International Finance Corporation’s Membership Acquisition Act, 2022 (1965)


Published: 1965

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IFC Act, 2022 E
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International Finance Corporation's Membership
Acquisition Act, 2022 (1965)
Date of Authentication and Publication
2022.5.6(22 Aug. 1965)
Amendment:
Republic Strengthening and Some Nepal Laws
Amendment Act, 2066 (2010)1 2066.10.7(21 Jan. 2010)

Act number 6 of the year 2022(1965)
An Act Made To Enable Nepal to Become a Member of the International
Finance Corporation by Acceptance of the International Agreements for the
Establishment and Operation of the Corporation
Preamble: Whereas, the International Finance Corporation has pre cribed the
terms and conditions set out in Schedule-1 of this Act as the terms and conditions
upon which Nepal may be admitted to membership of the International Finance
Corporation; 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 on the advice and with the consent of the Rastriya Panchayat.
1 This Act came into force on 15 Jestha 2065(28 May 2008) and "Prasati" has been deleted.

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1. Short title and commencement: (1) This Act may be called as the
International Finance Corporation's Membership Acquisition Act, 2022
(1965)".
(2) This Act shall come into force immediately.
2. Definitions: Unless the subject or the context otherwise requirs, in this
Act:
(a) "Corporation" means the International Finance Corporation.
(b) "Corporation Agreement" means the Articles of Agreement of the
Corporation.
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 Governmnt of Nepal:
(a) To sign the Articles of Agreement of the International Finance
Corporation.
(b) To deposit with the International Bank for Reconstruction and
Development an instrument of acceptance of the Corporation
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 Finance
Corporation.
4. Powers to pay moneys to the Corporation: The Minister for Finance
shall have authority to pay to the Corporation from the Consolidated Fund
of the Government of Nepal such moneys/subscription as may be payable
from time to time to the Corporation on behalf of the Government of Nepal

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in accordance with the terms and conditions set forth in Schedule-1 and the
Corporation Agreement.
5. Nepal Rastra Bank to be nominated as depository: The Nepal Rastra
Bank is, hereby, nominated as the depository for the purposes of Section 9
of Article 4 of the Corporation Agreement, as set out in Schedule-2.
6. 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 4 of the
Corporation Agreement.
7. Status, immunities and privileges of the Corporation:
Notwithstanding anything contained in the Nepal laws in force, the status,
immunities and privileges set forth in Article 8 of the Corporation
Agreement, and as set out in Schedule-4, shall be accorded to the
Corporation.
8. Power to amend Schedules: If any amendment is made to any matter
contained in any Schedule of this Act of the Corporati n Agreement, the
Government of Nepal may accordingly amend the Schedule of this Act, by
publishing a Notification in the Nepal Gazette, from time to time.
9. Power to frame Rules: The Government of Nepal may frame Rules in
order to implement the objectives of this Act.

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Schedule-1
International Finance Corporation
Resolution No.
Admission of Nepal to Membership of the Corporation
Whereas, the Government of Nepal has applied for admission to
membership in the International Finance Corporation in accordance with Section 1
(6) of Article 2 of the Articles of Corporation Agreement; and
Whereas, pursuant to Section 17of the By-laws of the Corporation, 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 Corporation
shall be as follows:
1. Definitions: The following terms used in this Resolution shall have the
following respective meanings:
(a) "Corporation" means the International Finance Corporation.
(b) "Articles" means the Articles of the Corporation Agreement.
(c) "Dollars" means the dollars of the United States of America.
(d) "Subscription" means the subscription made by a member to the
capital stock of the Corporation.
2. Subscription: By accepting membership in the Corporation, Nepal shall
pay subscription price of 55 shares of the capital stock of the Corporation,
and the value of each such a share shall be 1,000 Dollars.

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3. Membership of Bank: prior to accepting the membership of the
Corporation, Nepal has to become a member of the Bank for International
Reconstruction and Development.
4. Payment of subscription: Before accepting membership in the
Corporation, Nepal shall pay to the Bank on account of the subscription
price of the shares in capital stock subscribed by Nepal in gold or in full
payment of 55,000 Dollars payable for the same.
5. Representation and Information: Before accepting membership in the
Corporation, Nepal shall represent to the Corporatin hat it has taken all
action necessary to sign and deposit the instrument of acceptance and sign
the Articles as contemplated by paragraph 6 (c) and (d) of this Resolution,
and Nepal shall furnish to the Corporation such information in respect of
such action as the Corporation may request.
6. Acceptance of Membership: Nepal shall become a member of the
Corporation with a subscription as set out in paragraph 2 of this Resolution
as of the date when Nepal shall have complied with the following
requirements:
(a) made the payments called for by paragraph 4 of this
Resolution;
(b) furnished the representation, and such information as may
have been requested, pursuant to paragraph 5 of this
Resolution:
(c) deposited with the Government of the International Bank for
Reconstruction and Development an instrument stating that it
has accepted in accordance with its law the Articles and all
the terms and conditions prescribed in this Resolution, and

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that it has taken all steps necessary to enable it to carry out all
its obligations under the Articles and this Resoluti n;
(d) signed the original copy of the Articles held in the Archives
of the International Bank for Reconstruction and
Development.
7. Limitation on Period for Acceptance of Membership: Nepal may
accept membership in the Corporation pursuant to this Resolution until 31
March 1965, and if the Executive Directors deem necessary for an
extraordinary circumstance that this limitation on period for acceptance of
membership by Nepal pursuant to this Resolution should be extended, they
may extend this limitation on period.

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Schedule-2
Section 9 of Article 4 of the Articles of Agreement of the International
Finance Corporation
Section 9. Depositories: Each member shall designate its central bank as a
depository in which the Corporation may keep holdings of such member’s
currency or other assets of the Corporation, or, if it has no central bank, it
shall designate for such purpose such other institution as may be acceptable
to the Corporation.

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Schedule-3
Section 10 of Article 4 of Articles of Association of the International Finance
Corporation
Section 10. Channel of Communication: Each member shall designate an
appropriate authority with which the Corporation may communicate in
connection with any matter arising under this Agreem nt.


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Schedule-4
Article 6 of Articles of Agreement of the International Finance Corporation

Status, immunities and privileges
Section 1. Purposes: To enable the Corporation to fulfill the functions with
which it is entrusted, the status, immunities and privileges provided in this
Article shall be accorded to the Corporation in the territories of each
member.
Section 2. Status of the Corporation: The Corporation 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 Corporation with Regard to Judicial Process:
Actions may be brought against the Corporation only i a court of
competent jurisdiction in the territories of a member in which the
Corporation 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
Corporation 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 Corporation.
Section 4. Immunity of Assets from Seizure: Property and assets of the
Corporation, wherever located and by whomsoever held, shall be immune

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from search, requisition, confiscation, expropriation or any other form of
seizure by executive or legislative action.
Section 5. Immunity of Archives: The archives of the Corporation 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 Corporation
shall be free from restrictions, regulations, contrls and moratoria of any
nature.
Section 7. Privilege for Communications: The official communications of the
Corporation 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
Corporation:
(1) shall be immune from legal process with respect to acts
performed by them in their official capacity except when the
Corporation 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,

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officials and employees of comparable rank of other
members.
Section 9. Immunities from Taxation: (a) The Corporation, 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 Corporation 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 Corporation to Executive Directors, Alternates,
officials or employees of the Corporation 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 Corporation (including any dividend or interest
thereon) by whomsoever held:
(i) which discriminates against such obligation or security solely
because it is issued by the Corporation; 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 maintaied by the
Corporation.
(d) No taxation of any kind shall be levied on any obligation or
security guaranteed by the Corporation (including ay dividend or interest
thereon) by whomsoever held:
(i) which discriminates against such obligation or security solely
because it is guaranteed by the Corporation; or

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(ii) if the sole jurisdictional basis for such taxation is the location
of any office or place of business maintained by the
Corporation.
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
Corporation of the detailed action which it has taken.
Section 11: Waiver: The Corporation may, at its discretion, waive privileges and
immunities granted under this Article on such conditions and at such a
degree as may be required.