

has not been terminated, and the balance of the assets

held in the Investment Account shall be transferred to the

General Resources Account for immediate use in opera-

tions and transactions.

(ix) On a reduction of the amount of the investment by the

Fund, a portion of the reduction corresponding to the

proportion of the assets transferred to the Investment

Account under Article V, Section 12(g) to the total of the

assets transferred to this account shall be transferred to

the Special Disbursement Account if it has not been ter-

minated, and the balance of the reduction shall be trans-

ferred to the General Resources Account for immediate

use in operations and transactions.

Section 7. Publication of reports

(a) The Fund shall publish an annual report containing an audited

statement of its accounts, and shall issue, at intervals of three months or

less, a summary statement of its operations and transactions and its

holdings of special drawing rights, gold, and currencies of members.

(b) The Fund may publish such other reports as it deems desirable

for carrying out its purposes.

Section 8. Communication of views to members

The Fund shall at all times have the right to communicate its views

informally to any member on any matter arising under this Agreement.

Art. XIII, Sec. 1–3

XIII. Offices and Depositories

The Fund may, by a seventy percent majority of the total voting power,

decide to publish a report made to a member regarding its monetary or

economic conditions and developments which directly tend to produce

a serious disequilibrium in the international balance of payments of

members. The relevant member shall be entitled to representation in

accordance with Section 3( j) of this Article. The Fund shall not publish

a report involving changes in the fundamental structure of the economic

organization of members.

A rticle XIII

Offices and Depositories

Section 1. Location of offices

The principal office of the Fund shall be located in the territory of the

member having the largest quota, and agencies or branch offices may

be established in the territories of other members.

Section 2. Depositories

(a) Each member shall designate its central bank as a depository for

all the Fund’s holdings of its currency, or if it has no central bank it shall

designate such other institution as may be acceptable to the Fund.

(b) The Fund may hold other assets, including gold, in the deposi

tories designated by the five members having the largest quotas and in

such other designated depositories as the Fund may select. Initially, at

least one-half of the holdings of the Fund shall be held in the depository

designated by the member in whose territories the Fund has its principal

office and at least forty percent shall be held in the depositories desig-

nated by the remaining four members referred to above. However, all

transfers of gold by the Fund shall be made with due regard to the costs

of transport and anticipated requirements of the Fund. In an emergency

the Executive Board may transfer all or any part of the Fund’s gold

holdings to any place where they can be adequately protected.

Section 3. Guarantee of the Fund’s assets

Each member guarantees all assets of the Fund against loss resulting

from failure or default on the part of the depository designated by it.

Art. XIV, Sec. 1–3

XIV. Transitional Arrangements

A rticle XIV

Transitional Arrangements

Section 1. Notification to the Fund

Each member shall notify the Fund whether it intends to avail itself

of the transitional arrangements in Section 2 of this Article, or whether

it is prepared to accept the obligations of Article VIII, Sections 2, 3, and

4. A member availing itself of the transitional arrangements shall notify

the Fund as soon thereafter as it is prepared to accept these obligations.

Section 2. Exchange restrictions

A member that has notified the Fund that it intends to avail itself of

transitional arrangements under this provision may, notwithstanding the

provisions of any other articles of this Agreement, maintain and adapt

to changing circumstances the restrictions on payments and transfers

for current international transactions that were in effect on the date on

which it became a member. Members shall, however, have continuous

regard in their foreign exchange policies to the purposes of the Fund,

and, as soon as conditions permit, they shall take all possible measures

to develop such commercial and financial arrangements with other

members as will facilitate international payments and the promotion of

a stable system of exchange rates. In particular, members shall withdraw

restrictions maintained under this Section as soon as they are satisfied

that they will be able, in the absence of such restrictions, to settle their

balance of payments in a manner which will not unduly encumber their

access to the general resources of the Fund.

Section 3. Action of the Fund relating to restrictions

The Fund shall make annual reports on the restrictions in force under

Section 2 of this Article. Any member retaining any restrictions incon

sistent with Article VIII, Sections 2, 3, or 4 shall consult the Fund

annually as to their further retention. The Fund may, if it deems such

action necessary in exceptional circumstances, make representations

to any member that conditions are favorable for the withdrawal of any

particular restriction, or for the general abandonment of restrictions,

inconsistent with the provisions of any other articles of this Agreement.

The member shall be given a suitable time to reply to such rep

resentations. If the Fund finds that the member persists in maintaining

Art. XV, Sec. 1–2

Art. XVI, Sec. 1

XV. Special Drawing Rights

restrictions which are inconsistent with the purposes of the Fund, the

member shall be subject to Article XXVI, Section 2(a).

A rticle XV

Special Drawing Rights

Section 1. Authority to allocate special drawing rights

(a) To meet the need, as and when it arises, for a supplement to exist-

ing reserve assets, the Fund is authorized to allocate special drawing

rights in accordance with the provisions of Article XVIII to members

that are participants in the Special Drawing Rights Department.

(b) In addition, the Fund shall allocate special drawing rights to

members that are participants in the Special Drawing Rights Depart

ment in accordance with the provisions of Schedule M.

Section 2. Valuation of the special drawing right

The method of valuation of the special drawing right shall be deter

mined by the Fund by a seventy percent majority of the total voting

power, provided, however, that an eighty-five percent majority of the

total voting power shall be required for a change in the principle of valu-

ation or a fundamental change in the application of the principle in

effect.

A rticle XVI

General Department and Special Drawing Rights Department

Section 1. Separation of operations and transactions

All operations and transactions involving special drawing rights shall

be conducted through the Special Drawing Rights Department. All other

operations and transactions on the account of the Fund authorized by or

under this Agreement shall be conducted through the General Depart-

ment. Operations and transactions pursuant to Article XVII, Section 2

shall be conducted through the General Department as well as the Spe-

cial Drawing Rights Department.

Art. XVI, Sec. 2–3

Art. XVII, Sec. 1

XVII. Participants and Other Holders of Special Drawing Rights

Section 2. Separation of assets and property

All assets and property of the Fund, except resources administered

under Article V, Section 2(b), shall be held in the General Department,

provided that assets and property acquired under Article XX, Section 2

and Articles XXIV and XXV and Schedules H and I shall be held in the

Special Drawing Rights Department. Any assets or property held in one

Department shall not be available to discharge or meet the liabilities,

obligations, or losses of the Fund incurred in the conduct of the opera

tions and transactions of the other Department, except that the expenses

of conducting the business of the Special Drawing Rights Department

shall be paid by the Fund from the General Department which shall be

reimbursed in special drawing rights from time to time by assessments

under Article XX, Section 4 made on the basis of a reasonable estimate

of such expenses.

Section 3. Recording and information

All changes in holdings of special drawing rights shall take effect

only when recorded by the Fund in the Special Drawing Rights Depart

ment. Participants shall notify the Fund of the provisions of this Agree

ment under which special drawing rights are used. The Fund may

require participants to furnish it with such other information as it deems

necessary for its functions.

A rticle XVII

Participants and Other Holders of Special Drawing Rights

Section 1. Participants

Each member of the Fund that deposits with the Fund an instrument

setting forth that it undertakes all the obligations of a participant in the

Special Drawing Rights Department in accordance with its law and that

it has taken all steps necessary to enable it to carry out all of these obli-

gations shall become a participant in the Special Drawing Rights

Department as of the date the instrument is deposited, except that no

member shall become a participant before the provisions of this Agree

ment pertaining exclusively to the Special Drawing Rights Department

have entered into force and instruments have been deposited under this

Art. XVII, Sec. 2–3

XVII. Participants and Other Holders of Special Drawing Rights

Section by members that have at least seventy-five percent of the total

of quotas.

Section 2. Fund as a holder

The Fund may hold special drawing rights in the General Resources

Account and may accept and use them in operations and transactions

conducted through the General Resources Account with participants in

accordance with the provisions of this Agreement or with prescribed

holders in accordance with the terms and conditions prescribed under

Section 3 of this Article.

Section 3. Other holders

The Fund may prescribe

(i) as holders, non-members, members that are non-participants,

institutions that perform functions of a central bank for more

than one member, and other official entities;

(ii) the terms and conditions on which prescribed holders may

be permitted to hold special drawing rights and may accept

and use them in operations and transactions with partici-

pants and other prescribed holders; and

(iii) the terms and conditions on which participants and the

Fund through the General Resources Account may enter

into operations and transactions in special drawing rights

with prescribed holders.

An eighty-five percent majority of the total voting power shall be

required for prescriptions under (i) above. The terms and conditions

prescribed by the Fund shall be consistent with the provisions of this

Agreement and the effective functioning of the Special Drawing Rights

Department.

Art. XVIII, Sec. 1–2

XVIII. Allocation and Cancellation of Special Drawing Rights

A rticle XVIII

Allocation and Cancellation of Special Drawing Rights

Section 1. P

rinciples and considerations governing allocation and

cancellation

(a) In all its decisions with respect to the allocation and cancellation

of special drawing rights the Fund shall seek to meet the long-term

global need, as and when it arises, to supplement existing reserve assets

in such manner as will promote the attainment of its purposes and will

avoid economic stagnation and deflation as well as excess demand and

inflation in the world.

(b) The first decision to allocate special drawing rights shall take into

account, as special considerations, a collective judgment that there is a

global need to supplement reserves, and the attainment of a better bal-

ance of payments equilibrium, as well as the likelihood of a better work-

ing of the adjustment process in the future.

Section 2. Allocation and cancellation

(a) Decisions of the Fund to allocate or cancel special drawing rights

shall be made for basic periods which shall run consecutively and shall

be five years in duration. The first basic period shall begin on the date

of the first decision to allocate special drawing rights or such later date

as may be specified in that decision. Any allocations or cancellations

shall take place at yearly intervals.

(b) The rates at which allocations are to be made shall be expressed

as percentages of quotas on the date of each decision to allocate. The

rates at which special drawing rights are to be cancelled shall be

expressed as percentages of net cumulative allocations of special draw

ing rights on the date of each decision to cancel. The percentages shall

be the same for all participants.

(c) In its decision for any basic period the Fund may provide, not

withstanding (a) and (b) above, that

(i) the duration of the basic period shall be other than five

years; or

(ii) the allocations or cancellations shall take place at other

than yearly intervals; or

Art. XVIII, Sec. 3

XVIII. Allocation and Cancellation of Special Drawing Rights

(iii) the basis for allocations or cancellations shall be the quo

tas or net cumulative allocations on dates other than the

dates of decisions to allocate or cancel.

(d) A member that becomes a participant after a basic period starts

shall receive allocations beginning with the next basic period in which

allocations are made after it becomes a participant unless the Fund

decides that the new participant shall start to receive allocations begin

ning with the next allocation after it becomes a participant. If the Fund

decides that a member that becomes a participant during a basic period

shall receive allocations during the remainder of that basic period and

the participant was not a member on the dates established under (b) or

(c) above, the Fund shall determine the basis on which these allocations

to the participant shall be made.

(e) A participant shall receive allocations of special drawing rights

made pursuant to any decision to allocate unless

(i) the Governor for the participant did not vote in favor of

the decision; and

(ii) the participant has notified the Fund in writing prior to

the first allocation of special drawing rights under that

decision that it does not wish special drawing rights to

be allocated to it under the decision. On the request of a

participant, the Fund may decide to terminate the effect

of the notice with respect to allocations of special drawing

rights subsequent to the termination.

( f ) If on the effective date of any cancellation the amount of special

drawing rights held by a participant is less than its share of the special

drawing rights that are to be cancelled, the participant shall eliminate its

negative balance as promptly as its gross reserve position permits and

shall remain in consultation with the Fund for this purpose. Special draw-

ing rights acquired by the participant after the effective date of the can-

cellation shall be applied against its negative balance and cancelled.

Section 3. Unexpected major developments

The Fund may change the rates or intervals of allocation or cancel

lation during the rest of a basic period or change the length of a basic

period or start a new basic period, if at any time the Fund finds it desir

able to do so because of unexpected major developments.

Art. XVIII, Sec. 4

XVIII. Allocation and Cancellation of Special Drawing Rights

Section 4. Decisions on allocations and cancellations

(a) Decisions under Section 2(a), (b), and (c) or Section 3 of this

Article shall be made by the Board of Governors on the basis of pro

posals of the Managing Director concurred in by the Executive Board.

(b) Before making any proposal, the Managing Director, after hav

ing satisfied himself that it will be consistent with the provisions of

Section 1(a) of this Article, shall conduct such consultations as will

enable him to ascertain that there is broad support among participants

for the proposal. In addition, before making a proposal for the first

allocation, the Managing Director shall satisfy himself that the provi

sions of Section 1(b) of this Article have been met and that there is

broad support among participants to begin allocations; he shall make

a proposal for the first allocation as soon after the establishment of the

Special Drawing Rights Department as he is so satisfied.

(c) The Managing Director shall make proposals

(i) not later than six months before the end of each basic

period;

(ii) if no decision has been taken with respect to allocation

or cancellation for a basic period, whenever he is satisfied

that the provisions of (b) above have been met;

(iii) when, in accordance with Section 3 of this Article, he

considers that it would be desirable to change the rate or

intervals of allocation or cancellation or change the length

of a basic period or start a new basic period; or

(iv) within six months of a request by the Board of Governors

or the Executive Board;

provided that, if under (i), (iii), or (iv) above the Managing Director

ascertains that there is no proposal which he considers to be consistent

with the provisions of Section 1 of this Article that has broad support

among participants in accordance with (b) above, he shall report to the

Board of Governors and to the Executive Board.

(d ) An eighty-five percent majority of the total voting power shall be

required for decisions under Section 2(a), (b), and (c) or Section 3 of

this Article except for decisions under Section 3 with respect to a

decrease in the rates of allocation.

Art. XIX, Sec. 1–3

XIX. Operations and Transactions in Special Drawing Rights

A rticle XIX

Operations and Transactions in Special Drawing Rights

Section 1. Use of special drawing rights

Special drawing rights may be used in the operations and transac-

tions authorized by or under this Agreement.

Section 2. Operations and transactions between participants

(a) A participant shall be entitled to use its special drawing rights to

obtain an equivalent amount of currency from a participant designated

under Section 5 of this Article.

(b) A participant, in agreement with another participant, may use its

special drawing rights to obtain an equivalent amount of currency from

the other participant.

(c) The Fund, by a seventy percent majority of the total voting power,

may prescribe operations in which a participant is authorized to engage

in agreement with another participant on such terms and conditions as

the Fund deems appropriate. The terms and conditions shall be consis-

tent with the effective functioning of the Special Drawing Rights

Department and the proper use of special drawing rights in accordance

with this Agreement.

(d ) The Fund may make representations to a participant that enters

into any operation or transaction under (b) or (c) above that in the judg-

ment of the Fund may be prejudicial to the process of designation

according to the principles of Section 5 of this Article or is otherwise

inconsistent with Article XXII. A participant that persists in entering

into such operations or transactions shall be subject to Article XXIII,

Section 2(b).

Section 3. Requirement of need

(a) In transactions under Section 2(a) of this Article, except as oth-

erwise provided in (c) below, a participant will be expected to use its

special drawing rights only if it has a need because of its balance of

payments or its reserve position or developments in its reserves, and not

for the sole purpose of changing the composition of its reserves.

Art. XIX, Sec. 4–5

XIX. Operations and Transactions in Special Drawing Rights

(b) The use of special drawing rights shall not be subject to challenge

on the basis of the expectation in (a) above, but the Fund may make

representations to a participant that fails to fulfill this expectation. A

participant that persists in failing to fulfill this expectation shall be sub-

ject to Article XXIII, Section 2(b).

(c) The Fund may waive the expectation in (a) above in any trans

actions in which a participant uses special drawing rights to obtain an

equivalent amount of currency from a participant designated under Sec-

tion 5 of this Article that would promote reconstitution by the other

participant under Section 6(a) of this Article; prevent or reduce a nega

tive balance of the other participant; or offset the effect of a failure by

the other participant to fulfill the expectation in (a) above.

Section 4. Obligation to provide currency

(a) A participant designated by the Fund under Section 5 of this

Article shall provide on demand a freely usable currency to a participant

using special drawing rights under Section 2(a) of this Article. A par-

ticipant’s obligation to provide currency shall not extend beyond the

point at which its holdings of special drawing rights in excess of its net

cumulative allocation are equal to twice its net cumulative allocation or

such higher limit as may be agreed between a participant and the Fund.

(b) A participant may provide currency in excess of the obligatory

limit or any agreed higher limit.

Section 5. Designation of participants to provide currency

(a) The Fund shall ensure that a participant will be able to use its

special drawing rights by designating participants to provide currency

for specified amounts of special drawing rights for the purposes of Sec

tions 2(a) and 4 of this Article. Designations shall be made in accord

ance with the following general principles supplemented by such other

principles as the Fund may adopt from time to time

(i) A participant shall be subject to designation if its balance

of payments and gross reserve position is sufficiently

strong, but this will not preclude the possibility that a

participant with a strong reserve position will be desig-

nated even though it has a moderate balance of payments

deficit. Participants shall be designated in such manner

Art. XIX, Sec. 6–7

XIX. Operations and Transactions in Special Drawing Rights

as will promote over time a balanced distribution of hold-

ings of special drawing rights among them.

(ii) Participants shall be subject to designation in order to

promote reconstitution under Section 6(a) of this Article,

to reduce negative balances in holdings of special drawing

rights, or to offset the effect of failures to fulfill the expec

tation in Section 3(a) of this Article.

(iii) In designating participants, the Fund normally shall give

priority to those that need to acquire special drawing rights

to meet the objectives of designation under (ii) above.

(b) In order to promote over time a balanced distribution of holdings

of special drawing rights under (a)(i) above, the Fund shall apply the

rules for designation in Schedule F or such rules as may be adopted

under (c) below.

(c) The rules for designation may be reviewed at any time and new

rules shall be adopted if necessary. Unless new rules are adopted, the

rules in force at the time of the review shall continue to apply.

Section 6. Reconstitution

(a) Participants that use their special drawing rights shall reconstitute

their holdings of them in accordance with the rules for reconstitution in

Schedule G or such rules as may be adopted under (b) below.

(b) The rules for reconstitution may be reviewed at any time and new

rules shall be adopted if necessary. Unless new rules are adopted or a

decision is made to abrogate rules for reconstitution, the rules in force

at the time of review shall continue to apply. A seventy percent majority

of the total voting power shall be required for decisions to adopt, mod-

ify, or abrogate the rules for reconstitution.

Section 7. Exchange rates

(a) Except as otherwise provided in (b) below, the exchange rates for

transactions between participants under Section 2(a) and (b) of this

Article shall be such that participants using special drawing rights shall

receive the same value whatever currencies might be provided and

whichever participants provide those currencies, and the Fund shall

adopt regulations to give effect to this principle.

Art. XX, Sec. 1–4

XX. Special Drawing Rights Department Interest and Charges

(b) The Fund, by an eighty-five percent majority of the total voting

power, may adopt policies under which in exceptional circumstances

the Fund, by a seventy percent majority of the total voting power, may

authorize participants entering into transactions under Section 2(b) of

this Article to agree on exchange rates other than those applicable under

(a) above.

(c) The Fund shall consult a participant on the procedure for deter

mining rates of exchange for its currency.

(d) For the purpose of this provision the term participant includes a

terminating participant.

A rticle XX

Special Drawing Rights Department Interest and Charges

Section 1. Interest

Interest at the same rate for all holders shall be paid by the Fund to

each holder on the amount of its holdings of special drawing rights. The

Fund shall pay the amount due to each holder whether or not sufficient

charges are received to meet the payment of interest.

Section 2. Charges

Charges at the same rate for all participants shall be paid to the Fund

by each participant on the amount of its net cumulative allocation of

special drawing rights plus any negative balance of the participant or

unpaid charges.

Section 3. Rate of interest and charges

The Fund shall determine the rate of interest by a seventy percent

majority of the total voting power. The rate of charges shall be equal to

the rate of interest.

Section 4. Assessments

When it is decided under Article XVI, Section 2 that reimbursement

shall be made, the Fund shall levy assessments for this purpose at the

same rate for all participants on their net cumulative allocations.

Art. XX, Sec. 5

Art. XXI

XXI. Administration of the General Department and the SDR Department

Section 5. Payment of interest, charges, and assessments

Interest, charges, and assessments shall be paid in special drawing

rights. A participant that needs special drawing rights to pay any charge

or assessment shall be obligated and entitled to obtain them, for cur

rency acceptable to the Fund, in a transaction with the Fund conducted

through the General Resources Account. If sufficient special drawing

rights cannot be obtained in this way, the participant shall be obligated

and entitled to obtain them with a freely usable currency from a partici

pant which the Fund shall specify. Special drawing rights acquired by a

participant after the date for payment shall be applied against its unpaid

charges and cancelled.

A rticle XXI

Administration of the General Department and the

Special Drawing Rights Department

(a) The General Department and the Special Drawing Rights Depart-

ment shall be administered in accordance with the provisions of Article

XII, subject to the following provisions

(i) For meetings of or decisions by the Board of Governors

on matters pertaining exclusively to the Special Drawing

Rights Department only requests by, or the presence and

the votes of, Governors appointed by members that are

participants shall be counted for the purpose of calling

meetings and determining whether a quorum exists or

whether a decision is made by the required majority.

(ii) For decisions by the Executive Board on matters pertain

ing exclusively to the Special Drawing Rights Department

only Executive Directors elected by at least one member

that is a participant shall be entitled to vote. Each of these

Executive Directors shall be entitled to cast the number

of votes allotted to the members that are partici

pants

whose votes counted towards his election. Only the pres-

ence of Executive Directors elected by members that are

participants and the votes allotted to members that are

participants shall be counted for the purpose of determin

ing whether a quorum exists or whether a decision is

made by the required majority.

Art. XXI

XXI. Administration of the General Department and the SDR Department

(iii) Questions of the general administration of the Fund,

including reimbursement under Article XVI, Section 2,

and any question whether a matter pertains to both Depart

ments or exclusively to the Special Drawing Rights

Department shall be decided as if they pertained exclu

sively to the General Department. Decisions with respect

to the method of valuation of the special drawing right,

the acceptance and holding of special drawing rights in

the General Resources Account of the General Department

and the use of them, and other decisions affecting the

operations and transactions conducted through both the

General Resources Account of the General Department

and the Special Drawing Rights Department shall be made

by the majorities required for decisions on matters pertain-

ing exclusively to each Department. A decision on a matter

pertaining to the Special Drawing Rights Department shall

so indicate.

(b) In addition to the privileges and immunities that are accorded

under Article IX of this Agreement, no tax of any kind shall be levied

on special drawing rights or on operations or transactions in special

drawing rights.

(c) A question of interpretation of the provisions of this Agreement

on matters pertaining exclusively to the Special Drawing Rights Depart-

ment shall be submitted to the Executive Board pursuant to Article

XXIX(a) only on the request of a participant. In any case where the

Executive Board has given a decision on a question of interpretation

pertaining exclusively to the Special Drawing Rights Department only

a participant may require that the question be referred to the Board of

Governors under Article XXIX(b). The Board of Governors shall decide

whether a Governor appointed by a member that is not a participant

shall be entitled to vote in the Committee on Interpretation on questions

pertaining exclusively to the Special Drawing Rights Department.

(d ) Whenever a disagreement arises between the Fund and a par

ticipant that has terminated its participation in the Special Drawing

Rights Department or between the Fund and any participant during the

liquidation of the Special Drawing Rights Department with respect to

any matter arising exclusively from participation in the Special Drawing

Rights Department, the disagreement shall be submitted to arbitration

in accordance with the procedures in Article XXIX(c).

Art. XXII

Art. XXIII, Sec. 1–2

XXII. General Obligations of Participants

A rticle XXII

General Obligations of Participants

In addition to the obligations assumed with respect to special drawing

rights under other articles of this Agreement, each participant under-

takes to collaborate with the Fund and with other participants in order

to facilitate the effective functioning of the Special Drawing Rights

Department and the proper use of special drawing rights in accordance

with this Agreement and with the objective of making the special draw-

ing right the principal reserve asset in the international monetary

system.

A rticle XXIII

Suspension of Operations and Transactions in

Special Drawing Rights

Section 1. Emergency provisions

In the event of an emergency or the development of unforeseen cir-

cumstances threatening the activities of the Fund with respect to the

Special Drawing Rights Department, the Executive Board, by an

eighty-five percent majority of the total voting power, may suspend for

a period of not more than one year the operation of any of the provi

sions relating to operations and transactions in special drawing rights,

and the provisions of Article XXVII, Section l(b), (c), and (d ) shall then

apply.

Section 2. Failure to fulfill obligations

(a) If the Fund finds that a participant has failed to fulfill its obliga

tions under Article XIX, Section 4, the right of the participant to use its

special drawing rights shall be suspended unless the Fund otherwise

decides.

(b) If the Fund finds that a participant has failed to fulfill any other

obligation with respect to special drawing rights, the Fund may suspend

Art. XXIV, Sec. 1

XXIV. Termination of Participation

the right of the participant to use special drawing rights it acquires after

the suspension.

(c) Regulations shall be adopted to ensure that before action is taken

against any participant under (a) or (b) above, the participant shall be

informed immediately of the complaint against it and given an adequate

opportunity for stating its case, both orally and in writing. Whenever

the participant is thus informed of a complaint relating to (a) above, it

shall not use special drawing rights pending the disposition of the

complaint.

(d ) Suspension under (a) or (b) above or limitation under (c) above

shall not affect a participant’s obligation to provide currency in accor

dance with Article XIX, Section 4.

(e) The Fund may at any time terminate a suspension under (a) or

(b) above, provided that a suspension imposed on a participant under

(b) above for failure to fulfill the obligations under Article XIX, Sec-

tion 6(a) shall not be terminated until one hundred eighty days after the

end of the first calendar quarter during which the participant complies

with the rules for reconstitution.

( f ) The right of a participant to use its special drawing rights shall not

be suspended because it has become ineligible to use the Fund’s general

resources under Article V, Section 5, Article VI, Section 1, or Article

XXVI, Section 2(a). Article XXVI, Section 2 shall not apply because a

participant has failed to fulfill any obligations with respect to special

drawing rights.

A rticle XXIV

Termination of Participation

Section 1. Right to terminate participation

(a) Any participant may terminate its participation in the Special

Drawing Rights Department at any time by transmitting a notice in

writing to the Fund at its principal office. Termination shall become

effective on the date the notice is received.

(b) A participant that withdraws from membership in the Fund shall

be deemed to have simultaneously terminated its participation in the

Special Drawing Rights Department.

Art. XXIV, Sec. 2–3

XXIV. Termination of Participation

Section 2. Settlement on termination

(a) When a participant terminates its participation in the Special

Drawing Rights Department, all operations and transactions by the ter-

minating participant in special drawing rights shall cease except as oth-

erwise permitted under an agreement made pursuant to (c) below in

order to facilitate a settlement or as provided in Sections 3, 5, and 6 of

this Article or in Schedule H. Interest and charges that accrued to the

date of termination and assessments levied before that date but not paid

shall be paid in special drawing rights.

(b) The Fund shall be obligated to redeem all special drawing rights

held by the terminating participant, and the terminating participant shall

be obligated to pay to the Fund an amount equal to its net cumulative

allocation and any other amounts that may be due and payable because

of its participation in the Special Drawing Rights Department. These

obligations shall be set off against each other and the amount of special

drawing rights held by the terminating participant that is used in the

setoff to extinguish its obligation to the Fund shall be cancelled.

(c) A settlement shall be made with reasonable despatch by agree

ment between the terminating participant and the Fund with respect to

any obligation of the terminating participant or the Fund after the setoff

in (b) above. If agreement on a settlement is not reached promptly the

provisions of Schedule H shall apply.

Section 3. Interest and charges

After the date of termination the Fund shall pay interest on any out-

standing balance of special drawing rights held by a terminating partici-

pant and the terminating participant shall pay charges on any outstanding

obligation owed to the Fund at the times and rates prescribed under

Article XX. Payment shall be made in special drawing rights. A termi-

nating participant shall be entitled to obtain special drawing rights with

a freely usable currency to pay charges or assessments in a transaction

with a participant specified by the Fund or by agreement from any other

holder, or to dispose of special drawing rights received as interest in a

transaction with any participant designated under Article XIX, Section

5 or by agreement with any other holder.

Art. XXIV, Sec. 4–6

XXIV. Termination of Participation

Section 4. Settlement of obligation to the Fund

Currency received by the Fund from a terminating participant shall

be used by the Fund to redeem special drawing rights held by partici

pants in proportion to the amount by which each participant’s holdings

of special drawing rights exceed its net cumulative allocation at the time

the currency is received by the Fund. Special drawing rights so redeemed

and special drawing rights obtained by a terminating participant under

the provisions of this Agreement to meet any installment due under an

agreement on settlement or under Schedule H and set off against that

installment shall be cancelled.

Section 5. Settlement of obligation to a terminating participant

Whenever the Fund is required to redeem special drawing rights held

by a terminating participant, redemption shall be made with currency

provided by participants specified by the Fund. These participants shall

be specified in accordance with the principles in Article XIX, Section 5.

Each specified participant shall provide at its option the currency of the

terminating participant or a freely usable currency to the Fund and shall

receive an equivalent amount of special drawing rights. However, a

terminating participant may use its special drawing rights to obtain its

own currency, a freely usable currency, or any other asset from any

holder, if the Fund so permits.

Section 6. General Resources Account transactions

In order to facilitate settlement with a terminating participant, the

Fund may decide that a terminating participant shall

(i) use any special drawing rights held by it after the setoff

in Section 2(b) of this Article, when they are to be

redeemed, in a transaction with the Fund conducted

through the General Resources Account to obtain its own

currency or a freely usable currency at the option of the

Fund; or

(ii) obtain special drawing rights in a transaction with the

Fund conducted through the General Resources Account

for a currency acceptable to the Fund to meet any charges

or installment due under an agreement or the provisions

of Schedule H.

Art. XXV

XXV. Liquidation of the Special Drawing Rights Department

A rticle XXV

Liquidation of the Special Drawing Rights Department

(a) The Special Drawing Rights Department may not be liquidated

except by decision of the Board of Governors. In an emergency, if the

Executive Board decides that liquidation of the Special Drawing Rights

Department may be necessary, it may temporarily suspend allocations

or cancellations and all operations and transactions in special drawing

rights pending decision by the Board of Governors. A decision by the

Board of Governors to liquidate the Fund shall be a decision to liquidate

both the General Department and the Special Drawing Rights

Department.

(b) If the Board of Governors decides to liquidate the Special Draw

ing Rights Department, all allocations or cancellations and all opera

tions and transactions in special drawing rights and the activities of the

Fund with respect to the Special Drawing Rights Department shall cease

except those incidental to the orderly discharge of the obligations of

participants and of the Fund with respect to special drawing rights, and

all obligations of the Fund and of participants under this Agreement

with respect to special drawing rights shall cease except those set out in

this Article, Article XX, Article XXI(d ), Article XXIV, Article XXIX(c),

and Schedule H, or any agreement reached under Article XXIV subject

to paragraph 4 of Schedule H, and Schedule I.

(c) Upon liquidation of the Special Drawing Rights Department,

interest and charges that accrued to the date of liquidation and assess

ments levied before that date but not paid shall be paid in special draw

ing rights. The Fund shall be obligated to redeem all special drawing

rights held by holders, and each participant shall be obligated to pay the

Fund an amount equal to its net cumulative allocation of special draw-

ing rights and such other amounts as may be due and payable because

of its participation in the Special Drawing Rights Department.

(d) Liquidation of the Special Drawing Rights Department shall be

administered in accordance with the provisions of Schedule I.

Art. XXVI, Sec. 1–3

XXVI. Withdrawal from Membership

A rticle XXVI

Withdrawal from Membership

Section 1. Right of members to withdraw

Any member may withdraw from the Fund at any time by transmit-

ting a notice in writing to the Fund at its principal office. Withdrawal

shall become effective on the date such notice is received.

Section 2. Compulsory withdrawal

(a) If a member fails to fulfill any of its obligations under this Agree-

ment, the Fund may declare the member ineligible to use the general

resources of the Fund. Nothing in this Section shall be deemed to limit

the provisions of Article V, Section 5 or Article VI, Section 1.

(b) If, after the expiration of a reasonable period following a decla

ration of ineligibility under (a) above, the member persists in its failure

to fulfill any of its obligations under this Agreement, the Fund may, by

a seventy percent majority of the total voting power, suspend the voting

rights of the member. During the period of the suspension, the provi-

sions of Schedule L shall apply. The Fund may, by a seventy percent

majority of the total voting power, terminate the suspension at any time.

(c) If, after the expiration of a reasonable period following a decision

of suspension under (b) above, the member persists in its failure to ful-

fill any of its obligations under this Agreement, that member may be

required to withdraw from membership in the Fund by a decision of the

Board of Governors carried by a majority of the Governors having

eighty-five percent of the total voting power.

(d ) Regulations shall be adopted to ensure that before action is taken

against any member under (a), (b), or (c) above, the member shall be

informed in reasonable time of the complaint against it and given an

adequate opportunity for stating its case, both orally and in writing.

Section 3. Settlement of accounts with members withdrawing

When a member withdraws from the Fund, normal operations and

transactions of the Fund in its currency shall cease and settlement of

all accounts between it and the Fund shall be made with reasonable

despatch by agreement between it and the Fund. If agreement is not

Art. XXVII, Sec. 1–2

XXVII. Emergency Provisions

reached promptly, the provisions of Schedule J shall apply to the settle-

ment of accounts.

A rticle XXVII

Emergency Provisions

Section 1. Temporary suspension

(a) In the event of an emergency or the development of unforeseen

circumstances threatening the activities of the Fund, the Executive

Board, by an eighty-five percent majority of the total voting power, may

suspend for a period of not more than one year the operation of any of

the following provisions

(i) Article V, Sections 2, 3, 7, 8(a)(i) and (e);

(ii) Article VI, Section 2;

(iii) Article XI, Section 1;

(iv) Schedule C, paragraph 5.

(b) A suspension of the operation of a provision under (a) above may

not be extended beyond one year except by the Board of Governors

which, by an eighty-five percent majority of the total voting power, may

extend a suspension for an additional period of not more than two years

if it finds that the emergency or unforeseen circumstances referred to in

(a) above continue to exist.

(c) The Executive Board may, by a majority of the total voting power,

terminate such suspension at any time.

(d ) The Fund may adopt rules with respect to the subject matter of a

provision during the period in which its operation is suspended.

Section 2. Liquidation of the Fund

(a) The Fund may not be liquidated except by decision of the Board

of Governors. In an emergency, if the Executive Board decides that

liquidation of the Fund may be necessary, it may temporarily suspend

all operations and transactions, pending decision by the Board of

Governors.

Art. XXVIII

XXVIII. Amendments

(b) If the Board of Governors decides to liquidate the Fund, the Fund

shall forthwith cease to engage in any activities except those incidental

to the orderly collection and liquidation of its assets and the settlement

of its liabilities, and all obligations of members under this Agreement

shall cease except those set out in this Article, in Article XXIX(c), in

Schedule J, paragraph 7, and in Schedule K.

(c) Liquidation shall be administered in accordance with the provi-

sions of Schedule K.

A rticle XXVIII

Amendments

(a) Any proposal to introduce modifications in this Agreement,

whether emanating from a member, a Governor, or the Executive Board,

shall be communicated to the chairman of the Board of Governors who

shall bring the proposal before the Board of Governors. If the proposed

amendment is approved by the Board of Governors, the Fund shall, by

circular letter or telegram, ask all members whether they accept the

proposed amendment. When three-fifths of the members, having eighty-

five percent of the total voting power, have accepted the proposed

amendment, the Fund shall certify the fact by a 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 Fund (Article XXVI, Sec-

tion 1);

(ii) the provision that no change in a member’s quota shall

be made without its consent (Article III, Section 2(d));

and

(iii) the provision that no change may be made in the par value

of a member’s currency except on the proposal of that

member (Schedule C, paragraph 6).

(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.

Art. XXIX

Art. XXX

XXIX. Interpretation

A rticle XXIX

Interpretation

(a) Any question of interpretation of the provisions of this Agree-

ment arising between any member and the Fund or between any mem-

bers of the Fund shall be submitted to the Executive Board for its

decision. If the question particularly affects any member, it shall be

entitled to representation in accordance with Article XII, Section 3( j).

(b) In any case where the Executive Board has given a decision under

(a) above, any member may require, within three months from the date

of the decision, that the question be referred to the Board of Governors,

whose decision shall be final. Any question referred to the Board of

Governors shall be considered by a Committee on Interpretation of the

Board of Governors. Each Committee member shall have one vote. The

Board of Governors shall establish the membership, procedures, and

voting majorities of the Committee. A decision of the Committee shall

be the decision of the Board of Governors unless the Board of Gover-

nors, by an eighty-five percent majority of the total voting power,

decides otherwise. Pending the result of the reference to the Board of

Governors the Fund may, so far as it deems necessary, act on the basis

of the decision of the Executive Board.

(c) Whenever a disagreement arises between the Fund and a member

which has withdrawn, or between the Fund and any member during

liquidation of the Fund, such disagreement shall be submitted to arbitra-

tion by a tribunal of three arbitrators, one appointed by the Fund, another

by the member or withdrawing member, and an umpire who, unless the

parties otherwise agree, shall be appointed by the President of the Inter-

national Court of Justice or such other authority as may have been pre-

scribed by regulation adopted by the Fund. The umpire shall have full

power to settle all questions of procedure in any case where the parties

are in disagreement with respect thereto.

A rticle XXX

Explanation of Terms

In interpreting the provisions of this Agreement the Fund and its

members shall be guided by the following provisions

Art. XXX

XXX. Explanation of Terms

(a) The Fund’s holdings of a member’s currency in the General

Resources Account shall include any securities accepted by the Fund

under Article III, Section 4.

(b) Stand-by arrangement means a decision of the Fund by which a

member is assured that it will be able to make purchases from the Gen-

eral Resources Account in accordance with the terms of the decision

during a specified period and up to a specified amount.

(c) Reserve tranche purchase means a purchase by a member of spe-

cial drawing rights or the currency of another member in exchange for

its own currency which does not cause the Fund’s holdings of the mem-

ber’s currency in the General Resources Account to exceed its quota,

provided that for the purposes of this definition the Fund may exclude

purchases and holdings under

(i) policies on the use of its general resources for compensa-

tory financing of export fluctuations;

(ii) policies on the use of its general resources in connection

with the financing of contributions to international buffer

stocks of primary products; and

(iii) other policies on the use of its general resources in respect

of which the Fund decides, by an eighty-five percent

majority of the total voting power, that an exclusion shall

be made.

(d ) Payments for current transactions means payments which are not

for the purpose of transferring capital, and includes, without limitation

(1) all payments due in connection with foreign trade, other

current business, including services, and normal short-term

banking and credit facilities;

(2) payments due as interest on loans and as net income from

other investments;

(3) payments of moderate amount for amortization of loans

or for depreciation of direct investments; and

(4) moderate remittances for family living expenses.

The Fund may, after consultation with the members concerned, deter-

mine whether certain specific transactions are to be considered current

transactions or capital transactions.

Art. XXXI, Sec. 1–2

XXXI. Final Provisions

(e) Net cumulative allocation of special drawing rights means the

total amount of special drawing rights allocated to a participant less its

share of special drawing rights that have been cancelled under Article

XVIII, Section 2(a).

( f ) A freely usable currency means a member’s currency that the

Fund determines (i) is, in fact, widely used to make payments for inter-

national transactions, and (ii) is widely traded in the principal exchange

markets.

(g) Members that were members on August 31, 1975, shall be deemed

to include a member that accepted membership after that date pursuant

to a resolution of the Board of Governors adopted before that date.

(h) Transactions of the Fund means exchanges of monetary assets by

the Fund for other monetary assets. Operations of the Fund means other

uses or receipts of monetary assets by the Fund.

(i) Transactions in special drawing rights means exchanges of special

drawing rights for other monetary assets. Operations in special drawing

rights means other uses of special drawing rights.

A rticle XXXI

Final Provisions

Section 1. Entry into force

This Agreement shall enter into force when it has been signed on

behalf of governments having sixty-five percent of the total of the quo-

tas set forth in Schedule A and when the instruments referred to in Sec-

tion 2(a) of this Article have been deposited on their behalf, but in no

event shall this Agreement enter into force before May 1, 1945.

Section 2. Signature

(a) Each government on whose behalf this Agreement is signed shall

deposit with the Government of the United States of America an instru-

ment 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.

Art. XXXI, Sec. 2

XXXI. Final Provisions

(b) Each country shall become a member of the Fund as from the date

of the deposit on its behalf of the instrument referred to in (a) above,

except that no country shall become a member before this Agreement

enters into force under Section 1 of this Article.

(c) The Government of the United States of America shall inform the

governments of all countries whose names are set forth in Schedule A,

and the governments of all countries whose membership is approved in

accordance with Article II, Section 2, of all signatures of this Agreement

and of the deposit of all instruments referred to in (a) above.

(d ) At the time this Agreement is signed on its behalf, each govern-

ment shall transmit to the Government of the United States of America

one one-hundredth of one percent of its total subscription in gold or

United States dollars for the purpose of meeting administrative expenses

of the Fund. The Government of the United States of America shall hold

such funds in a special deposit account and shall transmit them to the

Board of Governors of the Fund when the initial meeting has been

called. If this Agreement has not come into force by December 31,

1945, the Government of the United States of America shall return such

funds to the governments that transmitted them.

(e) This Agreement shall remain open for signature at Washington on

behalf of the governments of the countries whose names are set forth in

Schedule A until December 31, 1945.

( f ) After December 31, 1945, this Agreement shall be open for sig

nature on behalf of the government of any country whose membership

has been approved in accordance with Article II, Section 2.

(g) By their signature of this Agreement, all governments accept it

both on their own behalf and in respect of all their colonies, overseas

territories, all territories under their protection, suzerainty, or authority,

and all territories in respect of which they exercise a mandate.

(h) Subsection (d) above shall come into force with regard to each

signatory government as from the date of its signature.

[The signature and depositary clause reproduced below followed the

text of Article XX in the original Articles of Agreement]

Art. XXXI, Sec. 2

XXXI. Final Provisions

Done at Washington, in a single copy which shall remain deposited

in the archives of the Government of the United States of America,

which shall transmit certified copies to all governments whose names

are set forth in Schedule A and to all governments whose membership

is approved in accordance with Article II, Section 2.

Sched. A

A. Quotas

S chedule A

Quotas

(In millions of United States dollars)

Australia��200

India��400

Belgium��225

Iran��25

Bolivia��10

Iraq��8

Brazil��150

Liberia�� .5

Canada��300

Luxembourg ��10

Chile��50

Mexico��90

China��550

Netherlands��275

Colombia��50

New Zealand��50

Costa Rica��5

Nicaragua��2

Cuba ��50

Norway ��50

Czechoslovakia��125

Panama �� .5

Denmark*��*

Paraguay ��2

Dominican Republic��5

Peru��25

Ecuador��5

Philippine Commonwealth �� 15

Egypt��45

Poland ��125

El Salvador�� 2.5

Union of South Africa��100

Ethiopia ��6

Union of Soviet Socialist

France�� 450

Republics��1200

Greece��40

United Kingdom��1300

Guatemala��5

United States��2750

Haiti ��5

Uruguay��15

Honduras�� 2.5

Venezuela��15

Iceland��1

Yugoslavia��60

*The quota of Denmark shall be determined by the Fund after the Danish Government

has declared its readiness to sign this Agreement but before signature takes place.

Sched. B

B. Transitional Provisions

S chedule B

Transitional Provisions with Respect to Repurchase, Payment of

Additional Subscriptions, Gold, and Certain Operational Matters

1. Repurchase obligations that have accrued pursuant to Article V,

Section 7(b) before the date of the second amendment of this Agreement

and that remain undischarged at that date shall be discharged not later

than the date or dates at which the obligations had to be discharged in

accordance with the provisions of this Agreement before the second

amendment.

2. A member shall discharge with special drawing rights any obliga-

tion to pay gold to the Fund in repurchase or as a subscription that is

outstanding at the date of the second amendment of this Agreement, but

the Fund may prescribe that these payments may be made in whole or

in part in the currencies of other members specified by the Fund. A

nonparticipant shall discharge an obligation that must be paid in special

drawing rights pursuant to this provision with the currencies of other

members specified by the Fund.

3. For the purposes of 2 above 0.888 671 gram of fine gold shall be

equivalent to one special drawing right, and the amount of currency

payable under 2 above shall be determined on that basis and on the basis

of the value of the currency in terms of the special drawing right at the

date of discharge.

4. A member’s currency held by the Fund in excess of seventy-five

percent of the member’s quota at the date of the second amendment of

this Agreement and not subject to repurchase under 1 above shall be

repurchased in accordance with the following rules

(i) Holdings that resulted from a purchase shall be repur-

chased in accordance with the policy on the use of the

Fund’s general resources under which the purchase was

made.

(ii) Other holdings shall be repurchased not later than four

years after the date of the second amendment of this

Agreement.

B. Transitional Provisions

5. Repurchases under 1 above that are not subject to 2 above, repur-

chases under 4 above, and any specification of currencies under 2 above

shall be in accordance with Article V, Section 7(i).

6. All rules and regulations, rates, procedures, and decisions in effect

at the date of the second amendment of this Agreement shall remain in

effect until they are changed in accordance with the provisions of this

Agreement.

7. To the extent that arrangements equivalent in effect to (a) and (b)

below have not been completed before the date of the second amend-

ment of this Agreement, the Fund shall

(a) sell up to 25 million ounces of fine gold held by it on

August 31, 1975, to those members that were members on

that date and that agree to buy it, in proportion to their

quotas on that date. The sale to a member under this

subparagraph (a) shall be made in exchange for its cur-

rency and at a price equivalent at the time of sale to one

special drawing right per 0.888 671 gram of fine gold, and

(b) sell up to 25 million ounces of fine gold held by it on

August 31, 1975, for the benefit of developing members

that were members on that date, provided, however, that

the part of any profits or surplus value of the gold that

corresponds to the proportion of such a member’s quota

on August 31, 1975, to the total of the quotas of all mem-

bers on that date shall be transferred directly to each such

member. The requirements under Article V, Section 12(c)

that the Fund consult a member, obtain a member’s con-

currence, or exchange a member’s currency for the curren

cies of other members in certain circumstances shall apply

with respect to currency received by the Fund as a result

of sales of gold under this provision, other than sales to

a member in return for its own currency, and placed in

the General Resources Account.

Upon the sale of gold under this paragraph 7, an amount of the pro-

ceeds in the currencies received equivalent at the time of sale to one

special drawing right per 0.888 671 gram of fine gold shall be placed in

the General Resources Account and other assets held by the Fund under

arrangements pursuant to (b) above shall be held separately from the

Sched. C

C. Par Values

general resources of the Fund. Assets that remain subject to disposition

by the Fund upon termination of arrangements pursuant to (b) above

shall be transferred to the Special Disbursement Account.

S chedule C

Par Values

1. The Fund shall notify members that par values may be estab-

lished for the purposes of this Agreement, in accordance with Article

IV, Sections 1, 3, 4, and 5 and this Schedule, in terms of the special

drawing right, or in terms of such other common denominator as is

prescribed by the Fund. The common denominator shall not be gold or

a currency.

2. A member that intends to establish a par value for its currency shall

propose a par value to the Fund within a reasonable time after notice is

given under 1 above.

3. Any member that does not intend to establish a par value for its

currency under 1 above shall consult with the Fund and ensure that its

exchange arrangements are consistent with the purposes of the Fund and

are adequate to fulfill its obligations under Article IV, Section 1.

4. The Fund shall concur in or object to a proposed par value within

a reasonable period after receipt of the proposal. A proposed par value

shall not take effect for the purposes of this Agreement if the Fund

objects to it, and the member shall be subject to 3 above. The Fund shall

not object because of the domestic social or political policies of the

member proposing the par value.

5. Each member that has a par value for its currency undertakes to

apply appropriate measures consistent with this Agreement in order to

ensure that the maximum and the minimum rates for spot exchange

transactions taking place within its territories between its currency and

the currencies of other members maintaining par values shall not differ

from parity by more than four and one-half percent or by such other

margin or margins as the Fund may adopt by an eighty-five percent

majority of the total voting power.

Sched. C

C. Par Values

6. A member shall not propose a change in the par value of its cur-

rency except to correct, or prevent the emergence of, a fundamental

disequilibrium. A change may be made only on the proposal of the

member and only after consultation with the Fund.

7. When a change is proposed, the Fund shall concur in or object to

the proposed par value within a reasonable period after receipt of the

proposal. The Fund shall concur if it is satisfied that the change is

necessary to correct, or prevent the emergence of, a fundamental dis-

equilibrium. The Fund shall not object because of the domestic social

or political policies of the member proposing the change. A proposed

change in par value shall not take effect for the purposes of this Agree-

ment if the Fund objects to it. If a member changes the par value of its

currency despite the objection of the Fund, the member shall be subject

to Article XXVI, Section 2. Maintenance of an unrealistic par value by

a member shall be discouraged by the Fund.

8. The par value of a member’s currency established under this

Agreement shall cease to exist for the purposes of this Agreement if

the member informs the Fund that it intends to terminate the par value.

The Fund may object to the termination of a par value by a decision

taken by an eighty-five percent majority of the total voting power. If

a member terminates a par value for its currency despite the objection

of the Fund, the member shall be subject to Article XXVI, Section 2.

A par value established under this Agreement shall cease to exist for

the purposes of this Agreement if the member terminates the par value

despite the objection of the Fund, or if the Fund finds that the member

does not maintain rates for a substantial volume of exchange transac-

tions in accordance with 5 above, provided that the Fund may not

make such finding unless it has consulted the member and given it

sixty days notice of the Fund’s intention to consider whether to make

a finding.

9. If the par value of the currency of a member has ceased to exist

under 8 above, the member shall consult with the Fund and ensure that

its exchange arrangements are consistent with the purposes of the Fund

and are adequate to fulfill its obligations under Article IV, Section 1.

10. A member for whose currency the par value has ceased to exist

under 8 above may, at any time, propose a new par value for its

currency.

Sched. D

D. Council

11. Notwithstanding 6 above, the Fund, by a seventy percent major-

ity of the total voting power, may make uniform proportionate changes

in all par values if the special drawing right is the common denominator

and the changes will not affect the value of the special drawing right.

The par value of a member’s currency shall, however, not be changed

under this provision if, within seven days after the Fund’s action, the

member informs the Fund that it does not wish the par value of its cur-

rency to be changed by such action.

S chedule D

Council

1. (a) Each member or group of members that has the number

of votes allotted to it or them cast by an Executive

Director shall appoint to the Council one Councillor,

who shall be a Governor, Minister in the government of

a member, or person of comparable rank, and may

appoint not more than seven Associates. The Board of

Governors may change, by an eighty-five percent major-

ity of the total voting power, the number of Associates

who may be appointed. A Councillor or Associate shall

serve until a new appointment is made or until the next

regular election of Executive Directors, whichever shall

occur sooner.

(b) Executive Directors, or in their absence their Alternates,

and Associates shall be entitled to attend meetings of the

Council, unless the Council decides to hold a restricted

session. Each member and each group of members that

appoints a Councillor shall appoint an Alternate who shall

be entitled to attend a meeting of the Council when the

Councillor is not present, and shall have full power to act

for the Councillor.

2. (a) The Council shall supervise the management and adapta-

tion of the international monetary system, including the

continuing operation of the adjustment process and devel-

opments in global liquidity, and in this connection shall

review developments in the transfer of real resources to

developing countries.

D. Council

(b) The Council shall consider proposals pursuant to Article

XXVIII(a) to amend the Articles of Agreement.

3. (a) The Board of Governors may delegate to the Council

authority to exercise any powers of the Board of Governors

except the powers conferred directly by this Agreement

on the Board of Governors.

(b) Each Councillor shall be entitled to cast the number of

votes allotted under Article XII, Section 5 to the member

or group of members appointing him. A Councillor

appointed by a group of members may cast separately the

votes allotted to each member in the group. If the number

of votes allotted to a member cannot be cast by an Execu-

tive Director, the member may make arrangements with

a Councillor for casting the number of votes allotted to

the member.

(c) The Council shall not take any action pursuant to powers

delegated by the Board of Governors that is inconsistent

with any action taken by the Board of Governors and the

Executive Board shall not take any action pursuant to

powers delegated by the Board of Governors that is incon-

sistent with any action taken by either the Board of Gov-

ernors or the Council.

4. The Council shall select a Councillor as chairman, shall adopt

regulations as may be necessary or appropriate to perform its functions,

and shall determine any aspect of its procedure. The Council shall hold

such meetings as may be provided for by the Council or called by the

Executive Board.

5. (a) The Council shall have powers corresponding to those of

the Executive Board under the following provisions

Article XII, Section 2(c), ( f ), (g), and ( j); Article XVIII,

Section 4(a) and Section 4(c)(iv); Article XXIII, Section

1; and Article XXVII, Section l(a).

(b) For decisions by the Council on matters pertaining

exclusively to the Special Drawing Rights Department

only Councillors appointed by a member that is a par-

ticipant or a group of members at least one member of

which is a participant shall be entitled to vote. Each of

Sched. E

E. Transitional Provisions with Respect to Executive Directors

these Councillors shall be entitled to cast the number of

votes allotted to the member which is a participant that

appointed him or to the members that are participants in

the group of members that appointed him, and may cast

the votes allotted to a participant with which arrange-

ments have been made pursuant to the last sentence of

3(b) above.

(c) The Council may by regulation establish a procedure

whereby the Executive Board may obtain a vote of the

Councillors on a specific question without a meeting of

the Council when in the judgment of the Executive Board

an action must be taken by the Council which should not

be postponed until the next meeting of the Council and

which does not warrant the calling of a special

meeting.

(d ) Article IX, Section 8 shall apply to Councillors, their

Alternates, and Associates, and to any other person entitled

to attend a meeting of the Council.

(e) When an Executive Director is entitled to cast the number

of votes allotted to a member pursuant to Article XII,

Section 3(i)(iii), the Councillor appointed by the group

whose members elected such Executive Director shall be

entitled to vote and cast the number of votes allotted to

such member. The member shall be deemed to have par-

ticipated in the appointment of the Councillor entitled to

vote and cast the number of votes allotted to the

member.

6. The first sentence of Article XII, Section 2(a) shall be deemed to

include a reference to the Council.

S chedule E

Transitional Provisions with Respect to Executive Directors

1. Upon the entry into force of this Schedule

(a) Each Executive Director who was appointed pursuant to

former Article XII, Sections 3(b)(i) or 3(c), and was in

F. Designation

office immediately prior to the entry into force of this

Schedule, shall be deemed to have been elected by the

member who appointed him; and

(b) Each Executive Director who cast the number of votes of

a member pursuant to former Article XII, Section 3(i)(ii)

immediately prior to the entry into force of this Schedule,

shall be deemed to have been elected by such a member.

S chedule F

Designation

During the first basic period the rules for designation shall be as

(a) Participants subject to designation under Article XIX,

Section 5(a)(i) shall be designated for such amounts as

will promote over time equality in the ratios of the par-

ticipants’ holdings of special drawing rights in excess of

their net cumulative allocations to their official holdings

of gold and foreign exchange.

(b) The formula to give effect to (a) above shall be such that

participants subject to designation shall be designated

(i) in proportion to their official holdings of gold and

foreign exchange when the ratios described in (a)

above are equal; and

(ii) in such manner as gradually to reduce the difference

between the ratios described in (a) above that are low

and the ratios that are high.

Sched. G

G. Reconstitution

S chedule G

Reconstitution

1. During the first basic period the rules for reconstitution shall be as

(a)

(i) A participant shall so use and reconstitute its holdings of

special drawing rights that, five years after the first allo-

cation and at the end of each calendar quarter thereafter,

the average of its total daily holdings of special drawing

rights over the most recent five-year period will be not

less than thirty percent of the average of its daily net

cumulative allocation of special drawing rights over the

same period.

(ii) Two years after the first allocation and at the end of each

calendar month thereafter the Fund shall make calculations

for each participant so as to ascertain whether and to what

extent the participant would need to acquire special draw-

ing rights between the date of the calculation and the end

of any five-year period in order to comply with the require-

ment in (a)(i) above. The Fund shall adopt regulations

with respect to the bases on which these calculations shall

be made and with respect to the timing of the designation

of participants under Article XIX, Section 5(a)(ii), in order

to assist them to comply with the requirement in (a)(i)

above.

(iii) The Fund shall give special notice to a participant when

the calculations under (a)(ii) above indicate that it is

unlikely that the participant will be able to comply with

the requirement in (a)(i) above unless it ceases to use

special drawing rights for the rest of the period for which

the calculation was made under (a)(ii) above.

(iv) A participant that needs to acquire special drawing rights

to fulfill this obligation shall be obligated and entitled to

obtain them, for currency acceptable to the Fund, in a

transaction with the Fund conducted through the General

Resources Account. If sufficient special drawing rights to

fulfill this obligation cannot be obtained in this way, the

Sched. H

H. Termination of Participation

participant shall be obligated and entitled to obtain them

with a freely usable currency from a participant which

the Fund shall specify.

(b)

Participants shall also pay due regard to the desirability of

pursuing over time a balanced relationship between their

holdings of special drawing rights and their other reserves.

2. If a participant fails to comply with the rules for reconstitution, the

Fund shall determine whether or not the circumstances justify suspen-

sion under Article XXIII, Section 2(b).

S chedule H

Termination of Participation

1. If the obligation remaining after the setoff under Article XXIV,

Section 2(b) is to the terminating participant and agreement on settle

ment between the Fund and the terminating participant is not reached

within six months of the date of termination, the Fund shall redeem this

balance of special drawing rights in equal half-yearly installments

within a maximum of five years of the date of termination. The Fund

shall redeem this balance as it may determine, either (a) by the payment

to the terminating participant of the amounts provided by the remaining

participants to the Fund in accordance with Article XXIV, Section 5, or

(b) by permitting the terminating participant to use its special drawing

rights to obtain its own currency or a freely usable currency from a

participant specified by the Fund, the General Resources Account, or

any other holder.

2. If the obligation remaining after the setoff under Article XXIV,

Section 2(b) is to the Fund and agreement on settlement is not reached

within six months of the date of termination, the terminating participant

shall discharge this obligation in equal half-yearly installments within

three years of the date of termination or within such longer period

as may be fixed by the Fund. The terminating participant shall dis-

charge this obligation, as the Fund may determine, either (a) by the

payment to the Fund of a freely usable currency, or (b) by obtaining

special drawing rights, in accordance with Article XXIV, Section 6,

from the General Resources Account or in agreement with a

Sched. I

I. Administration of Liquidation of the Special Drawing Rights Department

participant specified by the Fund or from any other holder, and the setoff

of these special drawing rights against the installment due.

3. Installments under either 1 or 2 above shall fall due six months

after the date of termination and at intervals of six months thereafter.

4. In the event of the Special Drawing Rights Department going into

liquidation under Article XXV within six months of the date a partici-

pant terminates its participation, the settlement between the Fund and

that government shall be made in accordance with Article XXV and

Schedule I.

S chedule I

Administration of Liquidation of the

Special Drawing Rights Department

1. In the event of liquidation of the Special Drawing Rights Depart-

ment, participants shall discharge their obligations to the Fund in ten

half-yearly installments, or in such longer period as the Fund may

decide is needed, in a freely usable currency and the currencies of par-

ticipants holding special drawing rights to be redeemed in any install-

ment to the extent of such redemption, as determined by the Fund. The

first half-yearly payment shall be made six months after the decision to

liquidate the Special Drawing Rights Department.

2. If it is decided to liquidate the Fund within six months of the date

of the decision to liquidate the Special Drawing Rights Department, the

liquidation of the Special Drawing Rights Department shall not proceed

until special drawing rights held in the General Resources Account have

been distributed in accordance with the following rule

After the distributions made under 2(a) and (b) of Sched-

ule K, the Fund shall apportion its special drawing rights

held in the General Resources Account among all mem-

bers that are participants in proportion to the amounts due

to each participant after the distribution under 2(b). To

determine the amount due to each member for the purpose

of apportioning the remainder of its holdings of each cur-

rency under 2(d) of Schedule K, the Fund shall deduct the

distribution of special drawing rights made under this rule.

I. Administration of Liquidation of the Special Drawing Rights Department

3. With the amounts received under 1 above, the Fund shall redeem

special drawing rights held by holders in the following manner and

(a) Special drawing rights held by governments that have

terminated their participation more than six months before

the date the Board of Governors decides to liquidate the

Special Drawing Rights Department shall be redeemed in

accordance with the terms of any agreement under Article

XXIV or Schedule H.

(b) Special drawing rights held by holders that are not par

ticipants shall be redeemed before those held by partici

pants, and shall be redeemed in proportion to the amount

held by each holder.

(c) The Fund shall determine the proportion of special draw-

ing rights held by each participant in relation to its net

cumulative allocation. The Fund shall first redeem special

drawing rights from the participants with the highest pro-

portion until this proportion is reduced to that of the

second highest proportion; the Fund shall then redeem

the special drawing rights held by these participants in

accordance with their net cumulative allocations until the

proportions are reduced to that of the third highest propor-

tion; and this process shall be continued until the amount

available for redemption is exhausted.

4. Any amount that a participant will be entitled to receive in redemp-

tion under 3 above shall be set off against any amount to be paid under

5. During liquidation the Fund shall pay interest on the amount of

special drawing rights held by holders, and each participant shall pay

charges on the net cumulative allocation of special drawing rights to

it less the amount of any payments made in accordance with 1 above.

The rates of interest and charges and the time of payment shall be

determined by the Fund. Payments of interest and charges shall be

made in special drawing rights to the extent possible. A participant

that does not hold sufficient special drawing rights to meet any

charges shall make the payment with a currency specified by the

Fund. Special drawing rights received as charges in amounts needed

Sched. J

J. Settlement of Accounts with Members Withdrawing

for administrative expenses shall not be used for the payment of interest,

but shall be transferred to the Fund and shall be redeemed first and with

the currencies used by the Fund to meet its expenses.

6. While a participant is in default with respect to any payment

required by 1 or 5 above, no amounts shall be paid to it in accordance

with 3 or 5 above.

7. If after the final payments have been made to participants each

participant not in default does not hold special drawing rights in the

same proportion to its net cumulative allocation, those participants

holding a lower proportion shall purchase from those holding a higher

proportion such amounts in accordance with arrangements made by

the Fund as will make the proportion of their holdings of special draw-

ing rights the same. Each participant in default shall pay to the Fund

its own currency in an amount equal to its default. The Fund shall

apportion this currency and residual claims among participants in pro-

portion to the amount of special drawing rights held by each and these

special drawing rights shall be cancelled. The Fund shall then close

the books of the Special Drawing Rights Department and all of the

Fund’s liabilities arising from the allocations of special drawing rights

and the administration of the Special Drawing Rights Department

shall cease.

8. Each participant whose currency is distributed to other participants

under this Schedule guarantees the unrestricted use of such currency at

all times for the purchase of goods or for payments of sums due to it or

to persons in its territories. Each participant so obligated agrees to com-

pensate other participants for any loss resulting from the difference

between the value at which the Fund distributed its currency under this

Schedule and the value realized by such participants on disposal of its

currency.

S chedule J

Settlement of Accounts with Members Withdrawing

1. The settlement of accounts with respect to the General Resources

Account shall be made according to 1 to 6 of this Schedule. The Fund

shall be obligated to pay to a member withdrawing an amount equal

Sched. J

J. Settlement of Accounts with Members Withdrawing

to its quota, plus any other amounts due to it from the Fund, less any

amounts due to the Fund, including charges accruing after the date of

its withdrawal; but no payment shall be made until six months after the

date of withdrawal. Payments shall be made in the currency of the with-

drawing member, and for this purpose the Fund may transfer to the

General Resources Account holdings of the member’s currency in the

Special Disbursement Account or in the Investment Account in

exchange for an equivalent amount of the currencies of other members

in the General Resources Account selected by the Fund with their

concurrence.

2. If the Fund’s holdings of the currency of the withdrawing mem-

ber are not sufficient to pay the net amount due from the Fund, the

balance shall be paid in a freely usable currency, or in such other

manner as may be agreed. If the Fund and the withdrawing member

do not reach agreement within six months of the date of withdrawal,

the currency in question held by the Fund shall be paid forthwith to

the withdrawing member. Any balance due shall be paid in ten half

yearly installments during the ensuing five years. Each such install-

ment shall be paid, at the option of the Fund, either in the currency of

the withdrawing member acquired after its withdrawal or in a freely

usable currency.

3. If the Fund fails to meet any installment which is due in accor

dance with the preceding paragraphs, the withdrawing member shall be

entitled to require the Fund to pay the installment in any currency held

by the Fund with the exception of any currency which has been declared

scarce under Article VII, Section 3.

4. If the Fund’s holdings of the currency of a withdrawing member

exceed the amount due to it, and if agreement on the method of set-

tling accounts is not reached within six months of the date of with-

drawal, the former member shall be obligated to redeem such excess

currency in a freely usable currency. Redemption shall be made at the

rates at which the Fund would sell such currencies at the time of with-

drawal from the Fund. The withdrawing member shall complete

redemption within five years of the date of withdrawal, or within such

longer period as may be fixed by the Fund, but shall not be required to

redeem in any half-yearly period more than one-tenth of the Fund’s

excess holdings of its currency at the date of withdrawal plus further

acquisitions of the currency during such half-yearly period. If the

Sched. J

J. Settlement of Accounts with Members Withdrawing

withdrawing member does not fulfill this obligation, the Fund may in

an orderly manner liquidate in any market the amount of currency which

should have been redeemed.

5. Any member desiring to obtain the currency of a member which

has withdrawn shall acquire it by purchase from the Fund, to the extent

that such member has access to the general resources of the Fund and

that such currency is available under 4 above.

6. The withdrawing member guarantees the unrestricted use at all

times of the currency disposed of under 4 and 5 above for the purchase

of goods or for payment of sums due to it or to persons within its ter-

ritories. It shall compensate the Fund for any loss resulting from the

difference between the value of its currency in terms of the special

drawing right on the date of withdrawal and the value realized in terms

of the special drawing right by the Fund on disposal under 4 and 5

above.

7. If the withdrawing member is indebted to the Fund as the result of

transactions conducted through the Special Disbursement Account

under Article V, Section 12( f )(ii), the indebtedness shall be discharged

in accordance with the terms of the indebtedness.

8. If the Fund holds the withdrawing member’s currency in the Spe-

cial Disbursement Account or in the Investment Account, the Fund may

in an orderly manner exchange in any market for the currencies of mem-

bers the amount of the currency of the withdrawing member remaining

in each account after use under 1 above, and the proceeds of the

exchange of the amount in each account shall be kept in that account.

Paragraph 5 above and the first sentence of 6 above shall apply to the

withdrawing member’s currency.

9. If the Fund holds obligations of the withdrawing member in the

Special Disbursement Account pursuant to Article V, Section 12(h), or

in the Investment Account, the Fund may hold them until the date of

maturity or dispose of them sooner. Paragraph 8 above shall apply to

the proceeds of such disinvestment.

10. In the event of the Fund going into liquidation under Article

XXVII, Section 2 within six months of the date on which the member

withdraws, the accounts between the Fund and that government

K. Administration of Liquidation

shall be settled in accordance with Article XXVII, Section 2 and Sched-

S chedule K

Administration of Liquidation

1. In the event of liquidation the liabilities of the Fund other than the

repayment of subscriptions shall have priority in the distribution of the

assets of the Fund. In meeting each such liability the Fund shall use its

assets in the following order

(a) the currency in which the liability is payable;

(b) gold;

(c) all other currencies in proportion, so far as may be prac

ticable, to the quotas of the members.

2. After the discharge of the Fund’s liabilities in accordance with 1

above, the balance of the Fund’s assets shall be distributed and appor-

tioned as follows

(a) (i) The Fund shall calculate the value of gold held on

August 31, 1975 that it continues to hold on the date

of the decision to liquidate. The calculation shall be

made in accordance with 9 below and also on the

basis of one special drawing right per 0.888 671 gram

of fine gold on the date of liquidation. Gold equivalent

to the excess of the former value over the latter shall

be distributed to those members that were members

on August 31, 1975 in proportion to their quotas on

that date.

(ii) The Fund shall distribute any assets held in the Special

Disbursement Account on the date of the decision to

liquidate to those members that were members on

August 31, 1975 in proportion to their quotas on that

date. Each type of asset shall be distributed propor-

tionately to members.

(b) The Fund shall distribute its remaining holdings of gold

among the members whose currencies are held by the

Sched. K

K. Administration of Liquidation

Fund in amounts less than their quotas in the proportions,

but not in excess of, the amounts by which their quotas

exceed the Fund’s holdings of their currencies.

(c) The Fund shall distribute to each member one-half the

Fund’s holdings of its currency but such distribution shall

not exceed fifty percent of its quota.

(d ) The Fund shall apportion the remainder of its holdings

of gold and each currency

(i) among all members in proportion to, but not in excess

of, the amounts due to each member after the distribu-

tions under (b) and (c) above, provided that distribu-

tion under 2(a) above shall not be taken into account

for determining the amounts due, and

(ii) any excess holdings of gold and currency among all

the members in proportion to their quotas.

3. Each member shall redeem the holdings of its currency appor

tioned to other members under 2(d ) above, and shall agree with the Fund

within three months after a decision to liquidate upon an orderly proce-

dure for such redemption.

4. If a member has not reached agreement with the Fund within the

three-month period referred to in 3 above, the Fund shall use the cur-

rencies of other members apportioned to that member under 2(d ) above

to redeem the currency of that member apportioned to other members.

Each currency apportioned to a member which has not reached agree-

ment shall be used, so far as possible, to redeem its currency appor-

tioned to the members which have made agreements with the Fund

under 3 above.

5. If a member has reached agreement with the Fund in accordance

with 3 above, the Fund shall use the currencies of other members appor-

tioned to that member under 2(d ) above to redeem the currency of that

member apportioned to other members which have made agreements

with the Fund under 3 above. Each amount so redeemed shall be

redeemed in the currency of the member to which it was apportioned.

6. After carrying out the steps in the preceding paragraphs, the Fund

shall pay to each member the remaining currencies held for its account.

Sched. L

L. Suspension of Voting Rights

7. Each member whose currency has been distributed to other mem-

bers under 6 above shall redeem such currency in the currency of the

member requesting redemption, or in such other manner as may be

agreed between them. If the members involved do not otherwise agree,

the member obligated to redeem shall complete redemption within five

years of the date of distribution, but shall not be required to redeem in

any half-yearly period more than one-tenth of the amount distributed to

each other member. If the member does not fulfill this obligation, the

amount of currency which should have been redeemed may be liqui-

dated in an orderly manner in any market.

8. Each member whose currency has been distributed to other mem-

bers under 6 above guarantees the unrestricted use of such currency at

all times for the purchase of goods or for payment of sums due to it or to

persons in its territories. Each member so obligated agrees to compensate

other members for any loss resulting from the difference between the

value of its currency in terms of the special drawing right on the date of

the decision to liquidate the Fund and the value in terms of the special

drawing right realized by such members on disposal of its currency.

9. The Fund shall determine the value of gold under this Schedule on

the basis of prices in the market.

10. For the purposes of this Schedule, quotas shall be deemed to have

been increased to the full extent to which they could have been increased

in accordance with Article III, Section 2(b) of this Agreement.

S chedule L

Suspension of Voting Rights

In the case of a suspension of voting rights of a member under Article

XXVI, Section 2(b), the following provisions shall apply

1. The member shall not

(a) participate in the adoption of a proposed amendment of

this Agreement, or be counted in the total number of

members for that purpose, except in the case of an

amendment requiring acceptance by all members under

Sched. L

L. Suspension of Voting Rights

Article XXVIII(b) or pertaining exclusively to the Special

Drawing Rights Department;

(b) appoint a Governor or Alternate Governor, appoint or

participate in the appointment of a Councillor or Alternate

Councillor, or elect or participate in the election of an

Executive Director.

2. The number of votes allotted to the member shall not be cast in

any organ of the Fund. They shall not be included in the calculation of

the total voting power, except for purposes of: (a) the acceptance of a

proposed amendment pertaining exclusively to the Special Drawing

Rights Department and (b) the calculation of basic votes pursuant to

Article XII, Section 5(a)(i).

3. (a) The Governor and Alternate Governor appointed by the

member shall cease to hold office.

(b) The Councillor and Alternate Councillor appointed by

the member, or in whose appointment the member has

participated, shall cease to hold office, provided that, if

such Councillor was entitled to cast the number of votes

allotted to other members whose voting rights have not

been suspended, another Councillor and Alternate Coun-

cillor shall be appointed by such other members under

Schedule D, and, pending such appointment, the Coun

cillor and Alternate Councillor shall continue to hold

office, but for a maximum of thirty days from the date

of suspension.

(c) The Executive Director elected by the member, or in whose

election the member has participated, shall cease to hold

office, unless such Executive Director was entitled to cast

the number of votes allotted to other members whose vot-

ing rights have not been suspended. In the latter case

(i) if more than ninety days remain before the next

regular election of Executive Directors, another

Executive Director shall be elected for the remain-

der of the term by such other members by a

majority of the votes cast; pending such election,

Sched. M

M. Special One-Time Allocation of Special Drawing Rights

the Executive Director shall continue to hold office,

but for a maximum of thirty days from the date of

suspension;

(ii) if not more than ninety days remain before the next

regular election of Executive Directors, the Executive

Director shall continue to hold office for the remainder

of the term.

4. The member shall be entitled to send a representative to attend any

meeting of the Board of Governors, the Council, or the Executive

Board, but not any meeting of their committees, when a request made

by, or a matter particularly affecting, the member is under

consideration.

S chedule M

Special One-Time Allocation of Special Drawing Rights

1. Subject to 4 below, each member that, as of September 19, 1997,

is a participant in the Special Drawing Rights Department shall, on the

30th day following the effective date of the fourth amendment of this

Agreement, receive an allocation of special drawing rights in an amount

that will result in its net cumulative allocation of special drawing rights

being equal to 29.315788813 percent of its quota as of September 19,

1997, provided that, for participants whose quotas have not been

adjusted as proposed in Resolution No. 45–2 of the Board of Governors,

calculations shall be made on the basis of the quotas proposed in that

resolution.

2. (a) Subject to 4 below, each country that becomes a partici-

pant in the Special Drawing Rights Department after

September 19, 1997, but within three months of the date

of its membership in the Fund shall receive an allocation

of special drawing rights in an amount calculated in

accordance with (b) and (c) below on the 30th day fol-

lowing the later of: (i) the date on which the new member

becomes a participant in the Special Drawing Rights

Department, or (ii) the effective date of the fourth amend-

ment of this Agreement.

Sched. M

M. Special One-Time Allocation of Special Drawing Rights

(b) For the purposes of (a) above, each participant shall

receive an amount of special drawing rights that will result

in such participant’s net cumulative allocation being equal

to 29.315788813 percent of its quota as of the date on

which the member becomes a participant in the Special

Drawing Rights Department, as adjusted

(i) first, by multiplying 29.315788813 percent by the ratio

of the total of quotas, as calculated under 1 above, of

the participants described in (c) below to the total of

quotas of such participants as of the date on which

the member became a participant in the Special Draw-

ing Rights Department, and

(ii) second, by multiplying the product of (i) above by

the ratio of the total of the sum of the net cumulative

allocations of special drawing rights received under

Article XVIII of the participants described in (c) below

as of the date on which the member became a par-

ticipant in the Special Drawing Rights Department

and the allocations received by such participants under

1 above to the total of the sum of the net cumulative

allocations of special drawing rights received under

Article XVIII of such participants as of September 19,

1997, and the allocations received by such participants

under 1 above.

(c) For the purposes of the adjustments to be made under

(b) above, the participants in the Special Drawing Rights

Department shall be members that are participants as of

September 19, 1997, and (i) continue to be participants

in the Special Drawing Rights Department as of the date

on which the member became a participant in the Special

Drawing Rights Department, and (ii) have received all

allocations made by the Fund after September 19, 1997.

3. (a) Subject to 4 below, if the Federal Republic of Yugoslavia

(Serbia/Montenegro) succeeds to the membership in the

Fund and the participation in the Special Drawing Rights

Department of the former Socialist Federal Republic of

Yugoslavia in accordance with the terms and conditions

of Executive Board Decision No. 10237-(92/150),

M. Special One-Time Allocation of Special Drawing Rights

adopted December 14, 1992, it shall receive an allocation

of special drawing rights in an amount calculated in

accordance with (b) below on the 30th day following the

later of: (i) the date on which the Federal Republic of

Yugoslavia (Serbia/Montenegro) succeeds to membership

in the Fund and participation in the Special Drawing

Rights Department in accordance with the terms and con-

ditions of Executive Board Decision No. 10237-(92/150),

or (ii) the effective date of the fourth amendment of this

Agreement.

(b) For the purposes of (a) above, the Federal Republic of

Yugoslavia (Serbia/Montenegro) shall receive an amount

of special drawing rights that will result in its net cumula-

tive allocation being equal to 29.315788813 percent of

the quota proposed to it under paragraph 3(c) of Executive

Board Decision No. 10237-(92/150), as adjusted in accor-

dance with 2(b)(ii) and (c) above as of the date on which

the Federal Republic of Yugoslavia (Serbia/Montenegro)

qualifies for an allocation under (a) above.

4. The Fund shall not allocate special drawing rights under this

Schedule to those participants that have notified the Fund in writing

prior to the date of the allocation of their desire not to receive the

5. (a) If, at the time an allocation is made to a participant under

1, 2, or 3 above, the participant has overdue obligations

to the Fund, the special drawing rights so allocated shall

be deposited and held in an escrow account within the

Special Drawing Rights Department and shall be released

to the participant upon discharge of all its overdue obliga-

tions to the Fund.

(b) Special drawing rights being held in an escrow account

shall not be available for any use and shall not be included

in any calculations of allocations or holdings of special

drawing rights for the purposes of the Articles, except

for calculations under this Schedule. If special drawing

rights allocated to a participant are held in an escrow

account when the participant terminates its participation

Sched. M

M. Special One-Time Allocation of Special Drawing Rights

in the Special Drawing Rights Department or when it is

decided to liquidate the Special Drawing Rights Depart-

ment, such special drawing rights shall be canceled.

(c) For purposes of this paragraph, overdue obligations to the

Fund consist of overdue repurchases and charges in the

General Resources Account, overdue principal and interest

on loans in the Special Disbursement Account, overdue

charges and assessments in the Special Drawing Rights

Department, and overdue liabilities to the Fund as trustee.

(d) Except for the provisions of this paragraph, the principle

of separation between the General Department and the

Special Drawing Rights Department and the unconditional

character of special drawing rights as reserve assets shall

be maintained.

INDE X

I ndex

Accounts (see also General Resources Account; Investment Account;

Special Disbursement Account)

Audited statements, annual, Art. XII, Sec. 7(a)

Names of, Introd. Art.

Settlement with withdrawing members, Art. XXVI, Sec. 3; Sched. J

Adjustment process, Art. IV, Sec. 4; Art. XVIII, Sec. 1(b); Sched. D,

par. 2(a)

Agencies of members dealing with Fund, Art. V, Sec. 1

Alternates; see Board of Governors; Councillors; Executive Directors

Amendments

Acceptance by all members in certain cases, Art. XXVIII(b)

Arrangements with other international organizations which necessitate

amendments, Art. X

Consideration of proposals by Council, Sched. D, par. 2(b)

Entry into force, Art. XXVIII(c)

Proposal, Art. XXVIII(a)

Rules and regulations, rates, procedures and decisions in effect at date of

second amendment to remain until changed, Sched. B, par. 6

Suspension of participation in adoption of proposed amendment, Sched. L,

par. 1(a)

Voting power required for acceptance, Art. XXVIII(a), (b)

Annual Report; see Reports

Arbitration

Disagreement arising during liquidation of Fund or upon withdrawal of

member, Art. XXIX(c)

Disagreement arising from termination of participation in Special Drawing

Rights Department or during liquidation of that Department, Art.

XXI(d )

Archives of Fund, immunity, Art. IX, Sec. 5

Articles of Agreement (see also Amendments; Interpretation of the

Agreement)

Acceptance, Art. IV, Sec. 5(a); Art. XXXI, Sec. 2

Entry into force, Art. XXXI, Sec. 1

Inform all members by Government of United States of signatures to Agree-

ment and deposit of instruments of acceptance, Art. XXXI, Sec. 2(c)

Articles of Agreement

Index

Articles of Agreement (continued )

Instruments of acceptance to be deposited with Government of the United

States, Art. XXXI, Sec. 1, 2(a)

Signature, Art. XXXI, Sec. 2

Assessments for expenses of conducting business of Special Drawing Rights

Department

Levy by Fund, Art. XX, Sec. 4

Payment in special drawing rights, Art. XVI, Sec. 2

Settlement on termination of participation in Special Drawing Rights Depart-

ment, Art. XXIV, Sec. 2

Assets of Fund (see also Investment of Fund’s assets; Reserves of Fund)

Certain proceeds from sale of gold for benefit of developing countries to be

held separately from general resources of Fund, Sched. B, par. 7

Distribution in event of liquidation of Fund, Sched. K

Freedom from restrictions, Art. IX, Sec. 6

Guarantee by each member, Art. XIII, Sec. 3

Holdings in depositories, Art. XIII, Sec. 2

Immunity, Art. IX, Sec. 3, 4, 6, 9(a)

Maintenance of value, Art. V, Sec. 11

Separation of assets held in General Department and Special Drawing Rights

Department, Art. XVI, Sec. 2; Sched. M, par. 5(d )

Separation of assets in Special Disbursement Account from other accounts in

General Department, Art. V, Sec. 12( f )

Separation of assets of Investment Account from other accounts of General

Department, Art. XII, Sec. 6( f )(i)

Value expressed in special drawing rights, Art. V, Sec. 10

Associates of the Council, Sched. D, par. 1(a), (b), 5(d )

Audit; see Accounts

Balance of payments

Adjustment, action by members to achieve, Art. IV, Sec. 4

Adjustment, supervision by Council, Sched. D, par. 2(a)

Criterion for designation of participant to provide currency for special draw-

ing rights, Art. XIX, Sec. 5(a)(i)

Furnishing of information concerning, Art. VIII, Sec. 5(a)(vi) Improvement,

repurchase obligation, Art. V, Sec. 7(b)

Publication of report to member on conditions which tend to produce serious

disequilibrium in international balance of payments, Art XII, Sec. 8

Purpose of Fund to correct maladjustments and lessen disequilibrium, Art. I(v), (vi)

Requirement of need for purchase of currencies of members, Art. V,

Sec. 3(b)(ii)

Requirement of need for use of special drawing rights, Art. XIX, Sec. 3(a)

Special policies for special balance of payments problems, Art. V, Sec. 3(a)

Taken into account in first decision to allocate special drawing rights, Art.

XVIII, Sec. 1(b)

Taken into account in selection of currencies to be sold, Art. V, Sec. 3(d)

Board of Governors

Index

Balance of payments (continued )

Withdrawal of exchange restrictions by members when balance of payments

is satisfactory, Art. XIV, Sec. 2

Basic periods for allocation and cancellation of special drawing rights; see

Special drawing rights

Board of Governors (see also Governors)

Adoption of regulation for elections of Executive Directors, Article XII,

Sec. 3(d )

Adoption of regulations for a member to send representative to attend Execu-

tive Board meeting, Art. XII, Sec. 3( j)

Allocation and cancellation of special drawing rights, decisions on, Art.

XVIII, Sec. 4(a), (c), (d )

Alternate Governors, appointment by members, Art. XII, Sec. 2(a)

Appointment by members, Art. XII, Sec. 2(a)

Approval of amendments to Articles of Agreement, Art. XXVIII(a), (b)

Authority to increase or decrease number of Executive Directors to be

elected, Art. XII, Sec. 3(c)

Cessation of office after suspension of voting rights, Sched. L, par. 3(a)

Chairman, selection, Art. XII, Sec. 2(a)

Committee on Interpretation, Art. XXI(c); Art. XXIX(b)

Committees, Art. XII, Sec. 2( j)

Compulsory withdrawal of members by decision of, Art. XXVI, Sec. 2(c)

Consistency of Council’s or Executive Board’s actions with Board of

Governors’ actions, Sched. D, par. 3(c)

Decision to establish Council, Art. XII, Sec. 1

Decisions on matters pertaining exclusively to Special Drawing Rights

Department, Art. XXI(a)(i)

Delegation of authority to Council, Sched. D, par. 3(a)

Delegation of authority to Executive Board, Art. XII, Sec. 2(b)

Determination of quotas of members, Art. III, Sec. 1

Determination of remuneration paid to Executive Directors and their Alter-

nates, Art. XII, Sec. 2(i)

Determination of salary and terms of service contract of Managing Director,

Art. XII, Sec. 2(i)

Election of Executive Directors, Art. XII, Sec. 3(b), (c), (d ); Sched. E

Expenses incurred in attending meetings, Art. XII, Sec. 2(h)

General review of quotas and adjustments of quotas, Art. III, Sec. 2(a)

Immunities, Art. IX, Sec. 8

Initial subscription payments transmitted to, Art. XXXI, Sec. 2(d )

Interpretation of Fund Agreement, Art. XXIX(b)

Interpretation pertaining exclusively to Special Drawing Rights Department,

Art. XXI(c)

Liquidation of Fund, decision, Art. XXV(a); Art XXVII, Sec. 2(a), (b)

Liquidation of Special Drawing Rights Department, decision, Art. XXV(a), (b)

Meetings, Art. XII, Sec. 2(c); Art. XXI(a)(i)

Board of Governors

Index

Board of Governors (continued )

Number of votes of each Governor, Art. XII, Sec. 2(e)

Powers, Art. XII, Sec. 2(a), (b); Sched. D, par. 6

Prescription for payment of 25 percent of increase in quota in currencies

rather than special drawing rights, Art. III, Sec. 3(a)

Prescription of times and terms for membership and subscription, Art. II,

Sec. 2

Provision for in Fund structure, Art. XII, Sec. 1

Quorum for meetings, Art. XII, Sec. 2(d ); Art. XXI(a)(i)

Representation of member whose voting rights have been suspended, Sched.

L, par. 4

Rules and regulations, adoption, Art. XII, Sec. 2(g)

Service pending new appointment, Art. XII, Sec. 2(a)

Service without compensation, Art. XII, Sec. 2(h)

Suspension of member’s right to appoint a Governor, Sched. L, par. 1(b)

Temporary suspension of certain provisions, extension, Art. XXVII, Sec. 1(b)

Vote without meeting, Art. XII, Sec. 2( f ); Sched. D, par. 5(a)

Borrowing of currency by Fund to replenish holdings, Art. VII, Sec. 1

Buffer stocks, international, of primary products, financing of contributions to,

Art. XXX(c)(ii)

Capital transactions

Determination by Fund whether transactions to be considered current or

capital transactions, Art. XXX(d )

Furnishing of information concerning, Art. VIII, Sec. 5(a)(vi)

Payments for, definition, Art. XXX(d )

Use of Fund’s general resources for, Art. VI, Sec. 1(b)(i)

Capital transfers

Controls, Art. VI, Sec. 1, 3

Reserve tranche purchases for, Art. VI, Sec. 2; Art. XXVII, Sec. 1(a)(ii)

Use of Fund’s general resources for, Art. VI, Sec. 1, 2; Art. XXVI, Sec. 2(a)

Use of member’s own resources for, to be in accordance with purposes of

Fund, Art. VI, Sec. 1(b)(ii)

Central banks

Agency dealing with Fund, Art. V, Sec. 1

Designation as depository for Fund’s holdings of currency, Art. XIII, Sec. 2

Institutions that perform such functions for more than one member, eligibility

for prescription as holders of special drawing rights, Art. XVII, Sec. 3(i)

Charges

Accruing after date of member’s withdrawal, Sched. J, par. 1

Failure of member to make required repurchase, Art. V, Sec. 8(c)

Levy by Fund, Art. V, Sec. 8(a), (b); Art. XXVII, Sec. 1(a)(i)

Levy on average daily balances held in General Resources Account of Fund,

Art. V, Sec. 8(b)

Net cumulative allocation of special drawing rights, Art. XX, Sec. 2, 3, 5;

Sched. I, par. 5

Consultations

Index

Charges (continued )

Outstanding obligation held by terminating participant, Art. XXIV,

Sec. 2(a), 3

Payable during liquidation of Special Drawing Rights Department, Art.

XXV(c); Sched. I, par. 5

Payment in special drawing rights, and in exceptional circumstances in

specified members’ currencies or in member’s own currency, Art. V,

Sec. 8(e); Art. XX, Sec. 5; Art. XXVII, Sec. 1(a)

Rate to be equal to rate of interest in Special Drawing Rights Department,

Art. XX, Sec. 3

Rates, majority required for determination, Art. V, Sec. 8(d )

Rates, relationship to rate of remuneration, Art. V, Sec. 9(a)

Rise at intervals during period currency balances are held, Art. V, Sec. 8(b)

Service, on purchase of special drawing rights or currency of another mem-

ber, Art. V, Sec. 8(a)(i)

Service, on reserve tranche purchases, Art. V, Sec. 8(a)(i)

Stand-by or similar arrangements, Art. V, Sec. 8(a)(ii)

Clearing arrangements, furnishing of information, Art. VIII, Sec. 5(a)(xii)

Collateral security, pledge, Art. V, Sec. 4

Colonies; see Territories

Committee on Interpretation; see Board of Governors

Committees

Appointment by Board of Governors, Council, and Executive Board, Art.

XII, Sec. 2( j); Sched. D, par. 5(a)

Immunities of members, Art. IX, Sec. 8

Common denominator, special drawing right or other but not gold or a currency,

Sched. C, par. 1

Communications, official, privilege for, Art. IX, Sec. 7

Compensatory financing of export fluctuations, Art. XXX(c)(i)

Compulsory withdrawal from membership, Art. XXVI, Sec. 2(c); Sched. C,

par. 7, 8

Consultations

Annual, with members retaining certain exchange restrictions, Art. XIV, Sec. 3

Between members regarding existing international agreements, Art. VIII,

Sec. 6

By Managing Director to ascertain if there is broad support for proposal on

allocation or cancellation of special drawing rights, Art. XVIII, Sec. 4(b)

Charges on delinquent repurchases, Art. V, Sec. 8(c)

Currencies to be sold, selection, Art. V, Sec. 3(d )

Current or capital transactions, determination, Art. XXX(d )

Exchange rates of participant’s currency, Art. XIX, Sec. 7(c)

Fund sale of gold for member’s currency, Art. V, Sec. 12(c); Sched. B,

par. 7(b)

Member without par value, Sched. C, par. 3, 9

Members’ exchange rate policies, Art. IV, Sec. 3(b)

Consultations

Index

Consultations (continued )

Par value ceasing to exist, Sched. C, par. 8

Repurchase obligation, Art. V, Sec. 7(b)

Sale of currency not repurchased, Art. V, Sec. 7(h)

Convertibility, foreign-held balances, Art. VIII, Sec. 4 (see also Freely usable

currency)

Cooperative arrangements for maintenance of value of currencies, Art. IV,

Sec. 2(b), 3(b)

Council

Adoption of regulations and determination of procedures, Sched. D, par. 4

Authority to adopt rules and regulations to conduct business of Fund, Art.

XII, Sec. 2(g); Sched. D, par. 5(a)

Authority to appoint committees, Art. XII, Sec. 2( j); Sched. D, par. 5(a)

Authority to call Board of Governors meeting, Art. XII, Sec. 2(c); Sched. D,

par. 5(a)

Authority to obtain vote of Governors without meeting, Art. XII, Sec. 2( f );

Sched. D, par. 5(a)

Chairman, selection, Sched. D, par. 4

Composition, Sched. D, par. 1(a)

Concurrence in proposals of Managing Director on allocations and cancella

tions of special drawing rights, Art. XVIII, Sec. 4(a); Sched. D, par. 5(a)

Consistency of action with action of Board of Governors, Sched. D, par. 3(c)

Decisions on matters relating to Special Drawing Rights Department,

Sched. D, par. 5(b)

Establishment by decision of Board of Governors, Art. XII, Sec. 1; Sched. D

Immunities and privileges, Sched. D, par. 5(d )

Meetings, Sched. D, par. 4

Powers, Art. XII, Sec. 2(a), (c), ( f ), (g), ( j); Art. XVIII, Sec. 4(a), (c)(iv);

Art. XXIII, Sec. 1; Art. XXVII, Sec. 1(a); Sched. D, par. 5(a), 6

Representation of member whose voting rights have been suspended, Sched.

L, par. 4

Request for proposal by Managing Director for allocation or cancellation of

special drawing rights, Art. XVIII, Sec. 4(c)(iv); Sched. D, par. 5(a)

Temporary suspension of certain provisions of Agreement, Art. XXVII,

Sec. 1(a); Sched. D, par. 5(a)

Temporary suspension of provisions relating to operations and transactions

in special drawing rights, Art. XXIII, Sec. 1; Sched. D, par. 5(a)

Councillors

Appointment and attendance at meeting of Council, Sched. D, par. 1(a), (b)

Alternates, Sched. D, par. 1(b)

Casting of votes, Sched. D, par. 3(b), 5(b), (e)

Cessation of office after suspension of voting rights, Sched. L, par. 3(b)

Immunities and privileges, Sched. D, par. 5(d )

Suspension of member’s right to appoint or participate in appointment,

Sched. L, par. 1(b)

Currencies

Index

Currencies (see also Freely usable currency; Holdings; Maintenance of value

of members’ currencies; Scarce currencies)

Acceptable to Fund, use to obtain special drawing rights, Art. XX, Sec. 5;

Sched. G, par. 1(a)(iv)

Acquisition of currency of member that has withdrawn, Sched. J, par. 5

Acquisition of own currency with special drawing rights by terminating

participants, Sched. H, par. 1

Adjustment of Fund’s holdings, Art. V, Sec. 11(b)

Borrowing by Fund, Art. VII, Sec. 1(i)

Computations, Art. V, Sec. 10

Designation of participants to provide for specified amount of special draw-

ing rights, Art. XIX, Sec. 5; Sched. F

Discharge of obligations to Fund by participants in event of liquidation of

Special Drawing Rights Department, Sched. I, par. 1

Discharge of repurchase obligation or subscription payable in gold by non-

participants, Sched. B

Exchange for freely usable currency, Art. V, Sec. 3(e), 7( j)

Exchange rates, transactions in special drawing rights, Art. V, Sec. 10(b), 11(a);

Art. XIX, Sec. 7

Fund’s holdings, Art. III, Sec. 3; Art. V, Sec. 6(b), 7(i), 8(e); Art. XIII,

Sec. 2(a); Art. XXX(a), (c); Sched. B, par. 4

Investment Account holdings, use to meet expenses of conducting business

of Fund, Art. XII, Sec. 6( f )(iv), (v)

Investment in obligations denominated in currency used, Art. XII, Sec. 6( f )(iii)

Maintenance of a value by members in terms of special drawing right or

another denominator other than gold, Art. IV, Sec. 2(b)

Maintenance of value by Fund, Art. V, Sec. 11

Maintenance of value by members, cooperative arrangements by members,

Art. IV, Sec. 3(b)

Obligation of participant to provide, Art. XIX, Sec. 4

Payment by Fund to member consenting to quota reduction, Art. III, Sec. 3(c)

Payment of charges, Art. V, Sec. 8(e)

Payment of distribution of net income or part of general reserve in member’s

own currency, Art. XII, Sec. 6(e)

Payment of quota increase, Art. III, Sec. 3(a)

Payment of remuneration in member’s own currency, Art. V, Sec. 9(d)

Payment to withdrawing member, Sched. J

Purchase from Fund for special drawing rights, Art. V, Sec. 6

Purchase of currency held by another member, Art. VIII, Sec. 4

Redemption of holdings apportioned to other members in liquidation of

Fund, Sched. K, par. 3–8

Replenishment of Fund’s holdings, Art. VII, Sec. 1

Repurchase by member of currency held by Fund, Art. V, Sec. 7; Sched. B,

par. 1–5

Scarcity, Art. VII, Sec. 2, 3

Currencies

Index

Currencies (continued )

Selection by Fund to be provided or accepted for transactions in special

drawing rights, Art. V, Sec. 6(c)

Selection for repurchase, Art. V, Sec. 7(i)

Selection for sale, policies and procedures, Art. V, Sec. 3(d )

Separate currencies within member’s territories, Art. IV, Sec. 5

Settlement with terminating participant, Art. XXIV, Sec. 4–6

Specified by Fund, discharge of obligation by non-participant payable in spe-

cial drawing rights, Sched. B, par. 2

Specified by Fund, use in repurchases, Art. V, Sec. 7(i), ( j)

Substitution of securities, Art. III, Sec. 4; Art. XXX(a)

Current transactions

Convertibility of foreign-held balances acquired as a result of or needed for

making payments for, Art. VIII, Sec. 4

Determination by Fund whether transactions to be considered current or

capital transactions, Art. XXX(d )

Multilateral system of payments, Art. I(iv)

Payments for, definition, Art. XXX(d )

Restrictions on payments and transfers, Art. VI, Sec. 3; Art. VII, Sec. 3(b), (c);

Art. VIII, Sec. 2; Art. XIV, Sec. 2

Customs duties, Fund’s immunity from, Art. IX, Sec. 9(a)

Data; see Information

Definition of terms

Freely usable currency, Art. XXX( f )

Members on August 31, 1975, Art. XXX(g)

Net cumulative allocation of special drawing rights, Art. XXX(e)

Operations in special drawing rights, Art. XXX(i)

Operations of Fund, Art. XXX(h)

Payments for current transactions, Art. XXX(d )

Reserve tranche purchase, Art. XXX(c)

Stand-by arrangement, Art. XXX(b)

Transactions in special drawing rights, Art. XXX(i)

Transactions of Fund, Art. XXX(h)

Departments and Accounts, Introd. Art.

Depositary for instruments of acceptance of the Agreement, Art. XXXI, Sec. 2

Depositories

Currency, designation by each member, Art. XIII, Sec. 2(a)

Gold, to be held in designated depositories, Art. XIII, Sec. 2(b)

Guarantee of Fund assets against loss from failure or default, Art. XIII, Sec. 3

Subscription payments to appropriate depository, Art. III, Sec. 1

Developing members

Balance of payments assistance on special terms from assets in Special Dis-

bursement Account, Art. V. Sec. 12( f )(ii)

Distribution of part of assets from sale of gold in Special Disbursement

Account, Art. V, Sec. 12( f )(iii); Sched. B, par. 7(b)

Exchange arrangements

Index

Developing members (continued )

Transfer of real resources, review of developments by Council, Sched. D,

par. 2(a)

Disagreements

Arising between Fund and terminating participant or any participant during

liquidation of Special Drawing Rights Department, Art. XXI(d )

Arising between Fund and withdrawn member or any member during liqui-

dation of Fund, Art. XXVII, Sec. 2(b); Art. XXIX(c)

Discriminatory currency arrangements, avoidance, Art. VIII, Sec. 3

Disequilibrium (see also Balance of payments)

Fundamental, change in par value to correct or prevent, Sched. C, par. 6, 7

Publication of report to members regarding conditions which tend to produce

serious disequilibrium in international balance of payments, Art. XII,

Sec. 8

Purpose of Fund to lessen the degree in international balances of payments

of members, Art. I(vi)

Economic growth, orderly, obligation of members to foster, Art. IV, Sec. 1

Election; see Executive Directors

Emergency provisions

Liquidation of the Fund, Art. XXVII, Sec. 2

Temporary suspension of operation of certain provisions of the Agreement,

Art. XXVII, Sec. 1; Sched. D, par. 5(a)

Temporary suspension of provisions relating to special drawing rights,

Art. XXIII, Sec. 1; Art. XXV(a); Sched. D, par. 5(a)

Employment, promotion and maintenance of high levels, Art. I(ii)

Entry into force of the Agreement, Art. XXXI, Sec. 1

Establishment of International Monetary Fund, Introd. Art. (i)

Exceptional circumstances

Authority for participants to agree on other exchange rates for transactions,

Art. XIX, Sec. 7(b)

Fund representations to member on withdrawal of restrictions, Art. XIV, Sec. 3

Payment of charges in currencies of other members specified by Fund or in

member’s own currency, Art. V, Sec. 8(e); Art. XXVII, Sec. 1(a)(i)

Reduction of quota, payment, Art. III, Sec. 3(c)

Exchange arrangements

Changes, notification of Fund by member, Art. IV, Sec. 2(a)

Consistency with purposes of Fund, Sched. C, par. 3

Consultation with Fund by member not intending to establish par value or

whose par value has ceased to exist, Sched. C, par. 3, 9

General, Fund may make provision for, Art. IV, Sec. 2(c)

Kind prevailing on January 1, 1976, Art. IV, Sec. 2(b)

Notification by member of arrangements to be applied and of changes,

Art. IV, Sec. 2(a)

Obligations of members, Art. IV; Sched. C, par. 3, 9

Orderly, maintenance among members, Art. I(iii)

Exchange arrangements

Index

Exchange arrangements (continued )

Separate currencies within a member’s territories, Art. IV, Sec. 5

Surveillance, Art. IV, Sec. 3

Exchange contracts, unenforceability, Art. VIII, Sec. 2(b)

Exchange controls (see also Exchange restrictions)

Capital transfers, Art. VI, Sec. 1(a), 3

Cooperation between members to make regulations more effective,

Art. VIII, Sec. 2(b)

Furnishing of information, Art. VIII, Sec. 5(a)(xi)

Exchange depreciation, competitive, avoidance, Art. I(iii)

Exchange margins, spot exchange transactions of members having par values,

Art. XXVII, Sec. 1(a)(iv); Sched. C, par. 5

Exchange rates (see also Exchange arrangements; Par values)

Avoidance of manipulating, Art. IV, Sec. 1(iii)

Buying and selling rates for foreign currencies, furnishing of information

concerning, Art. VIII, Sec. 5(a)(x)

Computations for applying provisions of the Agreement, Art. V, Sec. 10

Policies, consultations with members, Art. IV, Sec. 3(b)

Policies, principles for guidance, Art. IV, Sec. 3(b)

Promotion of stable system, Art. IV, Sec. 1; Art. XIV, Sec. 2

Termination of par value, Sched. C, par. 8

Transactions in special drawing rights, Art. XIX, Sec. 7

Value of currencies held in General Resources Account, Art. V, Sec. 11(a)

Exchange restrictions

Adaptation to changing circumstances, Art. XIV, Sec. 2

Administration with respect to scarce currency, Art. VII, Sec. 4

Approval by Fund, Art. VIII, Sec. 2(a)

Avoidance on current payments, Art. VIII, Sec. 2

Consultations between members to make adjustment for application of

authorized restrictions, Art. VIII, Sec. 6

Consultations with Fund as to further retention, Art. XIV, Sec. 3

Cooperation between members in making exchange control regulations more

effective, Art. VIII, Sec. 2(b)

Effect of other international agreements on, Art. VII, Sec. 5

Elimination of foreign exchange restrictions which hamper growth of world

trade, Art. I(iv)

Maintenance, Art. XIV, Sec. 1

Member persisting in maintaining restrictions inconsistent with Fund’s pur-

poses, Art. XIV, Sec. 3; Art. XXVI, Sec. 2

Obligation to withdraw, Art. XIV, Sec. 2

On transactions with non-member countries, Art. XI, Sec. 2

Report, annual, Art. XIV, Sec. 3

Representation as to withdrawal, Art. XIV, Sec. 3

Retention, Art. XIV, Sec. 3

Scarce currency, formal declaration authorizing temporary exchange restric-

tions, Art. VII, Sec. 3(b)

Transitional arrangements, Art. XIV

Executive Directors

Index

Exchange stability

Promotion of stable system of exchange rates, Art. IV, Sec. 1; Art. XIV, Sec. 2

Purpose of Fund to promote, Art. I(iii)

Exchange transactions; see Operations and transactions

Executive Board

Authority to call meetings of Board of Governors, Art. XII, Sec. 2(c)

Authority to call meetings of Council, Sched. D, par. 4

Committees, Art. XII, Sec. 2( j); Art. IX, Sec. 8

Concurrence in proposals for allocation and cancellation of special drawing

rights, Art. XVIII, Sec. 4(a), (d)

Decisions on matters pertaining exclusively to Special Drawing Rights

Department, Art. XXI(a)(ii)

Delegation of powers by Board of Governors, Art. XII, Sec. 2(b), 3(a)

Function in continuous session, Art. XII, Sec. 3(g)

Interpretation of the Agreement, decision, Art. XXI(c); Art. XXIX(a)

Managing Director, selection of, Art. XII, Sec. 4(a)

Managing Director to be Chairman, Art. XII, Sec. 4(a)

Meetings, Art. XII, Sec. 3(g)

No inconsistency of actions with those of Board of Governors or Council,

Sched. D, par. 3(c)

Powers of the Council corresponding to those of the, Sched. D, par. 5(a)

Provision for, Art. XII, Sec. 1

Quorum for meetings, Art. XII, Sec. 3(h); Art. XXI(a)(ii)

Remuneration, determination by Board of Governors, Art. XII, Sec. 2(i)

Representation in a meeting of member whose request or a matter par-

ticularly affecting that member is under consideration, Art. XII,

Sec. 3( j )

Representation of member whose voting rights have been suspended,

Sched. L, par. 4

Request for allocation or cancellation of special drawing rights, Art. XVIII,

Sec. 4(c)(iv)

Responsibility for conducting business of Fund, Art. XII, Sec. 3(a)

Rules and regulations, adoption, Art. XII, Sec. 2(g)

Temporary suspension of allocations or cancellations of special drawing

rights, Art. XXV(a)

Temporary suspension of certain provisions of the Agreement, Art. XXVII,

Sec. 1(a), (c)

Temporary suspension of operations and transactions in an emergency,

Art. XXVII, Sec. 2(a)

Temporary suspension of operations and transactions in special drawing

rights, Art. XXIII, Sec. 1; Art. XXV(a)

Executive Directors

Advisors, immunities and privileges, Art. IX, Sec. 8

Alternate, appointment and powers, Art. XII, Sec. 3(e)

Alternate, appointment of a second Alternate, Art. XII, Sec. 3(e)

Executive Directors

Index

Executive Directors (continued )

Alternate, authority to exercise powers of former Executive Director while

office is vacant, Art. XII, Sec. 3( f )

Alternate, determination of remuneration by Board of Governors, Art. XII, Sec. 2(i)

Alternate, entitlement to attend meetings of Council, Sched. D, par. 1(b)

Alternate, immunities and privileges, Art. IX, Sec. 8, 9(b)

Appointed, Sched. E, par. 1(a)

Attendance at Council meetings, Sched. D, par. 1(b)

Cessation of office after suspension of voting rights, Sched. L, par. 3(c)

Election, Art. XII, Sec. 3(c), (d ); Sched. E

Immunities and privileges, Art. IX, Sec. 8

Immunity from tax on salaries, Art. IX, Sec. 9(b)

Increase or decrease in number to be elected, Art. XII, Sec. 3(c)

Number, Art. XII, Sec. 3(b), (c)

Remuneration, determination by Board of Governors, Art. XII, Sec. 2(i)

Suspension of member’s right to elect or participate in election, Sched. L,

par. 1(b)

Transitional Provisions, Sched. E.

Vacancy in office of elected Executive Director, Art. XII, Sec. 3( f )

Votes, number for each Executive Director, Art. XII, Sec. 3(i), 5

Explanation of terms, Art. XXX (see also Definition of terms)

Financial and technical services, performance by Fund, Art. V, Sec. 2(b)

Fiscal agencies

Dealing with Fund, Art. V, Sec. 1

Not to engage in discriminatory currency arrangements or multiple currency

practices, Art. VIII, Sec. 3

Undertakings with respect to transactions with non-member, Art. XI,

Sec. 1(i); Art. XXVII, Sec. 1(a)(iii)

Foreign exchange, data members may be required to furnish, Art. VIII,

Sec. 5(a)(i), (ii)

Freely usable currency

Conversion into by member whose currency has been purchased from Fund,

Art. V, Sec. 3(e)

Definition, Art. XXX( f )

Exchange for currency specified for repurchase, Art. V, Sec. 7(i), ( j)

Obligation to provide on demand to participant using special drawing rights,

Art. XIX, Sec. 4

Settlement with members withdrawing, Sched. J, par. 2, 4

Settlement with terminating participant, Art. XXIV, Sec. 5, 6; Sched. H

Use to acquire special drawing rights for payment of charge or assessment,

Art. XX, Sec. 5; Art. XXIV, Sec. 3

Use to discharge obligations to Fund by participants in event of liquidation

of Special Drawing Rights Department, Sched. I, par. 1

Use to obtain special drawing rights to fulfill reconstitution obligation,

Sched. G, par. 1(a)(iv)

Fundamental disequilibrium; see Disequilibrium

General Resources Account

Index

General Department (see also General Resources Account; Investment Account;

Special Disbursement Account)

Administration, Art. XII, Sec. 6; Art. XXI

Consisting of General Resources Account, Special Disbursement Account,

and Investment Account, Introd. Art. (iii)

Establishment and operation, Introd. Art. (ii), (iii)

Holding of assets and property of Fund, Art. XVI, Sec. 2

Liquidation, Art. XXVII, Sec. 2; Sched. K

Operations and transactions, Art. XVI, Sec. 1; Art. XVII, Sec. 2

Purchase and sale of special drawing rights by participant, Art. V, Sec. 6(a), (b)

Reimbursement in special drawing rights for expenses of conducting busi-

ness of Special Drawing Rights Department, Art. XVI, Sec. 2; Art.

XXI(a)(iii)

Separation from Special Drawing Rights Department, Introd. Art. (ii), (iii);

Art. XVI, Sec. 1, 2

Value of assets to be expressed in special drawing rights, Art. V, Sec. 10(a)

General reserve; see Reserves of Fund

General Resources Account

Acceptance and holdings of special drawing rights, Art. XXI(a)(iii)

Acquisition of member’s own currency or freely usable currency by ter

minating participant, Sched. H, par. 1

Acquisition of special drawing rights by participant to pay charge or assess

ment, Art. XX, Sec. 5

Acquisition of special drawing rights by terminating participant, Sched. H,

par. 2

Acquisition of special drawing rights to fulfill reconstitution obligation,

Sched. G, par. 1(a)(iv)

Charges on balances of currency held, Art. V, Sec. 8(b)

Conduct of operations and transactions, Introd. Art. (iii)

Distribution of special drawing rights if decision to liquidate Fund within six

months of decision to liquidate Special Drawing Rights Department,

Sched. I, par. 2

Holding of general resources of Fund, Art. V, Sec. 2(a)

Holdings of a member’s currency, effect of gold sales, Art. V, Sec. 12(c)

Holdings of special drawing rights, Art. XVII, Sec. 2

Increase in quotas of members as of August 31, 1975 in amounts not exceed-

ing amounts transferred from Special Disbursement Account, Art. III,

Sec. 2(b)

Operations and transactions in special drawing rights with prescribed hold-

ers, Art. XVII, Sec. 2, 3(iii)

Placement of proceeds of sale of gold, Art. V, Sec. 12 ( f ), (k); Sched. B,

par. 7

Replenishment of Fund’s holdings of currencies, Art. VII, Sec. 1

Transactions to facilitate settlement with terminating participant, Art. XXIV,

Sec. 6

General Resources Account

Index

General Resources Account (continued )

Transfer of assets upon termination of Special Disbursement Account, Art.

V, Sec. 12( j)

Transfer of holdings of withdrawing member’s currency in Special Disburse-

ment Account or Investment Account, Sched. J, par. 1

Transfer of part of Investment Account upon termination or reduction of

investment, Art. XII, Sec. 6( f )(viii), (ix)

Global liquidity; see Liquidity, international

Global need to supplement existing reserve assets; see Reserves

Gold

Acceptance of payments by Fund, Art. V, Sec. 12(d )

Apportionment of gold holdings in case of liquidation of Fund, Sched. K, par. 2

Data members may be required to furnish, Art. VIII, Sec. 5(a)(i) – (iv), (vi)

Depositories, Art. XIII, Sec. 2(b)

Distribution in event of liquidation of Fund, Sched. K, par. 1, 2

Fixed price in the market, avoidance of the establishment, Art. V, Sec 12(a)

Obligation to pay in repurchase or as subscription, discharged with special

drawing rights, Sched. B, par. 2

Art. V, Sec. 12(e)

Sale by Fund, Art. V, Sec. 12(c); Sched. B, par. 7

Sale by Fund of gold acquired after the date of the second amendment,

Art. V, Sec. 12(k)

Sale by Fund of gold held by it on the date of the second amendment, Art. V,

Sec. 12 (e), ( f )

Sale of up to 25 million ounces held as of August 31, 1975 for benefit of

developing countries, Sched. B, par. 7(b)

Sale of up to 25 million ounces held as of August 31, 1975 to members of

that date in proportion to their quotas, Sched. B, par. 7(a)

Transfer in an emergency, Art. XIII, Sec. 2(b)

Transfer of part of proceeds of sale to Investment Account, Art. XII, Sec. 6( f )(ii)

Transfer with due regard to costs and requirements of Fund, Art. XIII, Sec. 2(b)

Transitional provisions, Sched. B

Valuation in case of liquidation of Fund, Sched. K, par. 9

Governors (see also Board of Governors)

Alternate, appointment and powers, Art. XII, Sec. 2(a)

Appointment, Art. XII, Sec. 2(a)

Cessation of office after suspension of voting rights, Sched. L, par. 3(a)

Expenses, Art. XII, Sec. 2(h)

Immunities and privileges, Art. IX, Sec. 8

Suspension of member’s right to appoint a Governor after suspension of vot-

ing rights, Sched. L, par. 1(b)

Votes, number of, each Governor, Art. XII, Sec. 2(e)

Interest on special drawing rights

Index

Holdings (see also Assets of Fund)

Adjustment in Fund’s holdings of member’s currency, Art. V, Sec. 11(b)

Balanced distribution of participants’ special drawing rights, Art. XIX,

Sec. 5(b)

Balanced relationship between participants’ special drawing rights and other

reserves, Sched. G, par. 1(b)

Distribution in event of liquidation of Fund, Sched. K

Fund’s holdings of a member’s currency, Art. III, Sec. 3(a), (c); Art. V,

Sec. 7, 8(b), 9, 11; Art. XIII, Sec. 2(a); Art. XXX(a), (c)

Inclusion of securities accepted by Fund, Art. XXX(a)

Member’s currency not to be increased above level at which Fund’s holdings

would be subject to charges, Art. III, Sec. 3(a); Art. V, Sec. 6(b), 7(i),

8(e), 12(c)

Publication of summary statement, Art. XII, Sec. 7(a)

Rates of computation of member’s currency, Art. V, Sec. 10(b)

Recording of changes in holdings of special drawing rights, Art. XVI, Sec. 3

Repurchase, Sched. B, par. 4

Sale by Fund of member’s currency not repurchased, Art. V, Sec. 7(h)

Scarcity of member’s currency, Art. VII, Sec. 3

Special drawing rights in General Resources Account, Art. XVII, Sec. 2

Value of Fund’s holdings of members’ currencies, maintenance, Art. V,

Sec. 11

Immunities; see Status, immunities, and privileges

Income, net, distribution, Art. XII, Sec. 6

Income of investment, Art. V, Sec. 12(h); Art. XII, Sec. 6( f )(iv)

Ineligibility; see Use of Fund’s general resources

Information

Fund to act as center for collection and exchange of information on monetary

and financial problems, Art. VIII, Sec. 5(c)

Members may be required to furnish, Art. VIII, Sec. 5

Necessary for surveillance over exchange rate policies of members, provi-

sion to Fund, Art. IV, Sec. 3(b)

No disclosure of affairs of individuals or corporations, Art. VIII, Sec. 5(b)

Interest on special drawing rights

Accrued, payment upon liquidation of Special Drawing Rights Department,

Art. XXV(c)

Accrued, settlement on termination of participation in Special Drawing

Rights Department, Art. XXIV, Sec. 2(a)

Outstanding balance held by terminating participant, Art. XXIV, Sec. 3

Payment by Fund during liquidation of Special Drawing Rights Department,

Sched. I, par. 5, 6

Payment in special drawing rights, Art. XX, Sec. 5

Payment to holders, Art. XX, Sec. 1

Rate, determination, Art. XX, Sec. 3

Rate, relation to remuneration rate, Art. V, Sec. 9(a)

International agreements

Index

International agreements

Consultation between members regarding, Art. VIII, Sec. 6

Cooperation with other international organizations, Art. X

Effect on restrictions, Art. VII, Sec. 5

Mutual accord for cooperation in exchange controls, Art. VIII, Sec. 2(b)

International Court of Justice, appointment of umpire of arbitration tribunal,

Art. XXIX(c)

International liquidity; see Liquidity, international

International monetary system, purpose, general obligations of members,

Art. IV, Sec. 1

International organizations, relations with, Art. X

International surveillance of international liquidity, Art, VIII, Sec. 7

Interpretation of the Agreement

Arbitration of disagreement between Fund and withdrawing member or

member during liquidation of Fund, Art. XXIX(c)

Committee on Interpretation of Board of Governors, Art. XXI(c); Art.

XXIX(b)

Decision, final, by Board of Governors, Art. XXIX(b)

Explanation of terms, Art. XXX

Matters relating exclusively to Special Drawing Rights Department,

Art. XXI(c)

Question arising between Fund and member or between members to be sub-

mitted to Executive Board, Art. XXIX(a)

Intervention arrangements, Art. IV, Sec. 4

Investment Account

Conduct of operations and transactions in General Department, Introd. Art. (iii)

Currency held not included in computations relating to quota, Art. V, Sec.

10(c)

Distribution of assets on termination or reduction, Art. XII, Sec. 6( f )

(vii)–(ix)

Establishment and procedures, Art. XII, Sec. 6( f )

Holdings of currency or obligations of withdrawing member, Sched. J, par. 8, 9

Termination, Art. XII, Sec. 6( f )(vi) – (viii)

Transfer of part of excess from sale of gold, Art. V, Sec. 12(g); Art. XII,

Sec. 6( f )(ii), (ix)

Transfer of withdrawing member’s currency to General Resources Account,

Sched. J, par. 1

Investment, furnishing of information on international position by member,

Art. VIII, Sec. 5(a)(vii)

Investment of Fund’s assets

Income, Art. XII, Sec. 6( f )(iv)

Member’s currency held in Investment Account, Art. XII, Sec. 6( f )(iii)

Member’s currency held in Special Disbursement Account, Art. V, Sec. 12(h)

Proceeds from sale of gold acquired after the second amendment, Art. V,

Sec. 12(k)

Reduction of amount, Art. XII, Sec. 6( f )(ix)

Margins for spot exchange transactions

Index

Liquidation of Fund

Administration, Sched. I, par. 2; Sched. K

Decision of Board of Governors, Art. XXV(a); Art. XXVII, Sec. 2

Decision within six months of decision to liquidate Special Drawing Rights

Department, Sched. I, par. 2

Disagreement during, Art. XXIX(c)

Settlement of accounts within six months of withdrawal from membership,

Art. XXVII, Sec. 2; Sched. J, par. 10; Sched. K

Termination of Investment Account, Art. XII, Sec. 6( f )(vi) – (viii)

Termination of Special Disbursement Account, Art. V, Sec. 12( j)

Liquidation of Special Drawing Rights Department

Administration, Sched. I

Decision of Board of Governors, Art. XXV(a)

Decision within six months of decision to liquidate Fund, Sched. I, par. 2

Distribution of currency paid by participant in default, Sched. I, par. 7, 8

Payment of interest during liquidation, Sched. I, par. 5

Redemption by Fund of special drawing rights of holders, Art. XXV(c);

Sched. I, par. 3, 7

Settlement with terminating participant, Sched. H, par. 4

Temporary suspension of allocations or cancellations and operations and

transactions in an emergency, Art. XXV(a)

Liquidity, international

Collaboration of members, Art. VIII, Sec. 7

International surveillance, Art. VIII, Sec. 7

Supervision of, Sched. D, par. 2(a)

Maintenance of value of members’ currencies

Currencies held in General Resources Account, Art. V, Sec. 11

Currencies of participants distributed in event of liquidation of Special

Drawing Rights Department, Sched. I, par. 8

Currency of withdrawing member, Sched. J, par. 6

Management; see Organization and management

Managing Director

Chairman of Executive Board, Art. XII, Sec. 4(a)

Chief of operating staff, Art. XII, Sec. 4(b)

Duty to Fund, Art. XII, Sec. 4(c)

Immunities and privileges, Art. IX, Sec. 8, 9(b)

Participation in meetings of Board of Governors, Art. XII, Sec. 4(a)

Proposals for allocation or cancellation of special drawing rights, Art. XVIII, Sec. 4

Provision for, Art. XII, Sec. 1

Salary and terms of contract of service to be determined by Board of Gover-

nors, Art. XII, Sec. 2(i)

Selection by Executive Board, Art. XII, Sec. 4(a)

Subject to general control of Executive Board, Art. XII, Sec. 4(b)

Vote in Executive Board, Art. XII, Sec. 4(a)

Margins for spot exchange transactions, Art. XXVII, Sec. 1(a)(iv); Sched. C, par. 5

Meetings

Index

Meetings

Board of Governors, participation by Managing Director, Art. XII, Sec.

4(a)

Board of Governors, provisions for, Art. XII, Sec. 2(c); Art. XXI(a)(i)

Board of Governors, quorum, Art. XII, Sec. 2(d ); Art. XXI(a)(i)

Council, Sched. D, par. 4, 5(a)

Executive Board, attendance by member whose request or a matter particu-

larly affecting that member is under consideration, Art. XII, Sec. 3( j)

Executive Board, participation by Alternate Executive Directors, Art. XII,

Sec. 3(e)

Executive Board, quorum, Art. XII, Sec. 3(h); Art. XXI(a)(ii)

Members (see also Holdings; Obligations of members; Territories)

Acceptance of membership, effective date, Art. XXXI, Sec. 2(b)

Acceptance of membership in accordance with member’s law, Art. XXXI,

Sec. 2(a)

Action by member to make effective in terms of its law the status, immuni-

ties, and privileges of Fund, Art. IX, Sec. 10

Agencies dealing with Fund, Art. V, Sec. 1

Allocations of special drawing rights to member becoming a participant after

start of basic period, Art. XVIII, Sec. 2(d )

Amendments to the Agreement, acceptance by, Art. XXVIII(a), (b)

Appointment of Councillors, Alternates, and Associates, Sched. D, par. 1(a), (b)

Communication of views of Fund to members, Art. XII, Sec. 8

Concurrence of member in investment of its currency, Art. V, Sec. 12(h);

Art. XII, Sec. 6( f )(iii)

Concurrence of member in use of its currency, Art. III, Sec. 3(a), (c);

Art. V, Sec. 6(c), 12(c); Art. VII, Sec. 1(i); Sched. B, par. 7(b);

Sched. J, par. 1

Consent and payment required for change of quota, Art. III, Sec. 2(d )

Consultations between members regarding existing international agree-

ments, Art. VIII, Sec. 6

Developing, sale of gold for benefit, Art. V, Sec. 12( f )(ii), (iii); Sched. B,

par. 7(b)

Information required by Fund, Art. VIII, Sec. 5

Instrument of acceptance of the Agreement, deposit, Art. XXXI, Sec. 1,

2(a) – (c)

New, conditions of admission for, Art. II, Sec. 2; Art. XXXI, Sec. 2( f )

Notification to Fund of exchange arrangements to be applied and of any

changes in these arrangements, Art. IV, Sec. 2(a)

On August 31, 1975, definition, Art. XXX(g)

On August 31, 1975, developing members, gold distribution in proportion to

quotas, Art. V, Sec. 12( f )(iii)

On August 31, 1975, gold sales in proportion to quotas, Art. V, Sec. 12(e);

Sched. B, par. 7(a)

On August 31, 1975, transfer of part of profits of gold sale, Sched. B, par. 7(b)

Original members, Art. II, Sec. 1; Art. XXXI, Sec. 2(e); Sched. A

Obligations of members

Index

Members (continued )

Representation at Executive Board meetings of member whose request or a

matter particularly affecting that member is under consideration, Art. IX,

Sec. 8; Art. XII, Sec. 3( j), 8; Art. XXIX(a)

Representation of need to use Fund’s general resources, Art. V,

Sec. 3(b)(ii)

Resources contributed by, administration by Fund, Art. V, Sec. 2(b)

Right to participate in Special Drawing Rights Department, Introd. Art.

(ii); Art. XVII, Sec. 1

Signature of Articles of Agreement, Art. XXXI

Withdrawal, compulsory, Art. XIV, Sec. 3; Art. XXVI, Sec. 2; Sched. C,

par. 7, 8

Withdrawal, right, Art. XXVI, Sec. 1; Art. XXVIII(b)(i)

Withdrawal, simultaneous termination of participation in Special Drawing

Rights Department, Art. XXIV, Sec. 1(b)

Withdrawing, guarantee of unrestricted use of currency disposed of, Sched.

J, par. 6

Withdrawing, indebtedness to Fund, Sched. J, par. 7–10

Withdrawing, settlement of accounts, Art. XXVI, Sec. 3; Sched. J

Multilateral system of payments for current transactions, Fund’s purpose to

assist in establishment, Art. I(iv)

Multiple currency practices, obligation of member to avoid, Art. VIII, Sec. 3

National income, furnishing of information concerning, Art. VIII, Sec. 5(a)(viii)

Negative balances of special drawing rights; see Special drawing rights

Net cumulative allocation of special drawing rights; see Special drawing rights

Net income, distribution, Art. XII, Sec. 6

Non-member countries

Prescription as other holders of special drawing rights, Art. XVII, Sec. 3(i)

Restrictions on transactions with, Art. XI, Sec. 2

Undertakings regarding relations with, Art. XI, Sec. 1; Art. XXVII, Sec. 1(a)(iii)

Non-participants in Special Drawing Rights Department

Discharge of obligation payable in special drawing rights with currencies of

other members specified by Fund, Sched. B, par. 2

Payment of special drawing rights part of quota increase in currencies of

other members, Art. III, Sec. 3(a)

Prescription as other holders of special drawing rights, Art. XVII, Sec. 3(i)

Obligations of members

Assets of Fund, obligation to guarantee against loss, Art. XIII, Sec. 3

Avoidance of discriminatory currency practices, Art. VIII, Sec. 3

Avoidance of restrictions on current payments, Art. VIII, Sec. 2

Collaboration regarding policies on reserve assets, Art. VIII, Sec. 7

Collaboration to assure orderly exchange arrangements and promote stable

system of exchange rates, Art. IV, Sec. 1

Compliance regarding exchange arrangements, surveillance by Fund,

Art. IV, Sec. 3

Obligations of members

Index

Obligations of members (continued )

Consultation between members regarding existing international agreements,

Art. VIII, Sec. 6

Convertibility of foreign-held balances, Art. VIII, Sec. 4

Discriminatory currency arrangements, Fund approval required, Art. VIII, Sec. 3

Exchange arrangements, Art. IV; Sched. C, par. 9

Failure to fulfill, Art. V, Sec. 5; Art. VI, Sec. 1(a); Art. XIV, Sec. 3;

Art. XXVI, Sec. 2; Sched. M, par. 5

Furnishing of information, Art. VIII, Sec. 5

Multiple currency practices, Fund approval required, Art. VIII, Sec. 3

Notification to Fund concerning transitional arrangements or acceptance of

Article VIII, Sec. 2–4, Art. XIV, Sec. 1

Relations with non-member countries, Art. XI

Repurchase, Art. V, Sec. 7

Reserve assets, collaboration regarding policies on, Art. VIII, Sec. 7

Restrictions on payments and transfers for current transactions, Fund

approval required, Art. VIII, Sec. 2(a)

Obligations of participants in Special Drawing Rights Department

Failure to fulfill, Art. XXIII, Sec. 2; Sched. M, par. 5

General obligations, Art. XXII

Liquidation of Special Drawing Rights Department, Sched. I, par. 1, 5, 7, 8

Payment of interest, charges, and assessments, Art. XX, Sec. 5

Reconstitution of holdings, Art. XIX, Sec. 6(a); Sched. G

Requirement of need, Art. XIX, Sec. 3(a)

Termination of participation, settlement, Art. XXIV, Sec. 4, 5; Sched. H

To provide freely usable currency to participant using special drawing rights

on designation by Fund, Art. XIX, Sec. 4(a)

To receive allocations of special drawing rights, Art. XVIII, Sec. 2(e)

Offices, location of, Art. XIII, Sec. 1

Operations and transactions

Capital transactions, Art. VI, Sec. 1(b); Art. XXX(d )

Conduct by General Department and Special Drawing Rights Department,

Introd. Art. (ii), (iii); Art. XXI

Current transactions, Art. XXX(d )

Decisions affecting, majorities required, Art. XXI(a)(iii)

Definitions of transactions and operations in special drawing rights, Art.

XXX(i)

Definitions of transactions and operations of Fund, Art. XXX(h)

Immunity from taxes, Art. IX, Sec. 9; Art. XXI(b)

Limitations, Art. V, Sec. 2; Art. XXVII, Sec. 1

Other holders of special drawing rights, Art. XVII, Sec. 2, 3

Publication of summary statement, Art. XII, Sec. 7(a)

Separation of General Department and Special Drawing Rights Department,

Introd. Art. (ii), (iii); Art. XVI, Sec. 1; Sched. M, par. 5(d )

Special drawing rights, Art. XVII, Sec. 2, 3; Art. XIX; Art. XXX(i)

Participants in Special Drawing Rights Department

Index

Operations and transactions (continued )

Temporary suspension of certain provisions of the Agreement, Art. XXIII,

Sec. 1; Art. XXVII, Sec. 1; Sched. D, par. 5(a)

Temporary suspension of, in special drawing rights, Art. XXIII; Sched. D,

par. 5(a)

Temporary suspension of operations and transactions pending decision to

liquidate Fund, Art. XXVII, Sec. 2(a)

Organization and management

Board of Governors, Art. XII, Sec. 2

Communication of views to members, Art. XII, Sec. 8

Executive Board, Art. XII, Sec. 3

Location of offices, Art. XIII, Sec. 1

Managing Director and staff, Art. XII, Sec. 4

Publication of reports, Art. XII, Sec. 7

Status, immunities, and privileges, Art. IX; Art. XXI(b)

Structure of Fund, Art. XII, Sec. 1

Voting of members, Art. XII, Sec. 5

Par values (see also Exchange arrangements; Exchange rates)

Authority for establishment, Art. IV, Sec. 4; Sched. C, par. 1

Change, Art. XXVIII(b)(iii); Sched. C, par. 6, 7

Concurrence by Fund, Sched. C, par. 4

Failure to fulfill obligations, Sched. C, par. 7, 8

Introduction of widespread system of exchange arrangements based on sta

ble but adjustable, Art. IV, Sec. 4

New proposal by member for whose currency par value has ceased to exist,

Sched. C, par. 10

Spot exchange transactions, margins, Art. XXVII, Sec. 1(a)(iv); Sched. C, par. 5

Termination, Sched. C, par. 8

Uniform proportionate changes, Sched. C, par. 11

Unrealistic, maintenance to be discouraged, Sched. C, par. 7

Participants in Special Drawing Rights Department (see also Obligations of

participants in Special Drawing Rights Department; Special Drawing

Rights Department)

Allocations to members that become participants after start of a basic period,

Art. XVIII, Sec. 2(d )

Assessments and payment of interest and charges, Art. XX, Sec. 4, 5

Broad support for allocation and cancellation of special drawing rights to

be ascertained, Art. XVIII, Sec. 4(b)

Consultation with Fund on procedure for determining exchange rates, Art.

XIX, Sec. 7(c)

Definition, Art. XVII, Sec. 1

Deposit of instrument of undertaking, Art. XVII, Sec. 1

Designation and timing for acquiring special drawing rights for reconstitu-

tion, Sched. G, par. 1(a)(ii)

Participants in Special Drawing Rights Department

Index

Participants in Special Drawing Rights Department (continued )

Designation, due regard to be paid in replenishing currencies with special

drawing rights, Art. VII, Sec. 1(ii)

Designation rules, review, Art. XIX, Sec. 5(c)

Designation to provide currency for special drawing rights, Art. XIX,

Sec. 4(a), 5; Sched. F

Failure to fulfill expectation of requirement of need, Art. XIX, Sec. 3(b), (c),

5(a)(ii)

Failure to fulfill obligation to provide currency, Art. XXIII, Sec. 2(a),

(c) – (e)

Guarantee of unrestricted use of currency distributed in liquidation of Special

Drawing Rights Department, Sched. I, par. 8

Information to be provided to Fund, Art. XVI, Sec. 3

Nonreceipt of allocations of special drawing rights, Art. XVIII, Sec. 2(e);

Sched. M, par. 4

Obligation to provide currency for special drawing rights, Art. VII, Sec. 1(ii);

Art. XIX, Sec. 4; Art. XXIII, Sec. 2(d )

Operations and transactions between participants, Art. XIX, Sec. 2

Operations and transactions with prescribed holders, Art. XVII,

Sec. 3(iii)

Reconstitution obligation, Art. XIX, Sec. 6; Sched. G

Requirement of need, Art. XIX, Sec. 3

Specified by Fund to provide a currency in settlement of obligation to termi-

nating participant, Art. XXIV, Sec. 5

Termination of participation, Art. XXIV; Sched. H

Payments; see Balance of payments; Current transactions

Art. IV, Sec. 4

Sec. 1(i)

Privileges; see Status, immunities, and privileges

Purchase of exchange; see Use of Fund’s general resources

Purposes of Fund

Allocation and cancellation of special drawing rights to promote attainment,

Art. XVIII, Sec. 1(a)

Capital movements in accordance with, Art. VI, Sec. 1(b)(ii)

Continuous regard by members in foreign exchange policies, Art. XIV,

Sec. 2

Exchange arrangements consistent with, Art. IV, Sec. 2(c); Sched. C,

par. 3, 9

Financial and technical services of Fund, including administration of

resources contributed by members, consistent with the, Art. V, Sec. 2(b)

Policies and decisions to be guided by, Art. I

Statement, Art. I

Use of Fund’s general resources in manner contrary to, Art. V, Sec. 5

Reports

Index

Quorum; see Meetings

Quotas

Adjustment, Art. III, Sec. 2

Amendment modifying provisions dealing with change in member’s quota,

Art. XXVIII(b)(ii)

Basis for allocation and cancellation of special drawing rights, Art. XVIII,

Sec. 2(c)(iii)

Consent of member and payment required for change, Art. III, Sec. 2(d )

Distribution of net income in proportion to, Art. XII, Sec. 6(c)

Distribution of part of general reserve in proportion to, Art. XII, Sec. 6(d )

Distribution of part of proceeds from sale of gold to developing members in

proportion to, Art. V, Sec. 12( f )(iii); Sched. B, par. 7(b)

General review at intervals of not more than five years, Art. III, Sec. 2(a)

Increase to full extent possible in event of liquidation of Fund, Sched. K, par. 10

Increases, payment, Art. III, Sec. 3(a), (b), (d )

Original members, Art. III, Sec. 1; Sched. A

Other members, Art. III, Sec. 1

Percentage of, applying to remuneration, Art. V, Sec. 9

Proposal for increase at any time for those members that were members on

August 31, 1975, Art. III, Sec. 2(b)

Reduction of payment by Fund to member, Art. III, Sec. 3(c)

Sale of gold to members in proportion to, Art. V, Sec. 12(e); Sched. B,

par. 7(a)

Reconstitution of holdings of special drawing rights

Acquisition of special drawing rights from General Resources Account to

fulfill obligation, Sched. G, par. 1(a)(iv)

Failure to comply with rules, Sched G, par. 2

Obligation of participants, Art. XIX, Sec. 6; Sched. G, par. 1(a)(i), (iv)

Participants subject to designation to promote, Art. XIX, Sec. 3(c), 5(a)(ii);

Sched. G, par. 1(a)(ii)

Rules during first basic period, Sched. G, par. 1

Rules, review at any time, Art. XIX, Sec. 6(b)

Remuneration on members’ creditor positions

Payment in special drawing rights or in member’s own currency, Art. V,

Sec. 9(d )

Payment on amount by which prescribed percentage of a member’s quota

exceeds average daily balances of Fund’s holdings of the member’s cur-

rency, Art. V, Sec. 9

Percentage of quota applying to, Art. V, Sec. 9

Rate of, determination and relation to rate of interest and charges, Art. V,

Sec. 9(a)

Replenishment of Fund’s holdings of currency; see Scarce currencies

Reports

Annual report, Art. XII, Sec. 7(a)

Audited statement of accounts, Art. XII, Sec. 7(a)

Reports

Index

Reports (continued )

Exchange restrictions, annual, Art. XIV, Sec. 3

General scarcity of particular currency, Art. VII, Sec. 2

Other reports deemed desirable, Art. XII, Sec. 7(b)

Publication of, made to member regarding its monetary or economic condi-

tions which tend to produce serious disequilibrium in international

balance of payments, Art. XII, Sec. 8

Summary statement of operations and transactions and holdings of special

drawing rights, gold, and members’ currencies, Art. XII, Sec. 7(a)

Repurchases of currency held by Fund

Change of periods for, Art. V, Sec. 7(c), (d ), ( f )

Conditions governing, Art. V, Sec. 7(b)–( j); Art. XXVII, Sec. 1(a)(i);

Sched. B

Currency not acquired by purchase and subject to charges, Art. V, Sec. 7(e)

Entitlement to repurchase at any time holdings subject to charges, Art. V,

Sec. 7(a); Art. XXVII, Sec. 1(a)(i)

Failure to make repurchase required, charges on Fund’s holdings, Art. V,

Sec. 8(c)

Installments, prescription during 3- to 5-year period, Art. V, Sec. 7(c)

Not later than five years after purchase, Art. V, Sec. 7(c)

Postponement, Art. V, Sec. 7(g)

Pursuant to a special policy on use of Fund’s general resources, adoption of

other periods, Art. V, Sec. 7(d ), ( f )

Sale of Fund holdings of currency not repurchased, Art. V, Sec. 7(h)

Temporary suspension, Art. XXVII, Sec. 1(a)(i)

Transitional provisions, Sched. B, par. 1–6

With special drawing rights or currencies specified by Fund, Art. V, Sec. 7(i)

Requirement of need

For purchase of currency from Fund’s general resources, Art. V, Sec.

3(b)(ii)

For use of special drawing rights, Art. XIX, Sec. 3(a)

Reserve tranche purchases

Conditions governing use of Fund’s general resources, Art. V, Sec. 3(b)(iii)

Definition, Art. XXX(c)

Not subject to challenge, Art. V, Sec. 3(c)

Service charge, Art. V, Sec. 8(a)(i)

Use to meet capital transfers, Art. VI, Sec. 2; Art. XXVII, Sec. 1(a)(ii)

Reserves

Balanced relationship of holdings of special drawing rights and other

reserves, Sched. G, par. 1(b)

Global need to supplement, consideration in decisions on allocation and can-

cellation of special drawing rights, Art. XVIII, Sec. 1

Objective of making special drawing right principal reserve asset, Art. VIII,

Sec. 7

Special Disbursement Account

Index

Reserves (continued )

Obligation of members to collaborate regarding policies on reserve assets,

Art. VIII, Sec. 7

Position, relation to participants’ designation to provide currency, Art. XIX,

Sec. 5(a)(i)

Position, taken into account in selection of currencies to be sold, Art. V,

Sec. 3(d)

Repurchase expected as reserve position improves, Art. V, Sec. 7(b)

Transactions in special drawing rights not for sole purpose of changing com-

position, Art. XIX, Sec. 3(a)

Reserves of Fund

General reserve, distribution, Art. XII, Sec. 6(d )

Placement of net income to general or special reserve, Art. XII, Sec. 6(a)

Special reserve, use, Art. XII, Sec. 6(b)

Restrictions on payments and transfers; see Exchange restrictions

Rules and Regulations, adoption by Board of Governors, Council, and Execu-

tive Board, Art. XII, Sec. 2(g); Sched. D, par. 5(a)

Scarce currencies

Administration of restrictions, Art. VII, Sec. 4

Effect of other international agreements on restrictions, Art. VII, Sec. 5

Exception to entitlement of member to purchase currency of another mem-

ber, Art. V, Sec. 3(d )

Exception to Fund payment of installment due to withdrawing member,

Sched. J, par. 3

Exception to obligation of member not to impose restrictions on current

international transactions, Art. VII, Sec. 3(b); Art. VIII, Sec. 2(a)

Exception to obligation of member to buy balances of currency held by

another member, Art. VIII, Sec. 4(b)(iv)

Formal declaration by Fund, Art. VII, Sec. 3(a), (b)

Measures to replenish Fund’s holdings, Art. VII, Sec. 1

Notification and report to members on general scarcity of a particular

currency, Art. VII, Sec. 2

Securities

Inclusion in Fund’s holdings, Art. XXX(a)

Substitution for currency, Art. III, Sec. 4

Separate currencies within a member’s territories, Art. IV, Sec. 5

Special Disbursement Account

Currency held not included in computations relating to quota, Art. V, Sec. 10(c)

Discharge of indebtedness of withdrawing member, Art. XXVII, Sec. 2(b);

Sched. J, par. 7, 10

Distribution of assets in event of liquidation of Fund, Sched. K, par. 2(a)(ii)

Establishment in General Department, Introd. Art. (iii); Art. V, Sec. 12( f )

Expenses, reimbursement, Art. V, Sec. 12(i)

Holdings of currencies or obligations of withdrawing member, Sched. J,

par. 8, 9

Special Disbursement Account

Index

Special Disbursement Account (continued )

Increase in quotas of members as of August 31, 1975 not to exceed amounts

transferred therefrom to General Resources Account, Art. III, Sec. 2(b)

Investment of currencies in the Special Disbursement Account, adoption of

rules and regulations, Art. V, Sec. 12(h)

Termination, Art. V, Sec. 12( j)

Transfer of assets from Investment Account on reduction of investment,

Art. XII, Sec. 6( f )(ix)

Transfer of assets from Investment Account upon termination prior to liqui

dation of Fund, Art. XII, Sec. 6( f )(viii)

Transfer of assets subject to disposition after sale of gold for benefit of devel-

oping members, Sched. B, par. 7

Transfer of withdrawing member’s currency to General Resources Account,

Sched. J, par. 1

Special drawing rights (see also Charges; Interest on special drawing rights;

Special Drawing Rights Department)

Acceptance and holding in General Resources Account, Art. XXI(a)(iii)

Acquisition by terminating participant to discharge obligation, Sched. H, par. 2

Acquisition to fulfill reconstitution requirement, Sched. G, par. 1(a)(iv)

Allocation and cancellation, Art. XVIII; Sched. D, par. 5(a); Sched. M

Authority for allocation, Art. XV, Sec. 1

Balanced relationship with other reserves, Sched. G, par. 1(b)

Basic periods for allocation and cancellation, designation and reconstitution,

Art. XVIII, Sec. 2, 3, 4; Sched. F, G

Exchange rates for transactions between participants, Art. XIX, Sec. 7

First decision to allocate, Art. XVIII, Sec. 1(b), 2(a), 4(b)

Fund as holder, Art. XVII, Sec. 2

Immunity from taxation, Art. XXI(b)

Interest and charges during liquidation of Special Drawing Rights Depart-

ment, Sched. I, par. 5

Negative balances, Art. XVIII, Sec. 2( f ); Art. XIX, Sec. 3(c), 5(a)(ii);

Art. XX, Sec. 2

Net cumulative allocation, definition, Art. XXX(e)

Net cumulative allocations, Art. XVIII, Sec. 2(c)(iii); Art. XIX, Sec. 4(a);

Art. XX, Sec. 2, 4; Art. XXV(c); Sched. F(a); Sched. G, par. 1(a)(i);

Sched. I, par. 5, 7; Sched. M, par. 2(b), 3(b)

Nonacceptance of allocation (opting out), Art. XVIII, Sec. 2(e); Sched. M,

par. 4

Nonacceptance of allocation, termination of effect of (opting back in), Art.

XVIII, Sec. 2(e)(ii)

Obligation of member to sell its currency to Fund for special drawing rights

held in General Resources Account, Art. VII, Sec. 1(ii)

One-time special allocation of special drawing rights, Art. XV, Sec. 1;

Sched. M

Operations in, definition, Art. XXX(i)

Special drawing rights

Index

Special drawing rights (continued )

Operations or transactions prejudicial to designation process, Art. XIX,

Sec. 2(d)

Other holders, Art. XVII, Sec. 2, 3

Payment by Fund to member consenting to quota reduction, Art. III, Sec. 3(c)

Payment in purchase of foreign-held balances, Art. VIII, Sec. 4(a)

Payments for distribution of net income or part of general reserve, Art. XII,

Sec. 6(c)–(e)

Principal reserve asset, Art. VIII, Sec. 7; Art. XXII

Principles and considerations governing allocation and cancellation, Art.

XVIII, Sec. 1

Proper use, obligation of participants, Art. XXII

Provision to participant making purchase instead of currencies of other mem-

bers, Art. V, Sec. 3( f )

Purchase and sale by Fund, Art. V, Sec. 6

Rates for allocation and cancellation, Art. XVIII, Sec. 2(b), 3, 4(c)(iii), (d )

Reconstitution of holdings, Art. XIX, Sec. 6; Sched. G

Recording of changes in holdings, Art. XVI, Sec. 3

Redemption by Fund in event of liquidation of Special Drawing Rights

Department, Sched. I, par. 1, 3, 4

Redemption by Fund of holdings of terminating participant, Art. XXIV, Sec.

2(b), 6; Sched. H, par. 1

Requirement of need, Art. XIX, Sec. 3(a)

Reserve tranche purchase, Art. XXX(c)

Summary statement of operations and transactions and Fund holdings,

Art. XII, Sec. 7(a)

Temporary suspension of allocations or cancellations and operations and

transactions, Art. XXV(a)

Transactions in, definition, Art. XXX(i)

Use for discharge of obligation to pay gold to Fund in repurchase or as sub-

scription, Sched. B, par. 2, 3

Use for payment of 25 percent of quota increase, Art. III, Sec. 3(a)

Use for payment of interest, charges, and assessments, Art. V, Sec. 8(e); Art.

XX, Sec. 5; Art. XXIV, Sec. 2(a), 3

Use for payment of remuneration, Art. V, Sec. 9(d )

Use for replenishing currency holdings, Art. VII, Sec. 1(ii)

Use for repurchases, Art. V, Sec. 7(i)

Use in operations and transactions, Art. XVII, Sec. 2; Art. XIX, Sec. 1

Use in transactions between participants, Art. XIX, Sec. 2

Use to obtain own currency or freely usable currency by terminating partici-

pant, Sched. H, par. 1

Valuation by member of its currency in terms of, Art. IV, Sec. 2(b)

Valuation in terms of gold, Art. V, Sec. 12(e), ( f ); Sched. B, par. 3, 7; Sched.

K, par. 2(a)(i)

Valuation method, Art. XV, Sec. 2; Art. XXI(a)(iii)

Valuation of Fund’s assets in terms of, Art. V, Sec. 10, 11

Special Drawing Rights Department

Index

Special Drawing Rights Department (see also Obligations of participants in

Special Drawing Rights Department; Participants in Special Drawing

Rights Department)

Administration, Art. XVI; Art. XXI; Sched. M, par. 5(d )

Council decisions, Sched. D, par. 5(b)

Entry into force, Art. XVII, Sec. 1

Establishment and operation, Introd. Art. (ii), (iii)

Expenses of conducting business, reimbursement to General Department,

Art. XVI, Sec. 2; Art. XX, Sec. 4, 5

General obligations of participants, Art. XXII

Indication of decisions relating to, Art. XXI(a)(iii)

Interest and charges, Art. XX; Art. XXIV, Sec. 3

Liquidation, Art. XXV; Sched. I; Sched. M, par. 5(b)

Non-participants’ payments when quotas are changed, Art. III, Sec. 3(a)

Operations and transactions, Introd. Art. (ii), (iii); Art. XVI, Sec. 1; Art.

XVII, Sec. 2

Right of members to participate, Introd. Art. (ii); Art. XVII, Sec. 1

Separation from General Department, Introd. Art. (ii), (iii); Art. XVI, Sec. 1, 2

Temporary suspension of operations in event of emergency or unforeseen

circumstances, Art. XXIII, Sec. 1

Termination of participation, Art. XXIV; Sched. H; Sched. M, par. 5(b)

Special reserve; see Reserves of Fund

Spot exchange transactions, Art. XXVII, Sec. 1(a)(iv); Sched. C, par. 5

Stability; see Exchange stability

Stabilization fund, agency dealing with Fund, Art. V, Sec. 1

Staff

Appointment and organization, Art. XII, Sec. 4(b), (d )

Duty to Fund, Art. XII, Sec. 4(c)

Immunities and privileges, Art. IX, Sec. 8, 9(b)

Managing Director to be chief of operating staff, Art. XII, Sec. 4(b)

Provision for, Art. XII, Sec. 1

Stand-by arrangements

Charge, Art. V, Sec. 8(a)(ii)

Definition, Art. XXX(b)

Policies, adoption, Art. V, Sec. 3(a)

Status, immunities, and privileges

Accorded to Fund in territories of each member, Art. IX, Sec. 1

Action by each member in its own territory, Art. IX, Sec. 10

Freedom of assets from restrictions, Art. IX, Sec. 6

Immunities and privileges of officers and employees, Art. IX, Sec. 8, 9;

Sched. D, par. 5(d )

Immunities from taxation, Art. IX, Sec. 9; Art. XXI(b)

Immunity from judicial process, Art. IX, Sec. 3

Immunity from other action, Art. IX, Sec. 4

Immunity of archives, Art. IX, Sec. 5

Juridical personality of Fund, Art. IX, Sec. 2

Transitional arrangements

Index

Status, immunities, and privileges (continued )

Privilege for communications, Art. IX, Sec. 7

Status of Fund, Art. IX, Sec. 2

Subscriptions

Amount to be transmitted to U.S. Government when the Agreement is signed,

Art. XXXI, Sec. 2(d ), (h)

Discharge with special drawing rights of any obligation to pay gold, Sched.

B, par. 2, 3

Equal to member’s quota, Art. III, Sec. 1

New members, terms to be consistent with those of previous members,

Art. II, Sec. 2

Payment in full to Fund at appropriate depository, Art. III, Sec. 1

Payment in special drawing rights, currencies of other members specified by

Fund, or member’s own currency, Art. III, Sec. 3(a)

Payments when quotas are changed, Art. III, Sec. 2(d ), 3

Repayment in case of liquidation, Sched. K, par. 1

Surveillance; see Exchange arrangements; International surveillance of interna-

tional liquidity

Suspension of transactions

In emergency pending decision on liquidation of Fund, Art. XXVII, Sec. 2(a)

In event of emergency or unforeseen circumstances, Art. XXIII, Sec. 1;

Art. XXVII, Sec. 1

Participant that fails to comply with rules for reconstitution, Sched. G, par. 2

Participant that has failed to fulfill obligations with respect to special drawing

rights, Art. XXIII, Sec. 2

Special drawing rights, Art. XXIII

Taxation, immunities from, Art. IX, Sec. 9; Art. XXI(b)

Technical services; see Financial and technical services

Termination of participation in Special Drawing Rights Department,

Art. XXIV; Sched. H

Territories

Acceptance of the Agreement in respect of, Art. XXXI, Sec. 2(g)

Immunities of Fund in, Art. IX, Sec. 10

Margins for spot exchange transactions within territories of member having

par value, Art. XXVII, Sec. 1(a)(iv); Sched. C, par. 5

Transactions with non-members, Art. XI, Sec. 1, 2; Art. XXVII, Sec. 1(a)(iii)

Unenforceability of exchange contracts in, Art. VIII, Sec. 2(b)

Trade, international, facilitation of expansion and balanced growth, Art. I(ii)

Transactions; see Operations and transactions

Transitional arrangements

Annual report on exchange restrictions, Art. XIV, Sec. 3

Consultations, annual, on restrictions in force, Art. XIV, Sec. 3

Maintenance and adaptation of restrictions on payments and transfers,

Art. XIV, Sec. 2

Notification to Fund, Art. XIV, Sec. 1

Transitional arrangements

Index

Transitional arrangements (continued )

Representations by Fund on restrictions inconsistent with purposes of Fund,

Art. XIV, Sec. 3

Withdrawal of exchange restrictions, Art. XIV, Sec. 2, 3

Transitional provisions with respect to Executive Directors, Sched. E

Transitional provisions with respect to repurchase, payment of additional sub-

scriptions, gold, and certain operational matters, Sched. B

Treasury, agency dealing with Fund, Art. V, Sec. 1

Unexpected major developments, change in rates or intervals for allocation or

cancellation of special drawing rights, Art. XVIII, Sec. 3, 4(a), (d )

Unforeseen circumstances, Art. XXIII, Sec. 1; Art. XXVII, Sec. 1(a); Sched. D,

par. 5(a)

United States Government

Deposit of instrument of acceptance with, Art. XXXI, Sec. 2(a)

Obligation to inform all members of signatures to the Agreement and deposit

of instruments of acceptance, Art. XXXI, Sec. 2(c)

Partial payment of subscription transmitted to, for administrative expenses,

Art. XXXI, Sec. 2(d ), (h)

Use of Fund’s general resources (see also Operations and transactions)

Buffer stocks, international, financing of contributions to, Art. XXX(c)(ii)

Capital transfers, Art. VI, Sec. 1, 2; Art. XXVI, Sec. 2(a); Art. XXVII, Sec. 1(a)(ii)

Charges, Art. V, Sec. 8; Art. XXVII, Sec. 1(a)(i)

Compensatory financing of export fluctuations, Art. XXX(c)(i)

Conditions governing use, Art. V, Sec. 3; Art. XXVII, Sec. 1(a)(i)

Currencies to be used in repurchases, policies and procedures, Art. V, Sec. 7(i)

Ineligibility, change in par value despite Fund objection, Sched. C, par. 7

Ineligibility, distribution of proceeds of gold sales to developing members

when ineligibility ceases, Art. V, Sec. 12(e), ( f )(iii)

Ineligibility, exception to obligation to buy foreign-held balances of cur-

rency, Art. VIII, Sec. 4(b)(v)

Ineligibility, failure to fulfill obligations, Art. V, Sec. 5; Art. VI, Sec. 1(a);

Art. XXIII, Sec. 2( f ); Art. XXVI, Sec. 2(a)

Ineligibility if member persists in maintaining restrictions, Art. XIV, Sec. 3

Ineligibility, not previously declared by Fund, Art. V, Sec. 3(b)(iv)

Ineligibility, termination of par value despite Fund objection, Sched. C, par. 8

Limitation because of use of resources contrary to Fund’s purposes, Art. V, Sec. 5

Policies, Art. V, Sec. 3(a), (c), (d )

Proceeds of sale of gold, Art. V, Sec. 12( f )

Purchase of currency of member which has withdrawn, Sched. J, par. 5

Request for purchase, examination, Art. V, Sec. 3(c)

Requirement of need, Art. V, Sec. 3(b)(ii)

Reserve tranche purchase, Art. V, Sec. 3(b)(iii), (c); Art. XXX(c)

Selection of currencies to be sold, Art. V, Sec. 3(d )

Special policies for special balance of payments problems, Art. V, Sec. 3(a),

7(d ), ( f )

Voting

Index

Use of Fund’s general resources (continued )

Stand-by or similar arrangements, Art. V, Sec. 3(a), 8(a)(ii); Art. XXX(b)

Temporary suspension, Art. XXVII, Sec. 1

Temporary use under adequate safeguards, Art. I(v); Art. V, Sec. 3(a)

Waiver of conditions, Art. V, Sec. 4

Voting

70 percent majority requirement

Authorization to agree on exchange rates for certain transactions, Art. XIX,

Sec. 7(b)

Charges, determination of rates, Art. V, Sec. 8(a), (b), (d )

Distribution from general reserve, Art. XII, Sec. 6(d )

Imposition of charges on failure to repurchase, Art. V, Sec. 8(c), (d )

Increase in percentage of quota as level for remuneration, Art. V, Sec. 9(c)

Investment Account, adoption of rules and regulations for administration,

Art. XII, Sec. 6( f )(vi)

Investment Account, adoption of rules and regulations for investment of cur-

rencies, Art. XII, Sec. 6( f )(iii)

Investment Account, reduction of amount or termination, Art. XII, Sec. 6( f )(vi)

Postponement of repurchase, Art. V, Sec. 7(g)

Prescription of medium of payment for additional subscription, Art. III,

Sec. 3(a), (d )

Prescription of operations between participants, Art. XIX, Sec. 2(c)

Publication of report on member’s monetary conditions and developments,

Art. XII, Sec. 8

Rate of interest and charges on special drawing rights, Art. XX, Sec. 3

Reconstitution rules, adoption, modification, or abrogation, Art. XIX, Sec. 6(b)

Remuneration rate, determination, Art. V, Sec. 9(a)

Repurchase of Fund holdings not acquired as result of purchases, adoption

of policies, Art. V, Sec. 7(e)

Special Disbursement Account, adoption of rules and regulations for invest-

ment of currencies, Art. V, Sec. 12(h)

Special Disbursement Account, rules and regulations for administration and

for termination prior to liquidation of Fund, Art. V, Sec. 12( j)

Suspension of voting rights, Art. XXVI, Sec. 2(b)

Termination of suspension of voting rights, Art. XXVI, Sec. 2(b)

Transfer of currencies in General Resources Account to Investment

Account, Art. XII, Sec. 6( f )(ii)

Transfers of assets from Special Disbursement Account to General Resources

Account for immediate use, Art. V, Sec. 12( f )(i)

Uniform proportionate changes in par values, Sched. C, par. 11

Valuation of special drawing rights, determination of method, Art. XV, Sec. 2

85 percent majority requirement

Adjustment in quotas, Art. III, Sec. 2(c)

Allocation and cancellation of special drawing rights, decisions, Art. XVIII,

Sec. 2(a)–(c), 4(a), (d )

Index

Voting (continued )

85 percent majority requirement (continued)

Change in rates or intervals of allocation or cancellation or change in length

of a basic period or start of a new basic period, Art. XVIII, Sec. 3,

4(a), (d )

Compulsory withdrawal of member, Art. XXVI, Sec. 2(c)

Council, change in number of Associates, Sched. D, par. 1(a)

Council, establishment, Art. XII, Sec. 1

Decisions to engage in certain gold operations or transactions, Art. V,

Sec. 12(b)–(e)

Exchange rates for certain transactions, Art. XIX, Sec. 7(b)

Increase or decrease in number of Executive Directors, Art. XII,

Sec. 3(c)

Interpretation of Fund Agreement, overrule of decision of Committee on

Interpretation, Art. XXIX(b)

Introduction of par values, Art. IV, Sec. 4

Margins for spot exchange transactions, adoption, Art. XXVII, Sec. 1(a) (iv);

Sched. C, par. 5

Objection to termination of par value, Sched. C, par. 8

Policies on use of Fund’s general resources, exclusions of purchases and

holdings for purpose of calculating member’s reserve tranche, Art.

XXX(c)(iii)

Prescription of other holders of special drawing rights, Art. XVII,

Sec. 3(i)

Provision for general exchange arrangements, Art. IV, Sec. 2(c)

Repurchase, change of periods or adoption of other periods pursuant to spe-

cial policy on use of general resources, Art. V, Sec. 7(c), (d )

Temporary suspension of certain provisions, Art. XXVII, Sec. 1(a), (b)

Temporary suspension of operations and transactions in special drawing

rights, Art. XXIII, Sec. 1

Transfer of part of excess from sale of gold to Investment Account, Art. V,

Sec. 12(g)

Use of assets of Special Disbursement Account for operations and transac-

tions not authorized by other provisions and for distribution to develop-

ing members, Art. V, Sec. 12( f )(ii), (iii)

Valuation of special drawing right, change in principle or in application of

principle in effect, Art. XV, Sec. 2

Adjustment of votes, waiver of conditions and ineligibility to use Fund’s

general resources, Art. V, Sec. 4, 5; Art. XII, Sec. 5(b)

Alternate Governor, Art. XII, Sec. 2(a)

Amendment of the Agreement, Art. XXVIII(a)

Basic votes, Art. XII, Sec. 5(a)(i); Sched. L, par. 2

Board of Governors, matters pertaining exclusively to Special Drawing

Rights Department, Art. XXI(a)(i)

Withdrawal from membership

Index

Voting (continued )

Board of Governors, meetings called by Executive Board, Art. XII,

Sec. 2(c)

Cast by Councillor for member whose votes cannot be cast by an Executive

Director, Sched. D, par. 3(b), 5(b)

Council, matters pertaining exclusively to Special Drawing Rights Depart-

ment, Sched. D, par. 5(b)

Decisions, General Department, Special Drawing Rights Department,

Art. XXI(a)(iii)

Election of Executive Director to fill vacancy, Art. XII, Sec. 3( f )

Election of Executive Directors, procedures, Art. XII, Sec. 3(d ), ( f ), (i);

Sched. E

Executive Board, matters relating exclusively to Special Drawing Rights

Department, Art. XXI(a)(ii)

Majority of total voting power of Executive Board for termination of suspen-

sion of operation of certain provisions, Art. XXVII, Sec. 1(c)

Majority of votes cast for Fund decisions unless otherwise provided for,

Art. XII, Sec. 5(c)

Number of votes, cast by Executive Directors, Art. XII, Sec. 3(i)

Number of votes, Councillors, Sched. D, par. 3(b), 5(b)

Number of votes, Governors, Art. XII, Sec. 2(e)

Number of votes, members, Art. XII, Sec. 5

Quorum for meetings of Board of Governors, Art. XII, Sec. 2(d )

Quorum for meetings of Executive Board, Art. XII, Sec. 3(h)

Quota-based votes, Art. XII, Sec. 5(a)(ii)

Special majorities; see 70 percent majority requirement; 85 percent majority

requirement; Majority of total voting power . . ., above

Suspension of voting rights, Art. XII, Sec. 3(i)(iii); Art. XXVI, Sec. 2(b);

Sched. D, par. 5(e); Sched. L

Weighted voting, Art. XII, Sec. 2(e), 3(i), 5

Without meeting, Council, Sched. D, par. 5(c)

Without meeting, Governors, Art. XII, Sec. 2( f ); Sched. D, par. 5(a)

Waiver of conditions governing use of general resources, Art. V, Sec. 4

Withdrawal from membership; see Members

ARTICLES OF AGREEMENT