(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 maintained by the Corporation. (d) No taxation of any kind shall be levied on any obligation or security guaranteed by the Corporation (including any dividend or interest thereon) by whomsoever held (i) which discriminates against such obligation or security solely because it is guaranteed by the Corporation; or (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 in its discretion may waive any of the privileges and immunities conferred under this Article to such extent and upon such conditions as it may determine. ARTICLE VII-AMENDMENTS (a) This Agreement may be amended by vote of three-fifths of the Governors exercising four-fifths of the total voting power. (b) Notwithstanding paragraph (a) above, the affirmative vote of all Governors is required in the case of any amendment modifying (i) the right to withdraw from the Corporation provided in Article V, Section 1; 4. (ii) the preemptive right secured by Article II, Section 2(d); (iii) the limitation on liability provided in Article II, Section (c) Any proposal to amend this Agreement, whether emanating from a member, a Governor or the Board of Directors, shall be communicated to the Chairman of the Board of Governors who shall bring the proposal before the Board of Governors. When an Amendment has been duly adopted, the Corporation shall so certify formal communication addressed to all members. Amendments enter into force for all members three months after the date ne formal communication unless the Board of Governors shall geciy a shorter period. ARTICLE VIII-INTERPRETATION AND ARBITRATION (a) Any question of interpretation of the provisions of this Agreement arising between any member and the Corporation or between any members of the Corporation shall be submitted to the Board of Directors for its decision. If the question particularly affects any member of the Corporation not entitled to appoint an Executive Director of the Bank, it shall be entitled to representation in accordance with Article IV, Section 4(g). (b) In any case where the Board of Directors has given a decision under (a) above, any member may require that the question be referred to the Board of Governors, whose decision be final. Pending the result of the reference to the Board of Governors, the Corporation may, so far as it deems necessary, act on the basis of the decision of the Board of Directors. (c) Whenever a disagreement arises between the Corporation and a country which has ceased to be a member, or between the Corporation and any member during the permanent suspension of the Corporation, such disagreement shall be submitted to arbitration by a tribunal of three arbitrators, one appointed by the Corporation, another by the country involved and an umpire who, unless the parties otherwise agree, shall be appointed by the President of the International Court of Justice or such other authority as may have been prescribed by regulation adopted by the Corporation. The umpire shall have full power to settle all questions of procedure in any case where the parties are in disagreement with respect thereto. ARTICLE IX-FINAL PROVISIONS SECTION 1. ENTRY INTO FORCE This Agreement shall enter into force when it has been signed on behalf of not less than 30 governments whose subscriptions comprise not less than 75 percent of the total subcriptions set forth in Schedule A and when the instruments referred to in Section 2(a) of this Article have been deposited on their behalf, but in no event shall this Agreement enter into force before October 1, 1955. SECTION 2. SIGNATURE (a) Each government on whose behalf this Agreement is signed shall deposit with the Bank an instrument setting forth that it has accepted this Agreement without reservation in accordance with its law and has taken all steps necessary to enable it to carry out all of its obligations under this Agreement. (b) Each government shall become a member of the Corporation as from the date of the deposit on its behalf of the instrument referred to in paragraph (a) above except that no government shall become a member before this Agreement enters into force under Section 1 of this Article. (c) This Agreement shall remain open for signature until the close of business on December 31, 1956, at the principal office of the Bank on behalf of the governments of the countries whose names are set forth in Schedule A. (d) After this Agreement shall have entered into force, it shall be open for signature on behalf of the government of any country whose membership has been approved pursuant to Article II, Section 1(b). SECTION 3. INAUGURATION OF THE CORPORATION (a) As soon as this Agreement enters into force under Section 1 of this Article the Chairman of the Board of Directors shall call a meeting of the Board of Directors. (b) The Corporation shall begin operations on the date when such meeting is held. (c) Pending the first meeting of the Board of Governors, the Board of Directors may exercise all the powers of the Board of Governors except those reserved to the Board of Governors under this Agreement. DONE at Washington, in a single copy which shall remain deposited in the archives of the International Bank for Reconstruction and Development, which has indicated by its signature below its agreement to act as depository of this Agreement and to notify all governments whose names are set forth in Schedule A of the date when this Agreement shall enter into force under Article IX, Section 1 hereof. 4. Inter-American Development Bank (Amended Articles of Agreement Establishing) Section 2-Functions 725 Section 5-Ordinary Capital Resources. ARTICLE II-MEMBERSHIP IN AND CAPITAL OF THE BANK. Section 1-Membership........... Section 1A-Categories of Resources.. Section 2-Authorized Ordinary Capital. Section 4-Payment of Subscriptions..... ARTICLE IIA-INTER-REGIONAL CAPITAL OF THE BANK Section 1-Authorized Inter-regional Capital....... Section 2-Subscription of Shares of Inter-regional Capital............. Section 3-Payment of Subscriptions to Inter-regional Capital.............. Section 4-Inter-regional Capital Resources....................................................... ARTICLE III-OPERATIONS... Section 1-Use of Resources..... Section 2-Categories of Operations..... 726 726 726 726 727 728 729 729 729 730 730 731 731 731 732 Section 3-Basic Principle of Separation....... 732 Section 4-Methods of Making or Guaranteeing Loans. ................................... 733 733 Section 6-Direct Loan Financing. 734 Section 7-Rules and Conditions for Making or Guaranteeing Loans 734 Section 1-Establishment, Purpose, and Functions Section 7-Discharge of Fund Liabilities on Borrowings. Section 8-Optional Conditions for Making or Guaranteeing Loans. Section 11-Guarantees Section 12-Special Commission Section 13-Special Reserve.... ARTICLE IV-FUND FOR SPECIAL OPERATIONS..... Section 2-Applicable Provisions Section 3-Resources. Section 4-Operations Section 5-Limitation on Liability. Section 6-Limitation on Disposition of Quotas. Section 8-Administration Section 9-Voting... 739 Section 10-Distribution of Net Profits 740 Section 3-Maintenance of Value of the Currency Holdings of the Bank.... 741 742 ARTICLE VI-TECHNICAL ASSISTANCE. 743 Section 1-Provision of Technical Advice and Assistance. 743 743 743 ARTICLE VII-MISCELLANEOUS POWERS AND DISTRIBUTION OF PROFITS. 743 743 ARTICLE IX-WITHDRAWAL AND SUSPENSION OF MEMBERS.. Section 3-Judicial Proceedings. ................ ...... Section 5-President, Executive Vice President, and Staff Section 6-Publication of Reports and Provision of Information Section 1-Right To Withdraw.. Section 2-Suspension of Membership............. ARTICLE X-SUSPENSION AND TERMINATION OF OPERATIONS. Section 1-Suspension of Operations Section 2-Termination of Operations. Section 3-Liability of Members and Payment of Claims. ARTICLE XI-STATUS, IMMUNITIES AND PRIVILEGES. Section 1-Scope of Article..... Section 2-Legal Status. Section 4-Immunity of Assets...... Section 5-Inviolability of Archives Section 6-Freedom of Assets From Restrictions ARTICLE XII-AMENDMENTS Article Xill-Interpretation and Arbitration Section 2-Arbitration ARTICLE XIV-GENERAL PROVISIONS Section 1-Principal Office... Section 2-Relations With Other Organizations. Section 3-Channel of Communication.. Section 4-Depositories...... ARTICLE XV-FINAL PROVISIONS Section 2-Warning To Be Placed on Securities.... Section 3-Methods of Meeting Liabilities of the Bank in Case of Defaults 744 Section 4-Voting.... 744 745 746 746 746 748 749 750 751 751 751 751 752 753 753 753 753 754 754 754 754 755 755 755 755 755 755 756 756 756 757 757 757 757 758 758 758 758 758 ANNEX A-SUBSCRIPTIONS TO AUTHORIZED CAPITAL STOCK OF THE BANK......... 760 ANNEX B-CONTRIBUTION QUOTAS FOR THE FUND FOR SPECIAL OPERATIONS 761 |