A.—B

(c) The payment for shares repurchased by the Bank under this section shall lie 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 resulting from its subscription for shares under Article 11, Section 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 bo 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 lias received the full repurchase price: (iii) Payments shall be made in the currency of the country receiving payment or at the option of the Bank in gold: (iv) If losses are sustained by the Bank on any guarantees, participations 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 ceased to be a member, such Government shall lie obligated to repay upon demand the amount by which the repurchase price of its shares would have been reduced, if the losses had been taken into account when the repurchase price was determined. In addition, the former member Government shall, remain liable on any call for unpaid subscriptions under Article 11, Section 5 (ii), to the extent that it would have been required to respond if the impairment of capital had occurred and the call had been made at the time the repurchase price of its shares was determined. (d) If the Bank suspends permanently its operations under Section 5 (&) of this Article, within six months of the date upon which any Government ceases to be a member, all rights of such Government shall be determined by the provisions of Section 5 of this Article. Sections.—Suspension of Operations and Settlement of Obligations (a) In an emergency the Executive Directors may suspend temporarily operations in respect of new loans and guarantees pending an opportunity for further consideration and action by the Board of Governors. (b) The Bank may suspend permanently its operations in respect of new loans and guarantees by vote of a majority of the Governors, exercising a majority of the total voting-power. After such suspension of operations the Bank shall forthwith cease all activities, except those incident to the orderly realization, conservation, and preservation of its assets and settlement of its obligations. (c) The liability of all members for uncalled subscriptions to the capital stock of the Bank and in respect of the depreciation of their own currencies shall continue until all claims of creditors, including all contingent claims, shall have been discharged. (d) All creditors holding direct claims shall be paid out of the assets of the Bank, and then out of payments to the Bank on calls on unpaid subscriptions. Before making any payments to creditors holding direct claims, the Executive Directors shall make such arrangements as are necessary, in their judgment, to insure a distribution to holders of contingent claims ratably with creditors holding direct claims, (e) No distribution shall be made to members on account of their subscriptions to the capital stock of the Bank until— (i) All liabilities to creditors have been discharged or provided for; and (ii) A majority of the Governors, exercising a majority of the total voting-power, have decided to make a distribution. (/) After a decision to make a distribution has been taken under (e) above, the Executive Directors may by a two-thirds majority vote make successive distributions of the assets of the Bank to members until all of the assets have been distributed. This distribution shall be subject to the prior settlement of all outstanding claims of the Bank against each member. (d) Before any distribution of assets is made, the Executive Directors shall fix the proportionate share of each member according to the ratio of its shareholding to the total outstanding shares of the Bank. (h) The Executive Directors shall _ value the assets to be distributed as at the date of distribution and then proceed to distribute in the following manner:— (i) There shall be paid to each member in its own obligations or those of its official agencies or legal entities within its territories, in so far as they are available for distribution, an amount equivalent in value to its proportionate share of the total amount to be distributed:

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