6 DE MAIO DE 1988

1345

b) «Host country» or «host government means a member, its government, or any public authority of a member in whose territories, as defined in article 66, an investment which has been guaranteed or reinsured, or is considered for guarantee or reinsurance, by the Agency is to be located;

c) A «dcveloping member country» means a member which is listed as such in schedule A hereto as this schedule may be amended from time to time by the Council of Governors referred to in article 30 (hereinafter called the Council);

d) A «spccial majority» means an affirmative vote of not less than two-thirds of the total voting power representing not less than fifty-five percent of the subscribed shares of the capital stock of the Agency;

c) A «frccly usable currcncy» means: /) any currency designated as such by the International Monetary Fund from time to time; and ii) any other freely available and effectively usable currency which the Board of Directors referred to in article 30 (hereinafter called the Board) may designate for the purposes of this Convention after consultation with the International Monetary Fund and with the approval of the country of such currency.

CHAPTER II Membership and capital

Article 4 Membership

a) Membership in the Agency shall be open to all members of the Bank and to Switzerland.

b) Original members shall be the States which arc listed in schedule A hereto and become panics to this Convention on or before October 30, 1987.

Article 5

Capital

a) The authorized capital stock of the Agency shall be one billion special drawing rights (SDR 1,000,000,000). The capital stock shall be divided into 100,000 shares having a par value of SDR 10,000 each, which shall be available for subscription by members. All payment obligations of members with respect to capital stock shall be settled on the basis of the average value of the SDR in terms of United States dollars for the period January 1, 1981, to June 30, 1985, such value being 1082 United Suites dollars per SDR.

b) The capital stock shall increase on the admission of a new member to the extent that the then authorized shares arc insufficient to provide the shares to be subscribed by such member pursuant to article 6.

c) The Council, by special majority, may at any time increase the capital stock of the Agency.

Article 6 Subscription of shares

Each original member of the Agency shall subscribe at par to the number of shares of capital slock set forth opposite its name in schedule A hereto. Each oiher member

shall subscribe to such number of shares of capital stock on such terms and conditions as may be determined by the Council, but in no event at an issue price of less than par. No member shall subscribe to less than fifty shares. The Council may prescribe rules by which members may subscribe to additional shares of the authorized capital stock.

Article 7

Division and calls of subscribed capital

The initial subscription of each member shall be paid as follows:

0 Within ninety days from the date on which this Convention enters into force with respect to such member, ten percent of the price of each share shall be paid in cash as stipulated in section a) of article 8 and an additional ten percent in ihc form of non-ncgoiiablc, non-intcrcst-bcaring promissory notes or similar obligations to be encashed pursuant to a decision of the Board in order to meet the Agency's obligations;

ii) The remainder shall be subject to call by ihc Agency when required to meet its obligations.

Article 8 Payment of subscription of shares

a) Payments of subscriptions shall be made in freely usable currencies except that payments by developing member countries may be made in their own currencies up to twenty-five percent of the paid-in cash portion of their subscriptions payable under article 7, i).

b) Calls on any portion of unpaid subscriptions shall be uniform on all shares.

c) If the amount received by the Agency on a call shall be insufficient to meet the obligations which have ncccssilcd the call, the Agency may make further successive calls on unpaid subscriptions until ihc aggregate amount received by it shall be sufficient to meet such obligations.

d) Liability on shares shall be limited to the unpaid portion of the issue price.

Article 9

Valuation of currencies

Whenever it shall be necessary for the purposes of this Convention to determine the value of one currency in terms of another, such value shall be as reasonably determined by the Agency, after consultation with the International Monetary Fund.

Article 10

Refunds

a) The Agency shall, as soon as practicable, return to members amounts paid on calls on subscribed capital if and to the extent dial:

i) The call shall have been made to pay a claim resulting from a guarantee or reinsurance contract and thereafter the Agency shall have recovered iis payment, in whole or in part, in a freely usable currency; or

//) The call shall have been made because of a default in payment by a member and thereafter such member shall have made good such default in whole or in part; or