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II SÉRIE — NÚMERO 29

be in relation to the duration of the project which the proceeds of that loan are designed to finance.

3 — Unless the regional member agrees otherwise, the aggregate amount outstanding in respect to its loans made to the Bank pursuant to this article shall not, at any time, exceed the equivalent of the amount of its subscription to the capital stock of the Bank.

4 — Loans to the Bank made pursuant to this article shall bear interest, payable by the Bank to the lending member, at a rate which shall correspond to the average rate of interest paid by the Bank on its borrowings for Special Funds during a period of one year preceding the conclusion of the loan agreement. This rate shall in no event exceed a maximum rate which the Board of Governors shall determine from time to time.

5 — The Bank shall repay the loan, and pay the interest due in respect thereof, in the currency of the lending member or in a currency acceptable to the latter.

6 — AH resources obtained by the Bank by virtue of the provisions of this article shall constitue a Special Fund.

Article 25

Warning to be placed on securities

Every security issued or guaranteed by the Bank shall bear on its face a conspicuous statement to the effect that it is not an obligation of any government, unless it is in fact the obligation of a particular government in which case it shall so state.

Article 26

Valuation of currencies and determination of convertibility

Whenever it shall become necessary under this Agreement:

i) To value any currency in terms of another

currency, in terms of gold or of the unit of account defined in paragraph 1, b), of article 5 of this Agreement; or

ii) To determine whether any currency is conver-

• tible,

such valuation or determination, as the case may be, shall be reasonably made by the Bank after consultation with the International Monetary Fund.

Article 27 Use of currencies

1 — Members may not maintain or impose any restrictions on the holding or use by the Bank, or by any recipients from the Bank, for payments anywhere, of the following:

a) Gold or convertible currencies received by

the Bank in payment of subscriptions to the capital stock of the Bank from its members;

b) Currencies of members purchased with the

gold or convertible currencies referred to in the preceding sub-paragraph;

c) Currencies obtained by the Bank by borrowing,

pursuant to paragraph a) of article 23 of this Agreement, for inclusion in its ordinary capital resources;

d) Gold or currencies received by the Bank in

payment on account of principal, interest, dividends or other charges in respect of loans or investments made out of any of the funds referred to in sub-paragraph a) to c) or in payment of commissions or fees in respect of guarantees issued by the Bank; and

e) Currencies, other than its own, received by

a member from the Bank in distribution of the net income of the Bank in accordance with article 42 of this Agreement.

2 — Members may not maintain or impose any restrictions on the holding or use by the Bank or by any recipient from the Bank, for payments anywhere, of currency of a member received by the Bank which does not come within the provisions of the preceding paragraph, unless:

a) That member declares that it desires the use

of such currency to be restricted to payments for goods or services produced in its territory, or

b) Such currency forms part of the special

resources of the Bank and its use is subject to special rules and regulations.

3 — Members may not maintain or impose any restrictions on the holding or use by the Bank, for making amortization or anticipatory payments or for repurchasing — in whole or in part —, its obligations, of currencies received by the Bank in repayment of direct loans made out of its ordinary capital resources.

4 — The Bank shall not use gold currencies which it holds for the purchase of other currencies of its members except:

a) In order to meet its existing obligations; or

b) Pursuant to a decision of the Board of Direc-

tors adopted by a two-thirds majority of the total voting power of the members.

Article 28

Maintenance of value of the currency holdings of the bank

1 — Whenever the par value of the currency of a member is reduced in terms of the unit of account defined in paragraph 1, b), of article 5 of this Agreement, or its foreign exchange value has, in the opinion of the Bank, depreciated to a significant extent, that member shall pay to the Bank within a reasonable time an amount of its currency required to maintain the value of all such currency held by the Bank on account of its subscription.

2—Whenever the par value of the currency of a member is increased in terms of the said unit of account, or its foreign exchange value has, in the opinion of the Bank, appreciated to a significant extent, the Bank shall pay to that member within a reasonable time an amount of that currency required to adjust the value of all such currency held by the Bank on account of its subscription.