INTERNATIONAL ORGANIZATIONS
PROFESSOR LAURENCE BOISSON DE CHAZOURNES
REQUIRED READINGS (printed format)
Legal instruments and documents
1. Articles of Agreement of the International Bank for
Reconstruction and Development, 1944
2. Charter of the United Nations, 1945
For text, see Charter of the United Nations and Statute of the
International Court of
Justice
3. Convention on the Privileges and Immunities of the United
Nations, 1946
4. Constitution of the World Health Organization, 1946
5. Vienna Convention on the Law of Treaties, 1969
For text, see The Work of the International Law Commission, 8th
ed., vol. II, United
Nations Publication, p. 116
6. Vienna Convention on the Law of Treaties between States and
International Organizations or between International Organizations,
1986
For text, see The Work of the International Law Commission, 8th
ed., vol. II. P. 228
7. Agreement between the International Committee of the Red
Cross and the Swiss Federal Council to determine the legal status
of the Committee in Switzerland, 1993
8. Agreement Establishing the World Trade Organization, 1994
9. Federal Act on the Privileges, Immunities and Facilities and
the Financial Subsidies granted by Switzerland as a Host State,
2007
10. Articles on the Responsibility of International
Organizations, 2011
For text, see The Work of the International Law Commission, 8th
ed., vol. II, p. 494
11. Chart of the United Nations System
Case law
12. Admission of a State to the United Nations (Charter, Art.
4), Advisory Opinion, I.C.J. Reports 1948, p. 57
13. Reparation for Injuries Suffered in the Service of the
United Nations, Advisory Opinion, I.C.J. Reports 1949, p. 174
14. Competence of Assembly regarding admission to the United
Nations, Advisory Opinion, I.C.J. Reports 1950, p. 4
15. Prosecutor v. Duko Tadi, ICTY Appeals Chamber, 2 October
1995 (Decision on the Defence Motion for Interlocutory Appeal on
Jurisdiction), paras. 1-12 and paras. 26-48
16. Legality of the Use by a State of Nuclear Weapons in Armed
Conflict, Advisory Opinion, I.C.J. Reports 1996, p. 66
17. Difference Relating to Immunity from Legal Process of a
Special Rapporteur of the Commission on Human Rights, Advisory
Opinion, I.C.J. Reports 1999, pp. 84-89,
paras. 47-67
18. Behrami and Behrami v. France and Saramati v. France,
Germany and Norway (Nos. 71412/01 and 78166/01), Decision, ECHR, 2
May 2007
19. European Commission and Others v. Yassin Abdullah Kadi
(Joined cases C-584/10 P, C-593/10 P and C-595/10 P), Judgment,
ECJ, 18 July 2013
20. Georges, et al. v. United Nations, et al., No. 13-CV-7146
JPO (2nd Cir. Jan 9, 2015)
RECOMMENDED READINGS (electronic format)
Legal instruments and documents
1. Constituent Charter of the Bank of International Settlements,
1930
2. Articles of Agreement of the International Monetary Fund,
1944
3. Convention on International Civil Aviation, 1944
4. Agreement between the United Nations and the United States of
America regarding the Headquarters of the United Nations, 1947
5. Agreement Relating to the International Telecommunications
Satellite Organization, 1971
6. Singapore Declaration of Commonwealth Principles, 1971
7. Montevideo Treaty, Instrument Establishing the Latin American
Integration Association (ALADI) 1980
8. Basic Documents of the European Bank of Reconstruction and
Development, 1990
9. Constitutive Act of the African Union, 2000
10. Ordinance to the Federal Act on the Privileges, Immunities
and Facilities and the Financial Subsidies granted by Switzerland
as a Host State, 2007
11. Charter of the Association of Southeast Asian Nations,
2007
12. Statement of the Chairman of the Drafting Committee
regarding the topic Responsibility of International Organizations,
International Law Commission, sixty-
third session, 3 June 2011
Case law
13. Constitution of the Maritime Safety Committee of the
Inter-Governmental Maritime Consultative Organization, Advisory
Opinion, I.C.J. Reports 1960, pp. 150-172
14. Certain Expenses of the United Nations (Article 17,
paragraph 2, of the Charter), Advisory Opinion, I.C.J. Reports
1962, pp. 151-181
15. Interpretation of the Agreement of 25 March 1951 between the
WHO and Egypt, Advisory Opinion, I.C.J. Reports 1980, pp. 73-98
16. Applicability of the Obligation to Arbitrate under Section
21 of the United Nations Headquarters Agreement of 26 June 1947,
Advisory Opinion, I.C.J. Reports 1988, pp. 12-35
17. Yassin Abdullah Kadi and Al Barakaat International
Foundation v. Council of the European Union and Commission of the
European Communities (Joined Cases C-
402/05 P and C-415/05 P), Judgment, ECJ, 3 September 2008
Legal writings (not reproduced)
18. Martin Dixon, Textbook on International Law, 6th ed.
(Oxford, Oxford University Press,
2007), pp. 1-22
19. Jan Klabbers, An Introduction to International Institutional
Law, 2nd
ed. (New York,
Cambridge University Press, 2009), pp. 1-37
Articles of Agreement of the International Bank for
Reconstruction and Development, 1944
UNTS, vol. 2, p. 134
IBR
D A
rtic
les o
f A
gre
em
en
t(A
s am
ende
d ef
fect
ive
Febr
uary
16,
198
9)
Tabl
e of
Con
tent
s
INT
RO
DU
CT
OR
Y A
RT
ICLE
T
he Inte
rnational B
ank for
Reconstr
uction a
nd D
evelo
pm
ent is
esta
blis
hed a
nd s
hall
opera
te in
accord
ance w
ith the follo
win
g p
rovis
ions:
AR
TIC
LE
I: P
urp
oses
AR
TIC
LE
II: M
em
bers
hip
in a
nd C
apital o
f th
e B
ank
SE
CT
ION
1. M
em
bers
hip
SE
CT
ION
2. A
uth
orized C
apital
SE
CT
ION
3. S
ubscription o
f S
hare
sS
EC
TIO
N 4
. Is
sue P
rice o
f S
hare
sS
EC
TIO
N 5
. D
ivis
ion a
nd C
alls
of S
ubscribed C
apital
SE
CT
ION
6. Lim
itation o
n L
iabili
tyS
EC
TIO
N 7
. M
eth
od o
f P
aym
ent of S
ubscriptions for
Share
sS
EC
TIO
N 8
. T
ime o
f P
aym
ent of S
ubscriptions
SE
CT
ION
9. M
ain
tenance o
f V
alu
e o
f C
ert
ain
Curr
ency H
old
ings o
f th
e B
ank
SE
CT
ION
10. R
estr
iction o
n D
isposal of S
hare
s
AR
TIC
LE
III:
Genera
l P
rovis
ions R
ela
ting to L
oans a
nd G
uara
nte
es
SE
CT
ION
1. U
se
of R
eso
urc
es
SE
CT
ION
2. D
ea
lings b
etw
een
Me
mbers
and
th
e B
an
kS
EC
TIO
N 3
. Lim
itations o
n G
uara
nte
es a
nd B
orr
ow
ings o
f th
e B
ank
SE
CT
ION
4. C
onditio
ns o
n w
hic
h the B
ank m
ay G
uara
nte
e o
r M
ake L
oans
SE
CT
ION
5. U
se o
f Loans G
uara
nte
ed, P
art
icip
ate
d in
or
Made b
y the B
ank
SE
CT
ION
6. Loans to the Inte
rnational F
inance C
orp
ora
tion(1
)
AR
TIC
LE
IV
: O
pera
tions
SE
CT
ION
1. M
eth
ods o
f M
akin
g o
r F
acili
tating L
oans
SE
CT
ION
2. A
vaila
bili
ty a
nd T
ransfe
rabili
ty o
f C
urr
encie
sS
EC
TIO
N 3
. P
rovis
ion o
f C
urr
encie
s for
Direct Loans
SE
CT
ION
4. P
aym
ent P
rovis
ions for
Direct Loans
SE
CT
ION
5. G
uara
nte
es
SE
CT
ION
6. S
pe
cia
l Reserv
eS
EC
TIO
N 7
. M
eth
ods o
f M
eeting L
iabili
ties o
f th
e B
ank in C
ase o
f D
efa
ults
SE
CT
ION
8. M
iscella
neous O
pera
tions
SE
CT
ION
9. W
arn
ing to b
e P
laced o
n S
ecurities
SE
CT
ION
10. P
olit
ical A
ctivity P
rohib
ited
AR
TIC
LE
V: O
rganiz
ation a
nd M
anagem
ent
SE
CT
ION
1. S
tructu
re o
f th
e B
ank
SE
CT
ION
2. B
oard
of G
ove
rnors
SE
CT
ION
3. V
oting
SE
CT
ION
4. E
xecutive D
irecto
rsS
EC
TIO
N 5
. P
resid
ent and S
taff
SE
CT
ION
6. A
dvis
ory
Council
SE
CT
ION
7. Loan C
om
mitt
ees
SE
CT
ION
8. R
ela
tionship
to O
ther
Inte
rnational O
rganiz
ations
SE
CT
ION
9. Location o
f O
ffic
es
SE
CT
ION
10
. R
eg
ion
al O
ffic
es a
nd
Co
un
cils
SE
CT
ION
11. D
epositories
SE
CT
ION
12. F
orm
of H
old
ings o
f C
urr
ency
SE
CT
ION
13. P
ublic
ation o
f R
eport
s a
nd P
rovis
ion o
f In
form
ation
SE
CT
ION
14. A
llocation o
f N
et In
com
e
AR
TIC
LE
VI: W
ithdra
wal and S
uspensio
n o
f M
em
bers
hip
: S
uspensio
n o
f O
pera
tions
SE
CT
ION
1. R
ight of M
em
bers
to W
ithdra
wS
EC
TIO
N 2
. S
uspensio
n o
f M
em
bers
hip
SE
CT
ION
3. C
essation o
f M
em
bers
hip
in Inte
rnational M
oneta
ry F
und
SE
CT
ION
4. S
ettle
ment of A
ccounts
with G
overn
ments
Ceasin
g to b
e M
em
bers
SE
CT
ION
5. S
uspensio
n o
f O
pera
tions a
nd S
ettle
ment of O
blig
ations
AR
TIC
LE
VII: S
tatu
s, Im
munitie
s a
nd P
rivile
ges
SE
CT
ION
1. P
urp
oses o
f th
e A
rtic
leS
EC
TIO
N 2
. S
tatu
s o
f th
e B
ank
SE
CT
ION
3. P
ositio
n o
f th
e B
ank w
ith R
egard
to judic
ial P
rocess
SE
CT
ION
4. Im
munity o
f A
ssets
fro
m S
eiz
ure
SE
CT
ION
5. Im
munity o
f A
rchiv
es
SE
CT
ION
6. F
reedom
of A
ssets
fro
m R
estr
ictions
SE
CT
ION
7. P
rivile
ge for
Com
munic
atio
ns
SE
CT
ION
8. Im
munitie
s a
nd P
rivile
ges o
f O
ffic
ers
and E
mplo
yees
SE
CT
ION
9. Im
munitie
s fro
m T
axation
SE
CT
ION
10. A
pplic
ation o
f A
rtic
le
AR
TIC
LE
VIII: A
mendm
ents
AR
TIC
LE
IX
: In
terp
reta
tion
AR
TIC
LE
X: A
ppro
val D
eem
ed G
iven
AR
TIC
LE
XI: F
inal P
rovis
ions
SE
CT
ION
1. E
ntr
y into
Forc
eS
EC
TIO
N 2
. S
ignatu
reS
EC
TIO
N 3
. In
augura
tion o
f th
e B
ank
SC
HE
DU
LE
A: S
ubscriptions
SC
HE
DU
LE
B: E
lection o
f E
xecutive D
irecto
rs
AR
TIC
LE
I
Pu
rpo
ses
The p
urp
oses o
f th
e B
ank a
re:
(i)
To a
ssis
t in
the r
econstr
uction a
nd d
evelo
pm
ent of te
rritories o
f m
em
bers
by fa
cili
tating the
inve
stm
en
t o
f ca
pita
l fo
r pro
ductive
pu
rpo
ses, in
clu
din
g th
e r
esto
ratio
n o
f e
con
om
ies d
estr
oyed o
r dis
rupte
d b
y w
ar,
the r
econvers
ion o
f pro
ductive facili
ties to p
eacetim
e n
eeds a
nd the
encoura
gem
ent of th
e d
evelo
pm
ent
of pro
ductive facili
ties a
nd r
esourc
es in less d
evelo
ped
co
un
trie
s.
(ii) T
o p
rom
ote
private
fore
ign investm
ent by m
eans o
f guara
nte
es o
r part
icip
ations in loans a
nd
oth
er
investm
ents
made b
y p
rivate
investo
rs;
and w
hen p
rivate
capita
l is
not availa
ble
on
reasonable
term
s, to
supple
ment private
investm
ent by p
rovid
ing, on s
uitable
conditio
ns, finance
for
pro
ductive
pu
rposes o
ut o
f its o
wn
cap
ita
l, fu
nd
s r
ais
ed
by it a
nd its
oth
er
resou
rce
s.
(iii)
To p
rom
ote
the long-r
ange b
ala
nced g
row
th o
f in
tern
ational tr
ade a
nd the m
ain
tenance o
f equili
brium
in b
ala
nces o
f paym
ents
by e
ncoura
gin
g inte
rnational in
vestm
ent fo
r th
e d
evelo
pm
ent
of th
e p
roductiv
e r
esourc
es o
f m
em
bers
, th
ere
by a
ssis
ting in r
ais
ing p
roductivity,
the s
tandard
of
livin
g a
nd c
onditio
ns o
f la
bor
in their terr
itories.
(iv)
To a
rrange the loans m
ade o
r guara
nte
ed b
y it
in r
ela
tion to inte
rnational lo
ans thro
ugh o
ther
channels
so that th
e m
ore
usefu
l and u
rgent pro
jects
, la
rge a
nd s
mall
alik
e, w
ill b
e d
ealt w
ith first.
(v)
To
co
nd
uct its o
pe
ratio
ns w
ith
due
reg
ard
to
th
e e
ffe
ct o
f in
tern
atio
na
l in
ve
stm
en
t o
n b
usin
ess
conditio
ns in the terr
itories o
f m
em
bers
and, in
the im
media
te p
ostw
ar
years
, to
assis
t in
bringin
g
about a s
mooth
tra
nsitio
n fro
m a
wart
ime to a
peacetim
e e
conom
y.
Th
e B
ank s
ha
ll b
e g
uid
ed
in a
ll its d
ecis
ion
s b
y th
e p
urp
ose
s s
et fo
rth
ab
ove
AR
TIC
LE
II
Mem
bers
hip
in
an
d C
ap
ital o
f th
e B
an
k
SE
CT
ION
1. M
em
bers
hip
(a)
The o
rigin
al m
em
bers
of th
e B
ank s
hall
be t
hose m
em
bers
of th
e Inte
rnational M
oneta
ry F
und
whic
h a
ccept m
em
bers
hip
in the B
ank b
efo
re t
he d
ate
specifie
d in A
rtic
le X
I, S
ection 2
(e).
(b)
Mem
bers
hip
shall
be o
pen to o
ther
mem
bers
of th
e F
und, at such tim
es a
nd in a
ccord
ance
with s
uch term
s a
s m
ay b
e p
rescribed b
y the B
ank.
SE
CT
ION
2. A
uth
ori
zed
Cap
ital
(a)
The a
uth
orized c
apital sto
ck o
f th
e B
ank s
hall
be $
10,0
00,0
00,0
00, in
term
s o
f U
nited S
tate
s
dolla
rs o
f th
e w
eig
ht and fin
eness in e
ffect on J
uly
1, 1944. T
he c
apital sto
ck s
hall
be d
ivid
ed in
to
10
0,0
00
sha
res (
1)
ha
vin
g
a p
ar
valu
e o
f $100,0
00 e
ach, w
hic
h s
hall
be a
vaila
ble
for
subscriptio
n o
nly
by m
em
bers
.
(b)
Th
e c
ap
ita
l sto
ck m
ay b
e in
cre
ased
wh
en
th
e B
ank d
ee
ms it a
dvis
ab
le b
y a
th
ree-f
ourt
hs
majo
rity
of th
e tota
l voting p
ow
er.
SE
CT
ION
3. S
ub
scri
pti
on
of
Sh
are
s
(a)
Each
mem
be
r sh
all
sub
scribe
sha
res o
f th
e c
ap
ital sto
ck o
f th
e B
an
k. T
he
min
imu
m n
um
be
r o
f sh
are
s to
be
su
bscribe
d b
y th
e o
rig
ina
l me
mb
ers
sh
all
be
th
ose
set fo
rth
in
Sch
ed
ule
A. T
he
m
inim
um
num
ber
of share
s to b
e s
ubscribed b
y o
ther
mem
bers
shall
be d
ete
rmin
ed b
y the B
ank,
wh
ich
sh
all
rese
rve
a s
uff
icie
nt p
ort
ion
of its c
ap
ita
l sto
ck for
sub
scrip
tio
n b
y s
uch m
em
be
rs.
(b)
Th
e B
ank s
ha
ll pre
scribe
ru
les la
yin
g d
ow
n th
e c
on
ditio
ns u
nder
wh
ich
me
mb
ers
ma
y
subscribe s
hare
s o
f th
e a
uth
orized c
apita
l sto
ck o
f th
e B
ank in a
dditio
n to their m
inim
um
su
bscri
ption
s.
1.A
s o
f A
pril 27, 1988, th
e a
uth
orized c
apital sto
ck o
f th
e B
ank h
ad b
een incre
ased to 1
,420,5
00
sh
are
s.
(c)
If the a
uth
orized c
apital s
tock o
f th
e B
ank is incre
ased, each m
em
ber
shall
have a
reasonable
opport
unity to s
ubscribe, under
such c
onditio
ns a
s the B
ank s
hall
decid
e, a p
roport
ion o
f th
e
incre
ase o
f sto
ck e
quiv
ale
nt to
the p
roport
ion w
hic
h its
sto
ck there
tofo
re s
ubscribed b
ears
to the
tota
l capital sto
ck o
f th
e B
ank, but no m
em
ber
shall
be o
blig
ate
d to s
ubscribe a
ny p
art
of th
e
incre
ase
d c
ap
ita
l.
SE
CT
ION
4. Is
su
e P
rice o
f S
hare
s
Share
s inclu
ded in the m
inim
um
subscriptions o
f origin
al m
em
bers
shall
be issued a
t par.
Oth
er
share
s s
hall
be issued a
t par
unle
ss the B
ank b
y a
majo
rity
of th
e tota
l voting p
ow
er
decid
es in
sp
ecia
l circum
sta
nces to
issu
e th
em
on o
the
r te
rms.
SE
CT
ION
5. D
ivis
ion
an
d C
alls o
f S
ub
scri
bed
Cap
ital
The s
ubscriptio
n o
f each m
em
ber
shall
be d
ivid
ed into
tw
o p
art
s a
s follo
ws:
(i)
twenty
perc
ent shall
be p
aid
or
subje
ct to
call
under
Section 7
(i) o
f th
is A
rtic
le a
s n
eeded b
y
the B
ank for
its o
pera
tions;
(ii) the r
em
ain
ing e
ighty
perc
ent shall
be s
ubje
ct to
call
by the B
ank o
nly
when r
equired to m
eet
oblig
ations o
f th
e B
ank c
reate
d u
nder
Art
icle
IV
, S
ections 1
(a)
(ii) a
nd (
iii).
Ca
lls o
n u
np
aid
su
bscrip
tion
s s
ha
ll b
e u
nifo
rm o
n a
ll sh
are
s.
SE
CT
ION
6. L
imit
ati
on
on
Lia
bilit
y
Lia
bili
ty o
n s
hare
s s
hall
be li
mited to the u
npaid
port
ion o
f th
e issue p
rice o
f th
e s
hare
s.
SE
CT
ION
7. M
eth
od
of
Pa
ym
en
t o
f S
ub
scri
pti
on
s f
or
Sh
are
s
Pa
ym
en
t o
f su
bscrip
tio
ns fo
r sha
res s
hall
be
ma
de
in
go
ld o
r U
nited
Sta
tes d
olla
rs a
nd
in
th
e
cu
rren
cie
s o
f th
e m
em
bers
as fo
llow
s:
(i)
under
Sectio
n 5
(i) o
f th
is A
rtic
le, tw
o p
erc
ent of th
e p
rice o
f each s
hare
shall
be p
ayable
in
gold
or
United S
tate
s d
olla
rs, and, w
hen c
alls
are
made, th
e r
em
ain
ing e
ighte
en p
erc
ent shall
be
paid
in the c
urr
ency o
f th
e m
em
ber;
(ii) w
hen a
call
is m
ade u
nder
Section 5
(ii)
of th
is A
rtic
le, paym
ent m
ay b
e m
ade a
t th
e o
ption o
f th
e m
em
ber
either
in g
old
, in
United S
tate
s d
olla
rs o
r in
the c
urr
ency r
equired to d
ischarg
e the
ob
liga
tio
ns o
f th
e B
an
k fo
r th
e p
urp
ose
fo
r w
hic
h th
e c
all
is m
ad
e;
(iii)
when a
me
mber
makes p
aym
ents
in a
ny c
urr
ency u
nder
(i)
and (
ii) a
bove, such p
aym
ents
shall
be m
ade in a
mounts
equal in
valu
e to the m
em
ber's lia
bili
ty u
nder
the c
all.
This
lia
bili
ty s
hall
be
a p
rop
ort
ion
ate
part
of th
e s
ubscribed
ca
pita
l sto
ck o
f th
e B
an
k a
s a
uth
orize
d a
nd
de
fin
ed
in
S
ection 2
of th
is A
rtic
le.
SE
CT
ION
8. T
ime o
f P
aym
en
t o
f S
ub
scri
pti
on
s
(a)
The tw
o p
erc
ent payable
on e
ach s
hare
in g
old
or
United S
tate
s d
olla
rs u
nder
Section 7
(i) o
f th
is A
rtic
le, shall
be p
aid
within
six
ty d
ays o
f th
e d
ate
on w
hic
h the B
ank b
egin
s o
pera
tions,
pro
vid
ed that
(i)
any o
rigin
al m
em
ber
of th
e B
ank w
hose m
etr
opolit
an terr
itory
has s
uffere
d fro
m e
nem
y
occupation o
r hostilit
ies d
uring the p
resent w
ar
shall
be
gra
nte
d the r
ight to
postp
one p
aym
ent of
one-h
alf p
erc
ent until five y
ears
after
that date
;
(ii) a
n o
rigin
al m
em
ber
who c
annot m
ake s
uch a
paym
ent because it
has n
ot re
covere
d
possessio
n o
f its g
old
reserv
es w
hic
h a
re s
till
seiz
ed o
r im
mobili
zed a
s a
result o
f th
e w
ar
ma
y
postp
one a
n p
aym
ent until s
uch d
ate
as the B
ank s
hall
decid
e.
(b)
Th
e r
em
ain
de
r o
f th
e p
rice
of e
ach
sh
are
pa
ya
ble
un
de
r S
ection
7 (
i) o
f th
is A
rtic
le s
ha
ll be
paid
as a
nd w
hen c
alle
d b
y the B
ank, pro
vid
ed that
(i)
the B
ank s
hall,
within
one y
ear
of its b
egin
nin
g o
pera
tions, call
not le
ss than e
ight perc
ent of
the p
rice o
f th
e s
hare
in a
dditio
n to the p
aym
ent of tw
o p
erc
ent re
ferr
ed to in (
a)
above;
(ii) n
ot m
ore
than fiv
e p
erc
ent of th
e p
rice o
f th
e s
hare
shall
be c
alle
d in a
ny p
eriod o
f th
ree
month
s.
SE
CT
ION
9. M
ain
ten
an
ce o
f V
alu
e o
f C
ert
ain
Cu
rre
nc
y H
old
ing
s o
f th
e B
an
k
(a)
Wh
en
eve
r (i)
the
par
va
lue
of a
me
mbe
r's c
urr
ency is r
edu
ce
d, o
r (ii) th
e fo
reig
n e
xch
an
ge
valu
e o
f a m
em
ber's c
urr
ency h
as, in
the o
pin
ion o
f th
e B
ank, depre
cia
ted to a
sig
nific
ant exte
nt
within
that m
em
ber's terr
itories, th
e m
em
ber
shall
pay to the B
ank w
ithin
a r
easonable
tim
e a
n
additio
nal am
ount of its o
wn c
urr
ency s
uffic
ient to
main
tain
the v
alu
e, as o
f th
e tim
e o
f in
itia
l subscription, of th
e a
mount of th
e c
urr
ency o
f such m
em
ber
whic
h is
held
by the B
ank a
nd
derived fro
m c
urr
ency o
rigin
ally
paid
in to the B
ank b
y th
e m
em
ber
under
Art
icle
II, S
ection 7
(i),
from
curr
ency r
efe
rred to in A
rtic
le IV
, S
ection 2
(b),
or
from
any a
dditio
nal curr
ency furn
ished
un
der
the
pro
vis
ions o
f th
e p
rese
nt p
ara
gra
ph
, a
nd
wh
ich
ha
s n
ot b
ee
n r
ep
urc
ha
sed
by th
e
mem
ber
for
gold
or
for
the c
urr
ency o
f an
y m
em
ber
whic
h is
accepta
ble
to the B
ank.
(b)
Whenever
the p
ar
valu
e o
f a m
em
ber's c
urr
ency is incre
ased, th
e B
ank s
hall
retu
rn to s
uch
mem
ber
within
a r
easonable
tim
e a
n a
mount of th
at m
em
ber's c
urr
ency e
qual to
the incre
ase in
th
e v
alu
e o
f th
e a
mount of such c
urr
ency d
escribed in (
a)
above.
(c)
The p
rovis
ions o
f th
e p
recedin
g p
ara
gra
phs m
ay b
e w
aiv
ed b
y the B
ank w
hen a
uniform
pro
port
ionate
change in the p
ar
valu
es o
f th
e c
urr
encie
s o
f all
its m
em
bers
is m
ade b
y the
Inte
rnational M
oneta
ry F
und.
SE
CT
ION
10. R
estr
icti
on
on
Dis
po
sal o
f S
hare
s
Sh
are
s s
ha
ll n
ot b
e p
ledg
ed
or
encu
mb
ere
d in
an
y m
an
ne
r w
ha
tever
an
d th
ey s
ha
ll b
e
transfe
rable
only
to the B
ank.
IBR
D A
rtic
les o
f A
gre
em
en
t III
Ge
ne
ral
Pro
vis
ion
s R
ela
tin
g t
o L
oa
ns
an
d G
ua
ran
tee
s
SE
CT
ION
1. U
se o
f R
eso
urc
es
(a)
The r
esourc
es a
nd t
he f
acili
ties o
f th
e B
ank s
hall
be u
sed e
xclu
siv
ely
for
the b
enefit
of
mem
bers
with
equitable
consid
era
tion t
o p
roje
cts
for
develo
pm
ent
and p
roje
cts
for
reconstr
uction a
like.
(b)
For
the p
urp
ose o
f fa
cili
tating t
he r
esto
ration a
nd r
econstr
uction o
f th
e e
conom
y of
mem
bers
wh
ose
metr
opolit
an t
err
itories h
ave s
uffere
d g
reat
devasta
tion f
rom
enem
y occupation o
r hostilit
ies,
the B
ank,
in
dete
rmin
ing t
he c
onditio
ns a
nd t
erm
s o
f lo
ans m
ade t
o s
uch m
em
bers
, shall
pay s
pecia
l re
gard
to lig
hte
nin
g
the f
inancia
l burd
en a
nd e
xpeditin
g t
he c
om
ple
tion o
f such r
esto
ration a
nd r
econstr
uction.
SE
CT
ION
2. D
ealin
gs b
etw
een
Mem
bers
an
d t
he B
an
k
Each m
em
ber
shall
deal w
ith t
he B
ank o
nly
thro
ugh it
s T
reasury
, centr
al bank,
sta
bili
zation f
und o
r oth
er
sim
ilar
fiscal agency,
and t
he B
ank s
hall
deal w
ith m
em
bers
only
by o
r th
rough t
he s
am
e a
gencie
s.
SE
CT
ION
3. L
imit
ati
on
s o
n G
uara
nte
es a
nd
Bo
rro
win
gs o
f th
e B
an
k
The t
ota
l am
ount
outs
tandin
g o
f guara
nte
es,
part
icip
ations in loans a
nd d
irect
loans m
ade b
y th
e B
ank s
hall
not
be incre
ased a
t any t
ime,
if b
y such incre
ase the t
ota
l w
ould
exc
eed o
ne h
undre
d p
erc
ent
of
the
unim
pair
ed s
ubscribed c
apital, r
eserv
es a
nd s
urp
lus o
f th
e B
ank.
SE
CT
ION
4. C
on
dit
ion
s o
n w
hic
h t
he B
an
k m
ay G
uara
nte
e o
r M
ake L
oan
s
The B
ank m
ay
guara
nte
e,
part
icip
ate
in,
or
make loans t
o a
ny m
em
ber
or
any
polit
ical sub-d
ivis
ion t
here
of
and a
ny
busin
ess,
industr
ial, a
nd a
gri
cultura
l ente
rpri
se in t
he t
err
itories o
f a m
em
ber,
subje
ct
to t
he
follo
win
g c
onditio
ns:
(i)
When t
he m
em
ber
in w
hose t
err
itories t
he p
roje
ct
is lo
cate
d is n
ot
itself t
he b
orr
ow
er,
the m
em
ber
or
the
centr
al bank o
r som
e c
om
para
ble
agency o
f th
e m
em
ber
whic
h is a
ccepta
ble
to t
he B
ank,
fully
guara
nte
es
the r
epaym
ent
of
the p
rincip
al and t
he p
aym
ent
of
inte
rest
and o
ther
charg
es o
n t
he loan.
(ii) T
he B
ank is s
atisfied t
hat
in t
he p
revaili
ng m
ark
et
conditio
ns t
he b
orr
ow
er
would
be u
nable
oth
erw
ise t
o
obta
in t
he loan u
nder
cond
itio
ns w
hic
h in t
he o
pin
ion o
f th
e B
ank a
re r
easonable
for
the b
orr
ow
er.
(iii)
A c
om
pete
nt
com
mitte
e,
as p
rovid
ed f
or
in A
rtic
le V
, S
ection 7
, has s
ubm
itte
d a
wri
tten r
eport
re
com
mendin
g t
he p
roje
ct
after
a c
are
ful stu
dy
of
the m
erits
of
the p
roposal.
(iv)
In t
he o
pin
ion o
f th
e B
ank t
he r
ate
of
inte
rest and o
ther
charg
es a
re r
easonable
and s
uch r
ate
, charg
es
and t
he s
chedule
for
repaym
ent
of
princip
al are
appro
priate
to t
he p
roje
ct.
(v)
In m
akin
g o
r guara
nte
ein
g a
loan,
the B
ank s
hall
pay
due r
egard
to t
he p
rospects
that
the b
orr
ow
er,
and,
if t
he b
orr
ow
er
is n
ot
a m
em
ber,
that
the g
uara
nto
r, w
ill b
e in p
ositio
n t
o m
eet
its o
blig
ations u
nder
the loan;
and t
he B
ank s
hall
act
pru
dently
in t
he inte
rests
both
of th
e p
art
icula
r m
em
ber
in w
hose t
err
itories t
he p
roje
ct
is locate
d a
nd o
f th
e m
em
bers
as a
wh
ole
.
(vi) I
n g
uara
nte
ein
g a
loan m
ade b
y oth
er
investo
rs, th
e B
ank r
eceiv
es s
uitable
com
pensation f
or
its r
isk.
(vii)
Loans m
ade o
r guara
nte
ed b
y th
e B
ank s
hall,
exc
ept
in s
pecia
l circum
sta
nces,
be f
or
the p
urp
ose o
f specific
pro
jects
of
reconstr
uction o
r develo
pm
ent.
SE
CT
ION
5. U
se o
f L
oan
s G
uara
nte
ed
, P
art
icip
ate
d in
or
Mad
e b
y t
he B
an
k
(a)
The B
ank s
hall
impose n
o c
onditio
ns t
hat
the p
roceeds o
f a loan s
hall
be s
pent
in t
he t
err
itories o
f any
part
icula
r m
em
ber
or
mem
bers
.
(b)
The B
ank s
hall
make a
rrangem
ents
to e
nsure
that th
e p
roceeds o
f any loan a
re u
sed o
nly
for
the
purp
oses f
or
whic
h t
he loan w
as g
rante
d,
with d
ue a
ttention t
o c
onsid
era
tions o
f econom
y and e
ffic
iency a
nd
without
regard
to p
olit
ical or
oth
er
non-e
conom
ic influences o
r consid
era
tions.
(c)
In t
he c
ase o
f lo
ans m
ade b
y th
e B
ank,
it s
hall
open a
n a
ccount
in t
he n
am
e o
f th
e b
orr
ow
er
and t
he
am
ount
of
the loan s
hall
be c
redited t
o t
his
account
in t
he c
urr
ency o
r curr
encie
s in w
hic
h t
he loan is m
ade.
The b
orr
ow
er
shall
be p
erm
itte
d b
y th
e B
ank t
o d
raw
on t
his
account
only
to m
eet
exp
enses in c
onnection
with t
he
pro
ject
as t
he
y a
re a
ctu
ally
in
cu
rre
d.
SE
CT
ION
6. L
oan
s t
o t
he In
tern
ati
on
al F
inan
ce C
orp
ora
tio
n(1
)
(a)
The B
ank m
ay
make,
part
icip
ate
in,
or
guara
nte
e loans t
o t
he I
nte
rnational F
inance C
orp
ora
tion,
an
affili
ate
of
the B
ank,
for
use in its
lendin
g o
pera
tions.
The t
ota
l am
ount
outs
tandin
g o
f such loans,
part
icip
ations a
nd g
uara
nte
es s
hall
not
be incre
ased if, a
t th
e t
ime o
r as a
result t
here
of, t
he a
ggre
gate
am
ount
of
debt
(inclu
din
g t
he g
uara
nte
e o
f any
debt)
incurr
ed b
y t
he s
aid
Corp
ora
tion f
rom
any
sourc
e a
nd
then o
uts
tandin
g s
hall
exceed a
n a
mount
equal to
four
tim
es its
unim
pair
ed s
ubscri
bed c
apital and s
urp
lus.
(b)
The p
rovis
ions o
f A
rtic
le I
II,
Sections 4
and 5
(c)
and o
f A
rtic
le I
V,
Section 3
shall
not
apply
to loans,
part
icip
ations a
nd g
uara
nte
es a
uth
ori
zed b
y th
is S
ection.
IBR
D A
rtic
le IV
Op
era
tio
ns
SE
CT
ION
1. M
eth
od
s o
f M
akin
g o
r F
acilit
ati
ng
Lo
an
s
(a)
The B
ank m
ay
make o
r fa
cili
tate
loans w
hic
h s
atisfy
the g
enera
l conditio
ns o
f A
rtic
le I
II in a
ny
of
the
follo
win
g w
ays:
(i)
By
makin
g o
r part
icip
ating in d
irect
loans o
ut
of its o
wn f
unds c
orr
espondin
g t
o its
unim
pair
ed p
aid
-up
capital and s
urp
lus a
nd,
subje
ct
to S
ectio
n 6
of
this
Art
icle
, to
its
reserv
es.
2.
Section a
dded b
y am
endm
ent
effective D
ecem
ber
17,
1965.
(ii) B
y m
akin
g o
r part
icip
ating in d
irect
loans o
ut
of fu
nds r
ais
ed in t
he m
ark
et
of
a m
em
ber,
or
oth
erw
ise
bo
rro
we
d b
y th
e B
an
k.
(iii)
By
guara
nte
ein
g in w
hole
or
in p
art
loans m
ade b
y p
rivate
investo
rs t
hro
ugh t
he u
sual in
vestm
ent
channels
.
(b)
The B
ank m
ay
borr
ow
funds u
nder
(a)
(ii) a
bove o
r g
uara
nte
e loans u
nder
(a)
(iii)
above o
nly
with t
he
appro
val of
the m
em
ber
in w
hose m
ark
ets
the f
unds a
re r
ais
ed a
nd t
he m
em
ber
in w
hose c
urr
ency t
he loan
is d
enom
inate
d,
and o
nly
if
those m
em
bers
agre
e t
hat
the p
roceeds m
ay
be e
xchan
ged f
or
the c
urr
ency o
f any o
ther
mem
ber
without
restr
iction.
SE
CT
ION
2. A
vailab
ilit
y a
nd
Tra
nsfe
rab
ilit
y o
f C
urr
en
cie
s
(a)
Curr
encie
s p
aid
into
the B
ank u
nder
Art
icle
II, S
ection 7
(i),
shall
be loaned o
nly
with t
he a
ppro
val in
each
case o
f th
e m
em
ber
wh
ose c
urr
ency
is involv
ed;
pro
vid
ed,
ho
wever,
that
if n
ecessary
, after
the B
anks
subscribed c
apital has b
een e
ntire
ly c
alle
d,
such c
urr
encie
s s
hall,
without
restr
iction b
y th
e m
em
bers
wh
ose
curr
encie
s a
re o
ffere
d,
be u
sed o
r exc
hanged f
or
the c
urr
encie
s r
equired t
o m
eet
contr
actu
al paym
ents
of
inte
rest, o
ther
charg
es o
r am
ort
ization o
n t
he B
ank's
ow
n b
orr
ow
ings,
or
to m
eet
the B
ank's
lia
bili
ties w
ith
resp
ect
to s
uch
co
ntr
actu
al p
aym
en
ts o
n lo
an
s g
ua
ran
tee
d b
y th
e B
an
k.
(b)
Curr
encie
s r
eceiv
ed b
y th
e B
ank f
rom
borr
ow
ers
or
guara
nto
rs in p
aym
ent
on a
ccount
of
princip
al of
direct
loans m
ade w
ith c
urr
encie
s r
efe
rred t
o in (
a)
above s
hall
be e
xchanged f
or
the c
urr
encie
s o
f oth
er
mem
bers
or
relo
aned o
nly
with t
he a
ppro
val in
each c
ase o
f th
e m
em
bers
wh
ose c
urr
encie
s a
re involv
ed;
pro
vid
ed,
ho
we
ver,
that
if n
ecessary
, after
the B
ank'
s s
ubscribed c
apital has b
een e
ntire
ly c
alle
d,
such
curr
encie
s s
hall,
without
restr
iction b
y th
e m
em
bers
wh
ose c
urr
encie
s a
re o
ffere
d,
be u
sed o
r exchanged f
or
the c
urr
encie
s r
equired t
o m
eet
contr
actu
al paym
ents
of
inte
rest, o
ther
charg
es o
r am
ort
ization o
n t
he
Bank's
ow
n b
orr
ow
ings,
or
to m
eet
the B
anks
lia
bili
ties w
ith r
espect
to s
uch c
ontr
actu
al paym
ents
on loans
guara
nte
ed b
y t
he B
ank.
(c)
Curr
encie
s r
eceiv
ed b
y th
e B
ank f
rom
borr
ow
ers
or
guara
nto
rs in p
aym
ent
on a
ccount
of
princip
al of
direct
loans m
ade b
y th
e B
ank u
nder
Section 1
(a)
(ii) o
f th
is A
rtic
le,
shall
be h
eld
and u
sed,
without
restr
iction b
y th
e m
em
bers
, to
make a
mort
ization p
aym
ents
, or
to a
nticip
ate
paym
ent
of
or
repurc
hase p
art
o
r a
ll o
f th
e B
an
k's
ow
n o
blig
atio
ns.
(d)
All
oth
er
curr
encie
s a
vaila
ble
to t
he B
ank,
inclu
din
g t
hose r
ais
ed in t
he m
ark
et
or
oth
erw
ise b
orr
ow
ed
under
Section 1
(a)
(ii) o
f th
is A
rtic
le,
those o
bta
ined b
y th
e s
ale
of
gold
, th
ose r
eceiv
ed a
s p
aym
ents
of
inte
rest
and o
ther
charg
es f
or
direct
loans m
ade u
nder
Sections 1
(a)
(i)
and (
ii),
and t
hose r
eceiv
ed a
s
paym
ents
of
com
mis
sio
ns a
nd o
ther
charg
es u
nder
Section 1
(a)
(iii)
, shall
be u
sed o
r exc
hanged f
or
oth
er
curr
encie
s o
r gold
requir
ed in t
he o
pera
tions o
f th
e B
ank w
ithout
restr
iction b
y th
e m
em
bers
wh
ose
curr
encie
s a
re o
ffere
d.
(e)
Curr
encie
s r
ais
ed in t
he m
ark
ets
of
mem
bers
by
borr
ow
ers
on loans g
uara
nte
ed b
y th
e B
ank u
nder
Section1 (
a)
(iii)
of
this
Art
icle
, shall
als
o b
e u
sed o
r exc
hanged f
or
oth
er
curr
encie
s w
ithout
restr
iction b
y
su
ch
me
mb
ers
.
SE
CT
ION
3. P
rovis
ion
of
Cu
rren
cie
s f
or
Dir
ect
Lo
an
s
The f
ollo
win
g p
rovis
ions s
hall
apply
to d
irect
loans u
nder
Sections I
(a)
(i)
and (
ii) o
f th
is A
rtic
le:
(a)
The B
ank s
hall
furn
ish t
he b
orr
ow
er
with s
uch c
urr
encie
s o
f m
em
bers
, oth
er
than t
he m
em
ber
in w
hose
terr
itories t
he p
roje
ct
is locate
d,
as a
re n
eeded b
y th
e b
orr
ow
er
for
expenditure
s t
o b
e m
ade in t
he t
err
itories
of
such o
ther
mem
bers
to c
arr
y out
the p
urp
oses o
f th
e loan.
(b)
The B
ank m
ay,
in e
xceptional circum
sta
nces w
hen lo
cal curr
ency
required f
or
the p
urp
oses o
f th
e loan
cannot
be r
ais
ed b
y th
e b
orr
ow
er
on r
easonable
term
s,
pro
vid
e t
he b
orr
ow
er
as p
art
of
the loan w
ith a
n
appro
pri
ate
am
ount
of
that
curr
ency.
(c)
The B
ank,
if t
he p
roje
ct
giv
es r
ise indirectly
to a
n incre
ased n
eed f
or
fore
ign e
xchange b
y th
e m
em
ber
in
wh
ose t
err
itories t
he p
roje
ct
is locate
d,
may in e
xceptional circum
sta
nces p
rovid
e t
he b
orr
ow
er
as p
art
of
the
loan w
ith a
n a
ppro
priate
am
ount
of
gold
or
fore
ign e
xchange n
ot
in e
xcess o
f th
e b
orr
ow
er's local
expenditure
in c
onnection w
ith t
he p
urp
oses o
f th
e loan.
(d)
The B
ank m
ay,
in e
xceptional circum
sta
nces,
at
the r
equest
of
a m
em
ber
in w
hose t
err
itories a
port
ion o
f th
e loan is s
pent, r
epurc
hase w
ith g
old
or
fore
ign e
xchange a
part
of
that
mem
ber's c
urr
ency
thus s
pent
but
in n
o c
ase s
hall
the p
art
so r
epurc
hased e
xceed t
he a
mount
by
wh
ich t
he e
xpenditure
of
the loan in t
hose
terr
itories g
ives r
ise t
o a
n incre
ased n
eed f
or
fore
ign e
xchange.
SE
CT
ION
4. P
aym
en
t P
rovis
ion
s f
or
Dir
ect
Lo
an
s
Loan c
ontr
acts
under
Section 1
(a)
(i)
or
(ii) o
f th
is A
rtic
le s
hall
be m
ade in a
ccord
ance w
ith t
he f
ollo
win
g
paym
ent
pro
vis
ions:
(a)
The t
erm
s a
nd c
onditio
ns o
f in
tere
st
and a
mort
ization p
aym
ents
, m
atu
rity
and d
ate
s o
f paym
ent
of
each
loan s
hall
be d
ete
rmin
ed b
y th
e B
ank.
The B
ank s
hall
als
o d
ete
rmin
e t
he r
ate
and a
ny
oth
er
term
s a
nd
conditio
ns o
f com
mis
sio
n t
o b
e c
harg
ed in c
onnection w
ith s
uch loan.
In t
he c
ase o
f lo
ans m
ade u
nder
Section 1
(a)
(ii) o
f th
is A
rtic
le d
uring t
he f
irst
ten y
ears
of
the B
ank's
opera
tions,
this
rate
of
com
mis
sio
n s
hall
be n
ot
less t
han o
ne p
erc
ent
per
annum
an
d n
ot
gre
ate
r th
an o
ne
and o
ne-h
alf p
erc
ent
per
annum
, and s
hall
be c
harg
ed o
n t
he o
uts
tandin
g p
ort
ion o
f any
such loan.
At
the
end o
f th
is p
eriod o
f te
n y
ears
, th
e r
ate
of
com
mis
sio
n m
ay b
e r
educed b
y th
e B
ank w
ith r
espect
both
to t
he
outs
tandin
g p
ort
ions o
f lo
ans a
lready m
ade a
nd t
o f
utu
re loans,
if t
he r
eserv
es a
ccum
ula
ted b
y th
e B
ank
under
Section 6
of
this
Art
icle
and o
ut
of
oth
er
earn
ings a
re c
onsid
ere
d b
y it s
uffic
ient
to justify
a r
eduction.
In t
he c
ase o
f fu
ture
loans t
he B
ank s
hall
als
o h
ave d
iscre
tion t
o incre
ase t
he r
ate
of
com
mis
sio
n b
eyond t
he
above lim
it,
if e
xperience indic
ate
s t
hat
an incre
ase is a
dvis
able
.
(b)
All
loan c
ontr
acts
shall
stipula
te t
he c
urr
ency
or
curr
encie
s in w
hic
h p
aym
ents
under
the c
ontr
act
shall
be
made t
o t
he B
ank.
At
the o
ption o
f th
e b
orr
ow
ers
ho
we
ver,
such p
aym
ents
may
be m
ade in g
old
, or
subje
ct
to t
he a
gre
em
ent
of
the B
ank,
in t
he c
urr
ency o
f a m
em
ber
oth
er
than t
hat
pre
scribed in t
he c
ontr
act.
(i)
In t
he c
ase o
f lo
ans m
ade u
nder
Section 1
(a)
(i)
of th
is A
rtic
le,
the loan c
ontr
acts
shall
pro
vid
e t
hat
paym
ents
to t
he B
ank o
f in
tere
st, o
ther
charg
es a
nd a
mort
ization s
hall
be m
ade in t
he c
urr
ency
loaned,
unle
ss t
he m
em
ber
wh
ose c
urr
ency
is loaned a
gre
es t
hat
such p
aym
ents
shall
be m
ade in s
om
e o
ther
specifie
d c
urr
ency
or
curr
encie
s. T
hese p
aym
ents
, subje
ct
to t
he p
rovis
ions o
f A
rtic
le I
I, S
ection 9
(c),
shall
be e
quiv
ale
nt
to t
he v
alu
e o
f such c
ontr
actu
al paym
ents
at
the t
ime t
he loans w
ere
made,
in t
erm
s o
f a
curr
ency s
pecifie
d f
or
the p
urp
ose b
y th
e B
ank b
y a t
hre
e-f
ourt
hs m
ajo
rity
of
the t
ota
l voting p
ow
er.
(ii) I
n t
he c
ase o
f lo
ans m
ade u
nder
Section 1
(a)
(ii) o
f th
is A
rtic
le,
the t
ota
l am
ount
outs
tandin
g a
nd p
aya
ble
to
the B
ank in a
ny o
ne c
urr
ency
shall
at
no t
ime e
xceed t
he t
ota
l am
ount
of
the o
uts
tandin
g b
orr
ow
ings
made b
y t
he B
ank u
nder
Section 1
(a)
(ii) a
nd p
ayable
in t
he s
am
e c
urr
ency.
(c)
If a
mem
ber
suffers
fro
m a
n a
cute
exc
hange s
trin
gency,
so t
hat
the s
erv
ice o
f any loan c
ontr
acte
d b
y th
at
mem
ber
or
guara
nte
ed b
y it o
r by
one o
f its a
gencie
s c
annot
be p
rovid
ed in t
he s
tipula
ted m
anner,
the
mem
ber
concern
ed m
ay a
pply
to t
he B
ank f
or
a r
ela
xation o
f th
e c
onditio
ns o
f paym
ent. if
the B
ank is
satisfied t
hat
som
e r
ela
xation is in t
he inte
rests
of
the p
art
icula
r m
em
ber
and o
f th
e o
pera
tions o
f th
e B
ank
and
of
its m
em
bers
as a
wh
ole
, it m
ay
take a
ction u
nder
either,
or
both
, of
the f
ollo
win
g p
ara
gra
phs w
ith r
espect
to t
he w
hole
, or
part
, of
the a
nnual serv
ice:
(i)
The B
ank m
ay,
in its
dis
cre
tion,
make a
rrangem
ents
with t
he m
em
ber
concern
ed t
o a
ccept
serv
ice
paym
ents
on t
he loan in t
he m
em
ber's c
urr
ency f
or
peri
ods n
ot
to e
xceed t
hre
e y
ears
upon a
ppro
priate
te
rms r
egard
ing t
he u
se o
f such c
urr
ency a
nd t
he m
ain
tenance o
f its f
ore
ign e
xchange v
alu
e;
and f
or
the
repurc
hase o
f such c
urr
ency
on a
ppro
priate
term
s.
(ii) T
he B
ank m
ay
modify
the t
erm
s o
f am
ort
ization o
r ext
end t
he life o
f th
e loan,
or
both
.
SE
CT
ION
5. G
uara
ntee
s
(a)
In g
uara
nte
ein
g a
loan p
laced t
hro
ugh t
he u
sual in
vestm
ent
channe
ls,
the B
ank s
hall
charg
e a
guara
nte
e
com
mis
sio
n p
ayable
peri
odic
ally
on t
he a
mount
of
the loan o
uts
tandin
g a
t a r
ate
dete
rmin
ed b
y th
e B
ank.
During t
he f
irst
ten y
ears
of
the B
ank's
op
era
tions, th
is r
ate
shall
be n
ot
less t
han o
ne p
erc
ent
per
annum
and n
ot
gre
ate
r th
an o
ne a
nd o
ne-h
alf p
erc
ent
per
annum
. A
t th
e e
nd o
f th
is p
eri
od o
f te
n y
ears
, th
e r
ate
of
com
mis
sio
n m
ay
be r
educed b
y th
e B
ank w
ith r
espect both
to t
he o
uts
tandin
g p
ort
ions o
f lo
ans a
lready
guara
nte
ed a
nd t
o f
utu
re loans if
the r
eserv
es a
ccum
ula
ted b
y th
e B
ank u
nder
Section 6
of
this
Art
icle
and
out
of
oth
er
earn
ings a
re c
onsid
ere
d b
y it s
uffic
ient
to justify
a r
eduction.
In t
he c
ase o
f fu
ture
loans t
he B
ank
shall
als
o h
ave d
iscre
tion t
o incre
ase t
he r
ate
of
com
mis
sio
n b
eyond t
he a
bove lim
it,
if e
xperience indic
ate
s
that
an incre
ase is a
dvis
able
.
(b)
Gu
ara
nte
e c
om
mis
sio
ns s
ha
ll b
e p
aid
dir
ectly
to t
he
Ba
nk b
y th
e b
orr
ow
er.
(c)
Guara
nte
es b
y th
e B
ank s
hall
pro
vid
e t
hat
the B
ank m
ay t
erm
inate
its
lia
bili
ty w
ith r
espect
to inte
rest
if,
upon d
efa
ult b
y th
e b
orr
ow
er
and b
y th
e g
uara
nto
r, if
any,
the B
ank o
ffers
to p
urc
hase,
at
par
and inte
rest
accru
ed t
o a
date
desig
nate
d in t
he o
ffer,
the b
onds o
r oth
er
oblig
ations g
uara
nte
ed-
(d)
The B
ank s
hall
have p
ow
er
to d
ete
rmin
e a
ny o
ther
term
s a
nd c
onditio
ns o
f th
e g
uara
nte
e.
SE
CT
ION
6. S
pecia
l R
eserv
e
The a
mount
of
com
mis
sio
ns r
eceiv
ed b
y th
e B
ank u
nder
Sections 4
and 5
of
this
Art
icle
shall
be s
et
asid
e
as a
specia
l re
serv
e,
wh
ich s
hall
be k
ept
availa
ble
for
meeting lia
bili
ties o
f th
e B
ank in a
ccord
ance w
ith
Section 7
of
this
Art
icle
. T
he s
pecia
l re
serv
e s
ha
ll be h
eld
in s
uch liq
uid
form
, perm
itte
d u
nder
this
A
gre
em
ent, a
s t
he E
xecutive D
irecto
rs m
ay d
ecid
e.
SE
CT
ION
7. M
eth
od
s o
f M
eeti
ng
Lia
bilit
ies o
f th
e B
an
k in
Case o
f D
efa
ult
s
In c
ases o
f defa
ult o
n loans m
ade,
part
icip
ate
d in,
or
guara
nte
ed b
y th
e B
ank:
(a)
The B
ank s
hall
make s
uch a
rrangem
ents
as m
ay
be feasib
le t
o a
dju
st
the o
blig
ations u
nder
the loans,
inclu
din
g a
rrangem
ents
under
or
analo
gous t
o t
hose
pro
vid
ed in S
ection 4
(c)
of
this
Art
icle
.
(b)
The p
aym
ents
in d
ischarg
e o
f th
e B
anks
lia
bili
ties o
n b
orr
ow
ings o
r guara
nte
es u
nder
Section 1
(a)
(ii)
and (
iii)
of
this
Art
icle
shall
be c
harg
ed:
(i)
firs
t, a
gain
st
the s
pecia
l re
serv
e p
rovid
ed in S
ection 6
of
this
Art
icle
;
(ii) t
hen,
to t
he e
xte
nt
necessary
and a
t th
e d
iscre
tion o
f th
e B
ank,
again
st
the o
ther
reserv
es,
surp
lus a
nd
capital availa
ble
to t
he B
ank.
(c)
Whenever
necessary
to m
eet
contr
actu
al paym
ents
of
inte
rest, o
ther
charg
es o
r am
ort
ization o
n t
he
Bank's
ow
n b
orr
ow
ings,
or
to m
eet
the B
anks
lia
bili
ties w
ith r
espect
to s
imila
r paym
ents
on loans
guara
nte
ed b
y it, t
he B
ank m
ay c
all
an a
ppro
priate
am
ount
of
the u
npaid
subscri
ptions o
f m
em
bers
in
accord
ance w
ith A
rtic
le I
I, S
ections 5
and 7
. M
ore
over,
if
it b
elie
ves t
hat
a d
efa
ult m
ay
be o
f lo
ng d
ura
tion,
the B
ank m
ay c
all
an a
dditio
nal am
ount
of
such u
npaid
subscriptions n
ot
to e
xceed in a
ny
one y
ear
one
perc
ent
of
the t
ota
l subscri
ptions o
f th
e
mem
bers
for
the f
ollo
win
g p
urp
oses:
(i)
To r
edeem
prior
to m
atu
rity
, or
oth
erw
ise d
ischarg
e its
lia
bili
ty o
n,
all
or
part
of
the o
uts
tandin
g p
rincip
al of
any loan g
uara
nte
ed b
y it in r
espect of
whic
h t
he d
ebto
r is
in d
efa
ult.
(ii) T
o r
epurc
hase,
or
oth
erw
ise d
ischarg
e its
lia
bili
ty o
n,
all
or
part
of
its o
wn o
uts
tandin
g b
orr
ow
ings.
SE
CT
ION
8. M
iscellan
eo
us O
pera
tio
ns
In a
dditio
n t
o t
he o
pera
tions s
pecifie
d e
lse
where
in t
his
Agre
em
ent, t
he B
ank s
hall
have t
he p
ow
er:
(i)
To b
uy
and s
ell
securities it
has issued a
nd t
o b
uy
and s
ell
securities w
hic
h it
has g
uara
nte
ed o
r in
whic
h
it h
as investe
d,
pro
vid
ed t
hat
the B
ank s
hall
obta
in t
he a
ppro
val of
the m
em
ber
in w
hose t
err
itories t
he
securities a
re t
o b
e b
ought
or
sold
.
(ii) T
o g
uara
nte
e s
ecurities in w
hic
h it
has investe
d f
or
the p
urp
ose o
f fa
cili
tating t
heir s
ale
.
(iii)
To b
orr
ow
the c
urr
ency
of
any m
em
ber
with t
he a
ppro
val of
that
mem
ber.
(iv)
To b
uy
and s
ell
such o
ther
securities a
s t
he D
irecto
rs b
y a
thre
e-f
ourt
hs m
ajo
rity
of
the t
ota
l voting p
ow
er
may
deem
pro
per
for
the investm
ent-
of
all
or
part
of
the s
pecia
l re
serv
e u
nder
Section 6
of
this
Art
icle
.
In e
xerc
isin
g t
he p
ow
ers
confe
rred b
y th
is S
ection,
the B
ank m
ay
deal w
ith a
ny p
ers
on,
part
ners
hip
, associa
tion,
corp
ora
tion o
r oth
er
legal entity
in t
he t
err
itories o
f any
mem
ber.
SE
CT
ION
9. W
arn
ing
to
be
Pla
ced
on
Secu
riti
es
Every
security
guara
nte
ed o
r is
sued b
y th
e B
ank s
hall
bear
on its
face a
conspic
uous s
tate
ment
to t
he e
ffect
that
it is n
ot
an o
blig
ation o
f any g
overn
ment
unle
ss e
xpre
ssly
sta
ted o
n t
he s
ecurity
.
SE
CT
ION
10. P
oliti
cal A
cti
vit
y P
roh
ibit
ed
The B
ank a
nd its
offic
ers
shall
not
inte
rfere
in t
he p
olit
ical aff
airs o
f any m
em
ber;
nor
shall
they
be influenced
in t
he
ir d
ecis
ion
s b
y th
e p
olit
ica
l ch
ara
cte
r o
f th
e m
em
be
r o
r m
em
be
rs c
on
ce
rne
d.
On
ly e
co
no
mic
consid
era
tions s
hall
be r
ele
vant
to t
heir d
ecis
ions,
and t
hese c
onsid
era
tio
ns s
ha
ll b
e w
eig
he
d im
pa
rtia
lly in
ord
er
to a
chie
ve t
he p
urp
oses s
tate
d in A
rtic
le I
.
IBR
D A
rtic
le V
Org
an
izati
on
an
d M
an
ag
em
en
t
SE
CT
ION
1. S
tru
ctu
re o
f th
e B
an
k
The B
ank s
hall
have a
Board
of
Govern
ors
, E
xecutive D
irecto
rs,
a P
resid
ent
and s
uch o
ther
offic
ers
and
sta
ff t
o p
erf
orm
such d
uties a
s t
he B
ank m
ay
dete
rmin
e.
SE
CT
ION
2. B
oard
of
Go
ve
rno
rs
(a)
All
the p
ow
ers
of
the B
ank s
hall
be v
este
d in the B
oard
of
Govern
ors
consis
ting o
f one g
overn
or
and o
ne
altern
ate
appoin
ted b
y each m
em
ber
in s
uch m
anner
as it
may
dete
rmin
e.
Each g
overn
or
and e
ach
altern
ate
shall
serv
e f
or
five y
ears
, subje
ct
to t
he p
leasure
of
the m
em
ber
appoin
ting h
im,
and m
ay b
e
reappoin
ted.
No a
ltern
ate
may v
ote
exc
ept
in t
he a
bsence o
f his
princip
al. T
he B
oard
shall
sele
ct
one o
f th
e
Govern
or-
s a
s c
hairm
an.
(b)
The B
oard
of
Govern
ors
may
dele
gate
to t
he E
xecutive D
irecto
rs a
uth
ority
to e
xerc
ise a
ny p
ow
ers
of
the
Bo
ard
, e
xce
pt
the
po
we
r to
:
(i)
Adm
it n
ew
mem
bers
and d
ete
rmin
e t
he c
onditio
ns o
f th
eir a
dm
issio
n;
(ii) I
ncre
ase o
r decre
ase t
he c
apital sto
ck;
(iii)
Suspend a
mem
ber;
(iv)
Decid
e a
ppeals
fro
m inte
rpre
tations o
f th
is a
gre
em
ent
giv
en b
y th
e E
xecutive D
irecto
rs;
(v)
Make a
rrangem
ents
to c
oopera
te w
ith o
ther
inte
rnational org
aniz
ations (
oth
er
than info
rmal
arr
angem
ents
of
a t
em
pora
ry a
nd a
dm
inis
trative c
hara
cte
r);
(vi) D
ecid
e t
o s
uspend p
erm
anently
the o
pera
tions o
f th
e B
ank a
nd t
o d
istr
ibute
its
assets
;
(vii)
Dete
rmin
e t
he d
istr
ibution o
f th
e n
et
incom
e o
f th
e B
ank.
(c)
The B
oard
of
Govern
ors
shall
hold
an a
nnual m
eetin
g a
nd s
uch o
ther
meetings a
s m
ay
be p
rovid
ed f
or
by
the B
oard
or
calle
d b
y th
e E
xecutive D
irecto
rs.
Meetings o
f th
e B
oard
shall
be c
alle
d b
y th
e D
irecto
rs
whenever
requeste
d b
y five m
em
bers
or
by
mem
bers
havin
g o
ne q
uart
er
of
the t
ota
l voting p
ow
er.
(d)
A q
uoru
m f
or
any m
eeting o
f th
e B
oard
of
Govern
ors
shall
be a
majo
rity
of
the G
overn
ors
, exe
rcis
ing n
ot
less t
han t
wo-t
hirds o
f th
e t
ota
l voting p
ow
er.
(e)
The B
oard
of
Govern
ors
may
by
regula
tion e
sta
blis
h a
pro
cedure
where
by
the E
xecutive D
irecto
rs,
when
they
deem
such a
ction t
o b
e in t
he b
est
inte
rests
of th
e B
ank,
may
obta
in a
vote
of
the G
overn
ors
on a
specific
question w
ithout
calli
ng a
meeting o
f th
e B
oard
.
(f)
The B
oard
of
Govern
ors
, and t
he E
xecutive D
irecto
rs t
o t
he e
xtent
auth
orized,
may
adopt
such r
ule
s a
nd
regula
tions a
s m
ay
be n
ecessary
or
appro
priate
to c
onduct
the b
usin
ess o
f th
e B
ank.
(g)
Govern
ors
and a
ltern
ate
s s
hall
serv
e a
s s
uch w
ith
out
com
pensation f
rom
the B
ank,
but
the B
ank s
hall
pay t
hem
reasonable
expenses incurr
ed in a
ttendin
g m
eetings.
(h)
The B
oard
of
Govern
ors
shall
dete
rmin
e t
he r
em
unera
tion t
o b
e p
aid
to t
he E
xecutive D
irecto
rs a
nd t
he
sala
ry a
nd t
erm
s o
f th
e c
ontr
act
of
serv
ice o
f th
e P
resid
ent.
SE
CT
ION
3. Vo
ting
(a)
Each m
em
ber
shall
have t
wo h
undre
d f
ifty
vote
s p
lus o
ne a
dditio
nal vote
for
each s
hare
of
sto
ck h
eld
.
(b)
Except
as o
therw
ise s
pecific
ally
pro
vid
ed,
all
matters
befo
re t
he B
ank s
hall
be d
ecid
ed b
y a m
ajo
rity
of
the v
ote
s c
ast.
SE
CT
ION
4. E
xecu
tive D
irecto
rs
(a)
The E
xecutive D
irecto
rs s
hall
be r
esponsib
le f
or
the c
onduct
of
the g
enera
l opera
tions o
f th
e B
ank,
and
for
this
purp
ose,
shall
exerc
ise a
ll th
e p
ow
ers
dele
gate
d t
o t
hem
by
the B
oard
of
Govern
ors
.
(b)
There
shall
be t
welv
e E
xecutive D
irecto
rs,
wh
o n
eed n
ot
be g
