1890

II SÉRIE — NÚMERO 98

Section 8 Time of payment of subscriptions

a) The 2% payable on each share in gold or United States dollars under section 7, 0> of this article, shall be paid within 60 days of the date on which the Bank begins operations, provided that:

0 Any original member of the Bank whose metropolitan territory has suffered from enemy occupation or hostilities during the present war shall be granted the right to postpone payment of 0,5 °7o until five years after that date;

if) An original member who cannot make such a payment because it has not recovered possession of its gold reserves which ar still seized or immobilized as a result of the war may postpone all payment until such date as the Bank shall decide.

b) The remainder of the price of each share payable under section 7, f), of this article shall be paid as and when called by the Bank, provided that:

/) The Bank shall, within one year of its beginning operations, call not less than 8% of the price of the share in addition to the payment of 2% referred to in a) above;

if) Not more than 5 % of the price of the share shall be called in any period of three months.

Section 9

Maintenance of value of certain currency holdings of the Bank

a) Whenever: i) the par value of a member's currency is reduced; or if) the foreign exchange value of a member's currency has, in the opinion of the Bank, depreciated to a significant extent within that member's territories, the member shall pay to the Bank within a reasonable time an additional amount of its own currency sufficient to maintain the value, as of the time of initial subscription, of the amount of the currency of such member, which is held by the Bank and derived from currency originally paid into the Bank by the member under article n, section 7, f), from currency referred to in article iv, section 2, b), or from any additional currency furnished under the provisions of the present paragraph, and which has not been repurchased by the member for gold or for the currency of any member which is acceptable to the Bank.

b) Whenever the par value of a member's currency is increased, the Bank shall return to such member within a reasonable time an amount of that member's currency equal to the increase in the value of the amount of such currency described in a) above.

c) The provisions of the preceding paragraphs may be waived by the Bank when a uniform proportionate change in the par values of the currencies of all its members is made by the International Monetary Fund.

Section 10

Restriction on disposal of shares

Shares shall not be pledged or encumbered in any manner whatever and they shall be transferable only to the Bank.

ARTICLE III General provisions relating to loans and guarantees

Section 1 Use of resources

a) The resources and the facilities of the Bank shall be used exclusively for the benefit of members with equitable consideration to projects for development and projects for reconstruction alike.

b) For the purpose of facilitating the restoration and reconstruction of the economy of members whose metropolitan territories have suffered great devastation from enemy occupation or hostilities, the Bank, in determining the conditions and terms of loans made to such members, shall pay special regard to lightening the financial burden and expediting the completion of such restoration and reconstruction.

Section 2

Dealings between members and the Bank

Each member shal deal with the Bank only through its Treasury, central bank, stabilization fund or other similar fiscal agency, and the Bank shal deal with members only by or through the same agencies.

Section 3

Limitations on guarantees and borrowings of the Bank

The total amount outstanding of guarantees, participations in loans and direct loans made by the Bank shall not be increased at any time, if by such increase the total would exceed 100% of the unimpaired subscribed capital, reserves and surplus of the Bank.

Section 4

Conditions on which the Bank ma)' guarantee or make loans

The Bank may guarantee, participate in, or make loans to any member or any political sub-division thereof and any business, industrial, and agricultural enterprise in the territories of a member, subject to the following conditions:

/) When the member in whose territories the project is located is not itself the borrower, the member or the central bank or some comparable agency of the member which is acceptable to the Bank, fully guarantees the repayment of the principal and the payment of interest and other charges on the loan;

if) The Bank is satisfied that in the prevaling market conditions the borrower would be unable otherwise to obtain the loan under conditions which in the opinion of the Bank are reasonable for the borrower; «0 A competent committee, as provided for in article v, section 7, has submitted a written report recommending the project after a careful study of the merits of the proposai; ;'v) In the opinion of the Bank the rate of interest and other charges are reasonable and such rate, charges and the schedule for repayment of principal are appropriate to the project;