9 DE SETEMBRO DE 1983

777

Article 21

Methods of meeting liabilities of the Bank (ordinary operations)

1 — Whenever necessary to meet contractual payments of interest, other charges or amortization on the borrowing of the Bank, or to meet its liabilities with respect to similiar payments in respect of loans guaranteed by it and chargeable to its ordinary capital resources, the Bank may call in appropriate amount of the unpaid subscribed callable capital in accordance with paragraph 4 of article 7 of this Agreement.

2 — In cases of default in respect of a loan made out of borrowed funds or guaranteed by the Bank as part of its ordinary operations, the Bank may, if it believes that the default may be of long duration, call an additional amount of such callable capital not to exceede in any one year one per cent of the total subscriptions of the members for the following purposes:

a) To redeem before maturity, or otherwise dis-

charge, its liability on all or part of the outstanding principal of any loan guaranteed by it in respect of which the debtor is in default; and

b) To repurchase, or otherwise discharge, its

liability on all or part of its own outstanding borrowing.

Article 22

Methods of meeting liabilities on borrowings for Special Funds

Payments in satisfaction of any liability in respect of borrowings of funds for inclusion in the special resources appertaining to a Special Fund shall be charged:

i) First, against any reserve established for this

purpose for or within the special fund

concerned; and it) Then, against any other assets available in the

special resources appertaining to that Special

Fund.

CHAPTER IV Borrowing and other additional powers

Article 23

General powers

In addition to the powers provided elsewhere in this Agreement, the Bank shall have the power to:

a) Borrow funds in member countries or elsewhere, and in that connexion to furnish such collateral or other security as it shall determine provided that:

0 Before making a sale of its obligations in the market of a member, the Bank shall have obtained its approval;

if) Where the obligations of the Bank are to be denominated in the currency of a member, the Bank shall have obtained its approval; and

Hi) Where the funds to be borrowed are to be included in its ordinary capital resources, the Bank shall have obtained, where appropriate, the approval of the members referred to in sub-paragraph i) and if) of this paragraph that the proceeds may be exchanged for any other currency without any restrictions;

b) Buy and sell securities the Bank has issued or

guaranteed or in which it has invested provided always that it shall have obtained the approval of any member in whose ter: ritory the securities are to be bought or sold;

c) Guarantee or underwrite securities in which

it has invested in order to facilitate their sale;

d) Invest funds not needed in its operations in

such obligations as it may determine and invest funds held by the Bank for pensions or similar purposes in marketable securities;

e) Undertake activities incidental to its operations

such as, among other, the promotion of consortia for financing which serves the purpose of the Bank and comes within its function;

/):

i) Provide all technical advice and assist-

ance which serve its purpose and come within its functions; and

ii) Where expenditure incurred by such

a service is not reimbursed, charge the net income of the Bank therewith, and, in the first five years of its operations, use up to one per cent of its paid-up capital on such expenditure; provided always that the total expenditure of the Bank on such services in each year of that period does not exceed one--fifth of that percentage; and

g) Exercise such other powers as shall be necessary or desirable in furtherance of its purpose and functions, consistent with the provisions of this Agreement.

Article 24 Special borrowing powers

1 — The Bank may request any regional member to loan amounts of its currency to the Bank in order to finance expenditure in respect of goods or services produced in the territory of that member for the purpose of a project to be carried out in the territory of another member.

2 — Unless the regional member concerned invokes economic and financial difficulties which, in its opinion, are likely to be provoked or aggravated by the granting of such a loan to the Bank, that member shall comply with the request of the Bank. The loan shall be made for a period to be agreed with the Bank, which shall