INTER-AMERICAN DEVELOPMENT BANK 1

Ad
h4 01 1969. THE INTER-AMERICAN DEVELOPMENT

BANK ACT

[23rd December, 1969.1

1. This Act may be cited as the Inter-American Develop- short title.
ment Bank Act.

2. In this Act- Intupreta-
tion.

“the Bank Agreement” means the Agreement establish-
ing the Inter-American Development Bank the
original of which is deposited in the archives of the
Organization of American States and of which the
text of the Articles is set out in the First Schedule First
to this AcS Schedule

“Bank” means the Inter-American Development Bank

“Minister” means the Minister responsible for finance;
“the Resolution” means the Resolution set out in the

Second Schedule to this Act embodying the terms Second
and conditions governing the admission of Jamaica
to membership of the Bank adopted by the Board
of Governors of the Bank on the 16th of October,
1969.

established under the Bank Agreement;

Schedule.

3. Acceptance by the Government of the Bank Agree- APPIOV~
of accept-
ance of
Bank
Agreement.

ment is hereby approved.

4.-(1) The Minister is authorized to pay for the account pinancial
of Jamaica the amounts payable from time to time to the pronsiona~
Bank under the Bank Agreement and the Resolution:

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2 INTER-AMER ICAN DEVELOPMENT BANK

Provided that the Bank of Jamaica may from time to
time, subject to the terms of any agreement made by that
Bank with the Government, pay from its own funds such
of the amounts aforesaid as may be specified in the Agree-
ment.

(2) The Minister may issue or cause to be issued
to the Bank non-negotiable, non-interest bearing notes or
similar securities in lieu of any portion of the subscription
to the Bank’s authorized capital or the contribution to the
Fund for Special Operations payable in Jamaican currency
and any sums payable in respect of such notes or securities
so issued shall be a charge on the Consolidated Fund.

(3) The Minister may borrow from any person, any
sum or sums required for payments under this section and,
for the purpose of such borrowing, he may create and issue
any securities bearing such rate of interest and subject to
such conditions as to repayment, redemption or otherwise
as he thinks fit.

(4) The principal and interest of any securities issued
under subsection (3) and the expenses incurred in con-
nection with their issue shall be charged on the Consoli-
dated Fund.

(5) Subject to the terms of any agreement to the
contrary made by the Bank of Jamaica with the Govern-
ment pursuant to the proviso to subsection (11, any moneys
received by the Government from the Bank or raised by
securities under subsection (3) shall be paid into the Con-
solidated Fund Account and shall form part of the Con-
solidated Fund and be available in any manner in which
that Fund is available.

(6) The Bank of Jamaica shall act as a depository for
the holdings of currency of Jamaica and other assets of the
Bank.

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INTER-AMERICAN DEVELOPMENT BANK 3

5. The provisions of sections 2 to 9 inclusive of Article Certain
provwons XI of the Bank Agreement (which relate to the Status, immu- of Bank

nities and privileges to be accorded to the Bank) shall have FAm"'
the force of law in Jamaica, so, however, that the provisions &!;of
of paragraph (a) of section 9 of Article XI of the Bank Jamaica.
Agreement shall not be construed as precluding waiver by
the Bank of any immunity conferred by that paragraph.

6. The Minister may by order make such provisions as P o w ~ o f
may be necessary for carrying into effect any of the provi- tomake Minister

OrdCIS. sions of the Bank Agreement.

7.41) Where any amendment to the Bank Agreement is Amendment
of First

and matters

quentid on
uncadmcnt.

accepted by the Government, the Minister may by order &h&Jc

ment so accepted.
(2) Any order made under this section may contain

such consequential, supplemental or ancillary provisions as
appear to the Minister to be necessary or expedient for the
purpose of giving due effect to the amendment accepted as
aforesaid and, without prejudice to the generality of the
foregoing, may contain provisions amending references in
this Act to specific provisions of the Bank Agreement.

(3) Every order made under this section shall be sub-
ject to negative resolution of the House of Representatives.

(4) Where the First Schedule to this Act is amended
pursuant to this section any reference in this Act or any
other instrument to the Bank Agreement shall, unless the
context otherwise requires, be construed as a reference to
the Bank Agreement as so amended.

amend the First Schedule by including therein the amend- CQn5.z-

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4 INTER-AMERICAN DEVELOPMENT BANK

FIRST SCHEDULE

TEXT OF

ARTICLES OF AGREEMENT

ESTABLISHING

(Sections 2 and 7)

THE INTER-AMERICAN DEVELOPMENT BANK
L.N. (as amended)
6111917

ARTICLE I PURPOSE AND FUNCTIONS

SECTION 1-Purpose

The purpose of the Bank shall be to cantribute to the acceleration of
the process of economic and social development of the regional develop-
ing member countries. individually and collectively.

SECTION 2-Functions

functions :
(a) To implement its purpose, the Bank shall have the following

(i) to promote the investment of public and private capital
for development purposes;

(ii) to utilize its own capital, funds raised by it in financial
markets, and other available resources, for financing
the development of the member countries, giving priority
to those loans and guarantees that will contribute most
effectively to their economic growth;

(iii) to encourage private investment in projects, enterprises,
and activities contributing to economic development and
to supplement private investment when private capital
is not available on reasonable terms and mnditions;

(iv) to co-operate with the member countries to orient their
development policies toward a butter utilization of their
resources, in a manner consistent with the objectives of
making their economies more complementary and of
fostering the orderly growth of ,their foreign trade; and

(v) to provide technical assistance for the preparation,
hancing and implementation of development plans and
projects, including the study of priorities and the formu-
lation of specific project proposals.

(b) In carrying out its functions, the Bank shall co-operate as far
as possible with national and international institutions and with private
sources supplying investment capitat

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INTER-AMERICAN DEVELOPMEhT BANK

ARTICLE II
SECTION 1-Membership

(a) The original members of the Bank shall be those members of
the Organization of American States which, by the date specified in
Article XV W o n 1 (a). shall accept membership in the Bank.

(b) Membership shall be open to other members of the Organiza-
tion of American States and to Canada, Bahamas and Guyana. at
such times and in accordance with such terms as the Bank may
determine.

Nonregional countries which are members of the International
Monetary Fund, and Switzerland, may also be admitted to the Bank.
at such times, and under such general a l e s as the Board of Governors
shall have established. Such general N I ~ S may he amended only by
decision of the Board of Governors by a two-thirds majority of the
total number of governors, including two-thirds of the governors of
nonregional members. representing not less that three-fourths of the
total voting power of the member countries.

SECTION IA-Categories of Resources
The resources of the Bank shall consist of the ordinary capital

resources. pmided for in this article. and the inter-regional capital
resources, provided for in Anicle HA, and the resources of the Fund
for Special Operations established by Article IV (herebafter called
the Fund).

SECTION 2-Authorized Ordinivy Capitd
(a) The authorized ordinary capital stock of the Bank initially

shall he in the amount of eight hundrded and fifty million dollars
($850.000.000) in terms of Uni,ted States dollars of the weight and
fineness in effect on January 1, 1959 and shall be divided into 85,000
shares having a par value of $10,000 each, Which shall be available
for subscription by members in accordance with.Section 3 of this
article.

(b) The authorized ordinary capital stock shall he divided into
paid-in shares and callable shares. The equivalent of four hundred
m2llion dollars ( ~ , o o O , O O O ) shall be paid in, and four hundred and
fifty million dollars (~50,000,000) shall be callable for the purposes
speciEed in Section 4 (a) (ii) of this article.

(c) The ordinary capital stock indicated in (a) of t h i s section
s'hall be increased by five hundred million dollars ($SCf~,ooO,ooO) in terms
of United States dollars of the weight and fineness existing on January
1, 1959, provided that:-

fi) the date for payment of all subscriptions established
in accordance with Section 4 of this article shall have
passed; and

MEMBERSHIP IN AND CAPITAL OF THE BANK

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INTER-AMERICAN DEVELOPMENT BANK

(ii) a regular or special meeting of the Board of Governors,
held as smn as possible after the date referred to i n
subparagraph (i) of this paragraph. shall have approv-
ed the abovementioned increase of five hundred million
dollars ($500,000.000) by a three-fourths majority of the
total voting power of the member countries.

(d) The increase in capital stock provided for in the preceding
paragraph shall be in the form of callable capital.

(e) Notwithstanding the provisions of paragraphs (c) and (d) Of
this section and subject to the provisions of Article VIII. Section 4(b),
the authorized ordinary capital stock may be increased when the
Board of Governors deems it advisable and in a manner agreed upon
by a three-fourths majority of the total voting power of the member
countries, including a two-thirds majority of the governors ~4 regional
members.

( f ) Whenever the authorized inter-regional capital stock is in-
creased pursuant to Article IIA. Section 1 (c) and a member exercises
the option provided for in Article 11. Section 3 (f), ordinary capital
stock shall be increased in the amount required to allow such member
to exercise that option and the interuegional capital stock available
for subscription by that member shall be reduced. in an equivalent
amount and be appropriately cancelled.

SEC~ION 3Subscription of Shares
(a) Each regional member shall subscribe to shares of the ordinary

capital stofk of the Bank, and nonregional members may subscribe
thereto in accordance with the terms of paragraph (b) of this section
and in accordance with such terms as the Board of Governors shall
establish. The number of shares to be subscribed by the original
members shall be those set forth in Annex A of this Agreement, which
specifies the obligation of each member as to both paid-in and
callable capital. The number of shares to be subscribed by other
members shall be determined by the Bank.

(b) In case of an increase in ordinary capiatal pursuant to Section
2, paragraph (c) or (e) of this article or an increase in inter-regional
capital pursuant to M c l e IIA, Section 1 (c), or an increase in both
ordinary and inter-regional capital. each member shall have a right
to subscribe, under such conditions as the Bank shall decide, to a
proportion of the increase of stock equivalent to the proportion which
its stock theretofore subscribed bears to the total capital stock of the
Bank. Nu member, however, shall be obligated to subscribe to any
part of such incrmsed capital.

(c) Shares of ordinary capital stcck initially subscribed by original
members shall be issued at par. Other shares shall be issued .at par
unless the Bank decides in special circumstances to issue them on other
terms.

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INTER-AMERICAN DEVELOPMENT BANK

(d) The liability of the member coUmtrieS On OrdiMry capital
shares shall be limited to the unpaid portion of their issue price.

(e) Shares of ordinary capital stock shall not be pledged or en-
cumbered in any manner, and ,they shall be transferable only to the
Bank.

(0 Any member having the right to subscribe to the inter-regional
capital stock of the Bank under paragraph (b) of this section, shall have
the option of waiving that right and subscribing in lieu thereof to an
equivalent amount of ordinary capital stock.
SECTION &Paymen! of Subscripfions

the Bank as set forth in Annex A shall be made as follows:-
(a) Payment of the subsoriptions to the ordinary capital stock of

(i) Payment of the amount s&scribed by each country to
the paid-in capital stock of the Bank shall be made
i n three instalments. the first of which shall be 20 per
cent, and the second and thud each 40 er cent. of
such amount. The first inslalment shalt & paid ,by
each country at any time on or after the date on wlnch
this Agreement is signed, and the instrument of accept-
ance or ratification deposited, on its behalf in accordance.
wi,th Article XV, Section 1, but not later than September
30, 1960. The remaining two instalments shall be paid
on such dates as are determined by the Bank, but not
smner than S tember 30, 1961, and September 30,
1962, respectiv7y.

Of each instalment, 50 per cent shall be paid in gold
and/or dollars and 50 per cent in the m n c y of the
member.

(iij The callable portion of the subscription for ordinary
capital shares of. the Bank shall be subject to call only
when required to meet the obligations of the Bank
created under Article III. Section 4 (ii) and (v) on
borrowings of funds for inclusion in the Bank's ordinary
capital resources. or guarantees chargeable to such
resources. In the event of such a call, payment may
be made at the option of the member either in gold, in
United States dollars. or in the currency required to
discharge the obligation of the Bank for the purpose
for which the call is made.

7

Calls on unpaid subscriptions shall be uniform in
percentage on all shares.

(b) Each payment of a member in its own currency under para-
graph (a) (ij of this section shall be in such amount as, in the opinion
of the Bank, is equivalent to the full value in terms of Unlted Smtes
dollars of the weight and 6neness in effect on JMUW I. 1959, of the

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INTER-AMERICAN DEVELOPMENT BANK

portion of the subscription being paid. The initial payment shall be in
such amount as the member considers appropriate hereunder but shall
be subject to such adjustment, to be effected within 60 days of the
date on which the payment was due. as the Bank shall determine to
be necessary to constitute the full dollar value equivalent as provided
in this paragraph.

(c) Unless otherwise determined by the Board of Governors by
a three-fourths majority of the total voting power of the member
countries, the liability of members for payment of the second and
third instalments of the paid-in portion of their subscnptions to the
capital stock shall be oonditional upon payment of not less than 90
per cent of the total obligations of the members due for:

(i) the first and second instalments. respectively. c4 the

(i) the initial payment and all prior calls on the subscrip-
paid-in portion of the subscriptions: and

tion quotas to the Fund

SECTION 5-Ordinary Capitul Resumes

the Bank shall be deemed to include the following:
As used in this Agreement, the term ‘‘ordinary capital resources” of

(i) authorized ordinary capital, inoluding both paid-in and
callable shares, subscribed purmant to Sections 2 and
3 of this article;

(ii) all funds raised by borrowings under the authority of
Article VII, Section 1 (i) to which the commitment
set forth in Section 4 (a) (i) of this article is applicable:

(iii) all funds received in repayment of loans made with
the resoums indicated in (i) and (ii) of this section:

(iv) all income derived from loans made from the afore-
mentioned funds or from guarantees to which the
commitment set fortb in Section 4(a) (U) of this article
is applicable: and

(v) all other income derived from any of the resources
mentioned above.

ARTICLE IIA INTER-REGIONAL CAPITAL OF THE BANK
SECTION I-Authorized Zntm-regional Capital

(a) The initial authorized inter-regional capital stock of the Bank
shall be four hundred and twenty million dollars ($4~.OOO,ooO) in terms
of United States dollars of the weight and heness in effect on January
1 , 1959 and shall be divided into 42.000 sham having a par value of
S10,OOO each, which shall be available for subscription by members in
accordance with Section 2 of this article.

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INTER-AMERICAN DEVELOPMENT BANK

(b) The authorized inter-regional capital stock shall be divided
into paid-in shares and callable shares. Of the initial authorized inter-
regional capital stock, the equivalent of seventy million dollars
($70,000,000), shall be paid-in three hundred and fifty million dollars
($350,000,000) shall be callable €or the purposes specified in Section
3 (c) of this article.

(c) Subject to the provisions of Article VIII. Section 4 (b). the
authorized inter-regional capital stock may be increased when the
Board of Governors deems it advisable and in a manner agreed upon
by a two-thirds majority of the total number of governors, including
two-thirds of the governors of rekonal members, representing not less
than three-fourths of the total voting power of the member countries.

(d) Whenever the authorized ordinary capital stock is increased
pursuant to Article U, Section 2 (e), and a member exercises the
option provided for in Article IIA, Section 2 (g). inter-regional capital
stock shall be increased i n the amount required to allow such member
to exercise that option and the ordinary capi,tal stock available for
subscription by that member shall be reduced in an equivalent amount
and be appropriately cancelled.

SECTION 2-Subscription of Shares of Inter-regional Capital
(a) Each nonregional member shall subscribe to shares of the

inter-regional capital stock, and regional members may subscribe thereto
in accordance with the terms of Article 11. Section 3 (b), and in
accordance with such tenus as the Board of Govmors shall establish,
subject to the provisions of this section.

(b) The subscription of each original nonregional member shall be
such number of shares of paid-in and callable inter-regional capital stock
as may be determined by the Bank. The subscription, including the
manner of i& payments of any new nonregional member shall be
determined by the Bank with due regard to the conditions of the
existing subscriptions.

(c) Regional members may subscribe to the inter-regional capital
stock on such terms as the Bank may determine. giving due regard
to the conditions established for subscriptions by non-regional members.

(d) Shares of the initial authorized inter-regional capital stock
shall be issued at par. Other shares shall be issued at par unless the
Bank decides in special cirmmstances to issue them on other terms.

(e) The liability of the member countries on inter-regional capital
shares shall be limited to the unpaid portion d their issue price.

(0 Shares of inter-regional capital stock shall not be pledged or
encumbered in any manner, and they shall be transferable only to the
Bank.

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10 INTER-AMERICAN DEVELOPMENT BANK

(g) Any member having the right to subscribe to the ordinary
capital stock of the Bank under Article 11, Section 3 (b), shall have the
option of waiving that right and subscribing in lieu thereof to an
eqwivalent amount of inter-regional capital stock.

SECTION 3-Payment of Subscripiiom f o Infer-regional Copifal

(a) Payment of the amount subscribed by each country to the
paid-in inter-regional capital stock shall be made entirely in the currency
of the respective member. whkh shall make arrangements satisfactory
to the Bank to assure that, subject to the provisions of Article V, Section
1 (C), its currency shall be freely convertible into the currencies of other
countries for the purposes of the Bank's operations.

(b) Each payment of a member under parapaph (a) of this section
shall be in such amount as, in the opmion of the Bank, is equivalent to
the full value in terms of United States dollars of the weight and fineness
in effect on January 1, 1959. of the portion of the subscription Wing
paid. The initial payment shall be in such amount as ,themember
considers appropriate hereunder but shall be subject to such adjust-
ment, to be effected within 60 days of the date on which the payment
was due, as the Bank shall determine to be necessary to constitute the
full dollar value equivalent as provided i n this paragraph.

(c) The callable portion of the subscription for inter-regional
capital shares of the Bank shall be subject to call only when required
to meet the obligations of the Bank created under Article 111, Section
4 (iv) and (v), on borrowings of funds for inclusion in the Bank's in-
terregional capital resources or guarantees chargeable to such resources.
I0 the event of such a call, payment may be made at the option of the
member either in fully convertible currency of a member country or in
the currency required to discharge the obligations of the Bank for the
purpose for which the call is made. 01i.s on unpaid subscriptions of
inter-regional callable capital shall be uniform in percentage on all such
shares.

S-N &lnrer-regional Capital Resources

of the Bank shall be deemed to include the following : - As used in this Agreement, the term "inter-regional capital resouTCes''
(i) authorized inter-regional capital, including both paid-

in and callable shares, subscribed pursuant to Section
2 of this article;

(ii) all funds raised by borrowings under the authority of
Article VII, Section 1 (i) to which the commitment set
forth in Section 3 (c) of this article is applicable:

(iii) all funds received in repayment of loans made with the
resources indicated in (i) and (ii) of this section:

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INTER-AMERICAN DEVELOPMENT BANK l i

(iv) all income derived from loans made from the aforemen-
tioned funds or from guarantees to which the commit-
ment set forth in Section 3 (c) of this article is applicable:
and
all other income derived from any of the resources

mentioned above.
(v)

ARTICLE IU OPERATIONS
SECTION 1-Use of Resources

The resources and facilities of the Bank shall be used exclusively to
implement the purpose and functions enumerated in Article I of this
Agreement

SECTION Z-Categories of Operations
(a) The operations of the Bank shall be divided into ordinary

operations, inter-regional resources operations, and special operations.
(b) The ordinary operations shall be those hanced from the

Bank's ordinary capital resources, as defined in Article 11. Section 5.
The inter-regional resources operations shall be those financed from the
Bank's inter-regional capital resources; as defined in Article IIA Section
4. Both types of operations shall relate exclusively to loans made,
participated in, or guaranteed by the Bank which are repayable only in
the respective m e n c y or currencies in which the loans were made.
Such operations shall be subject to the terms and conditions that the
Bank deems advisable. consistent with the provisions of this Agreement.

(c) The special operatinns shall be those hnanced from the
resources of the Fund in accordance with the provisions of Article IV.

SECTION 3-Basic Principle of Sepmation
Subject to the amending provisions of Article XI1 (a) (ii),

the ordinary capital resources as defined in Article 11, Section 5, the
inter-regional capital resources. as d e h e d in Article IIA. Section 4,
and the resources of the Fund, as d e h e d in Article IV, Section 3 (h).
shall at all times and in all respects be held, used. obligated, invested, or
otherwise disposed of entirely sepamte from each other.

(h) The ordinary capital resources and the inter-regional capital
resources shall under no circumstances be charged with, or used to
discharge, obligations, liabilities or losses arising out of operations for
which the resources of the Fund were originally used or committed.

(c) The ordinary capital resources shall under no circumstances
be charged wlth. or used to discharge, obligations, liabilities or losses
chargeable to the inter-regional capital resources, and except as provided
in Article VII, Section 3 (d), the inter-regional capital resources shall
under no circumstances be charged with, or used to discharge, obliga-
tions, liabilities or losses chargeable to the ordinaly capital RSOUIC~S.

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(a)

12 INTER-AMERICAN DEVELOPMENT BANK

(d) The financial statements of the Bank shall show separately
the ordinary operations. the inter-regional resources operations, and
the special operations, and the Bank shall establish such other adminis-
trative rules as may be necessary to ensure the effective separation of
the three types of operations.

Expenses pertaining directly to ordinary operations shall. be
charged to the ordinary capital resources. Expenses pertaining directly
to inter-regional resources operations shall be charged to the inter-
regional capital resources. Expenses pertaining directly to special
operations shall be charged to the resources of the Fund. Other expenses
shall be charged as the Bank determines.

SECTION 4-Methods of Making or Guaranteeing Loans
Subject to the conditions stipulated in this article, the Bank may

make or guarantee loans to any member, or any agency or political
subdivision thereof, and to any enterprise in the territory of a member,
in any of the following ways :

(i) by making or participating in direct loans with funds
corresponding to the unimpaired paid-in ordinary capi-
tal and. except as provided in Section 13 of this article,
to its reserves and undistributed surplus, or with the
unimpaired resources of the Fund;

(ii) by making or participating in direct loans with funds
r a i s e d by the Bank in capital markets or acquired in
any other manner, for inclusion in the ordinary capital
resources of the Bank or the resources of the Fund:

(iii) by making or participating in direct loans with funds
corresponding to the unimpaired paid in inter-regional
capital, including any reserves or undistributed surpIus
pertaining to such resources:

(iv) by making or participating in direct loans with funds
raised by the Bank in capital markets, or borrowed
or acquired in any other manner. for inclusiun in the
inter-regional capital resources of the Bank; and

(v) by guaranteeing, with the ordinary capital resowca.
the inter-regional capital resources or the resources of
the Fund, in whole or in part loans made, except in
special cases, by private investors.

(e)

SECTION 5-Limiiutions on Operations

(a) The total amount outstanding of loans and guarantees made by
the Bank in its ordinary operations shall not at any time exceed the
total amount of the unimpaired subscribed ordinary capital of the Bank.
plus the unimpaired reserves and surplus included in the' ordinary
capital resources of the Bank. as defined in Article 11, Section 5, exclusive
of income assigned to the special reserve established pursuant to Section

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INTER-AMERICAN DEVELOPMENT BANK

13 of this article and other income of the ordinary capital resouIces
assigned by decision of the Board of Governors to reserves not available
for loans or guarantees.

(b) The total amount outstanding of loans and guarantees made
by the Bank in its inter-regional resources operations sha!I not at. any
time exceed the total amount of the unimpaired subscnbed mter-reglonal
capital of the Bank, plus the unimpaired reserves and surplus included
in the inter-regional capital resources of the Bank, as defined in Article
IlA. Sedion 4, exclusive of income of the intcr-regional capital resources
assigned by decision of the Board of Governors to reserves not available
for loans or guarantees.

(c) In the case of loans made out of funds borrowed by the Bank
to which the obligations provided for in Article II, Section 4 (a) (ii),
are applicable, the total amount of principal outstanding and payable
to the Bank in a specific currency shall at no time exceed the total
amount of principal of the outstanding borrowings by the Bank for
inclusion in its ordinary capiM resources ,that are payable in the
same currency.

(d) h- the case of loans made ont of funds borrowed by the Bank
to which the obligations provided for in Article IIA, Section 3 (c). are
applicable, the total amount of principal oustanding and payable to the
Eank in a specific currency shall at no time exceed the total amou,rtt
of principal of the outstanding lmrrowings by the Bank for inclusion m
its inter-regional capital resources that are payable in the same currency.

SECTIOY &Direct Loan Finnncing
In making direct loans or participating in them, the Bank may provide

financing in any of the following ways:

(a) By furnishing the borrower currencies of members, other than
the currency of the member in whose territory the project is to be carried
out, that are necessary to meet the foreign exchange costs of the project

(b) By providing financing to meet expenses related to the purposes
of the loan in the territories of the member in which the project is to be
carried out. Only in special cases, particularly when the project indirectly
gives rise to an increase in the demand for foreign exchange in that
country, shall the financing granted by the Bank to meet local expenses
be provided in gold or in currencies other than that of such member: in
such cases, the amount of the financing granted by the Bank for this
purpose shall not exceed a reasonable portion of the local expenses
incurred by the borrower.

SmloN 7-Rules and Conditions for Making OT Guaranteeing Loans

rules and conditions :
(a) The Bank may make or guarantee loans subject to the following

(i) the applicant for the loan shall have submitted a
detailed proposal and the SUB of the Bank shall have

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13

14 INTER-AMERICAN DEVELOPMENT BANK

presented a written repors recommending the proposal
after a study of its merits. In special circumstances.
the Board of Executive Directors. by a majority of the
total voting power of the member countries, may require
that a proposal be submitted to the Board for decision
in the absence of such a report;

(ii) in considering a q u e s t for a ban or a guarantee the
Bank shall take into account the ability of the borrower
to obtain the loan from private sources of financing
on terms which, in the opinion of the Bank. are
reasonable for the borrower, taking into accouot all
pertinent factors:

(Gi) in making or guaranteeing a loan. the Bank shall pay
due regard to prospects that the borrower and its
guarantor. if any. will be in a position to meet their
obligations under the loan contract:

(iv) in the opinion of the Bank. the rate of interest. other
charges and the schedule for repayment of principal
are appropriate for the project in question:

(v) in guaranteeing a loan made by other investors, the Bank
shall receive suitable compensation for its risk: and

(vi) loans made or guaranteed by the Bank shall bc
principally for financing specific projects. includ-
ing those forming part of a national or regional
development programme. However, the Bank maymake
or guarantee over-& loans to development institutions
or similar agencies of the members in order that the
latter may facilitate the 6nancing of specific development
projects whose individual financing requirements are
not, in the opinion of the Bank, large enough to warrant
the direct supervision of the Bank.

(b) The Bank shall not finance any undertaking in the tCrnitory of
a member if that member objects to such financing.

SECTION W p t i o n a l Conditions for Making or GuarWeeing Loons
{a) In the case of loans or guarantees of loans to non-governmental

entities, the Bank may when it deem it advisable, require that the
member in whose territory the project is to be carried out. or a public
institution or a similar agency of the member acceptable to the Bank.
guarantee the repayment of the principal and the payment of interest
and other charges on the loan.

(b) The Bank may attach such other conditions to the making of
loans or guarantees as it deems appropriate, taking into account both the
interests of the members direcay involved in the particular loan or
guarantee proposal and the interests of the members as a whole.

IThe inclusion of this page is authorized by LN. 68/19781

INTER-AMERICAN DEVELOPMENT BANK

SECTION 9-Use of Loans mude or Guaranieed by the Bank
Except as provided in Article V, Section 1, the Bank shall

impose no condition that the procecds of a loan shall be spent in the
territory of any particular country nor that such proceeds shall not be
spent in the territorics of any particular member or members; provided.
however, that with respect to any increase of the resources of the Bank
the question of restriction of procurement by the Bank or any member
with regird to those members which do not participate in an increase
under the terms and conditions specified by ,the Board of Governors
may be determined by the Board of Governors.

(b) The Bank shall take the necessary measures to ensure that the
proceeds of any loan made, guaranteed. or participated in by the Bank
are U S d only for the purposes for which the loan was granted. with due
attention to considerations of economy and e5ciency.

SECTION 10-Payment Provisions for Direct Loans

4 of this article shall establish :

(a)

Direct loan contracts made by the Bank in conformity with Section

(a) All the terms and conditions of each loan, includina among

1s

others, provision for payment of principal, interest and othercharge<
rnaturities. and dates of payment: and

ib) The currency or currencies in which payments shall be made t3
the Bank.

SECTION 1 I-- Guarantees
In guaranteeing a loan the Bank shall1 charge a guarantee fee,

at a rate determined by the Bank, payable periodically on the amount of
the loan outstanding.

(b) Guarantee contram concluded by the Bank shall provide that
the Bank may terminate its liability with respect to interest if, upon
default by the borrower and by the guarantor, if any, the Bank offers
to purchase, at par and interest accrued to a date designated in the offer.
the bonds or other obligations guaranteed.

(c) In issuing guarantees, the Bank shall have power to detemjne
any other terms and conditions.

SECTION 124pec in l Commission
On all loans. participations, or guarantees made out of or by commit-

ment of the ordinary capital resources of the Bank the latter shall charge
a special commission. The special commission, payable periodically,
shall be cvmputcd on the anount outslsnding on each loan. pnrticipa-
tion, or guarantee and shall be at the rate of one per cent per annum.
un!ess ihc Bank, by a three-fourths majority of the total voting power of L.N.
the mcmher cuimtries, decides to reduce t5e rate of commission.

(a)

124a/95

me inclusion of thia page is uuihorizsd by L.N. 951 19971

16 INTER-AMERICAN DEVELOPMENT BANK

SECTION 1 3 S p e c i u l Reserve
The amount of commissions received by the Bank under Section 12

of this article shall be set aside as a special reserve, which shall be kept
for meeting liabilities of the Bank in accordance with Article VII,
Section 3 (b) (i). The special reserve shall be held in such liquid form,
permitted under this Agreement. as Ihe Board of Executive Directors
may decide.

ARTICLE YY FUND FOR SPECIAL OPERATIONS
S E ~ O N 1-Establishment. Purpose. und Fimtions

A Fund for Special Operations is established for the making of loans
on terms and wnditions appropriate for dealing with special circum-
stances arising in specific countries or with respect to specific projects.

The Fmd. whose administration shall be entrusted to the Bank, shall
have the purpose and functions set forth in Article I of this Agreement.

SECTION 2-Applicable Provisionr
The Fund shall be governed by the provisions of the present article

and all other provisions of this Agreement, excepting those inconsistent
with the provisions of the present article and those expressly applying
only to other operations of the Bank

SECTION 3-Resources
The original members of the Bank shall contribute to the

resources of the Fund in accordance with the provisions of this section.
Members of the Organization of American States that join

the Bank after the date specified in Article XV, Section 1 (a), Canada,
Bahamas and Guyana, and countries that an: admitted in accordance
with Article 11, Section 1 (b) shall contribute to the Fund with such
quotas, and under such terms, as may be determined by the Bank.

(c) The Fund shall be established with initial resources in the
amount of one hundred and fifty million dollars [$150,000,000) in ternis
of the United States dollars of the weight and fineness in effect on
January 1. 1959, which shall be contributed by the original members of
the Bank in accordance with the quotas specified in Annex B.

(a)

[b)

(d) Payment of the quotas shall be made as follows:
(i) Fifty per cent of its quota shall be paid by each member

at any time on or after the date on which this Aereement
is signed, and the instrument of acceptance or ratification
deposited, on its behalf in accordance with Article XV.
Section 1, but not later than September 30, 1969.

(ii) The remaining 50 per cent shaU be paid at any time
subsequent to one year after the Bnnk has begun
operations, in such amounts and at such times as are
determined by the Bank, provided, however. that the

me inclusion of this p g e is aurhorized by L.N. 95/ 19971

INTER-AMERICAN DEVELOPMENT BANK 17

total amount of all quotas shall be made due
and payable not later than the date fixed for payment
of the third instalment of the subscriptions to the paid-
in capital stock of the Bank

(iii) The payments required under this section shall be
distributed among the members in proportion to their
quotas and shall be made one-half in gold and/or
United States dollars, and one-half in the currency
of the contributing member.

(e) Each payment of a member in its own currency under the
preceding paragraph shall be in such amounts as, in the opinion of the
Bank, is equivalent to the full value, in terms of United States dollars
of the weight and fineness in effect on January 1, 1959, of the portion of
the quota being pad. The initial payment shall be in such amount as
the member Gnslders appropriate hereunder but shall be subject to
such adjustment, to be effected within 60 days of the date on which
payment was due, as the Bank shall determine to be necessary to
constitute the full dollar value equivalent as provided in this paragraph.

Unless otherwise determined by the Board of Governors by
n three-fourths majority of the total voting power of the member
countries, the liability of members for payment of any call on the unpaid
portion of their subscription quotas to the Fund shall be conditional
upon payment of not less than 90 per cent of the total obligations of
the members for :

(i) the initial payment and all prior calls on such quota
subscriptions to the Fund; and

(ii) any instalments due on the paid-in portion of the
subscriptions to the capital stock of the Bank.

(9) The resources of the Fund shall be increased through additional
contribubons by the members when the Eoard of Governors considers
it advisable by a three-fourths majority of the total voting power of the
member countries. The provisions of Article U. Section 3 (b), shall apply
to such increases, in terms of the prop%tiou between the quota in
effect for each member and the total amount of the resources of the
Fund contributed by members. No member, however, shall be obligated
to contribute any part of such increase.

Q As used in this Agreement, the term “resources of the Fund”
shall be deemed to inc!ude the following:

(f)

(i) contributions by members pursuant to paragraphs (c)
and (g) of this section;

(ii) all funds raised by borrowing to which the commitments
stipulated in Article Il. Section 4 (a) (ii) and Article
IIA, Section 3 (c), are not applicable. i.e., those that
are specifically chargeable to the resources of the Fund:

[Ihe indunion of this page is authorized by LN. 68/19781

18 INTER-AMERICAN DEVELOPMENT BANK

(iii) all funds m i v e d in payment of loans made from
the resources mentioned above;

(iv) all income derived from operations using or commit-
ting any of the resources mentioned above; and

(v) any other resources at the disposal of the Fund

SECXION 44perai ionr
(a) The operations of the Fund shall be those 6nanced from its

own resources, as defined in Section 3 (h) of the present article.
(b) Loans made with resources of the Fund may bc partially or

wholly repayable in the currency of the member in whose temtory the
project being financed will be carried out. The part of the loan not
repayable in the currency of the member shall be paid in the currency
or currencies in which the loan was made.

SECT:ON 5-Limitation on Liability
In the operations of the Fund, the financial liability of the Bank

shall be limited to the resources and reserves of the Fund, and the
liability of members shall be limited to the unpaid portion of their
respmtive quotas that has become due and payable.
SECTION &Limitation on Disposition of Quotas

The rights of members of ,the Bank resulting from their contributions
to the Fund may not be transferred or ensumbered, and members shall
have no right of reimbursement of such contributions except in cases
of loss of the status of membership or of termination of the operation
of the Fund.
SECTION 7-DiFchorge of Fund Liubilities on Borrowings

inclusion in the resources of the Fund shall be charged:
Payments in satisfaction of any liability on borrowing of funds for

(i) first, against any reserve established for this purpose:
and

(ii) then, against any other funds available in the resources
of the Fund.

SECTION 8-A dminisrrulion
(a) Subject to the provisions of this Agreement, the authorities of

the Bank shall have full powers to administer the Fund.
(b) There shall be a Vice President of the Bank in charge of the

Fund. The Vice President shall participate in the meetings of the Board
of Executive Directors of the Bank, without vote, whenever matters
relating to the Fund are discussed.

In the operations of the Fund the Bank shall utilize to the
fullest extent pxsihle the same personnel, experts, installations, offices.
equipment, and services as it uses for its other operations.

(E)

me inclusion of this page is authorized by L.N. 68/1978?

INTER-AMERICAN DEVELOPMENT BANK

(d) The Bank shall publish a separate annual report showing the
results of the Funds Gnancial operations. including profits or losses.
At the annual meethg of the Board of Governors there shall be a t
least one session devoted to consideration of this report. In addition,

19

the Bank shall transmit to the members a quarterlfsummary of the
Fund's operations.

SECTION 9-Voring
(a) In making decisions concerning operations of the Fund, each

member country of the Bank shall have the voting power in the Board
of Gwernors accorded to it pursuant to Article VIII, Section 4 (a) and
(c). and each Director shall have the voting power in the Board uf
Executive Directors accorded to him pursuant to Article VIII, Section
4 (a) and (d).

All decisions of the Bank concerning the operations of the
Fund shall be adopted by a three-fourths majority of the total voting L.X.
power of the member countries, unless otherwise provided in this article. C',%%

Sficrio~ 10-Distriburion of Ner Profirs
The Board of Governors of the Bank shall determine what portion

of the net profits of the Fund shall be distributed among the members
after making provision for reserves. Such net profits shall be shared in
proportion to the quotas of the members.
SECTION 1 I-Withdrawal of Contributions

(a) No country may withdraw its contribution and terminate its
relations with the Fund while it is still a member of the Bank.

(b) The provisions of Article IX, Section 3, with respect to the
settlement of accounts with countries that terminate their membership
in the Bank also shall apply to the Fund

SECTION 12Suspension and Termination
The provisions of Article X also shall apply to the Fund with

substitution of terms relatlng to the Fund and its resources and respective
creditors for those relating to the Bank and its capital resources and
respective creditors.

(b)

ARTICLE V CURRENCIES
SECITON I-Use of Currencies

(a) The currency of any member held by the Bank in its ordinary
capital resources, in its inter-regio.ml capital resources, or in the
resources of the Fund, however acquired, may be used by the Bank and
by any recipient from the Bank, without restriction by the member, to
make payments for goods and services produced in the territory of
such member.

Dheincpionof ~spilgcisaulhorizedbyL.N.9511997]
-~ ~ ___.

20 INTER-AMERICAN DEVELOPMENT BANK

(b) Members may not maintain or impose restictions of any kind
upon the use by the Bank or by any recipient from the Bank, for pay-
ments in any country, of the following :

(i) gold and dollars received by the Bank in payment of the
50 per cent portion of each member’s subxription to
shares of the Bank’s ordinary capital and of the 50 per
cent portion of each member’s quota for contribution to
the Fund. pursuant to the provisions of Article 11 and
Article IV, respectively, and currency received by the
Bank in payment of the equivalent portion of each
member’s subscription to shares of the inter-regional
capital pursuant to the provisions of Article IIA:

fii) currencies of members purchased with the resources
referred to in (i) of this paragraph:

(iii) currencies obtained by borrowings, pursuant to the
provisions of Article VII, Section 1 (i). for inclusion
in the capital resources of the Bank:

(iv) gold and dollars received by the Bank in payment on
account of principal, interest and other charges, of
loans made from the gold and dollar funds referred to
in (i) of this paragraph: currencies received by the Bank
in payment on account of principal, interest and other
charges, of loans made from the portion of the inter-
regional capital referred to in (i) of this paragraph:
currencies received in payment of principal. interest.
and other charges, of loans made from currencies
referred to in (ii) and (iii) of this paragraph; and
currencies received in payment of commissions and fees
on all guarantees made by the Bank: and

(v) currencies, other than the member’s own currency,
received from the Bank pursuant to Article VII, Section
4 (d), and Article IV, Section 10, in distribution of
net profits.

fc) A member’s currency held by the Bank, whether in its ordinary
capital resources, in its inter-regional capital resomes, or in the
resources of the Fund, not covered by paragraph (b) of this section,
also may be used by the Bank or any recipient from the Bank for
payments in any country without restriction of any kind, unless the
member notifies the Bank of its desire that such currency or a portion
thereof be restricted to the uses specified in paragraph (a) of this section.

(d) Members may not place any restrictions on the holding and
use by the Bank, for making amortization payments or anticipating
payment of, or repurchasing part or all of. the Bank’s own obligations.
of currencies received by the Bank in repayment of direct loans made
from borrowed funds included in the ordinary or inter-regional capital
resources of the Bank.

[me inclusion of this page is authorized by L.N. 95) 19971

INTER-AMERICAN DEVELOPMENT BANK 21

(e) Gold or currency held by the Bank in its ordinary capital
resources, or in the resources of the Fund shall not be used by the Bank
to purchase other currencies unless authorized by a three-fourths majority L.N.
of the total voting power of the member countries. Any currencies 1 2 4 ~ 1 9 5
purchased pursuant to the provisions of this paragraph shall not be
subject to maintenance of value under Section 3 of this article.

SECTION 2-Valuation of Currencies

Whenever it shall become necessary under this Agreement to value
any currency in terms of another currency, or in terms of gold, such
valuation shall be determined by the Bank after consultation with the
International Monetary Fund.

SECTION 3-Maintenance of Value of the Currency Holdings of the

Whenever the par value in the International Monetary Fund
of a member’s currency is reduced or the foreign exchange value of
9 member’s currency has, in the opinion of the Bank, depr,eciated to a
significant extent. the member shall pay to the Bank w1thm a reason-
able time an additional amount of its own currency sufficient to
maintain the value of all the currency of the member held by the Bank
in its ordinary capital resources, in its inter-regional capital resources,
or in the resources of the Fund, excepting currency derived from
borrowings by the Bank. The standard of value for this purpose shall
be the United States dollar of the weight and fineness in effect on
January 1, 1959.

(b) Whenever the par value in the International Monetary Fund
of a member’s currency is increased or the foreign exchange value of such
member’s currency has, in the opinion of the Bank, appreciated to
a significant extent, the Bank shall return to such member within a
reasonable time an amount of that member’s currency equal to the
increase in the value of the amount of such currency which is held by
the Bank in its ordinary capital resources, in its inter-rzgional capital
resources, or in the resouroes of the Fund, excepting currency derived
from borrowings by the Bank. The standard of value for this purpose
shall be the same as that established in the preceding paragraph.

The provisions of this section may be waived by the Bank
when a uniform proportionate change in the par value of the currencies
of all the Bank‘s members is made by the International Monetary
Fund.

Notwithstanding any other provisions of this seclioo, the
terns and conditions of any increase in the resources of the Fund

to Article IV. Section 3 (g), may include maintenance of
value provisions other than those provided for in this section which
would apply to the resources of the Fund contributed by such increase.

me inclusion of bhis page is aurhorized by L.N. 951 19911

Bank

(a)

(c)

(d)

INTER-AMERICAN DEVELOPMENT BANK

SECTION &Methods of Conscrvinf Currencies
The Bank shall accept from any member promissory notes or

similar securities issued by the government of the member, or by the
depository designated by such member, in lieu of any part of the
currency of the member representing the 50 per cent portion of its
subscription to the Bank's authorized ordinary capital and the 50 per
cent portion of its subscription to the resources of the Fund, which,
pursuant to the provisions of Article I1 and Article IV. respectively.
are payable by each member in its national currency, provided such
currency i s not required by the Bank for the conduct of its operations.
Such notes or securities shall be non-negotiable, non-interest-bearing.
and payable to the Bank at their par value on demand. On the same
conditions, the Bank shall also accept such notes or m r i t i e s in lieu of
any part of the subscription of a member to the inter-regional capital
with respect to which part the terms of the subscription do not require
payment in cash.

ARTICLE VI TECHNICAL ASSISTANCE
1-Provision of Technical Advice and Assistance SECTION

The Bank may, at the request of any member or members. or of
private firms that may obtain loans from it, provide technical advice
and assistance in its field of activity. particularly on :

fi) the preparation, financing, and execution of develop.
ment plans and projects. including the consideration of
priorities, and the formulation of loan proposals on
speciEc national or regional development projects: a d

(ii) the development and advanced mining. tbrough semi-
nars and other forms of instruction. of personnel spe-
cializing in the formulation and implementation of
development plans and projects.

SECTION Z--Co-opernlive Agreemenfs on Technical Assisfuncc
In order to accomplish the purposes of this article, the Bank may

enter into agreements on technical assistance with other national or
international institutiuns, either public or private.

SECTION &Expenses
(a) The Bank may arrange with member countries or firms receiv-

ing technical assistance, for reimbursement of the expenses of furnishing
such assistance on terms which the Bank deems appropriate.

(b) The expenses of providing technical assistance not paid by the
recipients shall be met from the net income of the ordinary capital
resources, of the inter-regional capital resources, or of the Fund. How-
ever, during the first three years of the Bank's operations, up to three
per cent, in total, of the initial resources of the Fund may be used to
meet such expenses.

m e inclusion &his page is authorized by L.N. 951 19971

INTER-AMERICAN DEVELOPMENT BANK 23

ARTICLE VII MISCELLANEOUS POWERS AND DISTRIBU-
TION OF PROFITS

SECTION
In addition to the powers specified elsewhere in this Agreement, the

Bank shall have p3wer to:
(i) borrow funds and in that connection to furnish such

collateral or other security therefor as the Bank shall
determine. provided that, before makjng a sale of its
obligations in the markets of a country. the Bank shall
have obtained the approval of that country and of the
member in whose currency the obligations are denomin-
ated

In addition, in the case of borrowinp of funds to be
included in the Bank's ordinary capital resources or
inter-regional capital resouroes, the Bank shall obtain
agreement of such countries that the prooeeds may be
exchanged for the currency of any other country without
restriction;

(ii) buy and sell securities it has issued or guaranteed or
in which it was invested, provided that the Bank shall
obtain the approval of the country in whose territories
the securities are to be bought or so ld

(iii) with the approval of a threefourths majority of the total L.N.
voting power of the member countries, invest funds 124a/95
not needed in its operations in such obligations as it
may determine:

(iv) guarantee secmities in its portfolio for the purpose of
facilitating their sale: and

(U) exercise such other powers as shau be necessary or
desirable in furtherance of its purpose and functions.
consistent with the provisions of this Agreement.

I-MiscellaneOus Powers of the Bank

SECTION 2-Warning fo be Placed on Securities
Every security issued or guaranteed by the Bank shall bear on its

face a conspicuous statement to the effect that it is not an obligation
of any government. unless it is in fact the obligation of a par t ida r
government, in which case it shall so state.

SECTION 3-Methodr of Meeting Liubililies of !he Bank in Case of

(a) The Bank, in the event of actual or threatened defaults on
bans made or guaranteed by the Bank using its ordinary capital
resources or its inter-regional capital resources. shall take such action
as it deems appropriate with respect to modifying the terms of the
loan. other than the currency of repayment.

me i n d ~ o n of this page is authorized.@ L.N. 951 19971

Defaults

24 INTER-AMERICAN DEVElOPMENT BANK

(b) The payments in discharge of the Bank’s liabilities on borraw-
ings or guarantees under Article 111, Section 4 (ii) and (v) chargeable
against the ordinary capital resources of the Bank shall be charged :

(i) first, against the special reserve provided for in Article
111. Section 13; and

(ii) then, to the extent necessary and at the discretion of
the Bank, against the other reserves, surplus, and funds
corresponding to the capital paid in for ordinary capita1
shares.

(c) Whenever necessary to meet contractual payments of interest,
other charges, or amortization on the Bank’s borrowings payable out
of its ordinary capital resources, or to meet the Bank’s liabilities with
respect to similar payments on loans guaranteed by it chargeable to
its ordinary capital resources, the Bank may call upon the members
to pay an appropriate amount of their callable ordinary capital suh-
scriptions, in accordance with Article 11, Section 4 (a) (ii). Moreover, if
the Bank believes that a default may be of long duration, it may call
an additional part of such subscriptions not to exceed in any one year
one per cent of the total subscriptions of the members to the ordinary
capital resources, for the following purposes :

to redeem prior to maturity, or otherwise discharge its
liability on, all or part of the outstanding principal of
any loan guaranteed by it chargeable to its ordinary
capital resources in respect of which the debtor is in
default: and

(ii) to repurchase, or otherwise discharge its liability on, all
or part of its own outstanding obligations payable out
of its ordinary capital resources.

(d) The Bank‘s liabilities on all borrowings of funds for inclusion
in its ordinary capital resources which were outstanding at December
31, 1974 shall be payable out of both the ordi,nnary capital resources
and the inter-regional capital resources, including, notwithstanding the
provisions of Article UA, Section 3 (c). the callable inter-regional capital
subscriptions, provided, however, that the Bank shall use its best efforts
to discharge its liabilities on such outstanding borrowings out of its
ordinary capital resources pursuant to paragraphs (b) and (c) of this
section before discharging such liabilities out of its inter-regional capital
resources pursuant to paragraphs (e) and (0 of this section. for which
purpose appropriate substitution shall be made in sllch paragraphs of
the term ordinary capital for inter-regional capital.

(e) The payments in discharge of the Bank‘s liabilities on borrow-
ings or guarantees under Article III, Section 4 (iv) and (v) chargeable
against the inter-regional capital resources of the Bank shall be charged :

(i) first, against any reserve established for this purpose;
and

m e inclusionof Chispagcisaullnn’zcdJ~L.N. 95/19971

(i)

INTER-AMERICAN DEVELOPMENT BANK 2s

(ii) then, to the extent necessary and at the discretion of
t h e Bank, against the other reserves. surplus. and funds
corresponding to ,the capital paid in for inter-regiond
capital shares.

(0 Whenever necessary to meet wntractual payments of interest,
other charges, or amortization on the Bank's hr rowhgs payable out
of its inter-regional capital re.sources, 01 to meet the Bank's liabilities with
respect to similar payments on loans guaranteed by it chargeable to
its inter-regional capital resources. the Bank may call upon the members
to pay an appropriate amount of their callable inter-regional capital
subscriptions, in accordance with Article HA, Section 3 (c?. Moreover.
if the Bank believes that a default may be of long duration, it may
call an additional part of such subscriptions not to exceed in any one
year one per cent .of the total subscriptions, of the members to the
inter-rcgional capital resources, for the folloamg purposes :

(i) to redeem prior to maturity, or otherwise discharge its
liability on, all or part of the outstanding principal of
any loan guaranteed by it chargeable to its inter-regional
capital resources in respect of which the debtor is in
default; and

(ii) to repurcbase, or otherwise discharge its liability on. all
or part of its own outstanding obligations payable out
of its inter-regional capital resources.

SECTION 4-Disiribution or Transfer of Net Profits md Surplus
(a) The Board of Governors may determine periodically what

part of the net profits and of the surplus of the ordinary capital resources
and of the inter-regional capital resources shall be distributed. Such
distributions may be made only when the ressrves have reached a
level which the Board of Governors considers adequate.

(b) When approving the statements of profit and Ioss, pursuant to
Article VIII. Section 2 (b) (viii). the Board of Governors may by
decision of a two-thirds majority of the total number of governors
representing tiot less than three-fourths of the total voting power of the
member countries transfer part of the net profits for the respective
fiscal year of the ordinary capital resources or of the inter-regional
capital resources to the Fund.
Before the h a r d of Governors determines to make a transfer to the

Fund it shall have received a report from the Board of Executive
Directors on the desirability of such a transfer, which shall take into
consideration, infer dia. (1) whether the reserves have reached a level
that 'S. adequate: (2) whether the transferred funds are needed for the
operation of the Fund: and (3) the impact, if any. on the Bank's ability
to borrow.

(c) The distributions referred to in paragraph (a) of this section
shall be made from the ordinary capital resources in proportion to the
number of ordinaIy capital share held by each member and from the

F e inclusion of this page is authorized by L.N. 681 19781
___

26 INTER-AMERICAN DEVELOPMENT BANK

inter-regional capital resources in proportion to the number of inter-
regional capital shares held by each member and likewise the net profits
transferred of the Fund pursuant to paragraph (b) of this section shall
be credited to the total contribution quotas of each member in the
Fund in the foregoing proportions.

(d) Payments pursuant to paragraph (a) of this section shall be
made in such manner and in such currency or currencies as the Board
of Governors shall determine. If such payments are made to a member
in currencies other than its own, the transfer of such currencies and
their use by the receiving country shall be without restriction by any
member.

ARTICLE VIII ORGANIZATION AND MANAGEMENT
SECTION I-Strlrbfrre of the Bank

The Bank shall have a Board of Governors, a Board of Executive
Directors, a President, an Executive Vice President, a Vice President
in charge of the Fumd, and such other officers and staff as may be
considered necessary.

Secrim 2-Eoprd of Governors
(a) All the powers of the Bank shall be vested in the Board of

Governors. Each member shall appoint one governor and one alternate.
who shall serve for five years. subject to termination of appointment
at any time, or to reappointment, at the pleasure of the appointing
member. No alternate may vote except i n the absence of his principal.
The Board shall select one of the governors as Chairman, who shall hold
office until the next regular meeting of the Board.

(bl The Board of Governors may delegate to the Board of
Executive Directors all its powers except power to:-

(i) admit new members and determine the conditions of
their admission;

(ii) increase or decrease the authorized ordinary capital
stock and inter-regional capital stock of the Bank and
the contributions to the Fund;

(iii) elect the President of the Bank and determine his
remuneration:

(iv) suspend a member, pursuant to Article IX Section 2:
(v) determine the remuneration of the executive directors

and their alternates;
(vi) hear and decide any appeals from interpretations of

this Agreement given by the Board of Executive
Directors;

(vii) authorize the conclusion of enera l agfeements for
Co-operation with other international oranlzations;

mhe inclusion of th is page is authorized by L.N. 68/19781

IVTER-AMERICAN DEVELOPMENT B A N K 27

(viii) approve, after reviewing the auditors' reports, the
general balance sheets and the statements of profit and
loss of the institution;

(ix) determine the reserves and the distribution of the net
profits of the ordinary capital resources and of the
inter-regional capital resources and of the Fund;

(x) select outside auditors to certify to the general balance
sheets and the statements of profit and loss of the
institution;

(xi) amend this Agreement: and
[xii) decide to terminate the operations of the Bank ajid

to distribute its assets.

The Board of Governors shall retain full power to exercise
authority over any matter delegated to the Board of Executive Directors
under paragraph (b) above.

(d) The Board of Governors shall, as a general rule, hold a
meeting annually. Other meetings may be held when the Board of
Governors so provides or when called by the Board of Executive
Directors. Meetings of the Board of Governors also shall he called by
the Board of Executive Directors whenever requested by five members of
the Bank or by members having one-fourth of the total voting power
of the member countries.

(e) A quorum for any meeting of the Board of Governors shall be
an absolute majority of the total number of governors, including an
absolute majority of the governors or regional members, representing
not less than three-fourths of the total voting power of the member L.N.
countries. 1240195

(0 The Board of Governors may establish a procedure whereby
the Board of Executive Directors when it deems such action appropriate,
may submit a specific question to a vote of the governors without
calling a meeting of the Board of Governors.

(g) The Board of Governors. and the Board of Executive Directors
to the extent authorized, may adopt such rules and regulations as may
be necessary or appropriate to conduct the business of the Bank.

(h) Governors and alternates shall serve as such without compensa-
tion from the Bank, but the Bank may pay them reasonable expenses
incurred in attending meetings of the Board of Governors.

SECTION 3-Board of Executive Directors

(a) The Board of Executive Directors shall be responsible for the
conduct of the operations of the Bank, and for this purpose m y exercise
all the Powers delegated to it by the Board of Governors.

(c)

me h C l l d o D Of thk Page h~umorized by L.N. 95/ 19971

28 INTER-AMERICA N DEVELOPMENT BANK

L.N.
12&/95

(b) (i) Executive directors shall be persons of recognized com-
petence and wide experience in economic and financial
matters but shall not be governors.

( i i ) One executive director shall be appointed by the member
country having the largest number of shares in the Bank,
not less than three executive duootors shall be elected by
the governors of the non-regional member countries. and
not less than ten others shall be elected by the governors
of the remaining mcmber countries. The nu,mber of execu-
tive directors to be selected in these categories, and the
procedure for the election of all bhe elective direotors shall
be dctermined by regulations adopted by the Board of
Ciovernors by a three-fourths majority of the total voting
power of the member countries, inoluding, with twpxt to
provisions relating exclusively to the election of directors
by non-regional member countries, a two-thirds majority
of the governors o€ the non-regional members. and. with
respect to provisions relating exclusively to the numbex
and election of directors by the remaining mem,ber wun-
tries, by a two-thirds majority of the governors of regional
rnembxs. Any change in the aforementioned regulations
shall require the same majority of votes for its approval.

(iiil Executive directors shall be appointed or elected for temr
of three years and may be reappointed or re-elected for
suoxssive terms.

Each executive dirxtor shall appoint an alttemate who shall
have full power to act for him when he is not present. Directors
and alternates shall be citizens of the member countries. None of the
elected directors and their altermtes may be of the m e citizenship,
except in bhe case of-

L.N.
124G/95

(c)

(i) countries that are not borrowers: and
(ii) barrowin8 member countries, in caser, determined by the

governors of the borrowing members pursuant to a three-
quarters majority of their total &g power and a two-
thirds majority of their total number.

Altcmdtus may participate in metinss but may vote only when they
arc acting in place of their principals.

(d) Directors shall continue in office until their successors are
appointed or elected. If the office of an elected director becomes vacant
more than 180 days before the end of his term, a successor shall be
elected for the remainder of the term by the governors who elected the
former director. An absolute majority of the votes cast shall be required
for election. While the office remains vacant. the arlternate shall have all
the powers of the former director except the power to appoint an
alternate.

(e) The Board of Executive Directors shall function in continuous
session at the principal office of the Bank and shall meet as often as the
business of the Bank may require.

inchLJonof dhis page iawthorimd by L.N. 95/1997]

INTER-AMERICAN DEVELOPMENT BANK 29

(0 A quorum for any meeting of the Board of Executive Directors
shall be an absolute majority of the total number of directors, includin?
an absolute majority of directms of regional members, reprffenting not
less than two-thirds of the total voting power of the member countries.

(g) A member of thc Bank may send a representative to attend
any mecting of the Board of Executive Directors when a matter
especially affecting that member is under consideration. Such right of
representation shall be regulated by the Board of Governors,

(h) The Board of Executive Directors may appoint such committees
as it deems advisable. Mmsbemhip of such committees need not be
limited to governors. directors, or alternates.

(i) The Board of Executive Directors shall determine the basic
organization of the B A . including the number and general responsi-
bilities of the chief administrative and professional positions of the
staff, and sha!l approve the budget of the Bank.

SECXIOX GVofit ig
(a) Each member country shall have 135 votes plus one v ~ t e

for each share of ordinary capital stock and b r each share of inter-
regional capital stock of the Bank held by that munuy, provided
however, that, in connection with any increase in the authorized
ordinary or inter-regional capital stock, the Board of Governors m a y
determine that the capital stock authorized by such increase shald
not have voting rights and that such increasc of stock shall not be
subject to the pre-emptive rights established in Article II, Section 3 (b).

(b) No increase in the subscription of any member to the ordinary
capital stock shall bearme effective, and any right to sutscribe thereto
is hcreby waived, which would have the eEwt of reducing the voting
power-

(i) of the regional developing members below 50.035 per
cent of the total voting power of the member countries:

(ii) of the member having nhe largest number of shares
below 30 per cent of suoh total vwting power; or

(iii) of Canada below 4 per cent of such total voting power.

(c) In voting in the Board of Governors, each governor shall ke
entitled to cast the votes of the member country which he represents.
Except as otherwise specifically provided in this Aereement, all matters
before the Board of Governors shall be decided by a majority of the
total voting power of the member countries.

(d) I n voting in the Board of Executive Directors : --
(i) the appointed director shall be entitled to c a t the

number of votes of the member country which appointed
him;

(ii) eaah elmed director shall be entitled to cast the number
of votes that counted toward his election, which votes
shall be cart as a unit: and

L.N.
123GlM

30 INTER-AMERICAN DEVELOPMENT BANK

(iii) except as otherwise specifically provided in this
Agreement, all matters before the Board of Executive
Directors shall be decided by a majurity of the total
voting power of the member counuies.

SECIION 5-President. Executive Vice Presidenr. and Srufj

(a) The Board of Governors. by a majority of the total voting
power of the member countries including an absolute majority of the
governors of regional members. shall elect a President of the Bank
who, while holding office, shall not be a governor or an executive
director or alternate for either.

Under the direction of the Board of Executive Directors, the President
of the Bank shall conduct the ordinary business of the Bank and shall
be chief of its staff. He also shall be the presiding officer at meetings
of the Board of Executive Directors, but shall have no vote, except
that it shall be his duty to cast a deciding vote when necessary to break
a tie.

The President of the Bank shall be the legal representativeofthe
Bank The term of office of the President of the Bank shall be five years.
and he may be re-elected to successive terms. He shall cease to hold
ofice when the Board of Governors so decides by a majority of the total
voting power of the member countries, including a majority of the total
voting power of the regional member countries.

(b) The Executive Vice President shall be appointed by the Board
of Executive Directors on the recommendation of the President of the
Bank. Under the direction of the Board of Executive Directors a?d the
President of the Bank, the Executive Vice Psesident shall exercise such
authority and perform such functions in the administration of the Bank
as may be determined by the Board of Executive Directors. In the
absence or incapacity of the President of the Bank, the Executive Vice
President shall exercise the authority and perform the functions of
the President.

The Executive Vice President shall participate in meetings of the
Board of Executive Directors but shall have no vote at such meetings.
except that he shaU cast the deciding vote, as provided in paragraph (a)
of this section. when he is acting in place of the President of the Bank.

In addition to the Vice President referred to in Article IV.
Section 8 (b), the Board of Executive Directors may, on recommendation
of the President of the Bank, appoint uther Vice Presidents who shall
exercise such authority and perform such functions BS .the Board Of
Executive Directors may determine.

(d) The President, officers, and staB of the Bank. in the discharge
of their offices, owe their duty entirely to the Bank and shall recognize
no other authority. Each member of the Bank shall respect the inter-
national character of this duty.

-inclusion of this gage is aumorized by L.N. 95 / 19971

'

(c)

.

INTER-AMERICAN DEVELOPMENT BANK 31

(e) The paramount consideration in the employment of the slaff
and in the determination of the conditions of service shall be the
necessity of securing the highest standards of efficiency, competence,
and integrity. Due regard shall also be paid to the importance of recruit-
ing the staff on as wide a geographical basis as possible, taking into
account the regional character uf the insti.tution.

The Bank, its officers and employees shall not interfere i n
the political affairs of any member nor shall they be influenced in their
decisions by the political character of the member or members
concerned. Only economic considerations shall be relevant to their deci-
sions, and these considerations, shall be weighed impartially in order
to achieve the purpose and functions stated in Article I.

SEC~TON 6-Puhlication of Repurls und Provision of Inforiiiution
(a) The Bank shall publish an annual report containing separate

audited statements of the accounts of the ordinary capital resources and
of the inter-regiond capital resources. I,t shall a l y transmit quarterly to
the members summary statements of the financial position and profit-
and-loss statements showing separately the resu;lts of 1 t s ofdiiary
operations and its inter-regional resources operatlons.

(b) The Bank may also publish such other reports as it deems
desirable to carry out its.purpose and functions.

Q

ARTICLE M WITHDRAWAL AND SUSPENSION OF
MEMBERS

SECTION [-Right to Withdraw
Any member may withdraw from the Bank by delivering to the Bank

at its principal office written notice of its intention to do SO. Such
withdrawal shall become finally effective on the date specified in the
notice but in no event less than six months after the notice is dellvcred to
the Bank. However, at any time before the withdrawal becomes finally
effective, the member may notify the Bank in writing of the cancellation
of its notice o! intention to withdraw.

After withdrawing, a member shall remain liable for all direct and
contingent obligations to the Bank to which it was subject at the date
of dolivery of the an’tbdrawal notice, including those specified in Section
3 of this article. However, if the withdrawal becomes finally effective,
the member shall not incur any liability for obligations resulting from
operations of the Bank effected after the date on which the withdrawal
notice was received by the Bank.
SECTION 24mpension of Membership

If a member fails to fulfil any of its obligations to the Bank, the Bank
may suspend its membership by decision of the Board of Governors by a
three-fourths majoriry of the total voting power of the member countries.
including a two-thirds majority of the total number of governors,

me inclusion of this page is author id by L.N. 68119781

32 INTER-AMERICAN DEVELOPMENT BANK

which. in the casc of suspension o€ a regional member wmtry. shall
inclrde a two-thirds majority of the governors of regional members and.
in the case of suspension of a wn-re&onal member country, a two-
thirds majority of the governors of non-regional members.

The members so suspended shall automatically cease to be a member
Qf the Bank one year from the date of its suspension unless the Board
of Governors decides by the same majority to terminate the suspension.

While under suspension. a member shall not bc entitled to exercise
any @~ts under this Agreement except the right of withdrawal, but
shall remain subject to all its obligations.
SECTION W e t f l e r n c n t of Accounrs

(a) After a country ceases to k a member, it M) longer shall
share in the profits or losses of the Bank, nor shall it iucur any liability
with respect to loans and guarantees entered into by the Bank thereafier.
However. it shall remain liable €or all amounts it owes the Bank and
for its contingent liabilities .to the Bank so long as any prt of the loans
or guarantea contracted by the Bank before the date on which the
country ceased to be a member remains outstanding.

When a country ceases to be a member. the Bank shall
arrange for the repurchase of such country’s capital e k as a part
of the settlement of account pursuant to the provisions of this section:
but the country shall have no other Fights under this Agreement except
as provided in thii section and in Article XIII, Section 2.

(c) The Bank and the wuntry ceasing to be a member may a-
on the repurchase of the capital stock on such terms as are deemed
appropriate in the circumstances. without regard to the provisions of the
following paragraph. Such agreement may provide. among other things.
for a final settlement of all obligations of the wuntry to the Bank.

{d) If the agreement referred to in the pnccding paragraph has
not been wnsummated withiq six months after the wuftry OCBSCS to
bt a member or such other bme 85 the Bank and such country may
agree upon. the repurchase price of such country’s capitd stack shall be
its book value, according to the books of the Bank, on the date when the
country ceased to be a mmbcr. suoh repurchase shall bt me& to the
folollowing conditions :

(i) As a prereqnidte for payment. the eomtry msing lu
be a member shall surrender its stock mtificatcs, and
such payment may be made in such instalments, at
such times and in such available currencies as me Bank
determines. raking into account the 6nancial poSitiOU
of the Bank.

(ii) Any momt which thc Bank (PIPW the country for tJle
repurchnse of its capital stock shall be withheld to the
extent that the country or any of its subdivisions or
agencies remains liable to the Bank as a m l t of

(b)

m e inclusion of this page i 6 authorized by LN. 6811978)

INTER-AMERICAN DEVELOPMENT B A N K

loan M guarantee operations. The amuunt withheld
may, at the option of the Bank, be applied on any
such liability as it matures. However, no amount shall
be withheld on a m u n t of the country’s contingent
liability far future calls on its subscription pursuant
to Article 11, Section 4 (a) (ii), or Article HA, Section
3 (cl.

(iii) If the Bank sustains net losses on any loans or partkipa-
tions, or as a result of any guarantees, outstanding on
the date the country oeased to be a member, and the
amount of such losses e x d s the amount of the r m c s
provided therefor on such date, such country shall
repay on demand the amount by which the repurchase
price of its shares would have been reduced, if the
losses had been taken into account when the book
value of the shares. according to the books of the Bank,
was determined. In addition. the former member shall
remain liable on any call pursuant to Article TI. Section
4 (a) (5). or Article U& Seotion 3 (c) to the extent
that it would have been required to respond if the
impairment of capital had occurred and the call had
been made at the time repurchase price of its shares had
k e n determined.

(e) In no event shall any amount due to a oomtry for its shares
under this section be paid until six mouths after the date upon which
the mmhy ceases to be a member. If within that period the Bank
terminates operations all rights of such country shall be determined
by the provisions of Article X, and such country sbal be considered
still a member of the Bank for the purposes of such article except that
it shall have no votinp rights.

33

ARTICLE X SUSPENSIONS AND TERMINATION OF
OPERATIONS

SECTION lSuspenriom of Operations
In an emergency the Board of Executive Directors may suspend

opemtions in respect of new loans and guarantees until such time as the
Board of Gnverrmrs may have an opportunity to consider the situation
and take pertinent measures.

SECTION ?-Termination of Operations
The Bank may terminate its operations by a decision of the Board

of Governors by a three-fourths majority of the total voting p w c r
of the member countries. including a &WO-thirds majority of the governors
of regional members. After such termination of operations the Bank
shall forthwiih cease all activities. except those incident to the consewa-
tion, preservation, and realization of its assets and settlement of its
obligations.
____ -

F e inclusion of this page is authorized by LN. 68/1978]

34 INTER-AMERICA?' DEVELOPMENT BANK

SECTION 3--Liobility of Mefnbers and Puy~~renf o Claims
(a) The liability of all members arising from the subscriptions to

the capital stock of the Bank and in respect to the depreciation of their
currencies shall continue until all direct and contingent obligations
shall have been discharged.

(b) All creditors holding direct claims shall be paid out of the
assets of the Bank to which such claims are chargeable and then out
of payments to the Bank on unpaid or callable subscriptions to which
such claims are chargeable. Before making any payments to creditors
holding dire& claims, the Board of Executive Directors shall make such
arrangements as are necessary, in its judgment, to ensure a pro mtu
distribution among holders of direct and contingent claims.
SECTION 4-Distrihtion of Assets

(a) No distribution of assets shall be made to members a account
of their subscriptions to the capital stock of the Bank until all liabilities
to creditors chargeable to such capital stock shall have been discharged
or provided for. Moreover, such distribution must be approved by
a decision of the Board of Governors by a three-fourths majority of the
total voting power of the member countries, including a two-thirds
majority of the governors of regional members.

A n y distribution of the assets of the Bank to the members
shall be in proprtion to capital stock held by each member and shall
be effected at such times and under such conditions as the Bank shall
deem fair and equitable. The shares of assets distributed need not be
uniform as to type of assets. No member shall be entitled to receive its
share, in such a distribution of assets until it has settled all of its
obligations to the Bank.

Any member receivjng assets distributed pmuant to this
article shall enjoy the same nghts with respect to such assets as the
Bank enjoyed prior to their distribution.

(bl

(c)

ARTICLE XI STATUS, IMMUNITIES, AND PRIVILEGES
SECTION I S c o p e r:f Article

To enable the Bank to fu161 its purpose and the functions with which
it is entrusted, the status, immunities and privileges set forth in thh
article shall be acccrded to the Bank in the temtories of each member.

SECTION 2-Legal Stutus

capacity :
The Bank shall pcssess juridical personality and, in prticular, full

(a) to contract:
(b) to acquire and dispose of immovable and movable property;

and
(c) to institute legal praceedings. _- -

[The inclusion of this page is authorized by L.N. 68 I19781

INTER-AME.WCAN DEVLLOPMENT BANK 35

SECTION 3. ~~ lrldiciul Proccedin:s
Actions may be brought against the Bank only in a court of compelent

jurisdiction in the territoiies of a member in which the Bank has an
oflice. has appointed an agent for the purpose nf accepting service or
notice of process, or ha5 issued or guaranteed securities.

No action shall be brought against the Bank by members or persons
acting or deriving claims from members. However, member countries
shall have recourse to such special procedures to settle controversies
between the Bank and its members as may be prescrikd in tbs
Agreement, in the bylaws and regulations of the Bank or in contracts
entered into with the Bank.

Property and assets of the Bank shall, wheresoever located and by
whomsgever held, be immune from all forms of seizure, attachment Or
execution before the delivery of final judgment aeainst the Bank.
SECTION 4-Zinrnrtnity of Assets

Property and assets of the Bank, wheresoever located and by whom-
soever held, shall be considered public international property and shall
be immune fiom search, requisition, confiscation, expropriation or any
other form of taking or foreclosure by executive or legislative action.
SECTION 5-Znvidability of Archives

The archives of the Bank shall be inviolable.

SECTION &Freedom of Assets From Restrictions
To the extent necessary to carry out the purpose and functions of

the Bank and to conduct its oprations in accordance with this Agree-
ment, all property and other assets of the Bank shall be free from
restrictions, regulations, controls, and moratoria of any nature, except
as may otherwise be provided in this Agreement.
SECTION 7-~Privi!ege for Cornnir:nicutioru

The official communications of the Bank shall be accorded by each
member the same treatment that it accords to the official communica-
tions of other members.

SECTION &Personal Zmmunities and Privileges
AU governors, executives, directors, alternates, officers, and employees

of the Bank shall have the following privileges and immunities:

(aJ Immunity from legal process with respect to acts performed. by
them in their official capacity except when the Bank waives this
immunity

(bj When not. local nationals, the same immunities from immigra-
tion restrictions, alien registration requirements, and national service
obligations and the same facilities as regards exchange provisions as
&re accorded by members to the representatives, officials, and employees
of comparable rank of other members.

[me inclusion of this page.is auihorizcd by LN. 68/1978]

36 INTER-AMERICAN DEVELOPMENT BANK

(c) The same privileges in respect of travelling facilities as m
accorded by members to representatives, 08icials. and employees of
comparable rank of other members.
SECTION 9-lmmunities from Taxa$im

(a) The Bank, its property, other assets. income and the opera-
tions and transactions it carries out pursuant to this Agreement. shad1 be
immune from aU taxation and from all customs duties. The Bank shall
also be immune from any obligation relating to the payment. withhold-
ing. or wlldon of any tax. or duty.

(b) No tax shall be levied on or in respact of salaries and
emoluments paid by the Bank to executive directors, alternates, officials.
or employees of the Bank who are not local citizens or other local
nationals.

(c) No tax of any kind shdl be levied OD any obligation or security
issued by the Bank, including any dividend or interest thereon. by
whomsoever held :

(i) which discrimiMteS against guch obligation or s d t y
solely bccause i t is i s s d by the Bank; or

(ii) if bhe sole jurisdictional basis for such *ation is the
place of currency in which it is issued. made payable
or paid, or the location of any office or place of busi-
ness maintained by the Bank.

(d) No tax of any kind shall be levied un any obligation or s&ty
guaranteed by the Bank, including any dividend or interest themon,
by whomsoever held:

(i) which discriminates against such ubligatim or Senrrity
so!ely because it is -teed by the Bank: or

(ii) if the sole jurisdictional basis for such taxadon iC the
location of any office or place of business maintained
by the Bank.

SECTION I0-lmpIernentation

such action as is necessary to make effective in its own temtories the
principles set forth in thk article. and shall inform Ihe Bank Of tht
action which it has taken on the matter.

Each member, in accordance with its juridic+ system. shall

ARTICLE xn AMENDMENTS
(a) (i) This Agreement may be amended only by decision of tb

Board of Governors by a majority of the total number
of governors, including two-thirds of tbe governors of
regional members, representing not less than three-fourths
of the total voting power of the member ~~uotr ics .
provided, however, that the voting majorities provided in
Article II. seotioa 1 (b), may bc amended oaly by the
vcting majorities stated therein.

P’he inclusion of this page is authorized by LN. 68/ 19781

INTER-AMERICAN DEVELOPMENT BANK

(ii) The relevant artioles of the Agreement may be amend2d
as provided in paragraph (a) (i) above to provide for the
mesger or thc inter-regional capital stock and thc
ordinary capital stock at such time as the Bank shall
have dischzrgcd its liabilities on all its ordinary czpitd
borrowings which were outstanding at December 31,
1914.

(b) Notwithstanding the provisions of (a) above, the unanimous
agreement of the Board of Governors shall be required for the approval
of any amendment modifying :

(i) the right to withdraw from the Bank as provided in
Article IX, Scction 1;

(ii) the right to purchase capital stcck cf the Bank and to
contribute to the Fund as provided in Article 11, Section
3 (b) and in Article IV, Section 3 (g) respectively: and

(iii) the limitation on liability as provided in Ariicle 11,
Section 3 (d), Article IlA, Section 2 (e) and Article
IV, Section 5 .

(c) Any prcposal to amend this Agreement, whether emanating
from a member or the Board of Executive Directors, shall be communi-
cated to the Chairman of the Board of Governors, who shall bring the
priiposal before the Board. of Gsvemors. When an amendment has
been adopted, the Bank shall so certify in an official communication
addressed to all members. Amendments shall enter into force fzr all
ine.mbers three months after the date of the official communication
unless the Board of Governors shall specify a diRerent period.

ARTICLE XPII INTERPRETATION AND ARBlTRATION
SSCTION 1-1nferprefat;on

(a) Any auestion of interpretation of the provisions of this
Agreement arising between any member and the Bank or between any
members cf the Bank shall be submitted to the Board of Executive
Directors for decision.

Members especially affected by the auestion under c0nsiderati.m
shall1 be entitled to direct representation before the Board of Executive
Directors as provided in Article VLII, Section 3 (g).

(b) In any case whcre the Board of Executive Directors has given
B decisim under (a) above, any member may require that the question
be submitted to the Board of Governars, whose decision shall be final.
Pending the decision of the Bcard of Governors, the Bank may, so far
as it deems it necessary, act on the basis of the decision of the Board
of Executive Directors.
SECTIOX 2-Arbitration

If a disagreement should arise between the Bank and a country which
has ceased to be a member, or between the Bank and any member after

me illclusion of this pagi is aulhorlzed by L.N. 68/1978]

31

X

38 INTER-AMERICAN DEVELOPMh-,VT BANK

adoption of a .decision to terminate the operation of the Bank, such
disagreement shall be submitted to arbitration by a tribunal of three
arbitrators. Cne ol the arbitrators shall be appointed by the Bank,
another by the country concerned, and the third, unless the parties
otherwise agree, by the Secretary General of the Organization of
American Skates. If all eftorts to reach a unanimous agreement fail.
decisions shall be made by a majority vote of the three arbitrators.

The third arbitrator shall be empowered to settle all questions of
procedure in any case where the parties are in disagreement with respect
thereto.

ARTICLE XIV GENERAL PROVISIONS
SECTION 1-Principal Oflice

District of Colombia. United States of America.
SECTION Z-Relatio:~~ with Other Organizations

The Bank may enter into arrangements with other organizations
with respect to the exchanze of information or for other purposes
consistent with ,this Agreement.
SECTION 3 4 l l a n n e l of Communication

Each member shall dcsignate an oificial entity for purposes of
communication with the Bank on matters connected with this Agreement.
SECTION 4-Deposiroria

Each member shall designate its central bank as a depository i n
which the Bank may keep its holdings of such member’s currency and
other assets of the Cdnk. If a member has no central bank it shall in
agreement with the Eank, dzsiignate another institution fur such purpose.

ARTICLE XV FINAL PROVISIONS

The principal oEce of the Bank shall be located in Washington.

SECTION I-Signallwe and Acceptunce
(a) This Agreement shall be deposi.ted with the General. Secretariat

of the Organization of American States, where i t shall remain open
until December 31. 1959, for signature by the representatives of the
countries listed in Annex A. Each signatory country shall deposit with
the General Secretariat of the Organization of Amefican states an
instrument setting forth that it has accepted or ratiEed th~s Agreement in
accordance with its own jaws and has @ken the steps necessary to
enable it to fulfil all i.ts obligations under t h s Agreement.

The General Secretariat of the Organization of American
States shall send certified, copies of this Agreement to the members
of the Organization and duly notify them of each signature and deposit
of the instrument of acceptance or ratification made pursuant to the
foregoing paragraph, as well as the date thereof.

(b)

r h c inclusion of this page is authorized by L.N. 68/1978]

INTER-AMERICAN DEVELOPMENT BANK

(c) At the time the instrument of acceptance or ratification is
deposited on its bchalf, each country shall deliver to the General
Secretariat of the Organization of American States for the purpose of
meeting administrative expenses of Ihe Bank, gold or United States
dollars equivalent to one-tenth of one percent of the purchase price
of the shares of the Bank subscribed by it and of its quota in the Fund.
This payment shall be credited to the member on account of its subscrip-
tion and fluota prescribed pursuant to Articles 11. Section 4 (a) (i), and
IV, Section 3 (d) (i). At any time on or after the date on which its
instrument of acceptance or ratification is deposited, any member may
make additional payments to be credited to the member on account
of its subscription and quota prescriked pursuant to Articles 11 and
N. The General Secretariat of the Organization of American States
shall hold all funds paid under this paragraph in a special deposit
accomt or accounts and shall make such funds available to the Bank
not later than the time of the first meetinz of the Board of Governors
held pursuant to Section 3 of this article. If this Agreement has not
come into force by December 31. 1959. the General Secretariat of the
Organization of American States shall return such funds to the countries
that delivered them.

(d) On or after the date on which the Bank commences operations,
the General Secretariat of the Organization of American States may
receive the sicnature and the instrument of acceptance or ratification of
this Agreement from any country whose membership has been approved
in accordance with Article 11, Section I (b),

SEC~ION 2-Entry into Force
(a) This Agreement shall enter into force when it has been signed

and instruments of acceptance or ratification have been deposited, i n
accordance with Section 1 (2) of this article by representatives of
countries whose subscriptions comprise not less than 85 per cent of the
total subscriptions set forth in Annex A.

(b) Countries whose instruments of acceptance or ratification
were deposited prior to the date on which the agreement entered into
force qhall bec?me members on that date. Other countries shall become
members on the dates on which their instruments of acceptance or
ratification are deposited.

SECTION 3--Commencemcnt of Operations

(a) The Secretary-General of the Organization of American States
shall call the first meeting of the Board of Governors as soon as this
Apreement enters into force under Section 2 of this article.

(h) At the first meeting of the Board of Governors arrangements
shall be made for the selection of the executive directors and their
alternates in accordance with the provisions of Article VIII, Section 3,
and for the determination of the date on which the Bank shatll com-

me inclusion of this page i s authorized by LN. 6511978l

39

40 INTER-AMERICA N DEVELOPMENT BANK

mence operations. Ncmtwithstanding the provisions of Article VIII,
Section 3, the governors, if they deem it desirable, may provide that
the first teim tg be served by such directors may be less than three
years.

Done at the City of Washingtan. District of Colombia, United States
of America, in a single orieinal dated April 8, 1959 whose English.
Frezch, Portugusse, and Spanish texts are equally authentic.

~- .-
[The inclusion of this page is aurhorizcd by LN. 68119783

41 INTER-AMERICAN DEVELOPMENT BANK

ANNEX A. SUBSCRIPTIONS TO AUTHORIZED CAPITAL STOCK OF
THE BANK

( III shares of 10,000 U.S. dollars of the waeight andfneness in efect on January 1,
1959)

Country

Argentina . .
B o I i v i a
Brazil . .

..
Chile . .
Colombia . .
Costa Rica , . ..
Cuba .. . .
Dominican Republic . .
Ecuador , . . .
El Salvador . . , .
Guatemala , . . .
Haiti . . . .
Honduras . . . .
Mexico . . , .
Nicaragua _ . , .
Panama . . . .
Paraguay . , ..
Peru . . ..
United States of America
Uruguay . . ..
Venezuela , . ..

.. . .

.. . .

.. . .

. . . .

.. . .

. . . .

. . . .

. .

. .

. . . .

. . . .

. . . .

. . . .
. . . I
. . . .

. . . .

. . . .

. . . .
. I . .

. . . .
, . * .

Total .. . .

Paid-in
Capital
Shares

5,157
414

5,157
1,416
1,415

207
1,842

276
216
207
216
207
207

3,315
207
207
207
691

15,000
553

2,763

I
Callable ITotal Sub-

5,157 i 10,314
414 1 828

5.157 10,314
2,832
2.830

207
1,842

276
276
207
276
207
207

3,315
207
207
207
691

20,000
553

2,763

414
3,684

552
552
414
552
414
414

6,630
414
414
414

1382
35,000

1,106
5,526

85,000

[The inclusion of this page is authorizcd by L.N. 68 I 1 9781

INTER-AMERICAN DEVELOPMENT BANK

ANNEX B. CONTRIBUTION QUOTAS FOR THE FUND FOR SPECIAL
OPERATIONS

42

country Quota

Argentina ..
Bolivia . . . .

. . . . ..

.. ,. ,.

. . . . .. .. . . .. .. . . .. .. .. . .
.. . . ..

.. . . ..

.. . . ..

.. .. ..

Brazil . . . .
Chile . .

-

Colombia . .
Costa Rim . .
Cuba ..
Dominican Republic
Ecuador ..
El Salvador ..
Guatemala ..
Haiti ..
Honduras ..
Mexico . .
Nicaragua , .
Panama ..
Paraguay . .

Total

.. .. . .

.. .. ..

. . .. I .

. . .. . .
. . .. . .

. . .. ..

. . .. ..

. . . . . .

.. . . ..

. . . . ..

. . .. ..

. . .. . .

10,314
828

10,314
2,832
2,830

414
3,684

552
552
414
552
414
414

6,630
414
414
414

1,382
l00,OOO

1,106
5,526

150,000

me inclusion of this page is authorized by LN. 68119781

INTER-AMERICAN DE VELOPMENT BANK

APPENDIX
PART 1

Increase of Authorized Capital and Fundfor Special Operations
1. Pursuant to the provisions of Article 11, section 2(e) and Article V111, L.N.

section 2(e) of the Bank Agreement, the Board of Governors of the Bank on 127BnOI I .
the 2 1 st day of July, 20 10, increased the authorized share capital stock of the
Bank by Seventy Billion United States Dollars (US$70,000,000,000.00)
divided into 5,802,660 shares, each having a par value as provided in the
Bank Agreement and set out in Part 11 hereof, such increase to take effect on
the 31st day of October, 201 1 or such later date as the Bank's Board of
Executive Directors may determine.

2. Pursuant to the provisions of Article IV, section 3(g) and Article V111,
section 2(e) of the Bank Agreement, the Board of Governors of the Bank on
the 21st day of July, 2010, increased the Fund for Special Operations by
the equivalent sum of Three Hundred and Fifty-nine Million Two Hundred
and Fifty Thousand United States Dollars (~~$359,250;000.00) through
additional contributions of members as set out in Part I11 hereof, such
increase to be effective on the 3 1st day of October, 201 1 or such later date
as the Bank's Board of Executive Directors may determine.

PART I1
Allocation of increases in the authorized Share Capital

,

Stock of the Bank
Regional Paid-in Callable Total Total Subscrip-
Members Shares Shares Shares tion US$'
- - - - -

Argentina . . . . . . 15,150 608,699 623,849 7,525,760,227
Bahamas . . . . . . 295 11,855 12,150 146,570,703
Barbados . . . . . . 183 7,372 7,555 9 1,139,232
Belize . . . . . . . . . 157 6,297 6,454 77,857,393
Bolivia . . . . . . . . . 1,218 48,946 50,164 605,150,022
Brazil . . . . . . . . . 15,150 608,699 623,849 7,525,760,227
Canada . . . . . . . . . 5,637 226,515~ 232,152 2,800,549,954
Chile . . . . . . . . . 4,161 167,702 171,363 2,067,225,963

. . . . . . Colombia 4,161 167,702 171,363 2,067,225,963
Costa Rica . . . . . . 611 24,512 25,123 303,069,612
Dominican Republic ... 8 13 32,695 33,508 404,22 1,492
Ecuador . . . . . . . . . 813 32,695 33,508 404,221,492
El ~alvador . . . . . . 611 24,512 25,123 303,069,612
Guatemala . . . . . . 813 32,695 33,508 404,221,492
Guyana . . . . . . . . . 228 9,147 9,375 1 13,094,679
Haiti . . . . . . . . . 61 1 24,512 25,123 303,069,612
Honduras . . . . . . 611 24,51225,123 303,069,612
Jamaica . . . . . . 813 32,695 33,508 404,221,492

. . . . . . . . . Mexico 9,739 391,313 401,052 4,838,063,683
Nicaragua . . . . . . 611 24,51225,123 303,069,612

'

[The inclusion of this page is authorized by L.N. 92c/2012]

)

44 INTER-AMERICAN DE VELOPMENT BANK

APPENDIX, contd.
PART 11, contd.

Allocation of increases in the authorized Share Capital
Stock of the Bank

Regional Paid-in Callable Total Total Subscrip-
Members Shares Shares Shares tion US$' - - - - -

Panama . . . . . . . . . 611 24,517 25,123 303,069,612
Paraguay . . . . . . 61 1 24,512 25,123 303,069,612
Peru . . . . . . . . . 2,029 81,526 83,555 1,007,960,093
Suriname . . . . . . 126 5,056 5,182 62,5 12,707

a
Trinidad and Tobago ... 6 1 1 24,5 12 25,123 303,069,612
United States . . . . . . 42,284 1,698,85 1 1,741,135 2 1,004,064,337
Uruguay . . . . . . . . . 1,627 65,340 66,967 807,851,876
Venezuela . . . . . . 8,119 326,159 334,278 4,032,540,049
Total Regional . . . . . .

Members 1 18,404 4,757,055 4,875,459 58,8 14,769,968

Non-Regional Paid-in Callable Total Total Subscrip-
! Members Shares Shares Shares tion US$'

- - -

. . . . . . . . . Austria 226 9,092 9,3 18 1 12,407,063
I 1 Belgium . . . . . . . . . 464 18,643 19,107 230,496,002

China . . . . . . . . .
1 5 .

216 22 1 2,666,O 19
I Croatia . . . . . . . . . 70 2,807 2,877 34,706,495

Denmark . . . . . . . . . 24 1 9,663 9,904 1 19,476,234
Finland . . . . . . . . . . 226 9,092' 9,3 18 1 12,407,063
France . . . . . . . . . 2,672 107,349 110,021 1,327,230,894

. . . . . . . . . Germany 2,672 107,349 110,021 1,327,230,894
I

Israel . . . . . . . . . 223 8,966 9,189 1 10,850,880
. . . . . . . . . Italy 2,672 107.349 110,021 1,327,230,894
. . . . . . . . . Japan 7,047 283,142 290,189 3,500,675,379

Korea . . . . . . . . . 5 216 22 1 2,666,O 19
...... Netherlands 476 19,163 19,639 236,9 13,749

Norway . . . . . . . . . 241 9,663 9,904 119,476,234
I

~ o r t u ~ a l . . . . . . . . . 77 3,116 3,193 38,5 18,540
Slovenia ......... 43 1,737 1,780 2 1,472,910

. . . . . . . . .
I '

Spain 2,672 107,349 110,021 1,327,230,894
Sweden . . . . . . . . . 461 18,528 18,989 229,072,5 17
Switzerland . . . . . 665 26,693 27,358 330,03 1,383

a
United Kingdom . . . . . 1,357 54,553 55,910 674,466,504
Total Regional

Members 223 15 904,686 927,201 1 1,185,226,566
Grand ~ o t a l ~ 140,919 5,661,74 1 5,802,660 69,999,996,534

[The inclusion of this page is authorized by L.N. 92d20121 .
I

APPENDIX, contd.

PART 11, contd.

Notes:
= I Expressed in current United States dollar at the rate of US$12,063,43238

per share pursuant to the provisions of the Bank Agreement that each share of
the Bank's capital stock has a par value of $10,000 expressed in terms of
United States dollars of the weight and fineness in effect on January 1, 1959.
The General Counsel of the Bank has rendered an opinion that since the
effectiveness on April 1,1978 of the Second Amendment to the Articles of
Agreement of the International Monetary Fund, which eliminated par values
of currencies in terms of gold, the Special Drawing Right (SDR) has become

'the successor to the 1959 U.S. dollar as the standard unit of value of the
Bank's capital stock. The Bank's governing boards have not yet made a

+ decision on this matter.
Excludes Canada's 334,887 non-voting temporary callable shares with a

par value of US$4,039.9 million.
Total US$ amounts calculated using share price of US$12,063,43238

multiplied by the number of shares, which when rounded achieves the
proposed US$70 Billion capital increase.

PART 11 1

Contribution Quotas for the Fundfor Special Operations
Cumulative

Members contributions % Contribution

Argentina . . . . . . . . . . . . 530,179,133 5.18
Austria . . . . . . . . . . . . 20,98 1,638 0.20
Bahamas . . . . . . . . . . . . 1 1,070,927 0.1 1
Barbados . . . . . . . . . . . . 1,909,902 0.02
Belgium . . . . . . . . . . . . 44,567,425 0.44
Belize . . . . . . . . . . . . 7,932.52 1 0.08
Bolivia . . . . . . . . . . . . 1 ,'050,5.62 0.50
Brazil . . . . . . . . . . . . 571,125,611 5.58

. . . . . . ~ a n a d a . . . . . . 325,394,706 3.18
Chile . . . . . . . . . . . . 165,405,182 1.62

. . . . . . China . . . . . . 131,133,276 1.28
Colombia . . . . . . . . . . . . 161,212,436 1.57
Costa Rica . . . . . . . . . . . . 24,5 10,74 1 0.24
Croatia . . . . . . . . . . . . 6,196,303 0.06 .
Denmark . . . . . . . . . . . . 20,992,399 0.20

... Dominican Republic . . . . . . 35,564,721 0.35
. . . . . . Ecuador . . . . . . 3 1,777,766 0.3 1

El Salvador . . . . . . . . . . . . 22,437,759 0.22
Finland . . . . . . . . . . . . 19,9 19,290 0.19
France . . . . . . . . . . . . 23 1,964,50 1 2.26

[The inclusion of this page is authorized by L.N. 92c/2012]

46 INTER-AMERICAN DEVELOPMENT BANK

PART 111. cont d.

Contribution Quotas for the Fund for Special Operations

Members

Germany ...
Guatemala ...
Guyana ...
Haiti ...
Honduras ...
Israel ...
ltaly ...
Jamaica ...
Japan . ...

. ~ o r e a ~ ...
Mexico ...
Netherlands ...
Nicaragua ...
Norway ...

. Panama ...
Paraguay ...
Peru ...
Portugal ...
Slovenia ...
Spain ...
Suriname ...
Sweden ...
Switzerland ...
Trinidad and Tobago
United Kingdom ...
United States ...
Uruguay ...
Venezuela ...
~ 0 t a 1 ~

Cumulative
contributions % Contribution

Notes:

' This table of contributions to the FSO sets out the amounts allocated in
accordance with the distribution contemplated in the Agreement Establishing
the Bank, Article IV. section 3(g) .

Korea has indicated its consideration of a contribution to the FSO of
uS$1.000.000 .

Total reflect rounding of figures .

[The inclusion of this page is authorized by L.N. 92c/2012]

INTER-AMERICAN DEVELOPMENT BANK

Creation of an ~ntermediate Financing Facility

1. Pursuant to the provisions of Article VIII, section 4(c), the Board of
Governors of the Bank on the 25th day of February, 1983, agreed to the
establishment of an Intermediate Financing Facility, the objective of which is
to place at the disposal of eligible member countries an amount sufficient to
decrease by up to 5 per cent points the interest rate on up to eight hundred
million dollars (US$800,000,000) from Ordinary Capital and Inter-Regional a Capital resources. 2.. The purpose of this facility would aid eligible borrowers in carrying
the charges for interest from capital borrowings, so that the financial costs of
such operations would situate themselves at a rate intermediate between the
Ordinary Capital and Inter-Regional Capital lending rate and that of the Fund
for Special Operations. It has been proposed that, in order to achieve the
establishment and finding of such an Intermediate Financing Facility,
resources from the Fund for Special Operations be made available as
f o l l o w s ~

(a) from the existing General Reserve of the Fund for Special
Operations, an amount of sixty-one million dollars
(US$61,000,000) would be set aside, prior authorization to
be obtained from the Board of Governors of the Bank;
and

(6) from future net income to be allocated to the General
Resource of the Fund for Special Operations, an annual
amount of approximately fifteen million dollars
(US$15,000,000) for a period of twenty years.

SECOND SCHEDULE (Section 2)

TEXT OF RESOLUTION
INTER-AMERICAN DEVELOPMENT BANK

RESOLUTION AG-8/69

ADMISSION OF JAMAICA TO MEMBERSHIP IN THE BANK

a WHEREAS Jamaica is a member of the Organization of American States and membership in the Inter-American Development Bank (hereinafter referred to as the "Bank") is hereby open to said country in accordance with
Article 11, Section 1 (6) of the Agreement Establishing the Bank (hereinafter
referred to as the "Agreement");

WHEREAS Jamaica has applied for admission to membership in the Bank;
and

WHEREAS pursuant to Section 1 1 of the By-laws of the Bank, the
Board of Executive Directors, after consultation with representatives of the

[The inclusion of this psge is authorized by LN. 92c/2012]

48 - INTER-AMERICAN DE VELOPMENT BANK

Government of Jamaica, has made recommendations to the Board of
Governors with regard to the. application of Jamaica for admission to
membership in the Bank.

.~ . -
The Board of Governors . .

RESOLVES: - . . . :.

1. That Jamaica shall become a member of the Bank when the President
shall have declared that Jamaica has fulfilled all of the' following require-
ments:

(a) It shall have subscribed to 1,852 shares of the capital stock of the
Bank having a par value of US$10,000 per share, divided into 276
paid-in shares and 1,576 callable shares, on the following basis: '

... . ' , , , . , - .. (i) 'payrnent;of the amount subscribed to the paid-in capital stock .
o f the Bank shall be rhade in three instalments; the first of
which shall be 20 per cent and the second and third each 40

' , percent of such amount. The first instalinent shall'be paid on
the date the instrument of acceptance shall be paid on the
date the 'initrument of adceptance or ratification is deposited,

. .
i n accordance with' 'Section 1 ( 4 of this Resolution. The

,. , remaining two instalments shall be'paid, one year and two
years, respectively, affer such date. Of each instalment, 50
per cent shall be paid in gold andlor ".s. dollars and 50 per

... . cent in thecurrency of Jamaicain accordance with Article 11,
, Section. 4(b) of the Agreement.

(ii) The callable portion of the subscription's,hall be subject to the
provisions of Artible 11, Section'4(a) ( i i ) of the Agreement.

, (6) It shall have undertaken to contribute to the Fund for Special
Operations of the Bank with a quota of US$6,159,000, payment of
which shall be made as follows: ; i .

', .
(i) ~ ~ $ 4 1 4 , 0 0 0 shall,be paid in gold andlor U.S. dollars and

the equivalent of US$5,745,000 in the currency of Jamaica
in accordance with Article IV, Section 3(e) of the Agree-
ment.

, . L . . ; ,

, . ,
(ii) !The q u o d , s ~ l l be contribbted in five, iq&l i~st~lments , of

f a : . ; ., . . . which , the first. sh4l'be paid a t thez time'the instrument of

-.':. . . accep(ance or htifi&tion . .. . . ii depositd i ~ , +koraan& with
~ e c t i o n " l ( ~ 'of this iisblutibti.,and th: remainder annually
thereafter. Each insGlment shall'cohsist 'of ' ~ ~ $ 8 2 , 8 0 0 in

, . . , . gold andlor U.S: dollars anil:the equivalent.of US$], 149,000
in the currency of Jamaica.

. . I ) . - I . L , ,
. . , - < : . . . ; , f , , , ,&>: ' . . I . I . ' . - . _ I . . , .

[The-inclusion of this page "is authorized by L.N. 92c/2012] - -
C _ ' .. .a - , . '% r - . !

INTER-AMERICAN DEVELOPMENT BANK 49

(c) Its duly authorized representative shall have signed the original of
the Agreement deposited with the General Se.cr,etariat of the Organi-
zation of American States.

(6) It shall have deposited with the General Secretariat of the Organi-
zation of American States an instrument setting forth that it has
accepted or ratified, in accordance with its law, the Agreement and
all the terms and conditions prescribed in this resolution, and that it
has taken steps necessary to enable it to fulfill all of its obligations
under the Agreement and this resolution.

(e) It shall have represented to the Bank that it has taken all action
necessary to sign the Agreement and deposit the instrument of
acceptance or ratification as contemplated by Section l(c) and (6)
of this resolution and it shall have furnished to the Bank such in-
formation in respect of such action as the Bank may have requested.

2. Jamaica may accept membership in the Bank pursuant to this
resolution until January 3 1, 1970 provided, however, that if extraordinary
circumstances are deemed by the Board of Executive Directors so to warrant,
the Board may postpone such date.

[me' inclusion of this page is authorized by L.N. 92~20121