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International Fund for Agricultural Development Act 1977

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INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT ACT 1977 No. 90, 1977
INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT ACT 1977 No. 90 of 1977 - SECT. 1. Short title.
INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT ACT 1977 No. 90 of 1977 An Act relating to the International Fund For Agricultural Development. BE IT ENACTED by the Queen, and the Senate and House of Representatives of the Commonwealth of Australia, as follows:- Short title 1. This Act may be cited as the International Fund for Agricultural Development Act 1977.*1* INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT ACT 1977 No. 90 of 1977 - SECT. 2. Commencement
2. This Act shall come into operation on the day on which it receives the Royal Assent.*1* INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT ACT 1977 No. 90 of 1977 - SECT. 3. Interpretation
3. In this Act- ''Agreement'' means the Agreement establishing the International Fund for Agricultural Development a copy of which is set out in the Schedule; ''Fund'' means the International Fund for Agricultural Development. INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT ACT 1977 No. 90 of 1977 - SECT. 4. Approval of Australian membership in the Fund
4. The membership of Australia in the Fund is approved. INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT ACT 1977 No. 90 of 1977 - SECT. 5. Appropriation
5. There may be paid out of the Consolidated Revenue Fund, which is appropriated accordingly, any moneys necessary for the purpose of- (a) making any payment that Australia is required to make to the Fund in accordance with the Agreement; or (b) redeeming a security issued under section 6. INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT ACT 1977 No. 90 of 1977 - SECT. 6. Issue of securities
6. (1) To the extent to which the fund is prepared to accept from Australia, in place of a payment that Australia is required to make to the Fund, promissory notes or other obligations issued by Australia, the Treasurer may, on behalf of Australia, execute and issue such securities to the Fund. (2) Securities issued under sub-section (1)- (a) shall be payable to the Fund; (b) shall be non-negotiable, irrevocable and non-interest bearing; and (c) shall be payable at their par value on demand. -------- INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT ACT 1977 No. 90 of 1977 - SCHEDULE
SCHEDULE Section 3 AGREEMENT ESTABLISHING THE INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT PREAMBLE Recognizing that the continuing food problem of the world is afflicting a large segment of the people of the developing countries and is jeopardizing the most fundamental principles and values associated with the right to life and human dignity; Considering the need to improve the conditions of life in the developing countries and to promote socio-economic development within the context of the priorities and objectives of the developing countries, giving due regard to both economic and social benefits; Bearing in mind the responsibility of the Food and Agriculture Organization
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of the United Nations within the United Nations system, to assist the efforts of developing countries to increase food and agricultural production, as well as that organization's technical competence and experience in this field; Conscious of the goals and objectives of the International Development Strategy for the Second United Nations Development Decade and especially the need to spread the benefits of assistance to all; Bearing in mind paragraph (f) of part 2 (''Food'') of Section I of General Assembly resolution 3202 (S-VI) on the Programme of Action on the Establishment of a New International Economic Order; Bearing in mind also the need for effecting transfer of technology for food and agricultural development and Section V (''Food and Agriculture'') of General Assembly resolution 3362 (S-VII) on development and international economic co-operation, with particular reference to paragraph 6 thereof regarding the establishment of an International Fund for Agricultural Development; Recalling paragraph 13 of General Assembly resolution 3348 (XXIX) and resolutions I and II of the World Food Conference on the objectives and strategies of food production and on the priorities for agricultural and rural development; Recalling resolution XIII of the World Food Conference which recognized: (i) the need for a substantial increase in investment in agriculture for increasing food and agricultural production in the developing countries; (ii) that provision of an adequate supply and proper utilization of food are the common responsibility of all members of the international community; and (iii) that the prospects of the world food situation call for urgent and co-ordinated measures by all countries; and which resolved: that an International Fund for Agricultural Development should be established immediately to finance agricultural development projects primarily for food production in the developing countries; The Contracting Parties have agreed to establish the International Fund for Agricultural Development, which shall be governed by the following provisions: ARTICLE 1 Definitions For the purposes of this Agreement the terms set out below shall have the following meaning, unless the context otherwise requires: (a) ''Fund'' shall mean the International Fund for Agricultural Development; (b) ''food production'' shall mean the production of food including the development of fisheries and livestock; (c) ''State'' shall mean any State, or any grouping of States eligible for membership of the Fund in accordance with Section 1 (b) of Article 3; (d) ''freely convertible currency'' shall mean: (i) currency of a Member which the Fund determines, after consultation with the International Monetary Fund, is adequately convertible into the currencies of other Members for the purposes of the Fund's operations; or (ii) currency of a Member which such Member agrees, on terms satisfactory to the Fund, to exchange for the currencies of other Members for the purposes of the Fund's operations. ''Currency of a Member'' shall, in respect of a Member that is a grouping of States, mean the currency of any member of such grouping; (e) ''Governor'' shall mean a person whom a Member has designated as its principal representative at a session of the Governing Council; (f) ''votes cast'' shall mean affirmative and negative votes. ARTICLE 2
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Objective and functions The objective of the Fund shall be to mobilize additional resources to be made available on concessional terms for agricultural development in developing Member States. In fulfilling this objective the Fund shall provide financing primarily for projects and programmes specifically designed to introduce, expand or improve food production systems and to strengthen related policies and institutions within the framework of national priorities and strategies, taking into consideration: the need to increase food production in the poorest food deficit countries; the potential for increasing food production in other developing countries; and the importance of improving the nutritional level of the poorest populations in developing countries and the conditions of their lives. ARTICLE 3 Membership Section 1-Eligibility for membership (a) Membership of the Fund shall be open to any State member of the United Nations or of any of its specialized agencies, or of the International Atomic Energy Agency. (b) Membership shall also be open to any grouping of States whose members have delegated to it powers in fields falling within the competence of the Fund, and which is able to fulfil all the obligations of a Member of the Fund. Section 2-Original Members and non-original Members (a) Original Members of the Fund shall be those States listed in Schedule I, which forms an integral part of this Agreement, that become parties to this Agreement in accordance with Section 1 (b) of Article 13. (b) Non-original Members of the Fund shall be those other States that, after approval of their membership by the Governing Council, become parties to this Agreement in accordance with Section 1 (c) of Article 13. Section 3-Classification of Members (a) Original Members shall be classified in one of three categories: I, II or III as set forth in Schedule I to this Agreement. Non-original Members shall be classified by the Governing Council, by a two-thirds majority of the total number of votes, with the concurrence of such Members, at the time of the approval of their membership. (b) The classification of a Member may be altered by the Governing Council, by a two-thirds majority of the total number of votes, with the concurrence of that Member. Section 4-Limitation of liability No Member shall be liable, by reason of its membership, for acts or obligations of the Fund. ARTICLE 4 Resources Section 1-Resources of the Fund The resources of the Fund shall consist of: (i) initial contributions; (ii) additional contributions; (iii) special contributions from non-member States and from other sources; (iv) funds derived from operations or otherwise accruing to the Fund. Section 2-Initial contributions (a) Each original Member in category I or II shall, and any original Member in category III may, contribute to the initial resources of the Fund the amount expressed in the currency specified in the instrument of ratification, acceptance, approval or accession deposited by that State pursuant to Section 1 (b) of Article 13. (b) Each non-original Member in category I or II shall, and any non-original Member in category III may, contribute to the initial resources of the Fund an amount agreed between the Governing Council and that Member at the time of the approval of its membership.
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(c) The initial contribution of each Member shall be due and payable in the forms set forth in Section 5 (b) and (c) of this Article, either in a single sum or, at the option of the Member, in three equal annual instalments. The single sum or the first annual instalment shall be due on the thirtieth day after this Agreement enters into force with respect to that Member; any second and third instalments shall be due on the first and on the second anniversary of the date on which the first instalment was due. Section 3-Additional contributions In order to assure continuity in the operations of the Fund, the Governing Council shall periodically, at such intervals as it deems appropriate, review the adequacy of the resources available to the Fund; the first such review shall take place not later than three years after the Fund commences operations. If the Governing Council, as a result of such a review, deems it necessary or desirable, it may invite Members to make additional contributions to the resources of the Fund on terms and conditions consistent with Section 5 of this Article. Decisions under this Section shall be taken by a two-thirds majority of the total number of votes. Section 4-Increases in contributions The Governing Council may authorize, at any time, a Member to increase the amount of any of its contributions. Section 5-Conditions governing contributions (a) Contributions shall be made without restriction as to use and shall be refunded to contributing Members only in accordance with Section 4 of Article 9. (b) Contributions shall be made in freely convertible currencies, except that Members in category III may pay contributions in their own currency whether or not it is freely convertible. (c) Contributions to the Fund shall be made in cash or, to the extent that any part of such contributions is not needed immediately by the Fund in its operations, such part may be paid in the form of non-negotiable, irrevocable, non-interest bearing promissory notes or obligations payable on demand. In order to finance its operations, the Fund shall draw down all contributions (regardless of the form in which they are made) as follows: (i) contributions shall be drawn down on a pro rata basis over reasonable periods of time as determined by the Executive Board; (ii) where a contribution is paid partly in cash, the part so paid shall be drawn down, in accordance with paragraph (i), before the rest of the contribution. Except to the extent that the part paid in cash is thus drawn down, it may be deposited or invested by the Fund to produce income to help defray its administrative and other expenditures; (iii) all initial contributions, as well as any increases in them, shall be drawn down before any additional contributions are drawn down. The same rule shall apply to further additional contributions. Section 6-Special contributions The resources of the Fund may be increased by special contributions from non-member States or other sources on such terms and conditions, consistent with Section 5 of this Article, as shall be approved by the Governing Council on the recommendation of the Executive Board. ARTICLE 5 Currencies Section 1-Use of currencies (a) Members shall not maintain or impose any restriction on the holding or use by the Fund of freely convertible currencies. (b) The currency of a Member in category III paid to the Fund on account of that Member's initial or additional contributions may be used by the Fund, in consultation with the Member concerned, for the payment of administrative expenditures and other costs of the Fund in the territories of that Member, or, with the consent of that Member, for the payment of goods or services produced in its territories and required for activities financed by the Fund in other States. Section 2-Valuation of currencies (a) The unit of account of the Fund shall be the Special Drawing Right of the International Monetary Fund. (b) For the purposes of this Agreement, the value of a currency in terms of the Special Drawing Right shall be calculated in accordance with the method of
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valuation applied by the International Monetary Fund, provided that: (i) in the case of the currency of a member of the International Monetary Fund for which such value is not available on a current basis, the value shall be calculated after consultation with the International Monetary Fund; (ii) in the case of the currency of a non-member of the International Monetary Fund, the value of the currency in terms of the Special Drawing Right shall be calculated by the Fund on the basis of an appropriate exchange rate relationship between that currency and the currency of a member of the International Monetary Fund for which a value is calculated as specified above. ARTICLE 6 Organization and management Section 1-Structure of the Fund The Fund shall have: (a) a Governing Council; (b) an Executive Board; (c) a President and such staff as shall be necessary for the Fund to carry out its functions. Section 2-The Governing Council (a) Each Member shall be represented on the Governing Council and shall appoint one Governor and an alternate. An alternate may vote only in the absence of his principal. (b) All the powers of the Fund shall be vested in the Governing Council. (c) The Governing Council may delegate any of its powers to the Executive Board with the exception of the power to: (i) adopt amendments to this Agreement; (ii) approve membership and determine the classification or reclassification of Members; (iii) suspend a Member; (iv) terminate the operations of the Fund and distribute its assets; (v) decide appeals from decisions made by the Executive Board concerning the interpretation or application of this Agreement; (vi) determine the remuneration of the President. (d) The Governing Council shall hold an annual session, and such special sessions as it may decide, or as are called by Members having at least one fourth of the total number of votes in the Governing Council, or as requested by the Executive Board by a two-thirds majority of the votes cast. (e) The Governing Council may by regulation establish a procedure whereby the Executive Board may obtain a vote of the Council on a specific question without calling a meeting of the Council. (f) The Governing Council may, by a two-thirds majority of the total number of votes, adopt such regulations and by-laws not inconsistent with this Agreement as may be appropriate to conduct the business of the Fund. (g) A quorum for any meeting of the Governing Council shall be constituted by Governors exercising two thirds of the total votes of all its members, provided that Governors exercising one half of the total votes of the Members in each of categories I, II, and III are present. Section 3-Voting in the Governing Council (a) The total number of votes in the Governing Council shall be 1,800, distributed equally among categories I, II and III. The votes of each category shall be distributed among its members in accordance with the formula set out for that category in Schedule II, which forms an integral part of this Agreement. (b) Except as otherwise specified in this Agreement, decisions of the Governing Council shall be taken by a simple majority of the total number of votes. Section 4-Chairman of the Governing Council
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The Governing Council shall elect a Chairman from among the Governors, who shall serve for two years. Section 5-Executive Board (a) The Executive Board shall be composed of 18 Members of the Fund, elected at the annual session of the Governing Council. The Governors from the Members of each category shall, in accordance with procedures set out or established as provided in Schedule II for that category, elect six members of the Executive Board from among the Members in that category, and may similarly elect (or, in respect of category I, provide for the appointment of) up to six alternates, who may vote only in the absence of a member. (b) Members of the Executive Board shall serve for a term of three years. However, unless otherwise provided in or in accordance with Schedule II, at the first election two members in each category shall be designated to serve for one year, and two to serve for two years. (c) The Executive Board shall be responsible for the conduct of the general operations of the Fund, and for this purpose shall exercise the powers given to it by this Agreement or delegated to it by the Governing Council. (d) The Executive Board shall meet as often as the business of the Fund may require. (e) The representatives of a member or of an alternate member of the Executive Board shall serve without remuneration from the Fund. However, the Governing Council may decide the basis on which reasonable travel and subsistence expenses may be granted to one such representative of each member and of each alternate member.