64-(48)

Il SÉRIE — NUMERO 1

accounts of the General Department, and may be used at any time:

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 circumstances, 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).

h) Pending uses specified under f) above, the Fund may invest a member's currency held in the Special Disbursement Account in marketable obligations of that member or in marketable obligations of international financial organizations. The income of investment and interest received under f), ii), above shall be placed in the Special Disbursement Account. No investment shall be made without the concurrence of the member whose currency is used to make the investment. The Fund shall invest only in obligations denominated in special drawing rights or in the currency used for investment.

i) The General Resources Account shall be reimbursed from time to time in respect of the expenses of administration of the Special Disbursement Account paid from the General Resources Account by transfers 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 Disbursement Account.

ARTICLE 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 member'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 transactions 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.

ARTICLE 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 con-