International Development Association’s Membership Acquisition Act, 2019 (1962)


Published: 1962

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$20 per month, or Get a Day Pass for only USD$4.99.
IDA Act, 2019 E

1

International Development Association's Membership
Acquisition Act, 2019 (1962)
Date of Authentication and Publication
2019.6.18 (4 Oct. 1962)
Amendments:
1. Some Nepal Acts Amendment, Repeal and
Continuance Through Re-arrangement Act,
2019 (1963)
2019.12.30 (12 April 1963)
2. Republic Strengthening and Some Nepal
Laws Amendment Act, 2066 (2010)1
2066.10.7 (21 Jan. 2010)
Act Number 24 of the Year 2019 (1962)
An Act Made To Enable Nepal to Become a Member of the
International Development Association by Acceptance of the
International Agreements for the Establishment and Operation of the
Association
Preamble: Whereas, the International Development Association has prescribed
the terms and conditions set out in Schedule-1 of this Act as the terms and
conditions upon which Nepal may be admitted to membrship of the International
Development Association; and
Whereas, for the purpose of complying with the terms and conditions
aforesaid, it is necessary to make provision as hereinafter set out;
Now, therefore, be it enacted by His Majesty King Mahendra Bir Bikram
Shah Dev in accordance with Article 93 of the Constitution of Nepal2.
1 This Act came into force on 15 Jestha 2065 and "Prasati" has been deleted.


2

1. Short title and commencement: (1) This Act may be called as the
"International Development Association's Membership Acquisition Act,
2019 (1962)".
(2) This Act shall come into force immediately.
2. Definitions: Unless the subject or the context otherwise requirs, in this
Act:
(a) "Association" means the International Development Association.
(b) "Association Agreement" means the Articles of Agreement of the
Association.
3. Authorization to accept Agreements and deposit instruments of
acceptance: The Minister for Finance is hereby authorized by instruments
under his or her hand to empower such person as may be named in such
instruments, on behalf of the Government of Nepal:
(a) To sign the Articles of Agreement of the International Development
Association.
(b) To deposit with the International Bank for Reconstruction and
Development an instrument of acceptance of the Associati n
Agreement setting out that the Government of Nepal has accepted in
accordance with the Nepal laws the respective Articles and the terms
and conditions prescribed thereunder as the terms upon which Nepal
shall be admitted to membership of the International Development
Association.
4. Powers to pay moneys to the Association: The Minister for Finance
shall have authority to pay to the Association from the Consolidated Fund
2 Amended by Some Nepal Acts Amendment, Repeal and Continuance Through Re-arrangement
Act, 2019


3

of the Government of Nepal such moneys/subscription as may be payable
from time to time to the Association on behalf of the Government of Nepal
in accordance with the terms and conditions set forth in Schedule-1 and the
Association Agreement.
5. Power to issue promissory notes: The Minister for Finance may, on
behalf of the Government of Nepal, create non-interest bearing and non-
negotiable notes or bonds/conditions as set forth in Section 2 (e) of Article
2 of the Association Agreement, as set out in Schedule-2, in such forms as
he or she thinks fit and issue them in the name of the Association, and the
payments of the notes or bonds so created and issued shall be paid out of
the Consolidated Fund of the Government of Nepal.
6. Nepal Rastra Bank to be nominated as depository: (1) The Nepal
Rastra Bank (Central Bank) is, hereby, nominated as the depository for the
purposes of Section 9 of Article 6 of the Association Agreement, as set out
in Schedule-3.
7. Channel of Communication: The Secretary at the Ministry of Finance,
Government of Nepal is, hereby, designated as the cannel of
communication for the purposes of Section 10 of Article 6 of the
Association Agreement.
8. Status, immunities and privileges of the Associat on:
Notwithstanding anything contained in the Nepal laws in force, the status,
immunities and privileges set forth in Article 8 of the Association
Agreement, and as set out in Schedule-5, shall be accorded to the
Association.
9. Power to amend Schedules: If any amendment is made to any matter
contained in any Schedule of this Act of the Association Agreement, the


4

Government of Nepal may accordingly amend the Schedule of this Act, by
publishing a Notification in the Nepal Gazette, from time to time.
10. Power to frame Rules: The Government of Nepal may frame Rules in
order to implement the objectives of this Act.
11. …………….3
3 Deleted by Some Nepal Acts Amendment, Repeal and Cotinuance Through Re-arrangement Act,
2019


5

Schedule-1
International Development Association
Resolution No. 15
Admission of Nepal to Membership of the Bank
Whereas, the Government of Nepal has applied for admission to
membership in the International Development Association in accordance with
Section 1 (6) of Article 2 of the Articles of Association Agreement; and
Whereas, pursuant to Section 9 of the Bye-laws of the Association, the
Executive Directors, after consultation with representatives of the Government of
Nepal, have made recommendations to the Board of Govern rs regarding this
application;
Now, therefore, the Board of Governors, hereby, resolv s that the terms and
conditions upon which Nepal shall be admitted to memb rship in the Association
shall be as follows:
(a) The terms and conditions upon which Nepal is admitted to
membership in the Association, other than those clearly set forth in
this Resolution, shall be as specified in the Articles relating to
membership of original members as set forth in Part2 of Schedule
(a) to the Articles (not with intent to make any rest iction, and in
such manner as to include the terms and conditions relating to
payments of subscription, utilization of currency and right to vote).
(b) By accepting membership in the Association, Nepal shall pay
subscription price equivalent to a total of 5,00,00 United States
dollars of the weight and fineness in effect on 1 January 1960.
(c) Before accepting membership in the Association, Nepal shall pay all
amounts of initial subscription as required to be paid on the date of


6

acceptance of membership in the Association by Nepal or prior to
such acceptance as original members as set forth in Part 2 of
Schedule (a) of the Articles.
(d) Nepal may accept membership in the Association pursuant to this
Resolution until 5 November 1962, and if the Executive Directors
deems necessary for an extraordinary circumstance that his
limitation on period for acceptance of membership by Nepal
pursuant to this Resolution should be extended, they may extend this
limitation on period.


7

Schedule-2
Section 2(e) of Article 2 of the Articles of Agreement of the
International Development Association
Section 2(e). The Association shall accept from any member, in place of any part
of the member’s currency paid in or payable by the m mber under the
preceding Sub-section (d)4 or under Section 2 of Article 45 and not needed
by the Association in its operations, notes or similar obligations issued by
the government of the member or the depository designated by such
member, which shall be non-negotiable, non-interest-b aring and payable at
their par value on demand to the account of the Association in the
designated depository.
4 Section 2(d). The remaining ninety per cent of the initial subscription of each original member shall be
payable in gold or freely convertible currency in the case of members listed in Part I of Schedule A, and in the currency of the subscribing member in the case of members listed in Part Il of Schedule A. This ninety per cent portion of initial subscriptions of original members shall be payable in Five equal annual installments as follows: the First such installment within Thirty days after the date on which theAssociation shall begin operations pursuant to Article 11, Section 4, or on the date on which the original member becomes a member, whichever shall be later; the Second installment One year after the beginning of operations of the Association, and remaining installments each year thereafter at annual intervals until the Ninety per cent portion of the initial subscription shall have been paid in full.
5 Section 2 of Article 4. Maintenance of Value of Currency Holdings: (a) Whenever the par value of a member’s currency is reduced or the foreign exchange value of a
member’s currency has, in the opinion of the Association, depreciated to a significant extent within that member’s territories, the member shall p y to the Association within a reasonable time an additional amount of its own currency sufficient to maintain the value, as of the time of subscription of the amount of the currency of such member paid in to the Association by the member under Section 2 (d) of Article 2 and currency furnished under the provisions of the present paragraph, whether or not such currency is held in the form of notes accepted pursuant to Section 2(e) of Article 2; provided, however, that the foregoing shall apply only so long as and to the extent that such currency shall not have been initially disbursed or exchanged for the currency of another member.
(b) Whenever the par value of a member’s currency is increased, or the foreign exchange value of a member’s currency has, in the opinion of the Association, appreciated to a significant extent within that member’s territories, the Association 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 to which the provisions of paragraph (a) of this Section are applicable.
(c) The provisions of the preceding paragraphs may be waived by the Association when a uniform proportionate change in the par value of the currencies of all its members is made by the International Monetary Fund.
(d) Amounts furnished under the provisions of paragraph (a) of this Section to maintain the value of any currency shall be convertible and usable to the same extent as such currency.



8

Schedule-3
Section 9 of Article 6 of Articles of Association
Section 9. Depositories: Each member shall designate its central bank as a
depository in which the Association may keep holdings of such member’s
currency or other assets of the Association, or, if it has no central bank, it
shall designate for such purpose such other institution as may be acceptable
to the Association. In the absence of any different designation, the
depository designated for the Bank shall he the depository for the
Association.



9

Schedule-4
Section 10 of Article 6 of Articles of Association
Section 10. Channel of Communication: Each member shall designate an
appropriate authority with which the Association may communicate in
connection with any matter arising under this Agreem nt. In the absence of
any different designation, the channel of communication designated for the
Bank shall be the channel for the Association.





10

Schedule-5
Article 8 of Articles of Agreement
Status, immunities and privileges
Section 1 of Article 9. Purposes of Article: To enable the Association to fulfill
the functions with which it is entrusted, the status, immunities and
privileges provided in this Article shall be accorded to the Association in
the territories of each member.
Section 2. Status of the Association: The Association shall possess full juridical
personality and, in particular, the capacity:
(1) to contract;
(2) to acquire and dispose of immovable and movable property;
(3) to institute legal proceedings.
Section 3. Position of the Association with Regard to Judicial Process:
Actions may be brought against the Association only i a court of
competent jurisdiction in the territories of a member in which the
Association has an office, has appointed an agent for the purpose of
accepting service or notice of process, or has issued or guaranteed
securities. No actions shall, however, be brought by members or persons
acting for or deriving claims from members. The property and assets of the
Association shall, wheresoever located and by whomsoever held, be
immune from all forms of seizure, attachment or execution before the
delivery of final judgment against the Association.
Section 4. Immunity of Assets from Seizure: Property and assets of the
Association, wherever located and by whomsoever held, shall be immune
from search, requisition, confiscation, expropriation or any other form of
seizure by executive or legislative action.


11

Section 5. Immunity of Archives: The archives of the Association shall be
inviolable.
Section 6. Freedom of Assets from Restrictions: To the extent necessary to
carry out the operations provided for in this Agreem nt and subject to the
provisions of this Agreement, all property and assets of the Association
shall be free from restrictions, regulations, contrls and moratoria of any
nature.
Section 7. Privilege for Communications: The official communications of the
Association shall be accorded by each member the same treatment that it
accords to the official communications of other memb rs.
Section 8. Immunities and Privileges of Officers and Employees: All
Governors, Executive Directors, Alternates, officers and employees of the
Association:
(1) shall be immune from legal process with respect to acts
performed by them in their official capacity except when the
Association waives this immunity;
(2) not being local nationals, shall be accorded the same
immunities from immigration restrictions, alien registration
requirements and national service obligations and the same
facilities as regards exchange restrictions as are accorded by
members to the representatives, officials and employees of
comparable rank of other members;
(3) shall be granted the same treatment in respect of travelling
facilities as is accorded by members to representatives,
officials and employees of comparable rank of other
members.


12

Section 9. Immunities from Taxation: (a) The Association, its assets,
property, income and its operations and transactions authorized by this
Agreement, shall be immune from all taxation and from all customs duties.
The Association shall also be immune from liability for the collection or
payment of any tax or duty.
(b) No tax shall be levied on or in respect of salaries and
emoluments paid by the Association to Executive Directors, Alternates,
officials or employees of the Association who are not local citizens, local
subjects, or other local nationals.
(c) No taxation of any kind shall be levied on any obligation or
security issued by the Association (including any dividend or interest
thereon) by whomsoever held:
(i) which discriminates against such obligation or security
solely because it is issued by the Association; or
(ii) if the sole jurisdictional basis for such taxation is the
place or currency in which it is issued, made payable
or paid, or the location of any office or place of
business maintained by the Association.
(d) No taxation of any kind shall be levied on any obligation or
security guaranteed by the Association (including ay dividend or interest
thereon) by whomsoever held:
(i) which discriminates against such obligation or security
solely because it is guaranteed by the Association; or
(ii) if the sole jurisdictional basis for such taxation is the
location of any office or place of business maintaied
by the Association.


13

Section 10. Application of Article: Each member shall take such action as is
necessary in its own territories for the purpose of making effective in terms
of its own law the principles set forth in this Article and shall inform the
Association of the detailed action which it has taken.