What Is The Article Of Agreement

The existence of agreements does not necessarily mean that the transaction has been completed! This agreement is based on Article VII, Section 1, paragraph 1, of the Fund`s statutes, which authorizes the Fund to borrow from Fund members or other sources if it believes that such measures are appropriate to replenish its holdings in a member`s currency on the General Resources Account (ARG). In addition to the obligations arising from other provisions of this agreement, each member assumes the obligations under this article. After the expiry of the deadline, the Fund pays interest on all remaining balances of the special drawing rights held by a terminating participant, and the terminating member pays a fee for all remaining commitments due to the Fund at the hours and rates prescribed in Article XX. Payment is made in special drawing rights. A resilient participant is authorized to obtain special drawing rights with a freely usable currency to pay fees or investments in a transaction with a designated participant by the Fund or in agreement with another holder, or to hold special drawing rights that he or she received as an interest in a transaction with a designated participant pursuant to Article XIX , Section 5 or in agreement with another holder. Notwithstanding the provisions of other articles of this agreement, a member who informed the Fund that he was considering the use of transitional provisions under this provision may maintain restrictions on payments and transfers of ongoing international transactions as of the date of entry into the agreement and adapt to changing circumstances. However, in their exchange rate policy, members are constantly attentive to the Fund`s objectives and, as soon as conditions permit, they take all possible steps to develop trade and financial agreements with other members facilitating international payments and promoting a stable exchange rate system. In particular, members remove the restrictions in this section as soon as they are satisfied that, in the absence of such restrictions, they will be able to pay their balance of payments in a manner that does not place undue pressure on their access to the Fund`s general resources. Statutes are a company`s fouding document. They contain, among other things, the company`s main purpose and powers, members` voting rights and restrictions. It is similar to incoptrporation articles, but it is used more often to refer to the founding document of a non-profit organization. 4.

Where the Fund`s holdings in the currency of an outgoing member are greater than the amount owed to it and no agreement is reached on the accounting method within six months of the date of withdrawal, the former member is required to repay the excess currency in a freely usable currency. The repayment is made at the rates at which the Fund would sell these currencies at the time of the Fund`s exit. The outgoing member is required to complete the withdrawal within five years of the date of revocation or a longer period set by the Fund, but is not required to repay more than one-tenth of the Fund`s excess assets on its currency at the time of exit, plus other purchases of the currency during that semester , over a period of one semester. If the member who retires does not fulfil this obligation, the fund may, in each market, liquidate in an orderly manner the amount of money that should have been repaid. 2. If the commitment that remains at the Fund`s expense after the imposition under Article XXIV, Section 2, Point b), and no agreement is reached within six months of the closing date, the terminating member commits to it within three years of the end or within the longer period set by the Fund.