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c) Financing in the territories of countries which are members of the Caribbean Development Bank, but not the Inter-American Development Bank, shall be conducted in consultation and agreement with, and through, the Caribbean Development Bank and under such conditions consistent with the principles of this section, as the Donors Committee shall decide.

d) Fund resources shall not be used to finance or pay for project expenses which have been incurred prior to the date the Fund resources may be made available.

e) Grants from a Facility may be made available on a basis which permits contingent recovery in appropriate cases of funds disbursed. Any amounts so recovered shall be deposited to the account of the Multilateral Investment Fund, for allocation by the Donors Committee pursuant to article 4, section 3.

f) Only nationals or companies from donors, or regional developing countries which are members of the Bank, shall be eligible for procurement from Fund resources, except that developing member countries of the Caribbean Development Bank shall be eligible for procurement from financing provided pursuant to paragraph c) of this section.

g) The Fund shall not be used to finance any undertaking in the territory of a regional developing member country of the Bank if that member objects to such financing.

ARTICLE 4 The Donors Committee

Section I Composition

Each donor may participate in and appoint a representative, on the basis of a nomination by its governor of the Bank, to meetings of the Donors Committee.

Section 2 Responsibilities

The Donors Committee shall be responsible for the final approval of all proposals for grants from the Technical Cooperation Facility, the Human Resources Facility and the Small Enterprise Development Facility, and all proposals for loans, equity investments or other financings from the Small Enterprise Investment Fund.

Section 3 Allocation among Facilities

The Donors Committee may allocate the resources of the Fund at any time to any Facility, including the Small Enterprise Investment Fund, and may decide that a specific percentage of total Fund assets be reserved for a particular Facility, provided that no more than forty per cent of total resources of the Fund may be allocated to any Facility.

Section 4 Meetings

The Donors Committee shall meet at the principal office of the Bank as often as the business of the Fund requires. Tne secretary of the Bank (serving as secretary of the Committee) or any donor may catt a meeting. As necessary

the Donors Committee shall determine its organization, rules of operation and procedure. A quorum for any meeting of the Donors Committee shall be a majority of the total number of representatives representing not less than four-fifths of the total voting power of the donors.

Section 5 Voting

Unless otherwise specified in this Agreement, the Donors Committee shall reach decisions by a three-quarters majority of the total voting power. The total voting power of each donor shall consist of the sum of its proportional votes and its basic votes. Each donor shall have one proportional vote for each one hundred thousand United States dollars it has contributed in cash or notes (or similar securities) under article 2, section 2, or the equivalent in cash or notes (or similar securities) which it has contributed in freely convertible currencies under article 2, section 2. Each donor shall also have basic votes consisting of such number of votes as results from the equal distribution among all the donors of twenty per cent of the aggregate sum of the basic votes and proportional votes of all the donors.

Section 6 Report

When approved by the Donors Committee the annual information statement submited under article 5, section 2, a), of the Administration Agreement shall be forwarded to the Bank's board of executive directors.

ARTICLE 5 Term of the Agreement

Section 1 Entry into force

This Agreement shall enter into force on the date when at least five prospective donors listed on schedule A, the proposed contributions of which on that schedule total at least 800 000 000 United States dollars, have deposited the instruments referred to in article 6, section 1.

Section 2 Term of this Agreement

This Agreement shall remain in force for a period of ten years after the effective date, and may be renewed for no more than one additional renewal period of five years. Prior to the end of the initial period, the Donors Committee shall consult with the Bank about the advisability of extending the operations of the Fund or any Facility for the renewal period. At that time the Donors Committee, acting by a vote of at least two-thirds of the donors representing not less than three-quarters of the total voting power of the donors, may extend this Agreement or any of the operations of any Facility or Fund for the renewal period or a period shorter than the renewal period.

Section 3

Termination by the Bank or the Donors Committee

This Agreement shall terminate in the event that the Bank suspends or terminates its own operations under