930-(4)

II SÉRIE-A — NÚMERO 33

ropean Economic Community and the European Investment Bank, below the majority of the total subscribed capital stock.

5 — Shares of stock initially subscribed to by members shall be issued at par. Other shares shall be issued at par unless the board of governors, by a vote of not less than two-thirds of the governors, representing not less than two-thirds of the total voting power ot the members, decides to issue them in special cir-cunstances on other terms.

6 — Shares of stock shall not be pledged or encumbered in any manner whatsoever, and they shall not be transferable except to the Bank in accordance with chapter vn of this Agreement.

7 — The liability of the members on shares shall be limited to the unpaid portion of their issue price. No member shall be liable, by reason of its membership, for obligations of the Bank.

Article 6 Payment of subscriptions

1 — Payment of the paid-in shares of the amount initially subscribed to by each signatory to this Agreement, which becomes a member in accordance with article 61 of this Agreement, shall be made in five (5) instalments of twenty (20) per cent each of such amount. The first instalment shall be paid by each member within sixty (60) days after the date of the entry into force of this Agreement, or after the date of deposit of its instrument of ratification, acceptance or approval in accordance with article 61, if this latter is later than the date of the entry into force. The remaining four (4) instalments shall each become due successively one year from the date on which the preceding instalment became due and shall each, subject to the legislative requirements of each member, be paid.

2 — Fifty (50) per cent of payment of each instalment pursuant to paragraph 1 of this article, or by a member admitted in accordance with paragraph 2 of article 3 of this Agreement, may be made in promissory notes or other obligations issued by such member and denominated in ECU, in United States dollars or in Japanese yen, to be drawn down as the Bank needs funds for disbursement as a result of its operations. Such notes or obligations shall be non-negotiable, non-interest-bearing and payable to the Bank at par value upon demand. Demands upon such notes or obligations shall, over reasonable periods of time, be made so that the value of such demands in ECU at the time of demand from each member is proportional to the number of paid-in shares subscribed to and held by each such member depositing such notes or obligations.

3 — All payment obligations of a member in respect of subscription to shares in the initial capital stock shall be settled either in ECU, in United States dollars or in Japanese yen on the basis of the average exchange rate of the relevant currency in terms of the

ECU for the period from 30 September 1989 to 31 March 1990 inclusive.

4 — Payment of the amount subscribed to the callable capital stock of the Bank shall be subject to call, taking account of articles 17 and 42 of this Agreement, only as and when required by the Bank to meet its liabilities.

5 — In the event of a call referred to in paragraph 4 of this article, payment shall be made by the member in ECU, in United States dollars or in Japanese yen. Such calls shall be uniform in ECU value upon each callable share calculated at the time of the call.

6 — The Bank shall determine the place for any payment under this article not later than one month after the inaugural meeting of its board of governors, provided that, before such determination, the payment of the first instalment referred to in paragraph 1 of this article shall be made to the European Investment Bank, as trustee for the Bank.

7 — For subscriptions other than those described in paragraphs 1, 2 and 3 of this article, payments by a member in respect of subscription to paid-in shares in the authorized capital stock shall be made in ECU, in United States dollars or in Japanese yen whether in cash or in promissory notes or in other obligations.

8 — For the purposes of this article, payment or denomination in ECU shall include payment or denomination in any fully convertible currency which is equivalent on the date of payment or encashment to the value of the relevant obligation in ECU.

Article 7

Ordinary capital resources

As used in this Agreement, the term «ordinary capital resources» of the Bank shall include the following:

0 Authorized capital stock of the Bank, including both paid-in and callable shares, subscribed to pursuant to article 5 of this Agreement;

if) Funds raised by borrowings of the Bank by virtue of powers conferred by sub-paragraph f) of article 20 of this Agreement, to which the commitment to calls provided for in paragraph 4 of article 6 of this Agreement is applicable;

iif) Funds received in repayment of loans or guarantees and proceeds from the disposal of equity investment made with the resources indicated in sub-paragraphs f) and if) of this article;

iv) Income derived from loans and equity investment, made from the resources indicated in sub-paragraphs f) and if) of this article, and income derived from guarantees and underwriting not forming part of the special operations of the Bank; and

v) Any other funds or income received by the Bank which do not form part of its special funds resources referred to in article 19 of this Agreement.