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THEEQUATORPRINCIPLESASSOCIATIONGOVERNANCERULES

April2017

Contents:1) Introduction..............................................................................................................................12) Definitions.................................................................................................................................13) ObjectsoftheAssociationandPurposeofthePrinciples.........................................................44) LawfulCo-operationandDisclosureofInformation.................................................................55) AdoptionofthePrinciples.........................................................................................................66) ReportingRequirements...........................................................................................................97) GeneralManagement.............................................................................................................118) SteeringCommittee................................................................................................................149) TheChair.................................................................................................................................1910) ManagementSupport.............................................................................................................2011) RegionalRepresentatives........................................................................................................2112) WorkingGroups......................................................................................................................2113) Trustees...................................................................................................................................2214) GeneralWaiverofLiabilityandIndemnities...........................................................................2315) AssociationMeetings..............................................................................................................2316) ElectionsandNominations......................................................................................................2417) TheSecretariat........................................................................................................................2518) Finance....................................................................................................................................2519) Disclaimer................................................................................................................................2820) GoverningLaw.........................................................................................................................28

1) Introduction

This governance document sets out the Rules of the unincorporated association of EquatorPrinciplesFinancialInstitutions(EPFIs)andprovidesguidancetoexistingandprospectiveEPFIsontheprocessesforthemanagement,administration,anddevelopmentoftheEquatorPrinciplesandoftheAssociation,whichshallbeknownastheEquatorPrinciplesAssociation.

2) Definitions

ActiveinProjectFinance,ProjectFinanceAdvisory,and/orProject-RelatedCorporateLoans–Afinancial institution isActive inproviding relevant financialproducts in scopeaccording to thecriteriainthemostrecentversionoftheEquatorPrinciples.

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AdoptionAgreement–TheagreemententeredintobyprospectiveEPFIsinordertoadopttheEquatorPrinciplesandbecomeamemberofthisAssociation.AdoptionDate–ThedateonwhichanEPFIadoptsthePrinciplesandbecomesamemberoftheAssociation.AnnualFee -The feepayableby theEPFIsonanannualbasis in respectofanyexternal costsincurred in the management, administration and development of the Principles and themanagementandadministrationoftheAssociationasfurtherdetailedinRule18oftheseRules.AnnualMeeting-ThemeetingofallEPFIs,tobeheldonceayearasfurtherdefinedinRule15oftheseRules.AssociationorEquatorPrinciplesAssociationorEPAssociation–TheunincorporatedassociationofEquatorPrinciplesFinancialInstitutionswhoseobjectisthemanagement,administration,anddevelopmentoftheEquatorPrinciples.Business Day – A day onwhich banks are open for business in England andWales excludingSaturdaysandSundays.Chair–TheEPFIwhichchairs theEquatorPrinciplesSteeringCommittee, in thepersonof theindividualemployedby thatEPFIwhohasbeennominatedbysuchEPFI to represent it in thiscapacityasfurtherdefinedinRule9oftheseRules.

Data and Implementation Reporting – The obligation of an EPFI to report publicly on itsimplementation of the Principles in accordance with Principle 10 and Annex B: MinimumReportingRequirements(DataandImplementationReporting)oftheEquatorPrinciples.EquatorPrinciples(orPrinciplesorEP)–AsetofprinciplessettingoutaframeworkformanagingenvironmentalandsocialriskinprojectsasdescribedinRule3b,thecurrentversionofwhichshallbe shown in detail on the Association’swebsite atwww.equator-principles.com. The EquatorPrinciplesmay be revised from time-to-timeby theAssociation but, notwithstanding this, theEquator Principles Financial Institutionsmay continue to apply a previous version to projectsfinancedunderthatversion.EquatorPrinciplesFinancial Institution (orEPFI)–A financial institution thathasadopted theEquatorPrinciplesinaccordancewiththeproceduresintheseRules;isActiveinProjectFinance,ProjectFinanceAdvisory,and/orProject-RelatedCorporateLoans;andwhosenameappearsasanEPFIontheListofEPFIsontheAssociation’swebsite.

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EquatorPrinciplesSteeringCommittee (orSteeringCommittee) -Thecommitteeof theEPFIsappointedtomanagetheAssociationasfurtherdefinedinRule8oftheseRules.GeneralManagementPractices–DocumentprovidingadministrativeandoperationalguidancefortherunningoftheEquatorPrinciplesAssociation.ListofEPFIs–ThelistofthoseEPFIsthatarepublishedontheAssociation’swebsiteasactiveandreporting.Management Support –Member of the Steering Committee that undertakes amanagementsupportrole.NominatedIndividuals–IndividualwhoisdesignatedtorepresentanEPFI.ProjectNameReporting forProject Finance - TheobligationofanEPFI to submitdata to theSecretariatontheProjectFinancetransactionsthathavereachedfinancialcloseinthereportingyear, inaccordancewithPrinciple10andAnnexB:MinimumReportingRequirements (ProjectNameReportingforProjectFinance)oftheEquatorPrinciples.ProjectSponsor–ApartythatdevelopsandinfluencesaprojectthatisorisanticipatedtobethesubjectofProjectFinanceandisanequityshareholderintheentitythatistheborroweroftheProjectFinance.Regional Representative –Member of the Steering Committee that represents a grouping ofregionalmemberinterests.Rules–TherulesofthisAssociationcontainedinthisdocument,asamendedfromtimetotimeinaccordancewithRule8oftheseRules.

Secretariat-ThethirdpartyentitywhichmanagesspecifiedadministrativemattersonbehalfoftheEPFIsasfurtherdefinedinRule17oftheseRules.Stakeholders–Thoseentitiesandindividualswithadirectorindirectinterestintheachievementof the aims of the Principles, who shall include but are not limited to: civil society; clients;development finance institutions; industry associations; Project Sponsors; the InternationalFinanceCorporation (IFC);non-governmentorganisations (NGOs);organisationssharingsimilaraimssuchasexportcreditagencies;publicfinancialinstitutions;andshareholdersoftheEPFIs.

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Trustees–AbodycorporatethatisanEPFI(oranassociatedcompanyorsubsidiaryofanEPFI)ortwoindividualsemployedbyanEPFIwhoisorareappointedtoactasatrusteeonbehalfoftheEPFIsinaccordancewithRule13.WorkingGroup-AnygroupofEPFIsconvenedbytheSteeringCommitteethatmeetsfromtimetotimetodiscussandprovideguidancetomembersoftheAssociationand/oritsStakeholdersonparticularissuesassociatedwiththemanagement,administration,ordevelopmentoftheEquatorPrinciplesasprovidedinRule12oftheseRules.

3) ObjectsoftheAssociationandPurposeofthePrinciples

a) TheobjectsoftheAssociationareto:

i. promoteandencouragetheadoptionofthePrinciplesbyadditionalfinancialinstitutions;

ii. promoteandencouragetheimplementationofthePrinciplesbytheEPFIsin

a manner that accords with good international banking practice and allapplicablelawandthatoffersreasonableconsistencyofapproach;

iii. develop the Principles as the EPFIs consider appropriate, having regard to

developments in internationalgoodpractice,theevolutionofsustainabilitystandards,andthepracticesandtheviewsofStakeholders;

iv. maintaincontactandshareexpertisewithinternationalfinancialinstitutions

andotherbodieswhohavedeveloped theirownenvironmentalandsocialstandards;

v. manage theAssociation for themutual benefit of EPFIs, including through

soundandtransparentfinancialmanagementandoperations;and

vi. doallsuchotherthingsaswillfurthertheabove.

b) The aim of the Principles is to introduce good practice for financial institutions in themanagementofenvironmentalandsocialriskswhenprovidingapplicablefinancialproductsasdefinedinthePrinciplesandasmaybemodifiedfromtimetotime,andsuchotherformsofinfrastructurefinancingoradvisoryservicesasmaybesubjecttothePrinciplesasdescribedtherein.

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c) ThePrinciplesareaframeworktorequiretheimplementationofgoodinternationalpracticeinrelationtotheenvironmentalandsocialissuesarisinginprojectsthatEPFIsarefinancingoradvising.

d) TheEPFIswillfromtimetotimecollectivelyreviewthePrinciples.AnychangesmadetothePrincipleswillbemadeinaccordancewithRules7giand7gii.

4) LawfulCo-operationandDisclosureofInformation

a) All financial institutions that provide financing for, or advisory services in respect of,infrastructureandindustrialprojectsareencouragedtoadoptthePrinciples,subjecttoeachinstitution being able to meet its commitments related to the Principles and to reportaccordingly.

b) TheAssociationandtheseRulesprovidetheframeworkfortheadministration,management,anddevelopmentofthePrinciplesbytheEPFIsworkingtogetherandinco-operationincludingthroughtheSteeringCommitteeandWorkingGroups.Thisco-operationisforthepurposeofbringingsharedbenefitstotheProjectSponsors,tolocalcommunities,totheenvironment,andtotheEPFIs.

c) SubjecttocompliancewiththerestofthisRule4andwithapplicablelawsandregulations,

thesharingofexperienceinimplementingthisframeworkthroughcasestudies,stakeholderengagement, and other forms of information sharing is encouraged amongst and by allmembers of the Association in order to promote and disseminate good practice in themanagementofenvironmentalandsocialriskinfinancingoradvisoryservicesthataresubjecttothePrinciples.

d) The EPFIs recognise the importance of complying with applicable laws on agreements,

concertedpractices,orexchangeofinformationthatmayrestrictcompetition(“CompetitionLaws”), andof ensuring that thePrinciples arenotused for anypurpose thatmaybreachCompetitionLaws.EachEPFIshalltherefore,inparticular:

i. avoid exchanges or disclosures of competitively sensitive information in

relationtotheirrespectivebusinessesortheprojectsinrelationtowhichtheyareprovidingorcontemplatingtheprovisionoffinancingoradvisoryservicesthataresubjecttothePrinciples;

ii. avoidanyco-ordinationofitscommercialstrategieswithotherEPFIs;

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iii. refrainfromusingthePrinciplesorthisAssociationasacoveroropportunityfor anti-competitive behaviour such as price-fixing,market sharing, or theexclusionofactualorpotentialcompetitors;

iv. notmakecollectivedecisionsonthepricingoffinancingoradvisoryservices

that are subject to the Principles in which they are separately involved,althoughtheywillco-operateonthefinalisationoffinancingdocumentationin a manner consistent with lawful and ordinary business practice in thesectorattherelevanttime;and

v. takeadvicefromtheirinternallegalorcompliancedepartmentintheevent

theyconsiderthatanti-competitionissuescouldariseinthecontextoftheirdealingswithothermembersoftheAssociation.

e) EachEPFIshallmaintainclientconfidentialityinaccordancewiththelocallaws,regulations,

andpracticesofthejurisdictionsinwhichitoperatessavetotheextentthattheapplicableEPFIissubjecttofreedomofinformationrequirementswhichrequireittomakedisclosureofinformationthatwouldotherwisebeconfidential.MostEPFIsarecommercial,asopposedtopublic, financial institutions and have a duty of, and/or are subject to a requirement for,confidentiality.AnyEPFIthatissubjecttofreedomofinformationrequirementsshallnotifyothermembersoftheAssociationofthisuponitsadoptionofthePrinciplesor,iflater,uponbecomingawarethatitissosubject.

f) EachEPFI is individually responsible for itsown internalprocedures toachievecompliance

with the Principles and to adhere to the reporting requirements (see Rule 5jii) and forcommunicationswithStakeholdersregardinganysuchmatters.TheAssociation,itsSteeringCommittee,WorkingGroupsandChairdonothavetheauthorityorthecapacitytorespondtoStakeholderconcernsabouttheimplementationofthePrinciplesbyindividualEPFIsorinrespectofparticularcountriesorprojects.

5) AdoptionofthePrinciples

a) AdoptionofthePrinciplesshallbeopentoanyfinancialinstitutionthatmeetstheadoptionrequirementsandagreestomeettheongoingreportingrequirements.

b) AdoptionofthePrinciplesbyafinancialinstitutionisvoluntarybutoncesuchadoptionhas

beenmade,theadoptingentitymusttakeallappropriatestepstoimplementandcomplywiththePrinciples.

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c) Each EPFI shall introduce and implement its own internal environmental and social riskmanagement policies, procedures, and standards in order to comply with the EquatorPrinciples.

d) NoEPFIwillprovideProjectFinanceorProject-RelatedCorporateLoanstoprojectswherethe

clientwillnot,orisunableto,complywiththePrinciples.AsBridgeLoansandProjectFinanceAdvisoryServicesareprovidedearlierintheprojecttimeline,whenprovidingtheseserviceseach EPFI will request that the client explicitly communicates to the EPFI its intention tocomplywiththePrinciples.

e) Financial institutions are encouraged to adopt the Equator Principles through their group

holdingcompanyoranyothergroupentitywhichpermitsabroadandconsistentcommitmenttothePrinciplesacrosstheirrelevantbusinessfunctionsandoperatingsubsidiaries.

f) TheadoptionrequirementsforaprospectivenewEPFIare:

i. it shall confirm in writing that it is Active in providing applicable financial

products(accordingtothemostrecentversionoftheEquatorPrinciples)andthatitwishestoadoptthePrinciplesandwillimplementthePrincipleswithimmediateeffectfromitsAdoptionDate.

ii. Any such confirmation shall be signed off at a senior level in the financial

institutionbyarepresentativeoftheinstitutionwithauthoritytoenterintosuchacommitment,suchasanexecutivememberoftheboardofdirectorsorthecompanysecretary,providedthatsuchpersonhasauthoritytobindtheadoptinginstitution.

iii. The prospective new EPFI shall complete and execute the Adoption

Agreement,whichrequirestheapplicantto:

- providecontactnames;- makeacontractualcommitmenttocomplywiththeseRules;- waiveanyrightofactionagainstotherEPFIswithregardtotheiracts

oromissionsasmembersofthisAssociation(savealwaysinthecaseoffraud);and

- indemnifytheTrusteeswhoholdassetsoranyEPFImemberoftheSteeringCommitteewhoentersintoauthorisedcontractswiththirdpartiesonbehalfoftheAssociation(savealwaysinthecaseoffraud)against any losses such Trustees ormembermay incur as a result

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thereof.ThisindemnityshallbejointlywiththeothermembersoftheAssociationatthetimeofthelosses.

iv. TheapplicantshallsubmitadulyexecutedAdoptionAgreementanditsletter

of confirmation referred to in Rule 5fi and 5fii for consideration to theSecretariat.

g) The Secretariat will check whether the adoption requirements have beenmet and, if so,

informtheChairwho,unlessconcernsareidentifiedwhichrequirediscussionattheSteeringCommittee,shallexecutetheAdoptionAgreementonbehalfoftheAssociation.AnAdoptionDatewillthenbeagreedbetweentheSecretariatandtheprospectivenewEPFI.

h) OntheAdoptionDate:

i. thenewEPFIwillissueapressreleaseregardingitsadoptionofthePrinciples;

ii. thenewEPFIwillbeentitledtousethePrinciples’logo;and

iii. the Secretariatwill update theAssociation’swebsite confirming the EPFI’s

adoption.InrespectofRule5hiiandotheractivitiesusingthelogoornameofthePrinciples,individualEPFIs (or groups of them) are encouraged to use the logo and to promote the Principles.However,theymaynotholdthemselvesoutasrepresentingtheAssociationasawholeunlesstheyreceivethepriorapprovaloftheSteeringCommittee.

i) TheAssociation’swebsiteshallprovidethereferenceListofEPFIs.

j) TheongoingrequirementsforanEPFIare:

i. that it shall continue to be Active according to the definition in themostrecentversionoftheEquatorPrinciples;

ii. thatitshallprovidereportingatleastannuallyaboutits implementationof

the Principles, in accordance with Principle 10 and Annex B: MinimumReportingRequirementsoftheEquatorPrinciplesandRule6;

iii. thatitshallpaytheAnnualFeeinatimelymanner.

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6) ReportingRequirementsa) EachEPFIshallcomplywiththereportingrequirementsasdetailedinPrinciple10andAnnex

B:MinimumReportingRequirements of the Equator Principles by submitting itsData andImplementationReportingandProjectNameReportingforProjectFinancedata(subjecttothe conditions detailed in Annex B: Minimum Reporting Requirements of the EquatorPrinciples) annually using the Association’s submission template (obtainable from theSecretariat).

b) The Secretariat will ensure that the Association’s website publishes each EPFI’s Data and

ImplementationReporting.

c) TheSecretariatwillalsopublishProjectNameReportingforProjectFinancedataprovidedontheAssociation’swebsite.

d) InthefirstyearafteritsAdoptionDate,anewEPFImayomittransactionnumbersandprojectnamesfromitspublicreporting.ThisisbecausethefirstyearofimplementingthePrinciplescan bring challenges for EPFIs in reporting the number of transactions that have reachedfinancialclose.Forexample,asaresultofnewinternalreportingsystemsbeingputinplace,differingtreatmentofprojectsbridgingtheAdoptionDateorthedesiretointegratethenewreportingwithotherexistingpublicreportingsystems.

e) InthecaseofprojectfinancetransactionswhereEPFIsarepreventedfromsubmittingProjectNameReportingforProjectFinancedata(accordingtotheconditionsofAnnexB:MinimumReporting Requirements of the Equator Principles), theywill provide a justification to theSecretariatsothatsuchexceptionscanbereflectedontheAssociation’swebsiteinasummaryfashion.

f) EachEPFIshallmakeitssubmissionbyaspecifieddeadline(i.e.31January,30April,31Julyor31October),whichisdeterminedonitsadoptionofthePrinciples.RequeststochangethespecifieddeadlineshallonlybeconsideredinexceptionalcasesandmaybereferredtotheSteeringCommitteefordecision.

g) FailuretocomplywithDataandImplementationReportingandProjectNameReportingforProjectFinancerequirements,orfailuretoprovidereportingbythespecifieddeadline,shallbemanagedasfollows:

i. IfanEPFIhasnotcompliedwiththeDataandImplementationReportingand

ProjectNameReportingforProjectFinancereportingrequirementswithin1monthofitssubmissiondeadline,theSecretariatshallcontacttheindividualswho currently represent that EPFI andprovideawritten reminderof their

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obligationtodoso.TheremindershallbecopiedtoChairandincludedetailsofpotentialactionsunderRules6giiand6giiibelowintheeventofcontinuednon-reporting.

ii. IftheEPFIhasnotcompliedwiththeDataandImplementationReportingand

ProjectNameReportingforProjectFinanceReportingrequirementswithin3months of its submission deadline, the Secretariat shall amend the EPFI’sindividualwebpageontheAssociation’swebsiteindicatingthesubmissionisdelayed.Atthesametime,theSecretariatshallsendafinalwrittenremindertotheindividualswhocurrentlyrepresentthatEPFI,copyingittothechiefexecutiveofficerorequivalentofficeholderofthatEPFIandtotheChairandothermembersoftheSteeringCommittee.

iii. IftheEPFIhasnotcompliedwiththeDataandImplementationReportingand

ProjectNameReportingforProjectFinancerequirementswithin6monthsofitssubmissiondeadline,itshallbe“de-listed”withoutfurthernotice–thatis,thenameof thatEPFIshallberemovedbytheSecretariat fromtheListofEPFIsontheAssociation’swebsiteandtherelevantEPFIshallnolongerbeamemberofthisAssociation.

iv. IfanEPFIhasbeende-listedasstatedinRule6giiianditwishestocontinue

tobeconsideredasanactiveandreportingEPFI,itwillneedtore-adoptthePrinciplesinaccordancewithRule5fabove.

h) TheSteeringCommitteeshallreviewplanssubmittedbyEPAssociationMembers,thatare

subjecttoorganisationalchange(e.g.merger,acquisition),ontheir intentionswithregardscontinuedadoptionofEP,andtheimpactoncompliancewiththeEPAssociationGovernanceRule and, as appropriate, their statuswithin the EP Association (e.g. appointment on theSteeringCommittee,leadershipor,membershipto,anEPAssociationWorkingGroup).TheSteeringCommitteeshalldecidewhethertheEPAssociationMembercontinuestomeettherequirementsoftheEquatorPrinciplesandeitheragreetheactionthatisappropriatewithregardtotheEquatorPrinciplesoragreetoaspecificextensionoftheperiodofintegrationandabsorption.

i) EPFIsmaybeimpactedbycorporatetransactionssuchasmergers,acquisitionsanddisposals.

Such transactions take many different forms, including combinations of EPFIs, non-EPFIs,entire corporate groups, individual companies or business divisions. In many cases, suchtransactionsmayhavean impactona financial institution’smembershipof thePrinciples,whetheritisthemergerpartner,acquiror,ortargetinthetransaction.

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TheAssociationencouragesaninstitutionimpactedbyacorporatetransactiontoremainorbecomeanEPFIasappropriate.TheAssociationalsorecognisesthataperiodofintegrationand absorptionmay be required following the announcement of a corporate transaction,duringwhichtheimpactedinstitutionsmaycontinuetooperateasseparateentitieswhilethetransactiondetailsarefinalised.TheproceduresforEPFIsimpactedbysuchtransactionsareavailablefromtheSecretariat.

j) If an EPFI is no longerActive in Project Finance, Project FinanceAdvisory, and/or Project-

RelatedCorporateLoansoranEPFIwishestowithdrawitsadoptionofthePrinciples,itshouldadvisetheSecretariatandtheChairinwriting.

k) ExceptionsonReportingRequirementsmayexistifmaterialchangestotheEquatorPrincipleshavebeenapprovedbytheAssociationandadefinedtransitionperiodapplies.

7) GeneralManagement

a) The administration, management, and development of the Equator Principles and of theAssociationitselfwillbemanagedbytheAssociationactingthroughitsSteeringCommitteeand,whereappropriate,oneormoreWorkingGroups.

b) AllEPFIsareencouragedtoparticipateinandcontributetothemanagementofthePrinciples

inamannerthatwillsupportthePrinciplesandthatisappropriatetotheirinstitution.c) Managementof thePrinciplesoperatesby consensusas far as ispracticallypossible,with

internalconsultationandprocessesdesignedtoensurethatdecisionshavethesupportofthemajorityofEPFIs.Thismethodofoperationappliestoalllevelsofmanagementstructureinplace.

d) Each EPFIwill, for administrative purposes andwhere appropriate, designate by notice in

writingtotheSecretariat:

i. twoindividualswhoareauthorisedbysuchEPFItorepresentitintheSteeringCommittee;

ii. individualstorepresentitatanyWorkingGrouponwhichitisrepresented;

iii. individualswhoareauthorisedtoparticipateatAssociationmeetings;and

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iv. uptotwoindividualswhomayrepresentitonthepassingofresolutionsbytheAssociationbyemailvotinganddiscussions.

e) DecisionsshallbemadebythemembersoftheAssociationasfollows:

i. Whereaproposal(whetherputforwardbytheSteeringCommitteeorbyany

EPFIorgroupofEPFIs)would:(a)materiallychangethePrinciples;or(b)falloutside theobjectsof theAssociation;or (c) lead to theappointmentofaSecretariat;or(d)materiallyreducetherightsorincreasetheliabilityoftheEPFIs,asdeterminedbytheSteeringCommittee,theEPFIsshallbeaskedtovoteontheproposal.InthecaseofaproposalinrespectofwhichanemailresolutionissoughtassetoutinRule7fi,half(50%)ormoreoftheEPFIswillberequiredtocastavotebyemail for thevotetobevalidandtwo-thirds(66.7%)ofthoseEPFIsthatcastemailvotesarerequiredtovoteinfavourofaproposalinorderforittobeagreed.InthecaseofaproposaltobevotedonatameetingoftheAssociationassetout inRule7fii,aquorumofhalf(50%)ormoreoftheEPFIsisrequiredforthevotetobevalidandtwo-thirds(66.7%) of those EPFIs that cast votes are required to vote in favour of aproposalinorderforittobeagreed.

ii. WhereaproposalwouldamendorextendthePrinciplesortheseRulesina

minor way (for example, a clarification or a non-material update on theunderlying IFC’s Performance Standards and World Bank GroupEnvironmental,HealthandSafetyGuidelines),asdeterminedbytheSteeringCommittee,theEPFIsshallvoteontheproposal.Morethanhalf(50.1%)ofthoseEPFIsthatcastvotesarerequiredtovoteinfavouroftheproposalinorderforittobeagreed.

iii. TheelectionofanyEPFItotheSteeringCommitteeforatermofofficeshall

beamatter fordecisionbyvotingby theEPFIs.More thanhalf (50.1%)ofthoseEPFIsthatcastvotesarerequiredtovoteinfavouroftheproposal.

iv. AllotherdecisionsshallbemadebytheSteeringCommittee(seeRule8e).

v. EachEPFIshallhaveonevote.

vi. If one financial group has adopted the Principles through two or more

subsidiaries (see Rule 5e) and the Steering Committee believes this couldundermine the integrity of the “one EPFI, one vote” system, the SteeringCommitteeshallmakearecommendationtotheEPFIsonhowmanyvotes

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that financial group should be permitted on an ongoing basis. ThisrecommendationshallbeimplementedunlesstheaforementionedfinancialgrouprequiresthemattertobeputtoavoteoftheEPFIs.DuringanysuchvoteonthisspecificrecommendationontheEPFIvotingprocess,therelevantfinancialgroupshallberestrictedtoonevote.

f) Thedecision-makingprocesssetout inRules7eito7eiiishalluseoneofthefollowingtwo

options:

i. TheChairshallmakearecommendationonbehalfoftheSteeringCommitteetoEPFIsbyemail,specifyingthedatebywhichvotesmustbereceivedinorderforthemtobeincludedintheprocess.Thedatewillideallyallowaminimumperiod of two weeks but this notice period may be shorter where thecircumstancesrequire,providedthatareasonableamountofnoticeisgivenhavingregardtoallthefactsandinanyeventnolessthan3BusinessDaysmustbeprovided;or

ii. TheChairshallmakearecommendationonbehalfoftheSteeringCommittee

on theproposal for decisionby the EPFIs at ameeting of theAssociation,whichshallbecalled,andheldinaccordancewithRule15,andtheagendaforthemeetingshallspecifytherecommendationonwhichthevoteisbeingcalled.Detailsofthevoteshallbecirculatednolessthan5BusinessDaysinadvanceofthedateofthevote.ThevotesofthoseEPFIsthatareunabletoattendthemeetingbutthathavesubmittedvotesbyemailbythespecifieddateshallbetakenintoaccount.

g) Inbothoptions,votingwillbecarriedoutinaccordancewithRules7eito7eiiiasappropriate.

h) FiveormoreEPFIsmayacttogethertomakearecommendationonaproposal,inwhichcase

theprocedureshallfollowthatsetoutinRule7f.i) Ownershipofphysical or intellectual property rights shall vest in Trusteeswhohavebeen

appointedby theSteeringCommittee inaccordancewithRule13andwho (in thecaseofindividualTrustees)areauthorisedbytheirEPFIemployerandhaveagreedsotoact.Inthecase of a body corporate acting as Trustee, unless otherwise agreed by the SteeringCommittee,suchTrusteeshallnotchargetheAssociationforactingasTrustee.

j) General Management Practices (GMP) is an accompanying document to the GovernanceRules, which provides administrative and operational guidance on the running of the EPAssociation.InanycaseofdisagreementbetweentheGMPandtheGovernanceRules,the

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Governance Rules shall take precedence. The GMP is a document managed by the EPSecretariat,whereinsubstantiveupdatescanbeapprovedbytheEPSteeringCommittee.

8) SteeringCommittee

a) TheAssociationdelegatestotheSteeringCommitteethepowerandauthoritytoplan,lead,

and commission work or activities related to the administration, management, anddevelopmentoftheEquatorPrinciplesonbehalfoftheEPFIsinpursuitoftheobjectsoftheAssociation.TheSteeringCommitteeshallmanagethepropertyandaffairsoftheAssociationandinvestanysurplusfundsastheAssociationmayhaveasitseesfit.

b) TheSteeringCommitteeshallconsistofaChairandotherSteeringCommitteemembers,all

ofwhomareEPFIsandwhohavebeenappointedbyvoteoftheEPFIsinaccordancewithRule16.EachsuchEPFIshallauthoriseandnominateuptotwoindividualsinitsemploymenttorepresent it on the Steering Committee, in the event that such individual is unable to bepresent,byhisorheralternate.EachEPFIshallonlybeentitledtohaveonevoteinrespectofanydecisionmadebytheSteeringCommittee.

c) TheSteeringCommitteeshallallocateresponsibilityamongsttheindividualsrepresentingthe

EPFIsontheSteeringCommitteetochairortoco-chaireachWorkingGroup,toreporttotheSteering Committee on the progress of the relevant Working Group, and to direct thatWorkingGroupinaccordancewithSteeringCommitteedecisions.

d) TheSteeringCommitteeshallmeetonanadhocbasisaccordingtobusinessrequirements.

Meetingsmaytakeplacephysicallyorbyothermeans,suchasbytelephoneconferencecall.Wherepossible,writtennoticeofatleasttwoweekswillbegivenforallphysicalmeetingsandwrittennoticeofatleastoneweekwillbegivenforallconferencecalls.

e) Aquorumoftwo-thirds(66.7%)ofthemembersoftheSteeringCommitteeisrequiredatany

meetingorconferencecall foranydecisiontobevalid.Morethanhalf (50.1%)ofSteeringCommitteemembersparticipatinginthatvotearerequiredtovoteinfavourofaproposalinorderforittobeagreed.

f) Decisionsmade inaccordancewith thisRule8willbindotherEPFIs save that theSteering

CommitteecannotmakedecisionsthatfallwithintheambitofRule7ei,Rule7eii(i.e.thosethatchangeorareoutsidethescopeofthePrinciplesortheseRules)orRule7eiii (i.e.theappointmentofamemberoftheSteeringCommittee).Insuchcases,theSteeringCommitteeshallmakearecommendationtotheEPFIsviatheChair(seeRule7f)anddecisionsontheserecommendationswillbemadeinaccordancewiththevotingproceduressetoutinRules7eito7eii.

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g) TheSteeringCommitteeshall:

i. makedecisionstoappointand/orenter intocontractswiththirdpartiesto

provide advice or services to the EP Association on particular issuesassociatedwiththemanagement,administration,ordevelopmentoftheEP,andonwhattermssuchcontractsshouldbemade;

ii. as relevant and appropriate, conduct a formal tender process in order toselectathirdpartycontractor;

iii. decidewhethersuchcontractsshouldbeenteredintobytheEPAssociationSecretariatonbehalfoftheEPAssociation.IftheSteeringCommitteedecidesthatitisnotappropriatefortheEPAssociationSecretariattoenterintosuchcontracts, or the contract relates to the appointment of a third party toassume the role of EP Association Secretariat, then the contracts shall beentered into by the Chair or by the Trustees or by such Member of theSteering Committee as the Steering Committee shall decide. The SteeringCommitteeshallapprovethecommercialtermsofanymaterialcontractpriortoitbeingenteredinto;

iv. identify, approve, and regularly review the scope of work of the EPAssociationSecretariatand,wherethescopeofworkandassociatedcostsaresubjecttomaterialchange,providearecommendationtotheEPAssociationforvoteinaccordancewithRule7;

v. reviewandapprovetheannualbudgetandprovideapprovalforitscirculationtotheEPAssociationforvoteinaccordancewithRule7;

vi. procure that the EP Associations’ accounts are kept by the EP AssociationSecretariat;

vii. reviewtheendofyearfinancialstatementsandcommentary,andapproveitscirculationtotheEPAssociation;

viii. procurethatanyCorporationTaxorothertaxesowedbytheEPAssociationaresubmittedinaccordancewiththeprevailinglaw,andpaidtotherelevantauthoritiesinduetime;

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ix. approvechanges(twomembersoftheSteeringCommitteearerequired)totheauthorisedsignatoriesforthebankaccount(s);

x. decidehowtoinvestorre-allocateanysurplusmoniesoftheEPAssociation;and

xi. determinethe“placeofresidence”oftheEPAssociation,ifnotthatoftheEPAssociationSecretariat.

h) A note of any decisions and recommendationsmade by the Steering Committee shall be

circulatedtoallEPFIsbytheSecretariatfollowinganymeetingorconferencecall.i) Any EP AssociationMembermay nominate itself for election to the Steering Committee,

subjecttomeetingthefollowingcriteria:

i. itshallhavebeenanEPAssociationMemberforaminimumofsixmonths;

ii. it shall have provided, in the preceding two years, a minimum of twofinancingsoradvisoryservicesthatarewithinthescopeofandsubjecttotheEP,whichneednothavereachedfinancialclose;

iii. itshallhaveconfirmeditscommitment,capability,andcapacitytofulfiltheSteeringCommitteegeneralresponsibilities,asspecifiedinRule8n;

iv. it shallhaveconfirmed itscommitment,capability,andcapacity toassumeone of three roles (i.e. Chair of the Steering Committee, ManagementSupport, or Regional Representative) on the Steering Committee (theresponsibilities ofwhich are specified in Rule 8). Regional Representativesshallbeheadquarteredintheregiontheyintendtorepresent.Intheabsenceof nominees for a region, any EP Association Member, with significantoperationsorexperiencefinancingprojectssubjecttotheEPintheregion,shallbeconsideredmeetingthecriteria;

v. itshallhavesubmitteditsEPFIReportingthatisdueinaccordancewithRule6andthereportinghasbeenconfirmedbytheEPAssociationSecretariatasmeeting theminimumrequirementsspecified inPrinciple10andAnnexB:Minimum Reporting Requirements of the Equator Principles. If a newadopter, it shall have waived its option to omit transaction numbers andprojectnamesdata;and

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17 April2017(v2)

vi. itshallhavepaidanyAnnualFeethatisdue.

j) MembersareelectedtotheSteeringCommitteebytheEPFIsinaccordancewithRule7eiii.k) MembersoftheSteeringCommitteemustcontinuetomeettherequirementssetoutinRule

8i(iii)-(v)throughouttheirtermofappointment.

l) The Steering Committee will comprise no more than ten, and no fewer than eight, EPAssociationMembersandshall,asisreasonablypracticable,includeadiversemixoffinancialinstitutions representing different geographies and different business sizes. All SteeringCommitteeMembersshallfulfilthegeneralresponsibilitiessetoutinRule8nduringthetermoftheirappointmentandassumeoneofthreeroles:

i. OneEPAssociationMembershallfulfiladditionalresponsibilitiesintherole

ofChairoftheSteeringCommittee.

ii. TwoormoreEPAssociationMembersshallfulfiladditionalresponsibilitiesintheroleofManagementSupport.

iii. FiveEPAssociationMembersshallfulfiladditionalresponsibilitiesintherole

ofRegionalRepresentativeforoneoffivedesignatedregions:AfricaandtheMiddleEast,AsiaandOceania,Europe,LatinAmerica,andNorthAmerica.

m) AllSteeringCommitteemembersshalltakeeitheraregionalormanagementrole,sothere

wouldbeaminimumof2andamaximumof5EnhancedManagementroles(includingtheChair)basedonthetotalnumberofSteeringCommitteemembers,andwouldnot includememberswantingtojoinSteeringCommitteebutnottakeonananyoftherolesdefinedinRule8z.

n) AllSteeringCommitteeMembersshallfulfilthefollowinggeneralresponsibilitiesduringthetermoftheirappointment:

i. Maintainaminimumoftwoindividualsinitsemploymenttorepresentthem

(“NominatedIndividuals”)ontheSteeringCommittee;

ii. Ensure at least one of the Nominated Individuals is present (physically orvirtually)atformalEPAssociationmeetings;

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18 April2017(v2)

iii. ActivelyparticipateinandcontributetoformalEPAssociationmeetingsanddiscussions;and

iv. Provide support to thework andparticipate in thedecisionmakingof the

SteeringCommitteeasdescribedintheMandateoftheSteeringCommittee.

o) Inordertopromotegoodgovernance,membersoftheSteeringCommitteeshallretireattheAnnualMeetingbyrotationaftertwoyearsofservice.Retiringmembersshallbeentitledtoapplyforre-election,sothatthePrinciplescancontinuetobenefitfromtheirexperience,inwhichcasetheymustmeetthecriteriasetoutinRule8i.

p) After two consecutive terms, a mandatory one-year retirement period applies before a

nominationforre-electioncanbesubmitted.

q) Thetwo-yearSteeringCommitteetermlimitissubjecttofourexceptions:

i. The maximum period may be subject to minor amendments given thevariabletimingofAnnualMeetings.

ii. IftheEPAssociationisexpectedtoreceiveinsufficientnominationstomeettheminimumSteeringCommitteecompositionofeight,themandatoryone-yearretirementperiodwillbewaivedsothattwo-termretiringEPAssociationMembersmaysubmitnominationsforimmediatere-election.

iii. AllowingforcontinuityinrespectoftheroleoftheChair,amembershallnotretireby rotationwhere ithasbeenelectedas thenextChair, is currentlyactingasChairor,withintheprevioussixmonths,hassteppeddownfromtheroleofChair. Inallthesecases,thatmembershallretirebyrotationattheAnnualMeetingthattakesafterheorshehassteppeddownfromtheroleofChair.

iv. The maximum period or mandatory retirement period may be subject toamendmentsInthecaseoftheChair,toallowforsmoothtransitions,subjecttoagreementamongsttheSteeringCommittee.

r) MembersoftheSteeringCommitteemayresignbeforecompletionoftheirtermbyadvising

theChairinwriting.

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19 April2017(v2)

9) TheChair

a) TheroleoftheChairistochairtheSteeringCommitteeandtoprovideco-ordinationacrosstheSteeringCommittee, theWorkingGroups,andtheEPFIs toadvancetheobjectsof theAssociationanditsworkprogrammeinrespectofthePrinciples.

b) TheChairshallbeanEPFIwhohasbeenappointedtotheSteeringCommitteeunderRule8i

and shall be selected by vote of the Steering Committeemembers. This appointmentwillrequireanaffirmativevoteofamajority(50.1%ormore)ofallcurrentSteeringCommitteemembers.Toallowforanorderlytransferofresponsibilities,thenewChairwillideallytakeoffice approximately threemonthsafter thedateof themeetingatwhich it is elected, atwhichtimetheexistingChairwillstepdown.

c) TheChairshallcommittoaminimumtwo-yeartermofappointment,afterwhichtheyare

entitledtoeitherretireornominatethemselvesforre-electionforafurthertwoyears.

d) TheChairoftheSteeringCommitteeshallfulfilthefollowingkeyresponsibilities:

i. AttendingandfacilitatingallformalEPAssociationmeetingsanddiscussions.

ii. Providingfinalapprovalof:

- the agenda and subsequent minutes of all formal EP Associationmeetingsanddiscussions;and

- internalorexternalcommunicationsonmattersrelatingtomattersdeemedimportanttotheAssociation(seeGMPdocument).

iii. WiththeEPAssociationSecretariat:

- providingmanagementoversightoftheactivitiesandoutputsofthe

WorkingGroups.iv. WiththeTrustee(s)andEPAssociationSecretariat:

- acting as an authorised signatory for the EP Association bank

accounts;and- onbehalfoftheEPAssociationandwiththeapprovaloftheSteering

Committee,entering intothirdpartycontractsfortheprovisionofgoodsorservicesrelatedtotheadministrationandmanagementoftheEPAssociation.

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20 April2017(v2)

v. WiththeTrustee(s),providing:

- finalapprovalfortheAnnualBudgetpriortoformalapprovalbyEP

AssociationMembers;- paymentapprovalforallexpenditureover£1,500;and- managementoversightforfinancialmatters,includingbutnotlimited

to reviewing monthly bank account statements, monthlymanagementaccountsandannualauditedaccounts.

e) AnongoingrequirementfortheChairisthatitcomplieswiththerequirementsofRule8i.

f) TheChairmayresignbeforecompletionof its termbyadvising theSteeringCommittee in

writing,inwhichcaseanoticeperiodofthreemonthsshallapply.

g) TheChairoftheSteeringCommitteemaytemporarily,orforthedurationofitsterm,delegatesomeofitsresponsibilities(exceptactingasauthorisedsignatoryfortheEPAssociationbankaccounts) to any Steering Committee Member. The Chair shall confirm its delegation ofauthority, and the scope and extent of that delegated authority, to the EP AssociationSecretariatinwriting(i.e.onemail,byletter,orbyfax)priortothetransferofresponsibilities.

h) IfthereisnoChairasaresultofRule9f,thenanewChairwillbeappointedinaccordance

withRule9bataspeciallycalledmeetingoftheSteeringCommitteeandthenewChairwilltakeofficeforthwith.

10) ManagementSupport

a) ManagementSupportappointees shall fulfil the followingkey responsibilities, as required,

andappropriate:

i. Providing advice and support to the Chair of the Steering Committee, EPAssociationSecretariat,WorkingGroups,andTrustee(s)on:

- EPapplicationandimplementation;- EP Association strategy, the EP Association Governance Rules

(includingcompliancematters),oranyrelatedEPAssociationpolicyorprocedures;

- financialandcontractualmatters;

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21 April2017(v2)

- agendasettingandfacilitationofallformalEPAssociationmeetingsand discussions (including, but not limited to, Steering CommitteeMeetingsandtheEPAssociationAnnualGeneralMeeting);

- internal and external communications (including engagement withexternalparties);

- anyEPAssociationmatterdeemedsensitiveorconfidentialinnature;and

- assumingresponsibilitiesdelegatedbytheChairand/ortheSteeringCommittee and reporting on their progress and/or resolve on anongoingorperiodicbasis.

ii. Temporarilyassuming the roleofChairof theSteeringCommitteeorRegional

Representative,iftheEPAssociationMemberfulfillingtheseroleshasretiredfromitsappointmentbeforetheendofitstwo-yeartermandareplacementhasnotbeenappointedviathe“ElectionsandNominations”processsetoutinRule16.

11) RegionalRepresentatives

a) TheRegionalRepresentativesshallfulfilthefollowingkeyresponsibilities:

i. Convening aminimumof threeRegionalMeetings (physical or virtual) perannum,plusoneregionalsessionoftheannualmeetingorworkshopdaytoelicitviewsanddisseminateinformationonavarietyoftopicsrelatedtotheEPand/ortheworkandactivitiesoftheEPAssociation.

ii. Asrequiredandappropriate,providingregionaladvice,context,andsupport

totheSteeringCommittee,ChairoftheSteeringCommittee,EPAssociationSecretariat,andEPAssociationWorkingGroups.

12) WorkingGroups

a) WorkingGroupsshallbeformedatthediscretionoftheSteeringCommitteetoprogressissueswheredetailedconsiderationandinputisrequired.

b) SomeWorkingGroupsarelikelytobepermanent,whileothersbasedonspecificprojectsarelikelytobetemporary.Theup-to-datelistofWorkingGroupsshallbepostedandmaintainedbytheSecretariatontheAssociation’swebsite.

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22 April2017(v2)

c) WorkingGroupmembersmayconsistofSteeringCommitteemembersandotherEPFIswhomayoffertojoinbycontactingtheWorkingGroupleader.

d) SubjecttoRule12,theWorkingGroupsshallbeledbyaSteeringCommitteememberwithspecificresponsibilityforthatissue(seeRule8c).

e) WorkingGroup leadersshallbeappointed, fromvolunteers,by theSteeringCommittee.Avotewill be taken in accordancewith Rule 8e if necessary. The Steering Committee shallprovideeachWorkingGroupwithashortsummaryofitsremit.

f) AWorkingGroupmayoccasionallybenefitfrombeingledbyanEPFIthatisnotontheSteeringCommittee.ThismaybeagreedbytheSteeringCommitteesubjecttoaSteeringCommitteemember being appointed as joint leader with responsibility for communications with theSteeringCommittee.

g) TheWorkingGroupleadermayappointadeputyleaderfromamongstotherWorkingGroupmemberstoprovidesupportwhereappropriate.

h) TheWorkingGroupleaderisresponsibleforensuringthat:

- theWorkingGroupworksefficientlytowardsitsremit;- the Working Group operates, to the extent reasonably possible, on the

principleofconsensus;- theChairiscopiedonsignificantcommunicationsandinitiatives,particularly

thosewithexternalpartieswheretheChairisinapositiontoensurethataconsistentapproachisbeingadoptedbydifferentWorkingGroups;

- progressreportsarepresentedtotheSteeringCommittee;and- recommendationsonmaterialandcontentiousissuesarecommunicatedto

theSteeringCommitteesothatadecisioncanbemadeinaccordancewithRules7ei,7eiior8e,asappropriate.

i) TheWorkingGroupleadermayresignbyadvisingtheChairinwriting,inwhichcaseanew

leadershallbeappointedinaccordancewithRule12.

13) Trustees

a) TheSteeringCommitteeshallhavepowerfromtimetotimetoappointandremoveeitherabodycorporate(whichmustbeanEPFI,oranassociatedcompanyorsubsidiaryofanEPFI)ortwoindividualstoactasTrusteesinaccordancewithRules7i,8gor15j.AnindividualTrustee

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23 April2017(v2)

mustbeamemberoftheSteeringCommitteewhohasbeennominatedtoactasTrusteebythe Steering Committee and has been given authorisation in writing by an appropriateofficeholderoftheEPFIthatemploys ittoactasTrustee,andwhoagreessotoact. IntheeventthatanindividualTrusteeisnolongeremployedorauthorisedbytherelevantEPFIs,theSteeringCommitteeshallnominateanotherindividualtosoact.

b) WhereabodycorporateoranindividualactsasaTrusteeinaccordancewithRules7i,8gor15j,theEPFIsagreethatneitherthatbodycorporate,northatindividual,northeEPFIthatemployshimorher shallhaveany liability toanyperson, includingwithout limitationanyStakeholderorEPFIarisingoutofhisorheractionsordecisionsasTrustee,andthat,saveinthecaseof fraud, suchbodycorporate, individual,and theEPFI that it represents shallbejointlyindemnifiedbythemembersofthisAssociationinrespectofanylossordamagethatit,he,orsheincursarisingoutofits,his,orherroleasTrustee.

14) GeneralWaiverofLiabilityandIndemnitiesa) No EPFI shall owe any duty of care or have any liability to any person, includingwithout

limitation any Stakeholder, or EPFI arising from its adoption of the Equator Principles, itsmembershipofthisAssociation,itsparticipationinaWorkingGroupor,saveasprovidedforinRule18(useoffunds),itsparticipationintheSteeringCommitteeorasChair,savethatinthecaseoffraudbytheChairoranySteeringCommitteemember,adutyshallbeowedtoEPFIs.

b) DecisionsmadebytheEPFIsorbytheSteeringCommitteeinaccordancewiththeseRulesarebindingonallEPFIsandeachEPFIwaivesallrightsofactionitmayhaveagainstotherEPFIs,includingintheircapacityasmembersoftheSteeringCommitteeorChairinrespectofsuchdecisions(savealwaysinthecaseoffraud),andindemnifiesjointlywiththeothermembersofthisAssociationanymemberoftheAssociation,includingthoseintheircapacityasChairormembersoftheSteeringCommittee,inrespectofanylossorliabilityarisingoutofsuchadecision(savealwaysinthecaseoffraud).

15) AssociationMeetings

a) ThereshallbeanAnnualMeetingofEPFIstobeheldineachcalendaryear.

b) AllEPFIsareencouragedtoattendtheAnnualMeeting,with teleconferencingandvaryinglocationsbeingofferedwhereverreasonablypossibleinordertomaketheAnnualMeetingmoreinclusive.

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24 April2017(v2)

c) TheagendafortheAnnualMeetingshallbedeterminedbytheSteeringCommitteebutshall

includeanyresolutionsfordecisionoftheAnnualMeetingproposedbyanygroupoffiveormoreEPFIsactingtogetherasperRule7h.

d) TheChair,ortheSecretariatasappropriate,willprovideminimumnoticeofeightweeksfortheAnnualMeetingandwillcirculatetheagendatoallEPFIsaminimumoftwoweeksbeforetheMeeting.TheaccidentalomissiontogivenoticeoforprovideanagendafortheAnnualMeeting or the non-receipt of notice or an agenda by any EPFI shall not invalidate theproceedingsoforanydecisionmadeattheAnnualMeeting.

e) TheAnnualMeetingwillincludereportsfromtheChairandeachWorkingGrouponactivitiesundertakenandanticipated.

f) TheChair,ortheSecretariatasappropriate,shallcirculateminutesoftheAnnualMeeting,plustherecordingofdecisionstakenbytheSteeringCommitteeasdeemedappropriatebytheChair.

16) ElectionsandNominations

a) AllEPAssociationSteeringCommitteeMembersareappointedbyvoteoftheEPAssociationinaccordancewithRule8.

b) Prior to each election process, the EP Association Secretariat will communicate the

forthcoming nomination and election to the EP Association to encourage EP AssociationMemberstoconsidernominatingthemselves.

c) AnyEPAssociationMemberwishingtonominateitselfforelectiontotheSteeringCommitteeshallconfirmtotheEPAssociationSecretariatinwriting,andbyaspecifiednominationdate:

i. howitmeetstheSteeringCommitteeNominationandMembershipCriteria(inRule8)andtheadditionalcriteriafortheroleofeitherChairoftheSteeringCommittee,ManagementSupportorRegionalRepresentatives.IfanyEPFIisunabletomeetallofthecriteria,itmaysubmitanapplicationwithabusinesscasedetailingadditionalrelevantexperiencewiththeEquatorPrinciplesasaqualificationforjoiningtheSteeringCommittee;and

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ii. its commitment, capability, and capacity, to fulfil the Steering CommitteeMember general responsibilities, as specified in Rule 8n and theresponsibilitiesofanyadditionalrolesasoutlinedinRule8l.

17) TheSecretariat

a) TheSteeringCommitteemaydecidetooutsourceadministrativetasks,includingtheenteringintoofcertaincontractsinaccordancewithRule8g,toaSecretariat,inwhichcase,subjecttosubparagraph(b)below,theSecretariatshallbeappointedinaccordancewithRule8gandthecostsofsuchappointmentwillbesharedbytheEPFIswithintheAnnualFee(seeRule18).

b) Theidentityof,thescopeofworkfortheSecretariatandthefeeschargedbytheSecretariat

willbeconsideredbythemembersoftheSteeringCommitteeandwillbeagreedbytheEPFIsinaccordancewiththevotingprocedureinRule7ei.

c) TheSecretariatwillcontacttheChairandotherSteeringCommitteemembersasappropriate

fromtimetotimeinordertoagreeonactivitiesfallingwithinitsscopeofworkprovidedthatmaterial changes to the scopeor costsof theSecretariat’s services shallbe subject to thevotingprocedureinRule7ei.

d) IntheeventthataSecretariatisnotappointed,thentheChairwillcarryoutthosetasksthat

areallocatedtotheSecretariatundertheseRulesorbydecisionoftheSteeringCommittee.AnyreferencetotheSecretariatintheseRulesshallbereadasareferencetotheChairifaSecretariathasnotbeenappointedorthepositionisvacant.

18) Finance

a) AllEPFIssharethecostsofmanagingandoperatingthePrinciples.

b) Wherepossible,costsshallbeminimisedbyEPFIsprovidingtheirresourcesin-kind.

c) TheEPFIsshallberequiredtopayanAnnualFeesufficienttocovertheexternalcostsincurredinthemanagement,administration,anddevelopmentofthePrinciplesandthemanagementandadministrationoftheAssociation.TheAnnualFeewillbe:

- variable;

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26 April2017(v2)

- basedonabudget,brokendownintocategoriesofexpenditureandincludinganamountforcontingencies,whichwillbepresentedattheAnnualMeetingforthefollowingyear;

- agreedinaccordancewiththeproceduresinRule7eii.

d) Any surplus funds remaining fromaprevious year’s budgetwill be carried forward to thefollowing year and reflected in a lower budget and Annual Fee for the following year.ReimbursementoftheAnnualFeeshallbemadeonlyinexceptionalcircumstances.

e) CopiesoftheaccountswillbecirculatedannuallytoallEPFIs.Theaccountswillbeauditedata frequency determined by the Steering Committee by a firm of chartered or certifiedaccountantsappointedinaccordancewithRule8g.

f) TheSteeringCommitteeshallprocurethatanycorporationtaxorothertaxesowedbythe

Associationarepaidtotherelevantauthorities.

g) TheAnnualFee ispayablebyEPFIswhosenamesappearontheListofEPFIsasat30Juneannually.

h) Potentialnon-paymentoftheAnnualFeeshallbemanagedasfollows:

i. IfanEPFIhasnotpaid theAnnualFeeby31October, theSecretariatshallcontact the individuals who currently represent that EPFI and provide awritten reminder. The reminder shall include details of potential actionsunderRules18hiiand18hiiiintheeventofcontinuednon-payment.

ii. IfanEPFIhasnotpaidtheAnnualFeeby30November,theChairshallsenda

finalremindertotheindividualswhocurrentlyrepresentthatEPFI,copyingitto the chief executive officer or equivalent officeholder and to the othermembersoftheSteeringCommittee.TheSecretariatshallamendtheListofEPFIs on the Association’s website such that the delay in payment of theAnnualFeeishighlighted.

iii. IfanEPFIhasnotpaidtheAnnualFeeby31December,itshallbe“de-listed”

as setout inRule6giii. If theEPFIwishes tobe“re-listed”, it candosobypayingtheAnnualFeeby31Marchandshallbetreatedashavingadoptedthe Principles, but if it has been de-listed under Rule 18, it shall not beautomaticallyreinstatedasamemberoftheSteeringCommitteeorasChairifitwerepreviouslyinsuchaposition.

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27 April2017(v2)

iv. IftheEPFIdoesnotpaytheAnnualFeeby31March,thenifitwishestore-adoptthePrinciples,itmustdosoinaccordancewithRule5f.

i) EPFIsthatadoptduringtheyearwillbeliabletopay,uponadoption,theAnnualFeeforthat

yearproportionatetothenumberoffullmonthsremainingpriortothefollowing30June.

j) ExpenditureshouldbewithinthebudgetasdescribedinRule18orotherwiseasapprovedbytheSteeringCommitteeorwiderEPFIsasappropriate.

k) Fundswillbeheldinbankaccount(s)inthenameof“EquatorPrinciplesFinancialInstitutions”orasimilarname.

i. ThemainaccountwillbeusedforthereceiptofAnnualFees,forholdingcash

andforallindividualamountsofexpenditureinexcessof£1,000.00,subjecttothearrangementsdetailedinRule18.Theauthorisedsignatoriesforthebankaccount shall be theTrustees, theChair, and the Secretariat, and, asfeasible, Steering Committee members in enhanced management roles.Cheques drawn on the account or transfers ordered shall be signed orauthorisedby(a)theSecretariatorChair,plusoneoftheTrusteesor(b)bytwoindividualTrustees.OneEPFIcannotprovideauthorisationasbothChairand as a Trustee. In the case of a Trustee who is a body corporate, thesignatoryshallbeapersondulyauthorisedbytheTrustee.

ii. Asecondaccountwillbeusedforoperatingexpensesandwillbeoperatedbythe Secretariat. Transfers will be made to it from the main account inaccordancewiththebudgetandasdescribedinRule18forallindividualitemsof expenditure of £1,000.00 or less, plus the monthly staff costs of theSecretariat, includingwhere these exceed £1,000.00. The transfers to thisaccountmayconsistof individualtransfersorregularlyscheduledtransferssuchasstandingorders.TheauthorisedsignatoriesforthebankaccountshallbetheTrustees,theChair,theSecretariat,andSteeringCommitteemembersinenhancedmanagementroles.Chequesdrawnontheaccountortransfersordered shall be signed or authorised by any one of the authorisedsignatories, with the underlying intention being that the Secretariatundertakesthesetasks.

iii. Bank statements for the accounts – in paper or electronic form – shall beaddressed to the Secretariat, with a copy to be provided to a designatedTrusteewithin3weeksofthemonth-end.

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iv. The “place of residence” of the Association, where required, will be theaddress of the Secretariat unless otherwise determined by the SteeringCommittee.

l) Changestotheauthorisedsignatoriesforthebankaccountshallrequiretheapprovaloftwo

membersoftheSteeringCommittee,oneofwhichmaybetheChair.

19) Disclaimer

a) ThisdocumentsetsouttheRulesoftheAssociationandalsoprovidesguidancetoexistingand prospective EPFIs on the processes for the management and administration of theEquatorPrinciples.Itdoesnotcreateanyrightsin,orliabilityto,anyperson,publicorprivate,anddoesnotconferanyrightsonanypersonwhoisnotamemberoftheAssociation.NoEPFI(noranyindividualauthorisedbysuchEPFItorepresentitinAssociationactivities)shalloweanydutyofcareorhaveanyliabilitytoanythirdpartyarisingoutoftheirmembershipoftheAssociation,engagementinAssociationmeetingsoractivities,ortheiractionsasChairorasaSteeringCommitteeorWorkingGroupmember.

20) GoverningLaw

a) ThegoverninglawoftheseRulesisthelawofEnglandandWalesandthemembersoftheAssociationsubmittothenon-exclusivejurisdictionofthecourtsofEnglandandWales.