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This is a Bill, not an Act. For current law, see the Acts databases.


INTERNATIONAL MONETARY AGREEMENTS AMENDMENT BILL (NO. 1) 2010

2008-2009-2010
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
International Monetary Agreements
Amendment Bill (No. 1) 2010
No. , 2010
(Treasury)
A Bill for an Act to amend the International
Monetary Agreements Act 1947, and for related
purposes
i International Monetary Agreements Amendment Bill (No. 1) 2010 No. , 2010
Contents
1 Short
title
...........................................................................................
1
2 Commencement
.................................................................................
1
3 Schedule(s)
........................................................................................
2
Schedule 1--Amendment of the International Monetary
Agreements Act 1947
3
International Monetary Agreements Amendment Bill (No. 1) 2010 No. , 2010 1
A Bill for an Act to amend the International
1
Monetary Agreements Act 1947, and for related
2
purposes
3
The Parliament of Australia enacts:
4
1 Short title
5
This Act may be cited as the International Monetary Agreements
6
Amendment Act (No. 1) 2010.
7
2 Commencement
8
(1) Each provision of this Act specified in column 1 of the table
9
commences, or is taken to have commenced, in accordance with
10
column 2 of the table. Any other statement in column 2 has effect
11
according to its terms.
12
13
2 International Monetary Agreements Amendment Bill (No. 1) 2010 No. , 2010
Commencement information
Column 1
Column 2
Column 3
Provision(s) Commencement
Date/Details
1. Sections 1 to 3
and anything in
this Act not
elsewhere covered
by this table
The day this Act receives the Royal Assent.
2. Schedule 1
The later of:
(a) the day this Act receives the Royal
Assent; and
(b) the day the amendments to the NAB
Decision and the changes in credit
arrangements of existing participants
referred to in Decision
No. 14577-(10/35), dated 12 April 2010,
of the Executive Board of the
International Monetary Fund, become
effective.
However, the provision(s) do not commence
at all if the event mentioned in paragraph (b)
does not occur.
The Minister must announce by notice in the
Gazette the day the amendments to the NAB
Decision and the changes in credit
arrangements of existing participants
become effective.
Note:
This table relates only to the provisions of this Act as originally
1
passed by both Houses of the Parliament and assented to. It will not be
2
expanded to deal with provisions inserted in this Act after assent.
3
(2) Column 3 of the table contains additional information that is not
4
part of this Act. Information in this column may be added to or
5
edited in any published version of this Act.
6
3 Schedule(s)
7
Each Act that is specified in a Schedule to this Act is amended or
8
repealed as set out in the applicable items in the Schedule
9
concerned, and any other item in a Schedule to this Act has effect
10
according to its terms.
11
12
Amendment of the International Monetary Agreements Act 1947 Schedule 1
International Monetary Agreements Amendment Bill (No. 1) 2010 No. , 2010 3
Schedule 1--Amendment of the International
1
Monetary Agreements Act 1947
2
3
1 Subsection 3(1) (definition of New Arrangements to
4
Borrow)
5
Omit "a copy of which is set out in Schedule 4", substitute "a copy of
6
which, as amended by Decision No. 14577-(10/35), dated 12 April
7
2010, of the Executive Board of the Fund, is set out in Schedule 4".
8
2 Paragraph 6(1)(b)
9
Omit ", after that decision becomes effective".
10
3 Subsection 8B(1)
11
Omit ", after the New Arrangements to Borrow have become
12
effective,".
13
4 Subsection 8B(1)
14
Omit "that decision", substitute "the New Arrangements to Borrow".
15
5 Schedule 4 to the Act
16
Repeal the Schedule, substitute:
17
Schedule 4--Decision No. 11428-(97/6), dated
18
27 January 1997, of the Executive
19
Board of the Fund, as amended by
20
Decision No. 14577-(10/35), dated
21
12 April 2010, of the Executive Board
22
of the Fund
23
Note:
See subsection 3(1).
24
25
26
New Arrangements to Borrow
27
28
Preamble
29
30
Schedule 1 Amendment of the International Monetary Agreements Act 1947
4 International Monetary Agreements Amendment Bill (No. 1) 2010 No. , 2010
In order to enable the International Monetary Fund (the "Fund") to
1
fulfill more effectively its role in the international monetary system, a number
2
of countries with the financial capacity to support the international monetary
3
system have agreed to provide resources to the Fund up to specified amounts in
4
accordance with the terms and conditions of this decision. As the Fund is a
5
quota-based institution, the credit arrangements provided for under the terms of
6
this decision shall only be drawn upon when quota resources need to be
7
supplemented in order to forestall or cope with an impairment of the
8
international monetary system. In order to give effect to these intentions, the
9
following terms and conditions are adopted under Article VII, Section 1(i) of
10
the Fund's Articles of Agreement.
11
12
Paragraph 1. Definitions
13
14
(a)
As used in this decision the term:
15
(i)
"amount of a credit arrangement" means the maximum
16
amount expressed in special drawing rights that a
17
participant undertakes to make available to the Fund
18
under a credit arrangement;
19
20
(ii)
"Articles" means the Articles of Agreement of the
21
Fund;
22
23
(iii)
"available commitment" means a participant's credit
24
arrangement less any drawn and outstanding balances;
25
26
(iv)
"borrowed currency" or "currency borrowed" means
27
currency transferred to the Fund's account under a
28
credit arrangement;
29
30
(v)
"call" means a notice by the Fund to a participant to
31
make a transfer under its credit arrangement to the
32
Fund's account;
33
34
(vi)
"credit arrangement" means an undertaking to provide
35
resources to the Fund on the terms and conditions of
36
this decision;
37
38
(vii)
"currency actually convertible" means currency
39
included in the Fund's quarterly financial transactions
40
plan for transfers;
41
Amendment of the International Monetary Agreements Act 1947 Schedule 1
International Monetary Agreements Amendment Bill (No. 1) 2010 No. , 2010 5
1
(viii)
"drawer" means a member that purchases borrowed
2
currency from the General Resources Account of the
3
Fund;
4
5
(ix)
"indebtedness of the Fund" means the amount the Fund
6
is committed to repay under a credit arrangement;
7
8
(x)
"member" means a member of the Fund;
9
10
(xi)
"participant" means a participating member or a
11
participating institution;
12
13
(xii)
"participating institution" means an official institution
14
of a member that has entered into a credit arrangement
15
with the Fund with the consent of the member; and
16
17
(xiii)
"participating member" means a member that has
18
entered into a credit arrangement with the Fund.
19
20
(b)
For the purposes of this decision, the Monetary Authority of
21
Hong Kong (the "HKMA") shall be regarded as an official institution of the
22
member whose territories include Hong Kong, provided that:
23
(i)
loans by the HKMA and payments by the Fund to the
24
HKMA under this decision shall be made in the
25
currency of the United States of America, unless the
26
currency of another member is agreed between the
27
Fund and the HKMA;
28
29
(ii)
the references to balance of payments and reserve
30
position in paragraphs 5(c), 6(b), 6(c), 7(a), and 11(e)
31
shall be understood to refer to the balance of payments
32
and reserve position of Hong Kong. The HKMA shall
33
not be eligible to vote on a proposal for activation
34
under paragraph 5(c), included in a resources
35
mobilization plan under paragraph 6(b), or subject to
36
calls under paragraph 7(a), and shall be excluded from
37
calls in accordance with paragraph 6(c), if, at the time
38
of voting on any such proposal, approval of any such
39
resource mobilization plan, or making of any such call,
40
the HKMA notifies the Fund that Hong Kong's present
41
Schedule 1 Amendment of the International Monetary Agreements Act 1947
6 International Monetary Agreements Amendment Bill (No. 1) 2010 No. , 2010
and prospective balance of payments and reserve
1
position does not allow it to meet calls under its credit
2
arrangement; and
3
4
(iii)
the HKMA shall have the right to request early
5
repayment in accordance with paragraph 13(c) with
6
respect to claims transferred to the HKMA if at the
7
time of the transfer the balance of payments position of
8
Hong Kong is, in the opinion of the Fund, sufficiently
9
strong to justify such a right.
10
11
Paragraph 2. Credit Arrangements
12
13
(a)
A member or institution that adheres to this decision undertakes
14
to provide resources to the Fund on the terms and conditions of this decision up
15
to the amount in special drawing rights set forth in Annex I to this decision
16
("Annex I"), which may be amended from time to time in order to take into
17
account changes in credit arrangements resulting from the application of
18
paragraphs 3(b), 4, 15(b), 16, 17 and 19(b).
19
20
(b)
Except as set forth in paragraph 1(b)(i) or otherwise agreed
21
with the Fund, resources provided to the Fund under this decision shall be made
22
in the currency of the participant. Agreements under this paragraph for the use
23
of the currency of another member shall be subject to the concurrence of any
24
member whose currency shall be used.
25
26
Paragraph 3. Adherence
27
28
(a)
Any member or institution specified in Annex I as a new
29
participant may adhere to this decision in accordance with paragraph 3(c).
30
31
(b)
Any member or institution not specified in Annex I, may apply
32
to become a participant at any time. Any such member or institution that wishes
33
to become a participant shall, after consultation with the Fund, give notice of its
34
willingness to adhere to this decision, and, if the Fund and participants
35
representing 85 percent of total credit arrangements shall so agree, the member
36
or institution may adhere in accordance with paragraph 3(c). When giving
37
notice of its willingness to adhere under this paragraph 3(b), a member or
38
institution shall specify the amount, expressed in special drawing rights, of the
39
credit arrangement which it is willing to enter into, provided that the amount
40
shall not be less than the credit arrangement of the participant with the smallest
41
Amendment of the International Monetary Agreements Act 1947 Schedule 1
International Monetary Agreements Amendment Bill (No. 1) 2010 No. , 2010 7
credit arrangement. The admission of a new participant shall lead to a
1
proportional reduction in the credit arrangements of all existing participants
2
whose credit arrangements are above that of the participant with the smallest
3
credit arrangement: such proportional reduction in the credit arrangements of
4
participants shall be in an aggregate amount equal to the amount of the new
5
participant's credit arrangement less any increase in total credit arrangements
6
decided in accordance with paragraph 4(a), provided that no participant's credit
7
arrangement shall be reduced below the minimum amount set out in Annex I.
8
9
(c)
A member or institution shall adhere to this decision by
10
depositing with the Fund an instrument setting forth that it has adhered in
11
accordance with its law and has taken all steps necessary to enable it to carry
12
out the terms and conditions of this decision. On the deposit of the instrument
13
the member or institution shall be a participant as of the date of the deposit or of
14
the effective date of the amendments to this decision set out in Executive Board
15
Decision No. 14577-(10/35), adopted on April 12, 2010, whichever is later.
16
17
Paragraph 4. Changes in Amounts of Credit Arrangements
18
19
(a)
When a member or institution is authorized under paragraph
20
3(b) to adhere to this decision, the total amount of credit arrangements may be
21
increased by the Fund with the agreement of participants representing 85
22
percent of total credit arrangements; the increase shall not exceed the amount of
23
the new participant's credit arrangement.
24
25
(b)
The amounts of participants' individual credit arrangements
26
may be reviewed from time to time in the light of developing circumstances and
27
changed with the agreement of the Fund and of participants representing 85
28
percent of total credit arrangements, including each participant whose credit
29
arrangement is changed. This provision may be amended only with the consent
30
of all participants.
31
32
Paragraph 5. Activation Period
33
34
(a)
When the Managing Director considers that the Fund's
35
resources available for the purpose of providing financing to members from the
36
General Resources Account need to be supplemented in order to forestall or
37
cope with an impairment of the international monetary system, and after
38
consultations with Executive Directors and participants, the Managing Director
39
may make a proposal for the establishment of an activation period during which
40
the Fund may (i) make commitments under Fund arrangements for which it may
41
Schedule 1 Amendment of the International Monetary Agreements Act 1947
8 International Monetary Agreements Amendment Bill (No. 1) 2010 No. , 2010
make calls on participants under their credit arrangements, and (ii) fund outright
1
purchases by making calls on participants under their credit arrangements;
2
provided that an activation period shall not exceed 6 months, and provided
3
further that the amount covered by calls to fund such commitments under
4
arrangements and outright purchases shall not exceed the maximum amount
5
specified in the proposal. The proposal for the establishment of an activation
6
period shall include information on (i) the overall size of possible Fund
7
arrangements on which discussions are advanced, (ii) the balance between
8
arrangements that are expected to be drawn upon and arrangements that are
9
expected to be precautionary, (iii) additional financing needs that, in the opinion
10
of the Managing Director, may arise during the proposed activation period, and
11
(iv) the mix of quota and NAB resources for purchases from the General
12
Resources Account in the period following the approval of an activation period.
13
The information will be updated quarterly during an activation period.
14
15
(b)
If there is not unanimity among the participants, the question
16
whether the participants are prepared to accept the Managing Director's
17
proposal for the establishment of an activation period in accordance with
18
paragraph 5(a) will be decided by a poll of the participants. A favorable
19
decision shall require an 85 percent majority of total credit arrangements of
20
participants eligible to vote. The decision shall be notified to the Fund.
21
22
(c)
A participant shall not be eligible to vote if, based on its present
23
and prospective balance of payments and reserve position, the member is not
24
included in the financial transactions plan for transfers of its currency at the
25
time of the decision on a proposal for an activation period.
26
27
(d)
An activation period shall become effective only if it is
28
accepted by participants pursuant to paragraph 5(b) and is then approved by the
29
Executive Board.
30
31
Paragraph 6. Resource Mobilization Plans and Calls
32
33
(a)
To fund outright purchases during an activation period and
34
commitments under arrangements approved during an activation period, calls
35
under individual credit arrangements of participants may be made on the basis
36
of resource mobilization plans approved by the Executive Board normally on a
37
quarterly basis in conjunction with the quarterly financial transactions plan for
38
the General Resources Account. Such resource mobilization plans shall specify
39
for each participant the maximum amount for which calls may be made during
40
the applicable period. The Executive Board may at any time amend such a plan
41
Amendment of the International Monetary Agreements Act 1947 Schedule 1
International Monetary Agreements Amendment Bill (No. 1) 2010 No. , 2010 9
to change the maximum amounts and period for calls. With respect to the
1
allocation of the maximum amounts among participants, the resource
2
mobilization plan shall normally establish an allocation that would result in the
3
available commitments of participants being of equal proportion relative to their
4
credit arrangements.
5
6
(b)
A participant shall not be included in the resource mobilization
7
plan when, based on its present and prospective balance of payments and
8
reserve position, the member is not included and is not being proposed by the
9
Managing Director to be included in the list of countries in the quarterly
10
financial transactions plan for transfers of its currency.
11
12
(c)
Calls during the period of a resource mobilization plan shall be
13
made on participants by the Managing Director with due regard to the objective
14
specified in paragraph 6(a) of achieving available commitments of participants
15
that are of equal proportion relative to their credit arrangements. No call shall be
16
made on a participant that has been included in the resource mobilization plan
17
if, at the time of such call, the member's currency is not being used in transfers
18
under the financial transactions plan because of the member's balance of
19
payments and reserve position.
20
21
(d)
When the Fund makes a call pursuant to this paragraph 6, the
22
participant shall promptly make the transfer in accordance with the call.
23
24
Paragraph 7. Procedures for Special Calls
25
26
(a)
Calls pursuant to paragraph 11(e) may be made at any time
27
with due regard to the objective specified in paragraph 6(a) of achieving
28
available commitments of participants that are of equal proportion relative to
29
their credit arrangements, provided that no such call shall be made on a
30
participant, when, based on its present and prospective balance of payments and
31
reserve position, the member is not included and is not being proposed by the
32
Managing Director to be included in the list of countries in the quarterly
33
financial transactions plan for transfers of its currency or, if the member has
34
been included in the financial transactions plan, when, at the time of such call,
35
the member's currency is not being used in transfers under such plan because of
36
the member's balance of payments and reserve position. Calls under this
37
paragraph 7(a) shall not be subject to the procedures set forth in either
38
paragraph 5 or paragraph 6.
39
40
Schedule 1 Amendment of the International Monetary Agreements Act 1947
10 International Monetary Agreements Amendment Bill (No. 1) 2010 No. , 2010
(b)
Calls pursuant to paragraph 23 may be made at any time; they
1
shall not be subject to the procedures set forth in either paragraph 5 or
2
paragraph 6.
3
4
(c)
When the Fund makes a call pursuant to this paragraph 7, the
5
participant shall promptly make the transfer in accordance with the call.
6
7
Paragraph 8. Nature and Evidence of Indebtedness
8
9
(a)
A participant's claim on the Fund arising from calls under this
10
decision shall be in the form of a loan to the Fund; provided that, at the request
11
of a participant, the Fund shall issue to the participant and the participant shall
12
purchase, for up to the amount of any call on that participant, one or more
13
promissory notes (each a "Note" or together the "Notes") that have the same
14
substantive terms as loans extended under this decision and are subject to the
15
General Terms and Conditions for NAB Notes set forth in Annex II to this
16
decision (the "GTC"). The GTC may be amended by a decision of the Fund
17
with the agreement of participants representing 85 percent of total credit
18
arrangements, provided that any amendment of the GTC shall be consistent with
19
the terms of this decision. The amended GTC shall apply upon effectiveness to
20
all outstanding Notes issued under this decision.
21
22
(b)
In cases where a participant's claim on the Fund is in the form
23
of a loan, the Fund shall issue to the participant, at its request, instruments
24
evidencing the Fund's indebtedness. The form of the instruments shall be
25
agreed between the Fund and the participant. Upon repayment of the amount of
26
any such instrument and all accrued interest, the instrument shall be returned to
27
the Fund for cancellation. If less than the amount of any such instrument is
28
repaid, the instrument shall be returned to the Fund and a new instrument for the
29
remainder of the amount shall be substituted with the same maturity date as in
30
the old instrument.
31
32
(c)
In cases where a participant's claim on the Fund is in the form
33
of Notes, such Notes shall be issued in book entry form. Upon the request of a
34
participant, the Fund shall issue a registered Note substantially in the form as set
35
out in the Appendix to the GTC. Upon repayment of any Note and all accrued
36
interest, the Note shall be returned to the Fund for cancellation. If less than the
37
amount of any such Note is repaid, the Note shall be returned to the Fund and a
38
new Note for the remainder of the amount shall be substituted with the same
39
maturity date as in the old Note.
40
41
Amendment of the International Monetary Agreements Act 1947 Schedule 1
International Monetary Agreements Amendment Bill (No. 1) 2010 No. , 2010 11
Paragraph 9. Interest
1
2
(a)
The Fund shall pay interest on its indebtedness under this
3
decision at a rate equal to the combined market interest rate computed by the
4
Fund from time to time for the purpose of determining the rate at which it pays
5
interest on holdings of special drawing rights or any such higher rate as may be
6
agreed between the Fund and participants representing 85 percent of the total
7
credit arrangements.
8
(b)
Interest shall accrue daily and shall be paid as soon as possible
9
after each July 31, October 31, January 31, and April 30.
10
11
(c)
Interest due to a participant shall be paid, as determined by the
12
Fund in consultation with the participant, in special drawing rights, in the
13
participant's currency, in the currency borrowed, in freely usable currencies, or,
14
with the agreement of the participant, in other currencies that are actually
15
convertible.
16
17
Paragraph 10. Use of Borrowed Currency
18
19
The Fund's policies and practices under Article V, Sections 3 and 7 of
20
the Articles on the use of its general resources, including those relating to the
21
period of use, shall apply to purchases of currency borrowed by the Fund.
22
Nothing in this decision shall affect the authority of the Fund with respect to
23
requests for the use of its resources by individual members, and access to these
24
resources by members shall be determined by the Fund's policies and practices,
25
and shall not depend on whether the Fund can borrow under this decision.
26
27
Paragraph 11. Repayment by the Fund
28
29
(a)
Subject to the other provisions of this paragraph 11, the Fund,
30
five years after a transfer by a participant in response to a call under this
31
decision, shall repay the participant an amount equivalent to the transfer
32
calculated in accordance with paragraph 12. If a drawer for whose purchase
33
resources were made available under this decision repurchases on a date earlier
34
than five years after its purchase, the Fund shall repay participants an equivalent
35
amount during the quarterly period in which the repurchase is made in
36
accordance with paragraph 11(d). Repayment under this paragraph 11(a) or
37
under paragraph 11(c) shall be, as determined by the Fund, in the currency
38
borrowed whenever feasible, in the currency of the participant, in special
39
drawing rights in an amount that does not increase the participant's holdings of
40
special drawing rights above the limit under Article XIX, Section 4 of the
41
Schedule 1 Amendment of the International Monetary Agreements Act 1947
12 International Monetary Agreements Amendment Bill (No. 1) 2010 No. , 2010
Articles unless the participant agrees to accept special drawing rights above that
1
limit in such repayment, in freely usable currencies, or, with the agreement of
2
the participant, in other currencies that are actually convertible.
3
4
(b)
Before the date prescribed in paragraph 1l(a), the Fund, after
5
consultation with participants, may make repayment in part or in full to one or
6
several participants in accordance with paragraph 11(d). The Fund shall have
7
the option to make repayment under this paragraph 11(b) in the participant's
8
currency, in the currency borrowed, in special drawing rights in an amount that
9
does not increase the participant's holdings of special drawing rights above the
10
limit under Article XIX, Section 4 of the Articles unless the participant agrees
11
to accept special drawing rights above that limit in such repayment, in freely
12
usable currencies, or, with the agreement of the participant, in other currencies
13
that are actually convertible.
14
15
(c)
Whenever a reduction in the Fund's holdings of a drawer's
16
currency is attributed to a purchase of currency borrowed under this decision,
17
the Fund shall promptly repay an equivalent amount to participants. If the Fund
18
has used resources under this decision to finance a reserve tranche purchase by
19
a drawer and the Fund's holdings of the drawer's currency that are not subject
20
to repurchase are reduced as a result of net sales of that currency during a
21
quarterly period covered by a financial transactions plan, the Fund shall repay at
22
the beginning of the next quarterly period an amount equivalent to that
23
reduction to participants, up to the amount of the reserve tranche purchase.
24
Payments under this paragraph 11(c) shall be allocated among participants in
25
accordance with paragraph 11(d).
26
27
(d)
Repayments under paragraphs 11(a), second sentence, 11(b)
28
and 11(c) shall be allocated among participants with due regard to the objective
29
specified in paragraph 6(a) of achieving available commitments of participants
30
that are of equal proportion relative to their credit arrangements. For each
31
participant, repayments shall be applied first to the longest outstanding claim
32
under its credit arrangement. If repayment is to be made in accordance with this
33
paragraph 11(d) on a claim that has been transferred, the repayment shall be
34
made to the transferee of such claim.
35
36
(e)
Before the date prescribed in paragraph 11(a), a participant may
37
give notice representing that there is a balance of payments need for repayment
38
of part or all of the Fund's indebtedness and requesting such repayment. The
39
participant seeking such repayment shall consult with the Managing Director
40
and with the other participants before giving notice. The Fund shall give the
41
Amendment of the International Monetary Agreements Act 1947 Schedule 1
International Monetary Agreements Amendment Bill (No. 1) 2010 No. , 2010 13
overwhelming benefit of any doubt to the participant's representation.
1
Repayment shall be made promptly after consultation with the participant in
2
freely usable currencies or in special drawing rights, as determined by the Fund,
3
or, with the agreement of the participant, in the currencies of other members
4
that are actually convertible. If the Fund's holdings of currencies in which
5
repayment should be made are not wholly adequate, the Managing Director
6
shall make calls on individual participants to provide the necessary balances
7
under their credit arrangements subject to the limit of their available
8
commitments. At the time of such call, and if so requested by the participant
9
seeking early repayment, (i) a participant providing balances under its credit
10
arrangement that are not balances of a freely usable currency shall ensure that
11
such balances can be exchanged for a freely usable currency of its choice, and
12
(ii) a participant providing balances under its credit arrangement that are
13
balances of a freely usable currency, shall collaborate with the Fund and other
14
members to enable such balances to be exchanged for another freely usable
15
currency.
16
17
(f)
When a repayment is made on a claim arising from a call under
18
this decision, the amount that can be called for under the credit arrangement of
19
the participant under which the claim arose as a result of a call under this
20
decision shall be restored pro tanto.
21
22
(g)
Unless otherwise agreed between the Fund and a participating
23
institution, the Fund shall be deemed to have discharged its obligations to a
24
participating institution to make repayment in accordance with the provisions of
25
this paragraph 11 or to pay interest in accordance with the provisions of
26
paragraph 9 if the Fund transfers an equivalent amount in special drawing rights
27
to the member in which the participating institution is established.
28
29
Paragraph 12. Rates of Exchange
30
31
(a)
The value of any transfer shall be calculated as of the date of
32
the dispatch of the instructions for the transfer. The calculation shall be made in
33
terms of the special drawing right in accordance with Article XIX, Section 7(a)
34
of the Articles, and the Fund shall be obliged to repay an equivalent value.
35
36
(b)
For all of the purposes of this decision, the value of a currency
37
in terms of the special drawing right shall be calculated by the Fund in
38
accordance with Rule O-2 of the Fund's Rules and Regulations.
39
40
Paragraph 13. Transferability
41
Schedule 1 Amendment of the International Monetary Agreements Act 1947
14 International Monetary Agreements Amendment Bill (No. 1) 2010 No. , 2010
1
(a)
No participant or non-participant holder may transfer all or any
2
part of its claim to repayment under a credit arrangement except (i) in
3
accordance with this paragraph 13 or (ii) with the prior consent of the Fund and
4
on such terms and conditions as the Fund may approve.
5
6
(b)
All or part of any claim to repayment under a credit
7
arrangement may be transferred at any time to a participant or to a
8
non-participant that is either (i) a member of the Fund, (ii) the central bank or
9
other fiscal agency designated by any member for purposes of Article V,
10
Section 1 of the Articles ("other fiscal agency"), or (iii) an official entity that
11
has been prescribed as a holder of special drawing rights pursuant to Article
12
XVII, Section 3 of the Articles.
13
14
(c)
As from the value date of the transfer, the transferred claim
15
shall be held by the transferee on the same terms and conditions as claims
16
originating under its credit arrangement (in the case of transferees that are
17
participants) or as the claim was held by the transferor (in the case of transferees
18
that are non-participants), except that (i) the transferee shall have the right to
19
request early repayment of the transferred claim on balance of payments
20
grounds pursuant to paragraph 11(e) only if the transferee is a member, or an
21
institution of a member, whose balance of payments and reserve position, at the
22
time of the transfer, is considered sufficiently strong for its currency to be
23
usable in transfers under the Fund's financial transactions plan; (ii) if the
24
transferee is a non-participant, references to the participant's currency shall be
25
deemed to refer (A) if the transferee is a member, to the transferee's currency,
26
(B) if the transferee is an institution of a member, to the currency of that
27
member, and (C) in other cases, to a freely usable currency as determined by the
28
Fund; and (iii) claims transferred in accordance with this paragraph 13 shall be
29
considered drawn balances of the first transferor participant for purposes of
30
determining the available commitment under its credit arrangement, and claims
31
obtained by a participant under a transfer shall not be considered drawn
32
balances of the transferee for purposes of determining the available commitment
33
under its credit arrangement.
34
35
(d)
The price for the claim transferred shall be as agreed between
36
the transferee and the transferor.
37
38
(e)
The transferor of a claim shall inform the Fund promptly of the
39
claim that is being transferred, the name of the transferee, the amount of the
40
Amendment of the International Monetary Agreements Act 1947 Schedule 1
International Monetary Agreements Amendment Bill (No. 1) 2010 No. , 2010 15
claim that is being transferred, the agreed price for transfer of the claim, and the
1
value date of the transfer.
2
3
(f)
The transfer shall be registered by the Fund and the transferee
4
shall become the holder of the claim if the transfer is in accordance with the
5
terms and conditions of this decision. Subject to the foregoing, the transfer shall
6
be effective as of the value date agreed between the transferee and the
7
transferor.
8
9
(g)
Notice to or by a transferee that is a non-participant shall be in
10
writing or by rapid means of communication and shall be given to or by the
11
fiscal agency designated by the transferee in accordance with Article V,
12
Section 1 of the Articles and Rule G-1 of the Rules and Regulations of the Fund
13
if the transferee is a member, or to or by the transferee directly if the transferee
14
is not a member.
15
16
(h)
If all or part of a claim is transferred during a quarterly period
17
as described in paragraph 9(b), the Fund shall pay interest to the transferee on
18
the amount of the claim transferred for the whole of that period.
19
20
(i)
Unless otherwise agreed between the Fund and a transferee that
21
is either a participating institution or the central bank or other fiscal agency
22
designated by any member for purposes of Article V, Section 1 of the Articles,
23
the Fund shall be deemed to have discharged its obligations to make repayment
24
to such transferee in special drawing rights in accordance with paragraph 11 or
25
to pay interest in special drawing rights in accordance with paragraph 9 if the
26
Fund transfers an equivalent amount in special drawing rights to the account of
27
the member in which the institution is established.
28
29
(j)
If requested, the Fund shall assist in seeking to arrange
30
transfers.
31
32
(k)
The transferee of a claim may request at the time of transfer
33
that a claim in the form of a loan be exchanged by the Fund for a Note on the
34
same substantive terms subject to the GTC, or that a claim in the form of a Note
35
be exchanged for a loan claim on the same substantive terms. (l) Derivative
36
transactions in respect of any claim under this decision, and transfer of
37
participation interests in any claim, are prohibited.
38
39
Paragraph 14. Notices
40
41
Schedule 1 Amendment of the International Monetary Agreements Act 1947
16 International Monetary Agreements Amendment Bill (No. 1) 2010 No. , 2010
Notice to or by a participating member under this decision shall be in
1
writing or by rapid means of communication and shall be given to or by the
2
fiscal agency of the participating member designated in accordance with Article
3
V, Section 1 of the Articles and Rule G-1 of the Rules and Regulations of the
4
Fund. Notice to or by a participating institution shall be in writing or by rapid
5
means of communication and shall be given to or by the participating
6
institution.
7
8
Paragraph 15. Amendment
9
10
(a)
Except as provided in paragraphs 4(b), 15(b) and 16, this
11
decision may be amended during the period prescribed in paragraph 19(a) and
12
any subsequent renewal periods that may be decided pursuant to paragraph
13
19(b) only by a decision of the Fund and with the concurrence of participants
14
representing 85 percent of total credit arrangements. Such concurrence shall not
15
be necessary for the modification of the decision on its renewal pursuant to
16
paragraph 19(b).
17
18
(b)
If in its view an amendment materially affects the interest of a
19
participant that voted against the amendment, the participant shall have the right
20
to withdraw its adherence to this decision by giving notice to the Fund and the
21
other participants within 90 days from the date the amendment was adopted.
22
This provision may be amended only with the consent of all participants.
23
24
Paragraph 16. Withdrawal of Adherence
25
26
Without prejudice to paragraph 15(b), a participant may withdraw its
27
adherence to this decision in accordance with paragraph 19(b) but may not
28
withdraw within the period prescribed in paragraph 19(a) except with the
29
agreement of the Fund and all participants. This provision may be amended
30
only with the consent of all participants.
31
32
Paragraph 17. Withdrawal from Membership
33
34
If a participating member or a member whose institution is a participant
35
withdraws from membership in the Fund, the participant's credit arrangement
36
shall cease at the same time as the withdrawal takes effect. The Fund's
37
indebtedness under the relevant credit arrangement shall be treated as an
38
amount due from the Fund for the purpose of Article XXVI, Section 3 and
39
Schedule J of the Articles.
40
41
Amendment of the International Monetary Agreements Act 1947 Schedule 1
International Monetary Agreements Amendment Bill (No. 1) 2010 No. , 2010 17
Paragraph 18. Suspension of Exchange Transactions and Liquidation
1
2
(a)
The right of the Fund to make calls under paragraphs 6, 11(e),
3
and 23 and the obligation to make repayments under paragraph 11 shall be
4
suspended during any suspension of exchange transactions under Article XXVII
5
of the Articles.
6
7
(b)
In the event of liquidation of the Fund, credit arrangements
8
shall cease and the Fund's indebtedness shall constitute liabilities under
9
Schedule K of the Articles. For the purpose of paragraph 1(a) of Schedule K,
10
the currency in which the liability of the Fund shall be payable shall be first the
11
currency borrowed, then the participant's currency and finally the currency of
12
the drawer for whose purchases transfers were made by the participants in
13
connection with calls under paragraph 6.
14
15
Paragraph 19. Period and Renewal
16
17
(a)
This decision shall continue in existence until November 16,
18
2012. When considering a renewal of this decision for any period following the
19
period referred to in this paragraph 19(a), the Fund and the participants shall
20
review the functioning of this decision and, in particular, (i) the experience with
21
the procedures for activation and (ii) the impact of the Fourteenth General
22
Review of Quotas on the overall size of quotas, and shall consult on any
23
possible modifications.
24
25
(b)
This decision may be renewed for such period or periods and
26
with such modifications, subject to paragraphs 4(b), 15(b) and 16, as the Fund
27
may decide. The Fund shall adopt a decision on renewal and modification, if
28
any, not later than twelve months before the end of the period prescribed in
29
paragraph 19(a). Any participant may advise the Fund not less than six months
30
before the end of the period prescribed in paragraph 19(a) that it will withdraw
31
its adherence to the decision as renewed. In the absence of such notice, a
32
participant shall be deemed to continue to adhere to the decision as renewed.
33
Withdrawal of adherence in accordance with this paragraph 19(b) by a
34
participant shall not preclude its subsequent adherence in accordance with
35
paragraph 3(b).
36
37
(c)
If this decision is terminated or not renewed, paragraphs 8
38
through 14, 17 and 18(b) shall nevertheless continue to apply in connection with
39
any indebtedness of the Fund under credit arrangements in existence at the date
40
of the termination or expiration of the decision until repayment is completed. If
41
Schedule 1 Amendment of the International Monetary Agreements Act 1947
18 International Monetary Agreements Amendment Bill (No. 1) 2010 No. , 2010
a participant withdraws its adherence to this decision in accordance with
1
paragraph 15(b), paragraph 16, or paragraph 19(b), it shall cease to be a
2
participant under the decision, but paragraphs 8 through 14, 17 and 18(b) of the
3
decision as of the date of the withdrawal shall nevertheless continue to apply to
4
any indebtedness of the Fund under such former credit arrangement until
5
repayment has been completed.
6
7
Paragraph 20. Interpretation
8
9
Any question of interpretation raised in connection with this decision
10
(including the GTC) which does not fall within the purview of Article XXIX of
11
the Articles shall be settled to the mutual satisfaction of the Fund, the
12
participant or transferee of a claim raising the question, and all other
13
participants. For the purpose of this paragraph 20 participants shall be deemed
14
to include those former participants to which paragraphs 8 through 14, 17 and
15
18(b) continue to apply pursuant to paragraph 19(c) to the extent that any such
16
former participant is affected by a question of interpretation that is raised.
17
18
Paragraph 21. Relationship with the General Arrangements to Borrow and
19
Associated Borrowing Arrangements
20
21
(a)
When considering whether to activate the New Arrangements
22
to Borrow or the General Arrangements to Borrow, the Fund shall be guided by
23
the principle that the New Arrangements to Borrow shall be the facility of first
24
and principal recourse, except that in the event that a proposal for the
25
establishment of an activation period under the New Arrangements to Borrow is
26
not accepted under paragraph 5(a), a proposal for calls may be made under the
27
General Arrangements to Borrow.
28
29
(b)
Outstanding drawings and available commitments under the
30
New Arrangements to Borrow and the General Arrangements to Borrow shall
31
not exceed SDR 367,467.36 million, or such other amount of total credit
32
arrangements as may be in effect in accordance with this decision. The available
33
commitment of a participant under the New Arrangements to Borrow shall be
34
reduced pro tanto by any outstanding drawings on, and commitments of, the
35
participant under the General Arrangements to Borrow. The available
36
commitment of a participant under the General Arrangements to Borrow shall
37
be reduced pro tanto by the extent to which its credit arrangement under the
38
General Arrangements to Borrow exceeds its available commitment under the
39
New Arrangements to Borrow.
40
41
Amendment of the International Monetary Agreements Act 1947 Schedule 1
International Monetary Agreements Amendment Bill (No. 1) 2010 No. , 2010 19
(c)
References to drawings and commitments under the General
1
Arrangements to Borrow shall include drawings and commitments under the
2
Associated Borrowing Arrangements referred to in paragraph 23 of the General
3
Arrangements to Borrow.
4
5
Paragraph 22. Other Borrowing Arrangements
6
7
Nothing in this decision shall preclude the Fund from entering into any
8
other types of borrowing arrangements.
9
10
Paragraph 23. Transitional Arrangements for Amendments Adopted Pursuant to
11
Decision No. 14577-(10/35), adopted on April 12, 2010
12
13
At the request of a participant that holds claims, either in the form of loans or
14
notes, on the Fund under bilateral borrowing agreements entered into by the
15
Fund prior to the effectiveness of the amendments to this decision set forth in
16
Decision No. 14577-(10/35), adopted on April 12, 2010, the Managing Director
17
shall make calls under the credit arrangement of such a participant to fund the
18
repayment of such claims. Similarly, at the request of the relevant participant,
19
calls shall be made on a participant that is a participating institution for the
20
repayment of such claims held by the member of which it is an official
21
institution or by the central bank or other fiscal agency designated by the
22
member, or on a participant that is a member for the repayment of such claims
23
held by the central bank or other fiscal agency designated by the member.
24
Notwithstanding paragraph 11(a), the maturity date of claims under credit
25
arrangements arising from such calls shall be the maturity date of the bilateral
26
borrowing agreement claim for whose repayment the call was made.
27
28
Paragraph 24. Delay in Drawings
29
30
No drawings shall be made under this decision until participants
31
representing at least 70 percent of the total credit arrangements of new
32
participants listed in Annex I have adhered to this decision in accordance with
33
paragraph 3(c).
34
35
Schedule 1 Amendment of the International Monetary Agreements Act 1947
20 International Monetary Agreements Amendment Bill (No. 1) 2010 No. , 2010
Annex I
1
Participants and Amount of Credit Arrangements 1/
(in Millions of Special Drawing Rights)
Current Credit
Arrangements
New Credit
Arrangements
Current Participants
Australia 801.29
4,370.41
Austria 407.57
3,579.24
Banco Central de Chile
340.00
1,360.00
Belgium 956.60
7,861.85
Canada 1,380.99
7,624.43
Danmarks Nationalbank
367.01
3,207.78
Deutsche Bundesbank
3,518.75
25,370.81
Finland
340.00 2,231.76
France
2,549.29 18,657.38
Hong Kong Monetary Authority
340.00 340.00
Italy
1,752.95 13,578.03
Japan
3,518.75 65,953.20
Korea
340.00 6,583.44
Kuwait
341.29 341.29
Luxembourg
340.00 970.59
Malaysia
340.00 340.00
Netherlands
1,301.85 9,043.72
Norway
378.88
3,870.94
Saudi Arabia
1,760.86 11,126.03
Singapore
340.00 1,276.52
Spain
664.77 6,702.18
Sveriges Riksbank
849.76 4,439.74
Swiss National Bank
1,540.26 10,905.42
Thailand
340.00
340.00
United Kingdom
2,549.29 18,657.38
United States
6,639.83 69,074.27
New Participants
Bank of Israel
500.00
Brazil
8,740.82
China
31,217.22
Cyprus
340.00
Greece
1,654.51
India
8,740.82
Ireland
1,885.52
Amendment of the International Monetary Agreements Act 1947 Schedule 1
International Monetary Agreements Amendment Bill (No. 1) 2010 No. , 2010 21
Mexico
4,994.76
New Zealand
624.34
Philippines
340.00
Portugal
1,542.13
Russian Federation
8,740.82
South Africa
340.00
Total
367,467.36
1/ Credit arrangements are subject to a minimum of SDR 340 million.
1
Annex II
2
General Terms and Conditions for Notes Issued by the International
3
Monetary Fund under the New Arrangements to Borrow (the "NAB")
4
5
These are the General Terms and Conditions for the promissory notes (the
6
"Notes") issued by the International Monetary Fund (the "Fund") in accordance
7
with paragraphs 8 and 13(k) of Executive Board Decision No. 11428-(97/6),
8
January 27, 1997, on the New Arrangements to Borrow (the "NAB Decision"),
9
as amended. Terms that are not otherwise defined in these General Terms and
10
Conditions shall have the meaning ascribed to them in the NAB Decision.
11
12
Paragraph 1. Issuance of Notes to Participants and Other Holders.
13
14
(a)
At the request of a participant pursuant to paragraph 8(a) of the
15
NAB Decision the Fund will issue to the participant, and the participant shall
16
purchase, Notes in the amount requested, up to the amount of the Fund's call on
17
the participant under its credit arrangement. At the request of the transferee of a
18
loan claim, the Fund will issue Notes to the transferee in exchange for the loan
19
claim pursuant to paragraph 13(k) of the NAB Decision.
20
21
(b)
Notes shall be denominated in the special drawing right.
22
23
Paragraph 2. Form, Delivery and Custody of Notes.
24
25
(a)
Notes will be issued in book entry form. The Fund will
26
establish and maintain in its records a book entry account in the name of each
27
holder recording pertinent details of all Notes issued, including the number,
28
issue date, principal amount, and maturity date. As of the value date of each
29
purchase, or of each exchange or transfer of a Note in accordance with
30
paragraph 13 of the NAB Decision, the Fund will make an appropriate entry in
31
its records regarding details of the Note purchased or transferred. The making of
32
such an entry in the records of the Fund shall constitute a taking of delivery of
33
Schedule 1 Amendment of the International Monetary Agreements Act 1947
22 International Monetary Agreements Amendment Bill (No. 1) 2010 No. , 2010
the Note by the purchaser or transferee, and the person so listed with respect to
1
such Note shall be the holder thereof for all purposes.
2
3
(b)
Upon the request of a holder, the Fund will issue to the holder a
4
registered Note substantially in the form set out in the Appendix to these
5
General Terms and Conditions, including without limitation the legend
6
regarding restrictions on transfer of Notes. Each such registered Note will bear
7
as its issue date the value date of the purchase of the Note or the value date of
8
the loan claim for which it was exchanged pursuant to paragraph 13(k) of the
9
NAB Decision and shall be issued in the name of the relevant holder. Unless
10
otherwise agreed between a holder and the Fund, the Fund will keep such
11
registered Notes in custody for the holder, and acceptance of custody by the
12
Fund shall constitute delivery of such registered Notes to the holder.
13
14
Paragraph 3. Interest.
15
16
(a)
The Fund shall pay interest on Notes at a rate equal to the
17
combined market interest rate computed by the Fund from time to time for the
18
purpose of determining the rate at which it pays interest on holdings of special
19
drawing rights or any such higher rate as may be agreed between the Fund and
20
participants representing 85 percent of the total credit arrangements under the
21
NAB Decision.
22
23
(b)
Interest shall accrue daily and shall be paid as soon as possible
24
after each July 31, October 31, January 31, and April 30. (c) Interest due to a
25
holder shall be paid, as determined by the Fund in consultation with the holder,
26
in special drawing rights, in the holder's currency if the holder is a member, in
27
the currency borrowed, in freely usable currencies, or, with the agreement of the
28
holder, in other currencies that are actually convertible.
29
30
Paragraph 4. Maturity; Repayment by the Fund.
31
32
(a)
Notes have a maturity of five years, provided that a Note issued
33
pursuant to paragraph 13(k) of the NAB Decision shall have the maturity of the
34
loan claim for which it was exchanged. Repayment of the Note principal to a
35
holder is made in accordance with paragraph 11 of the NAB Decision.
36
37
(b)
Unless otherwise agreed between the Fund and a holder that is
38
either a participating institution or the central bank or other fiscal agency
39
designated by a member for purposes of Article V, Section 1 of the Articles, the
40
Fund shall be deemed to have discharged its obligations to such holder to make
41
Amendment of the International Monetary Agreements Act 1947 Schedule 1
International Monetary Agreements Amendment Bill (No. 1) 2010 No. , 2010 23
repayment in special drawing rights in accordance with paragraph 11 of the
1
NAB Decision or to pay interest in special drawing rights in accordance with
2
paragraph 3 of these General Terms and Conditions, if the Fund transfers an
3
equivalent amount in special drawing rights to the account of the member in
4
which the institution is established.
5
6
(c)
The Fund will cancel a Note (i) upon payment of the principal
7
amount of the Note and all accrued interest, (ii) if a Note is transferred in
8
accordance with paragraph 6 of these General Terms and Conditions, or (iii) if a
9
Note is exchanged for a loan claim in accordance with paragraph 13(k) of the
10
NAB Decision. If the Fund makes early payment of less than the principal
11
amount of a Note, the Fund will cancel the Note and issue a new Note for the
12
remainder of the amount.
13
14
(d)
Any registered Note to be cancelled by the Fund that is not
15
already in the custody of the Fund shall be surrendered by the holder to the
16
Fund for cancellation.
17
18
Paragraph 5. Rates of Exchange.
19
20
For all of the purposes of these General Terms and Conditions, the
21
value of a currency in terms of the special drawing right shall be calculated by
22
the Fund in accordance with Rule O-2 of the Fund's Rules and Regulations.
23
24
Paragraph 6. Transferability of Notes.
25
26
(a)
A holder may not transfer all or any part of its Notes except (i)
27
in accordance with this paragraph 6 or (ii) with the prior consent of the Fund
28
and on such terms and conditions as the Fund may approve. Any other
29
purported transfer by a participant or other holder shall be of no force or effect.
30
31
(b)
All or part of any Note may be transferred at any time to a
32
participant or to a non-participant that is either (i) a member of the Fund, (ii) the
33
central bank or other fiscal agency designated by any member for purposes of
34
Article V, Section 1 of the Articles ("other fiscal agency"), or (iii) an official
35
entity that has been prescribed as a holder of special drawing rights pursuant to
36
Article XVII, Section 3 of the Articles.
37
38
(c)
As from the value date of the transfer, the Note shall be held by
39
the transferee on the same terms and conditions as Notes originating under its
40
credit arrangement (in the case of transferees that are participants in the NAB),
41
Schedule 1 Amendment of the International Monetary Agreements Act 1947
24 International Monetary Agreements Amendment Bill (No. 1) 2010 No. , 2010
or as the Note was held by the transferor (in the case of transferees that are
1
non-participants in the NAB), except that (i) the transferee shall have the right
2
to request early repayment of the transferred Note on balance of payments
3
grounds pursuant to paragraph 11(e) of the NAB Decision only if the transferee
4
is a member, or the institution of a member, whose balance of payment and
5
reserve position, at the time of the transfer, is considered sufficiently strong for
6
its currency to be usable in transfers under the Fund's financial transactions
7
plan, or, in the case of the HKMA, the balance of payments position of Hong
8
Kong at the time of the transfer is, in the opinion of the Fund, sufficiently strong
9
to justify such a right; (ii) if the transferee is a non-participant, references in
10
paragraph 11 of the NAB Decision to the participant's currency shall be deemed
11
to refer (A) if the transferee is a member, to the transferee's currency, (B) if the
12
transferee is an institution of a member, to the currency of that member, and (C)
13
in other cases, to a freely usable currency as determined by the Fund; and (iii)
14
Notes transferred in accordance with this paragraph 6 shall be considered drawn
15
balances of the first transferor participant for purposes of determining the
16
available commitment under its credit arrangement, and Notes obtained by a
17
transferee participant shall not be considered drawn balances of such participant
18
for purposes of determining the available commitment under its credit
19
arrangement.
20
21
(d)
The price for the Note transferred shall be as agreed between
22
the transferee and the transferor.
23
24
(e)
The transferor of a Note shall inform the Fund promptly of the
25
Note that is being transferred, the name of the transferee, the amount of the
26
Note that is being transferred, the agreed price for transfer of the Note, and the
27
value date of the transfer.
28
(f)
The transfer shall be registered by the Fund and the transferee
29
shall become the holder of the Note only if such transfer is in accordance with
30
the terms and conditions of the NAB Decision and these General Terms and
31
Conditions. Subject to the foregoing, upon registration, the transfer shall be
32
effective as of the value date agreed between the transferee and the transferor.
33
34
(g)
The transferee of a Note may request at the time of transfer that
35
the Note be exchanged by the Fund for a loan claim pursuant to paragraph 13(k)
36
of the NAB Decision to be held by the transferee on the same substantive terms
37
as the transferred Note.
38
39
(h)
Notice to or by a transferee that is a non-participant shall be in
40
writing or by rapid means of communication and shall be given to or by the
41
Amendment of the International Monetary Agreements Act 1947 Schedule 1
International Monetary Agreements Amendment Bill (No. 1) 2010 No. , 2010 25
fiscal agency designated by the transferee in accordance with Article V,
1
Section 1 of the Articles and Rule G-1 of the Rules and Regulations of the Fund
2
if the transferee is a member, or to or by the transferee itself if the transferee is
3
not a member.
4
5
(i)
If all or part of a Note is transferred during a quarterly period as
6
described in paragraph 3(b) of these General Terms and Conditions, the Fund
7
shall pay interest to the transferee holder on the relevant interest payment date
8
on the amount of the Note transferred for the whole of that period.
9
10
(j)
If requested, the Fund shall assist in seeking to arrange
11
transfers.
12
13
(k)
For all transfers under this paragraph 6, the Fund will cancel the
14
Note that has been transferred in whole or in part and, if the Note is a registered
15
Note, the transferor shall, as a condition for the transfer, surrender for
16
cancellation any such registered Note that is not already in the custody of the
17
Fund. Upon cancellation of the relevant Note, the Fund will issue a new Note in
18
the name of the transferee for the principal amount transferred and, where
19
appropriate, a new Note in the name of the transferor for any part of the
20
principal amount retained by it. The issue date of each new Note will be the
21
issue date of the cancelled Note, and the new Note will have the same maturity
22
date (including any maturity date resulting from extensions of a previous
23
maturity date) that is applicable to the cancelled Note. The form and delivery of
24
each new Note will be as specified in paragraph 2 of these General Terms and
25
Conditions.
26
27
(l)
Derivative transactions in respect of any Note, and transfers of
28
participation interests in any Note, are prohibited.
29
30
Paragraph 7. Notices
31
32
Notice to or by a holder who is a participating member shall be in
33
writing or by rapid means of communication and shall be given to or by the
34
fiscal agency of the participating member designated in accordance with Article
35
V, Section 1 of the Articles and Rule G-1 of the Rules and Regulations of the
36
Fund. Notice to or by a holder who is a participating institution shall be in
37
writing or by rapid means of communication and shall be given to or by the
38
participating institution.
39
40
Paragraph 8. Interpretation.
41
Schedule 1 Amendment of the International Monetary Agreements Act 1947
26 International Monetary Agreements Amendment Bill (No. 1) 2010 No. , 2010
1
Any question of interpretation raised in connection with any Note
2
which does not fall within the purview of Article XXIX of the Articles shall be
3
settled to the mutual satisfaction of the Fund, the holder raising the question,
4
and all participants in the NAB. For the purpose of this paragraph 8, holder shall
5
be deemed to include those former participants in the NAB to which paragraphs
6
8 through 14, 17 and 18(b) of the NAB Decision continue to apply pursuant to
7
paragraph 19(c) of the NAB Decision to the extent that any such former
8
participant is affected by a question of interpretation that is raised.
9
10
Paragraph 9. NAB Decision and Changes in the GTC
11
12
Notes subject to these General Terms and Conditions, and any claims
13
thereunder or with respect thereto, are subject to the terms and conditions of the
14
NAB Decision as in effect from time to time. Any amendments to these General
15
Terms and Conditions adopted in accordance with paragraph 8(a) of the NAB
16
Decision shall apply to all outstanding Notes issued under the NAB Decision.
17
18
Amendment of the International Monetary Agreements Act 1947 Schedule 1
International Monetary Agreements Amendment Bill (No. 1) 2010 No. , 2010 27
Annex II, Appendix
1
Form of Registered NAB Note
2
3
Number _______________ SDR ____________________
4
5
INTERNATIONAL MONETARY FUND
6
7
REGISTERED NAB NOTE
8
9
Issue Date: _______________
10
Maturity Date:
11
12
The INTERNATIONAL MONETARY FUND ("the Fund"), for value
13
received, hereby promises to pay to _________________________________,
14
being the registered holder of this Note, an amount equivalent to
15
16
______________________ Special Drawing Rights (SDR ________________)
17
18
on the maturity date specified above and to pay interest thereon as set forth
19
below.
20
21
This Note is issued in accordance with the New Arrangements to
22
Borrow (the "NAB") and the General Terms and Conditions for Notes Issued by
23
the International Monetary Fund under the New Arrangements to Borrow (the
24
"General Terms and Conditions"). Each holder of this Note is deemed to have
25
agreed to the General Terms and Conditions and relevant terms of the NAB, as
26
they may be amended in accordance with the NAB Decision, including without
27
limitation the maturity date, the interest rate, the terms and conditions of early
28
payment at the request of the Fund or the holder hereof, and the terms and
29
conditions of transfer of this Note or any part thereof.
30
31
THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES
32
LAWS OF ANY JURISDICTION.
33
34
IN NO EVENT SHALL ANY HOLDER OF THIS NOTE SELL, ASSIGN,
35
DISPOSE OF OR OTHERWISE TRANSFER THIS NOTE, DIRECTLY OR
36
INDIRECTLY, TO ANY ENTITY THAT IS NOT (I) A MEMBER OF THE
37
FUND, (II) THE CENTRAL BANK OR OTHER FISCAL AGENCY
38
DESIGNATED BY A MEMBER OF THE FUND FOR PURPOSES OF
39
ARTICLE V, SECTION 1 OF THE FUND'S ARTICLES OF AGREEMENT,
40
(III) AN OFFICIAL ENTITY THAT HAS BEEN PRESCRIBED AS A
41
Schedule 1 Amendment of the International Monetary Agreements Act 1947
28 International Monetary Agreements Amendment Bill (No. 1) 2010 No. , 2010
HOLDER OF SPECIAL DRAWING RIGHTS PURSUANT TO ARTICLE
1
XVII, SECTION 3 OF THE FUND'S ARTICLES OF AGREEMENT, OR (IV)
2
AN ENTITY IN RESPECT OF WHICH THE FUND HAS CONSENTED IN
3
WRITING TO THE TRANSFER PURSUANT TO PARAGRAPH 6(A) OF
4
THE GENERAL TERMS AND CONDITIONS.
5
6
ANY DERIVATIVE TRANSACTIONS IN RESPECT OF THIS NOTE, AND
7
TRANSFERS OF PARTICIPATION INTERESTS IN THIS NOTE, ARE
8
PROHIBITED.
9
10
The Fund shall pay interest on this Note at a rate equal to the combined
11
market interest rate computed by the Fund from time to time for the purpose of
12
determining the rate at which it pays interest on holdings of special drawing
13
rights or any such higher rate as may be agreed between the Fund and
14
participants representing 85 percent of the total credit arrangements under the
15
NAB. Interest shall accrue daily and shall be paid as soon as possible after each
16
July 31, October 31, January 31, and April 30. Interest due to a holder shall be
17
paid, as determined by the Fund in consultation with the holder, in special
18
drawing rights, in the holder's currency if the holder is a member, in the
19
currency borrowed, or in other currencies that are actually convertible.
20
21
22
[Signatures]
23

 


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