3 DE FEVEREIRO DE 1994

300-(19)

se Development Facility, and shall administer the Small Enterprise Investment Fund, pursuant to the Fund Agreement.

Section 2 Operations

a) In administering the Fund, the Bank shall undertake the following duties:

0 To develop, prepare and propose operations to be financed with the resources available under each of the Facilities of the Fund;

ii) To prepare memoranda on proposed activities for the committee established under article 4 of the Fund Agreement (hereinafter referred to as the «Donors Committee») to transmit not less than every quarter to the Board of Executive Directors for its information;

Hi) To present proposals for specific operations to the Donors Committee for final approval;

iv) To execute or arrange for the execution of all operations approved by the Donors Committee; and

v) To administer the accounts of the Fund, including investment of funds as specified in article 4, section 1, c), hereof.

b) The Bank may request that the Inter-American Investment Corporation administer or execute operations or individual programs when those operations and programs fall within the capabilities and expertise of the Corporation.

c) The secretary of the Bank shall be secretary of the Donors Committee and shall provide secretariat services, facilities and other support services to facilitate the work of the Donors Committee. In that capacity the secretary shall also call meetings of the Donors CcKTUTiittee, and at minimum of fourteen days prior to a meeting, shall distribute the principal documents for the meeting and an agenda to the representative of each Donor designated pursuant to article 4, section 1, of the Fund Agreement

Section 3

Limitations on Commitments

The Bank shall restrict cornrnitrnents to the extent directed by a donor pursuant to article 2, section 1, c), of the Fund Agreement,

ARTICLE 3 Depositary functions

Section 1

Depositary for Agreements and Documents

The Bank shall be depositary for this Agreement, the Fund Agreement, instruments of ratification, acceptance or approval deposited under article 6, section 1, of the Fund Agreement, and Instruments of Qualified or Unqualified Contributions deposited under article 2, section 1, of that Agreement

Section 2

Establishment of accounts

The Bank shall establish an account or accounts of the Bank as administrator of the Fund, to receive payment from

donors pursuant to article 2, section 2, of the Fund Agreement The Bank shall administer such accounts in accordance with this Agreement.

ARTICLE 4 Authority of the Bank and other matters

Section 1 Bask authority

a) The Bank represents that it has authority under article vii, section 1, v), of the Agreement Establishing the Inter-American Development Bank (hereinafter referred to as the «Charter») to carry out the provisions of this Agreement and that the activities undertaken pursuant to this Agreement will help fulfill the purposes of the Bank.

6) Except as provided otherwise in this Agreement, the Bank shall have the authority to perform all acts and enter into all contracts necessary to carry out its functions under this Agreement

c) The Bank shall invest monies of the Fund, not needed in its operations, in the same type of securities in which it invests its own funds under its investment authority.

Section 2

Standard of care

The Bank shall exercice the same care in the discharge of its functions under this Agreement as it exercises with respect to the administration and management of its own affairs.

Section 3 Expenses of the Bank

a) The Bank shall be fully reimbursed from the Fund for both direct and indirect costs for its activities related to the Fund and those of the Inter-American Investment Corporation, including remuneration of staff of the Bank for the time actually dedicated to the administration of the Fund, travel, per diem, communication expenses and other similar directly identifiable expenses, calculated and recorded separately as expenses of administering the Fund.

b) The procedure for determining and calculating the expenses to be reimbursed to the Bank, and the criteria governing reimbursement of the costs described in paragraph a) shall be mutually agreed by the Bank and the Donors Committee in a period of not more than 90 days after the entry into force of the Fund Agreement This procedure may be reviewed from time to time at the proposal of the Bank or the Donors Committee, and the application of any changes resulting from such review shall require agreement of the Bank and that Committee.

Section 4

Cooperation with National and International Organizations

In the administration of the Fund, the Bank may consult and cooperate with national and international organizations, both public and private, operating in the fields of social and economic development, when that would help achieve the purposes of the Fund or maximize efficiency in the use of the resources of the Fund.