Page:United States Statutes at Large Volume 60 Part 2.djvu/367

 60 STAT.] MULTILATERAL-INTERNATIONAL BANK-DEC. 27, 1945 While under suspension, a member shall not be entitled to exercise any rights under this Agreement, except the right of withdrawal, but shall remain subject to all obligations. Section 3. Cessation of membership in InternationalMonetary Fund Any member which ceases to be a member of the International Mon- etary Fund shall automatically cease after three months to be a member of the Bank unless the Bank by three-fourths of the total voting power has agreed to allow it to remain a member. Section 4. Settlement of accounts with governments ceasing to be members (a) When a government ceases to be a member, it shall remain liable for its direct obligations to the Bank and for its contingent liabilities to the Bank so long as any part of the loans or guarantees contracted before it ceased to be a member are outstanding; but it shall cease to incur liabilities with respect to loans and guarantees entered into thereafter by the Bank and to share either in the income or the ex- penses of the Bank. (b) At the time a government ceases to be a member, the Bank shall arrange for the repurchase of its shares as a part of the settlement of accounts with such government in accordance with the provisions of (c) and (d) below. For this purpose the repurchase price of the shares shall be the value shown by the books of the Bank on the day the government ceases to be a member. (c) The payment for shares repurchased by the Bank under this section shall be governed by the following conditions: (i) Any amount due to the government for its shares shall be withheld so long as the government, its central bank or any of its agencies remains liable, as borrower or guarantor, to the Bank and such amount may, at the option of the Bank, be applied on any such liability as it matures. No amount shall be withheld on account of the liability of the government re- sulting from its subscription for shares under Article II, Sec- tion 5 (ii). In any event, no amount due to a member for its shares shall be paid until six months after the date upon which the government ceases to be a member. (ii) Payments for shares may be made from time to time, upon their surrender by the government, to the extent by which the amount due as the repurchase price in (b) above exceeds the aggregate of liabilities on loans and guarantees in (c) (i) above until the former member has received the full repur- chase price. (iii) Payments shall be made in the currency of the country receiv- ing payment or at the option of the Bank in gold. (iv) If losses are sustained by the Bank on any guarantees, par- ticipations in loans, or loans which were outstanding on the date when the government ceased to be a member, and the amount of such losses exceeds the amount of the reserve provided against losses on the date when the government 80634o-48-PT. i --23 1455 Repurohase of shares by Bank. Conditions. Ante, p. 1442.

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