898-(130)

II SÉRIE-A — NÚMERO 31

2 — Losses arising in the Bank's ordinary operations shall be charged:

/) First, to the provisions referred to in paragraph 1 of this article; if) Second, to net income; Hi) Third, against the special reserve provided for in article 16 of this Agreement;

iv) Fourth, against its general reserve and surpluses;

v) Fifth, against the unimpaired paid-in capital;

vf) Last, against an appropriate amount of the uncalled subscribed callable capital which shall be called in accordance with the provisions of paragraphs 4 and 5 of article 6 of this Agreement.

Article 18 Special funds

1 — The Bank may accept the administration of special funds which are designed to serve the purpose and come within the functions of the Bank. The full cost of administering any such special fund shall be charged to that special fund.

2 — Special funds accepted by the Bank may be used in any manner and on any terms and conditions consistent with the purpose and the functions of the Bank, with the other applicable provisions of this Agreement, and with the agreement or agreements relating to such funds.

3 — The Bank shall adopt such rules and regulations as may be required for the establishment, administration and use of each special fund. Such rules and regulations shall be consistent with the provisions of this Agreement, except for those provisions expressly applicable only to ordinary operations of the Bank.

Article 19 Special funds resources

The term «spécial funds resources» shall refer to the resources of any special fund and shall include:

0 Funds accepted by the Bank for inclusion in any special fund;

if) Funds repaid in respect of loans or guarantees, and the proceeds of equity investments, financed from the resources of any special fund which, under the rules and regulations governing that special fund, are received by such special fund; and

Hi) Income derived from investment of special funds resources.

CHAPTER IV Borrowing and other miscellaneous powers

Article 20 General powers

1 — The Bank shall have, in addition to the powers specified elsewhere in this Agreement, the power to:

/) Borrow funds in member countries or elsewhere, provided always that:

a) Before making a sale of its obligations in the territory of a country, the Bank shall have obtained its approval; and

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

;'/) Invest or deposit funds not needed in its operations;

»0 Buy and sell securities, in the secondary market, which the Bank has issued or guaranteed or in which it has invested;

iv) Guarantee securities in which it has invested in order to facilitate their sale;

v) Underwrite, or participate in the underwriting of, securities issued by any enterprise for purposes consistent with the purpose and functions of the Bank;

vf) Provide technical advice and assistance which serve its purpose and come within its functions;

vif) Exercise such other powers and adopt such rules and regulations as may be necessary or appropriate in furtherance of its purpose and functions, consistent with the provisions of this Agreement; and

viii) Conclude agreements of cooperation with any public or private entity or entities.

2 — 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, or member, unless it is in fact the obligation of a particular Government or member, in which case it shall so state.

CHAPTER V Currencies

Article 21 Determination and use of currencies

1 — Whenever it shall become necessary under this Agreement to determine whether any currency is fully convertible for the purposes of this Agreement, such determination shall be made by the Bank, taking into account the paramount need to preserve its own financial interests, after consultation, if necessary, with the International Monetary Fund.

2 — Members shall not impose any restrictions on the receipt, holding, use or transfer by the Bank of the following:

i) Currencies or ECU received by the Bank in payment of subscriptions to its capital stock, in accordance with article 6 of this Agreement;

if) Currencies obtained by the Bank by borrowing; Hi) Currencies and other resources administered by the Bank as contributions to special funds; and iv) Currencies received by the Bank in payment on account of principal, interest, dividends or other charges in respect of loans or investments, or the proceeds of disposal of such investments made out of any of the funds referred to in sub-paragraphs i) to Hi) of this paragraph, or in payment of commission, fees or other charges.