AGREEMENT ESTABLISHING THE AFRICAN DEVELOPMENT FUND

THE STATES PARTIES TO THIS AGREEMENT AND THE AFRICAN DEVELOPMENT BANK HAVE AGREED TO ESTABLISH HEREBY THE AFRICAN DEVELOPMENT FUND WHICH SHALL BE GOVERNED BY THE FOLLOWING PROVISIONS:

CHAPTER I DEFINITIONS

ARTICLE 1.

1.  THE FOLLOWING TERMS WHEREVER USED IN THIS AGREEMENT SHALL HAVE THE FOLLOWING MEANINGS, UNLESS THE CONTEXT SHALL OTHERWISE SPECIFY OR REQUIRE:

"FUND" SHALL MEAN THE AFRICAN DEVELOPMENT FUND ESTABLISHED BY THIS AGREEMENT.

"BANK" SHALL MEAN THE AFRICAN DEVELOPMENT BANK.

"MEMBER" SHALL MEAN A MEMBER OF THE BANK.

"PARTICIPANT" SHALL MEAN THE BANK AND ANY STATE WHICH SHALL BECOME A PARTY TO THIS AGREEMENT.

"STATE PARTICIPANT" SHALL MEAN A PARTICIPANT OTHER THAN THE BANK.

"ORIGINAL PARTICIPANT" SHALL MEAN THE BANK AND EACH STATE PARTICIPANT WHICH BECOMES A PARTICIPANT PURSUANT TO ARTICLE 57 (1).

"SUBSCRIPTION" SHALL MEAN AMOUNTS SUBSCRIBED BY PARTICIPANTS PURSUANT TO ARTICLES 5, 6 OR 7.

"UNIT OF ACCOUNT" SHALL MEAN A UNIT OF ACCOUNT HAVING A VALUE OF 0.81851265 GRAMME OF FINE GOLD.

"FREELY CONVERTIBLE CURRENCY" SHALL MEAN CURRENCY OF A PARTICIPANT WHICH THE FUND DETERMINES, AFTER CONSULTATION WITH THE INTERNATIONAL MONETARY FUND, IS ADEQUATELY CONVERTIBLE INTO OTHER CURRENCIES FOR THE PURPOSE OF THE FUND'S OPERATIONS.

"PRESIDENT", "BOARD OF GOVERNORS" AND "BOARD OF DIRECTORS" SHALL MEAN RESPECTIVELY THE PRESIDENT, BOARD OF GOVERNORS AND BOARD OF DIRECTORS OF THE FUND AND IN THE CASE OF THE GOVERNORS AND DIRECTORS SHALL INCLUDE ALTERNATE GOVERNORS AND ALTERNATE DIRECTORS WHEN ACTING AS GOVERNORS AND DIRECTORS RESPECTIVELY.

"REGIONAL" SHALL MEAN LOCATED IN THE CONTINENT OF AFRICA OR THE AFRICAN ISLANDS.

2.  REFERENCE TO CHAPTERS, ARTICLES, PARAGRAPHS AND SCHEDULES SHALL MEAN THE CHAPTERS, ARTICLES AND PARAGRAPHS OF, OR SCHEDULES TO, THIS AGREEMENT.

3.  THE HEADINGS OF THE CHAPTERS AND ARTICLES ARE INSERTED FOR CONVENIENCE OF REFERENCE ONLY AND ARE NOT PART OF THIS AGREEMENT.

CHAPTER II PURPOSE AND PARTICIPATION

ARTICLE 2.  PURPOSE

THE PURPOSE OF THE FUND SHALL BE TO ASSIST THE BANK IN MAKING AN INCREASINGLY EFFECTIVE CONTRIBUTION TO THE ECONOMIC AND SOCIAL DEVELOPMENT OF THE BANK'S MEMBERS AND TO THE PROMOTION OF CO-OPERATION (INCLUDING REGIONAL AND SUB-REGIONAL CO-OPERATION) AND INCREASED INTERNATIONAL TRADE, PARTICULARLY AMONG SUCH MEMBERS.  IT SHALL PROVIDE FINANCE ON CONCESSIONAL TERMS FOR PURPOSES WHICH ARE OF PRIMARY IMPORTANCE FOR AND SERVE SUCH DEVELOPMENT.

ARTICLE 3.  PARTICIPATION

1.  THE PARTICIPANTS IN THE FUND SHALL BE THE BANK AND THOSE STATES WHICH SHALL HAVE BECOME PARTIES TO THIS AGREEMENT IN ACCORDANCE WITH ITS TERMS.

2.  THE ORIGINAL STATE PARTICIPANTS SHALL BE THOSE STATES LISTED IN SCHEDULE A WHICH SHALL HAVE BECOME PARTIES TO THIS AGREEMENT PURSUANT TO ARTICLE 57 (1).

3.  A STATE WHICH IS NOT AN ORIGINAL PARTICIPANT MAY BECOME A PARTICIPANT AND A PARTY TO THIS AGREEMENT UPON SUCH TERMS, NOT INCONSISTENT WITH THIS AGREEMENT, AS THE BOARD OF GOVERNORS SHALL DETERMINE BY A UNANIMOUS RESOLUTION ADOPTED BY THE AFFIRMATIVE VOTE OF THE TOTAL VOTING POWER OF THE PARTICIPANTS.  SUCH PARTICIPATION SHALL BE OPEN ONLY TO THOSE STATES WHICH ARE MEMBERS OF THE UNITED NATIONS OR ANY OF ITS SPECIALIZED AGENCIES OR ARE PARTIES TO THE STATUTE OF THE INTERNATIONAL COURT OF JUSTICE.

4.  A STATE MAY AUTHORIZE AN ENTITY OR AGENCY ACTING ON ITS BEHALF TO SIGN THIS AGREEMENT AND TO REPRESENT IT IN ALL MATTERS RELATING TO THIS AGREEMENT WITH THE EXCEPTION OF THE MATTERS REFERRED TO IN ARTICLE 55.

CHAPTER III RESOURCES

ARTICLE 4.  RESOURCES

THE RESOURCES OF THE FUND SHALL CONSIST OF:

(I) SUBSCRIPTIONS BY THE BANK;

(II) SUBSCRIPTIONS BY STATE PARTICIPANTS;

(III) OTHER RESOURCES RECEIVED BY THE FUND; AND

(IV) FUNDS DERIVED FROM OPERATIONS OR OTHERWISE ACCRUING TO THE FUND.

ARTICLE 5.  SUBSCRIPTIONS BY THE BANK

THE BANK SHALL PAY TO THE FUND AS ITS INITIAL SUBSCRIPTION THE AMOUNT, EXPRESSED IN UNITS OF ACCOUNT, SET FORTH OPPOSITE ITS NAME IN SCHEDULE A, UTILIZING FOR THAT PURPOSE THE FUNDS STANDING TO THE CREDIT OF THE "AFRICAN DEVELOPMENT FUND" OF THE BANK.  PAYMENT SHALL BE MADE ON THE SAME TERMS AND CONDITIONS AS ARE SPECIFIED IN ARTICLE 6 (2) FOR THE PAYMENT OF THE INITIAL SUBSCRIPTION OF STATE PARTICIPANTS.  THE BANK WILL THEREAFTER SUBSCRIBE SUCH OTHER AMOUNTS AS THE BOARD OF GOVERNORS OF THE BANK MAY METERMINE, ON SUCH TERMS AND CONDITIONS AS SHALL BE AGREED WITH THE FUND.

ARTICLE 6.  INITIAL SUBSCRIPTIONS OF STATE PARTICIPANTS

1.  UPON BECOMING A PARTICIPANT EACH STATE PARTICIPANT SHALL SUBSCRIBE FUNDS IN THE AMOUNT ASSIGNED TO IT.  SUCH SUBSCRIPTIONS ARE HEREINAFTER REFERRED TO AS INITIAL SUBSCRIPTIONS.

2.  THE INITIAL SUBSCRIPTION ASSIGNED TO EACH ORIGINAL STATE PARTICIPANT SHALL BE IN THE AMOUNT SET FORTH OPPOSITE ITS NAME IN SCHEDULE A, AND SHALL BE EXPRESSED IN UNITS OF ACCOUNT AND PAYABLE IN FREELY CONVERTIBLE CURRENCY.  PAYMENT SHALL BE MADE IN THREE EQUAL ANNUAL INSTALMENTS AS FOLLOWS: THE FIRST SUCH INSTALMENT SHALL BE PAID WITHIN THIRTY DAYS AFTER THE FUND SHALL BEGIN OPERATIONS PURSUANT TO ARTICLE 60 OR ON THE DATE ON WHICH THE ORIGINAL STATE PARTICIPANT BECOMES A PARTY TO THIS AGREEMENT, WHICHEVER IS LATER; THE SECOND INSTALMENT WITHIN ONE YEAR THEREAFTER AND THE THIRD INSTALMENT WITHIN ONE YEAR AFTER THE PAYMENT OR THE DUE DATE OF THE SECOND INSTALMENT, WHICHEVER IS EARLIER.  THE FUND MAY REQUEST EARLIER PAYMENT OF EITHER OR BOTH OF THE SECOND AND THIRD INSTALMENTS IF THE OPERATIONS OF THE FUND SHALL REQUIRE IT, BUT SUCH EARLIER PAYMENT SHALL BE ENTIRELY VOLUNTARY ON THE PART OF EACH PARTICIPANT.

3.  THE INITIAL SUBSCRIPTIONS OF STATE PARTICIPANTS OTHER THAN ORIGINAL PARTICIPANTS SHALL ALSO BE EXPRESSED IN UNITS OF ACCOUNT AND PAYABLE IN FREELY CONVERTIBLE CURRENCY.  THE AMOUNT AND TERMS OF PAYMENT OF SUCH SUBSCRIPTIONS SHALL BE DETERMINED BY THE FUND PURSUANT TO ARTICLE 3 (3).

4.  EXCEPT AS THE FUND MAY OTHERWISE AGREE, EACH STATE PARTICIPANT SHALL MAINTAIN THE FREE CONVERTIBILITY OF ITS CURRENCY PAID IN BY IT PURSUANT TO THIS ARTICLE.

5.  NOTWITHSTANDING THE FOREGOING PROVISIONS OF THIS ARTICLE, A STATE PARTICIPANT MAY DEFER FOR A PERIOD OF NOT MORE THAN THREE MONTHS THE MAKING OF ANY PAYMENT REQUIRED BY THIS ARTICLE WHEN BUDGETARY OR OTHER CIRCUMSTANCES NECESSITATE SUCH DELAY.

ARTICLE 7.  ADDITIONAL SUBSCRIPTIONS BY STATE PARTICIPANTS

1.  THE FUND SHALL AT SUCH TIME AS IT DEEMS APPROPRIATE IN THE LIGHT OF THE SCHEDULE OF PAYMENTS OF THE INITIAL SUBSCRIPTIONS OF ORIGINAL PARTICIPANTS AND OF ITS OWN OPERATIONS, AND AT APPROPRIATE INTERVALS THEREAFTER, REVIEW THE ADEQUACY OF ITS RESOURCES AND, IF IT DEEMS IT DESIRABLE, MAY AUTHORIZE A GENERAL INCREASE IN THE SUBSCRIPTIONS OF STATE PARTICIPANTS ON SUCH TERMS AND CONDITIONS AS THE FUND SHALL DETERMINE.  NOTWITHSTANDING THE FOREGOING, THE FUND MAY AUTHORIZE GENERAL OR INDIVIDUAL INCREASES IN SUCH SUBSCRIPTIONS AT ANY TIME, PROVIDED THAT AN INDIVIDUAL INCREASE SHALL BE CONSIDERED ONLY AT THE REQUEST OF THE STATE PARTICIPANT INVOLVED.

2.  WHEN ANY ADDITIONAL INDIVIDUAL SUBSCRIPTION IS AUTHORIZED PURSUANT TO PARAGRAPH 1, EACH STATE PARTICIPANT SHALL BE GIVEN AN OPPORTUNITY TO SUBSCRIBE, UNDER NO LESS FAVOURABLE CONDITIONS, REASONABLY DETERMINED BY THE FUND, THAN THOSE PRESCRIBED UNDER PARAGRAPH 1, AN AMOUNT WHICH WILL CNABLE IT TO MAINTAIN ITS RELATIVE VOTING POWER AS AMONG STATE PARTICIPANTS.

3.  NO STATE PARTICIPANT SHALL BE OBLIGED TO SUBSCRIBE ADDITIONAL AMOUNTS IN THE CASE OF GENERAL OR INDIVIDUAL INCREASES IN SUBSCRIPTIONS.

4.  ALL AUTHORIZATIONS FOR, AND DETERMINATIONS IN RESPECT OF, GENERAL INCREASES UNDER PARAGRAPH 1 SHALL BE BY AN EIGHTY-FIVE PER CENT MAJORITY OF THE TOTAL VOTING POWER OF THE PARTICIPANTS.

ARTICLE 8.  OTHER RESOURCES

1.  SUBJECT TO THE FOLLOWING PROVISIONS OF THIS ARTICLE, THE FUND MAY ENTER INTO ARRANGEMENTS TO RECEIVE OTHER RESOURCES, INCLUDING GRANTS AND LOANS, FROM MEMBERS, PARTICIPANTS, STATES WHICH ARE NOT PARTICIPANTS AND FROM ANY PUBLIC OR PRIVATE ENTITY OR ENTITIES.

2.  SUCH ARRANGEMENTS SHALL BE ON TERMS AND CONDITIONS WHICH ARE CONSISTENT WITH THE FUND'S PURPOSES, OPERATIONS AND POLICIES AND WHICH WILL NOT IMPOSE AN UNDUE ADMINISTRATIVE OR FINANCIAL BURDEN ON THE FUND OR THE BANK.

3.  SUCH ARRANGEMENTS, OTHER THAN THOSE FOR GRANTS FOR TECHNICAL ASSISTANCE, SHALL BE ON TERMS WHICH WILL PERMIT THE FUND TO COMPLY WITH THE REQUIREMENTS OF ARTICLE 15(4) AND (5).

4.  SUCH ARRANGEMENTS SHALL BE APPROVED BY THE BOARD OF DIRECTORS, IN THE CASE OF ARRANGEMENTS WITH A STATE WHICH IS NOT A MEMBER OR A PARTICIPANT OR WITH AN AGENCY OF SUCH STATE, BY AN EIGHTY-FIVE PER CENT MAJORITY OF THE TOTAL VOTING POWER OF THE PARTICIPANTS.

5.  THE FUND SHALL NOT ACCEPT ANY LOAN (EXCEPT TEMPORARY ACCOMMODATIONS REQUIRED FOR ITS OPERATIONS) WHICH IS NOT ON CONCESSIONAL TERMS AND SHALL NOT BORROW IN ANY MARKET OR, AS A BORROWER, GUARANTOR, OR OTHERWISE, PARTICIPATE IN THE ISSUE OF SECURITIES IN ANY MARKET AND SHALL NOT ISSUE NEGOTIABLE OR TRANSFERABLE OBLIGATIONS EVIDENCING INDEBTEDNESS FOR LOANS RECEIVED PURSUANT TO PARAGRAPH 1.

ARTICLE 9.  PAYMENT OF SUBSCRIPTIONS

THE FUND SHALL ACCEPT ANY PART OF A PARTICIPANT'S SUBSCRIPTION PAYABLE BY THE PARTICIPANT UNDER ARTICLES 5, 6 OR 7 OR UNDER ARTICLE 13 AND NOT NEEDED BY THE FUND IN ITS OPERATIONS, IN THE FORM OF NOTES, LETTERS OF CREDIT OR SIMILAR OBLIGATIONS ISSUED BY THE PARTICIPANT OR THE DEPOSITORY, IF ANY, DESIGNATED BY THE PARTICIPANT PURSUANT TO ARTICLE 33.  SUCH NOTES OR OTHER OBLIGATIONS SHALL BE NON-NEGOTIABLE, NON-INTEREST-BEARING AND PAYABLE AT THEIR PAR VALUE ON DEMAND TO THE ACCOUNT OF THE FUND IN THE DESIGNATED DEPOSITORY, OR IF THERE IS NONE, AS THE FUND SHALL DIRECT.  NOTWITHSTANDING THE ISSUANCE OR ACCEPTANCE OF ANY SUCH NOTE, LETTER OF CREDIT OR OTHER OBLIGATION, THE OBLIGATION OF THE PARTICIPANT UNDER ARTICLES 5, 6 AND 7 AND ARTICLE 13 SHALL CONTINUE TO SUBSIST.  AMOUNTS HELD BY THE FUND IN RESPECT OF SUBSCRIPTIONS OF PARTICIPANTS WHICH DO NOT AVAIL THEMSELVES OF THE PROVISIONS OF THIS ARTICLE MAY BE DEPOSITED OR INVESTED BY THE FUND TO PRODUCE INCOME TO HELP DEFRAY ITS ADMINISTRATIVE AND OTHER EXPENSES.  THE FUND SHALL DRAW DOWN ALL SUBSCRIPTIONS ON A PRO RATA BASIS, AS FAR AS PRACTICABLE OVER REASONABLE PERIODS OF TIME, TO FINANCE EXPENDITURES REGARDLESS OF THE FORM IN WHICH SUCH SUBSCRIPTIONS ARE MADE.

ARTICLE 10.  LIMITATION ON LIABILITY

NO PARTICIPANT SHALL BE LIABLE, BY REASON OF ITS PARTICIPATION, FOR ACTS OR OBLIGATIONS OF THE FUND.

CHAPTER IV CURRENCIES

ARTICLE 11.  USE OF CURRENCIES

1.  CURRENCIES RECEIVED IN PAYMENT OF, OR UNDER ARTICLE 13 IN RESPECT OF, SUBSCRIPTIONS MADE PURSUANT TO ARTICLE 5 AND ARTICLE 6(2) MAY BE USED AND EXCHANGED BY THE FUND FOR ANY OF ITS OPERATIONS AND, SUBJECT TO THE APPROVAL OF THE BOARD OF DIRECTORS, FOR THE TEMPORARY INVESTMENT OF FUNDS NOT NEEDED IN ITS OPERATIONS.

2.  THE USE OF CURRENCIES RECEIVED IN PAYMENT OF, OR UNDER ARTICLE 13 IN RESPECT OF, SUBSCRIPTIONS UNDER ARTICLE 6(3) AND ARTICLE 7(1) AND (2) OR AS OTHER RESOURCES UNDER ARTICLE 8 SHALL BE GOVERNED BY THE TERMS AND CONDITIONS PURSUANT TO WHICH SUCH CURRENCIES ARE RECEIVED OR, IN THE CASE OF CURRENCIES RECEIVED UNDER ARTICLE 13, THE USE SHALL BE GOVERNED BY THE TERMS AND CONDITIONS ON WHICH THE CURRENCIES WHOSE VALUE IS SO MAINTAINED WERE RECEIVED.

3.  ALL OTHER CURRENCIES RECEIVED BY THE FUND MAY BE FREELY USED AND EXCHANGED BY THE FUND FOR ANY OF ITS OPERATIONS AND, SUBJECT TO THE APPROVAL OF THE BOARD OF DIRECTORS, FOR THE TEMPORARY INVESTMENT OF FUNDS NOT NEEDED IN ITS OPERATIONS.

4.  NO RESTRICTION SHALL BE IMPOSED WHICH IS CONTRARY TO THE PROVISIONS OF THIS ARTICLE.

ARTICLE 12.  VALUATION OF CURRENCIES

1.  WHENEVER IT SHALL BE NECESSARY UNDER THIS AGREEMENT TO DETERMINE THE VALUE OF ANY CURRENCY IN TERMS OF ANOTHER CURRENCY OF CURRENCIES OR OF THE UNIT OF ACCOUNT, SUCH VALUATION SHALL BE REASONABLY MADE BY THE FUND AFTER CONSULTATION WITH THE INTERNATIONAL MONETARY FUND.

2.  IN THE CASE OF A CURRENCY WHICH DOES NOT HAVE A PAR VALUE ESTABLISHED WITH THE INTERNATIONAL MONETARY FUND, THE VALUE OF SUCH CURRENCY IN TERMS OF THE UNIT OF ACCOUNT SHALL BE DETERMINED FROM TIME TO TIME BY THE FUND PURSUANT TO PARAGRAPH 1 OF THIS ARTICLE AND THE VALUE SO DETERMINED SHALL BE TREATED AS IF IT WERE THE PAR VALUE OF SUCH CURRENCY FOR THE PURPOSE OF THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, ARTICLE 13(1) AND (2).

ARTICLE 13.  MAINTENANCE OF VALUE OF CURRENCY HOLDINGS

1.  WHENEVER THE PAR VALUE IN THE INTERNATIONAL MONETARY FUND OF THE CURRENCY OF A STATE PARTICIPANT IS REDUCED IN TERMS OF THE UNIT OF ACCOUNT, OR ITS FOREIGN EXCHANGE VALUE HAS, IN THE OPINION OF THE FUND, DEPRECIATED TO A SIGNIFICANT EXTENT WITHIN THAT PARTICIPANT'S TERRITORY, THAT PARTICIPANT SHALL PAY TO THE FUND WITHIN A REASONABLE TIME AN AMOUNT OF ITS CURRENCY REQUIRED TO MAINTAIN THE VALUE, AS OF THE TIME OF SUBSCRIPTION, OF THE AMOUNT OF SUCH CURRENCY PAID IN TO THE FUND BY THAT PARTICIPANT PURSUANT TO ARTICLE 6 AND PURSUANT TO THE PROVISIONS OF THE PRESENT PARAGRAPH, WHETHER OR NOT SUCH CURRENCY IS HELD IN THE FORM OF NOTES, LETTERS OF CREDIT OR OTHER OBLIGATIONS ACCEPTED PURSUANT TO ARTICLE 9, PROVIDED THAT THE FOREGOING SHALL APPLY ONLY SO LONG AS AND TO THE EXTENT THAT SUCH CURRENCY SHALL NOT HAVE BEEN INITIALLY DISBURSED OR EXCHANGED FOR ANOTER CURRENCY.

2.  WHENEVER THE PAR VALUE OF THE CURRENCY OF A STATE PARTICIPANT IS INCREASED IN TERMS OF THE UNIT OF ACCOUNT OR ITS FOREIGN EXCHANGE VALUE HAS, IN THE OPINION OF THE FUND, APPRECIATED TO A SIGNIFICANT EXTENT WITHIN THAT PARTICIPANT'S TERRITORY, THE FUND SHALL RETURN TO THAT PARTICIPANT WITHIN A REASONABLE TIME AN AMOUNT OF SUCH CURRENCY EQUAL TO THE INCREASE IN THE VALUE OF THE AMOUNT OF SUCH CURRENCY TO WHICH THE PROVISIONS OF PARAGRAPH I ARE APPLICABLE.

3.  THE FUND MAY WAIVE OR DECLARE INOPERATIVE THE PROVISIONS OF THIS ARTICLE WHEN A UNIFORM CHANGE IN THE PAR VALUE OF THE CURRENCIES OF ALL STATE PARTICIPANTS IS MADE BY THE INTERNATIONAL MONETARY FUND.

CHAPTER V OPERATIONS

ARTICLE 14.  USE OF RESOURCEES

1.  THE FUND SHALL PROVIDE FINANCING FOR PROJECTS AND PROGRAMMES TO FURTHER ECONOMIC AND SOCIAL DEVELOPMENT IN THE TERRITORY OF MEMBERS.  THE FUND SHALL PROVIDE SUCH FINANCING FOR THE BENEFIT OF THOSE MEMBERS WHOSE ECONOMIC SITUATION AND PROSPECTS REQUIRE SUCH FINANCING TO BE ON CONCESSIONAL TERMS.

2.  FINANCING PROVIDED BY THE FUND SHALL BE FOR PURPOSES WHICH IN THE OPINION OF THE FUND ARE OF HIGH DEVELOPMENTAL PRIORITY IN THE LIGHT OF THE NEEDS OF THE AREA OR AREAS CONCERNED AND SHALL, EXCEPT IN SPECIAL CIRCUMSTANCES, BE FOR SPECIFIC PROJECTS OR GROUPS OF PROJECTS, PARTICULARLY THOSE FORMING PART OF A NATIONAL OR REGIONAL OR SUB-REGIONAL PROGRAMME, INCLUDING PROVISION OF FINANCING FOR NATIONAL DEVELOPMENT BANKS OR OTHER SUITABLE INSTITUTIONS FOR RELENDING FOR SPECIFIC PROJECTS APPROVED BY THE FUND.

ARTICLE 15.  CONDITIONS OF FINANCING

1.  THE FUND SHALL NOT PROVIDE FINANCING FOR ANY PROJECT IN THE TERRITORY OF A MEMBER IF THAT MEMBER OBJECTS THERETO, EXCEPT THAT IT SHALL NOT BE NECESSARY FOR THE FUND TO ASSURE ITSELF THAT INDIVIDUAL MEMBERS DO NOT OBJECT IN THE CASE OF FINANCING PROVIDED TO A PUBLIC INTERNATIONAL, REGIONAL OR SUB-REGIONAL ORGANIZATION.

2.  (A) THE FUND SHALL NOT PROVIDE FINANCING IF, IN ITS OPINION, SUCH FINANCING IS AVAILABLE FROM OTHER SOURCES ON TERMS THAT THE FUND CONSIDERS ARE REASONABLE FOR THE RECIPIENT.

(B) IN MAKING FINANCING AVAILABLE FOR ENTITIES OTHER THAN MEMBERS, THE FUND SHALL TAKE ALL NECESSARY STEPS TO ENSURE THAT THE CONCESSIONAL BENEFITS OF ITS FINANCING ACCRUE ONLY TO MEMBERS OR OTHER ENTITIES WHICH SHOULD, TAKING INTO ACCOUNT ALL THE RELEVANT CIRCUMSTANCES, RECEIVE SOME OR ALL OF THOSE BENEFITS.

3.  BEFORE FINANCING IS PROVIDED, THE APPLICANT SHALL HAVE PRESENTED AN ADEQUATE PROPOSAL THROUGH THE PRESIDENT OF THE BANK AND THE PRESIDENT SHALL HAVE PRESENTED TO THE BOARD OF DIRECTORS OF THE FUND A WRITTEN REPORT RECOMMENDING SUCH FINANCING, ON THE BASIS OF A STAFF STUDY OF ITS MERITS.

4.  (A) THE FUND SHALL IMPOSE NO CONDITIONS THAT THE PROCEEDS OF ITS FINANCING SHALL BE SPENT IN THE TERRITORIES OF ANY PARTICULAR STATE PARTICIPANT OR MEMBER, BUT SUCH PROCEEDS SHALL BE USED ONLY FOR PROCUREMENT IN THE TERRITORIES OF STATE PARTICIPANTS OR MEMBERS, OF GOODS PRODUCED IN AND SERVICES SUPPLIED FROM THE TERRITORIES OF STATE PARTICIPANTS OR MEMBERS, PROVIDED THAT, IN THE CASE OF FUNDS RECEIVED PURSUANT TO ARTICLE 8 FROM A STATE WHICH IS NOT A PARTICIPANT OR MEMBER, THE TERRITORIES OF THAT STATE SHALL ALSO BE ELIGIBLE SOURCES OF PROCUREMENT FROM SUCH FUNDS, AND MAY BE ELIGIBLE SOURCES OF PROCUREMENT FROM SUCH OTHER FUNDS RECEIVED UNDER THAT ARTICLE AS THE BOARD OF DIRECTORS SHALL DETERMINE.

(B) PROCUREMENT SHALL BE ON THE BASIS OF INTERNATIONAL COMPETITION AMONG ELIGIBLE SUPPLIERS EXCEPT IN CASES WHERE THE BOARD OF DIRECTORS DETERMINES THAT SUCH INTERNATIONAL COMPETITION WOULD NOT BE JUSTIFIED.

5.  THE FUND SHALL MAKE ARRANGEMENTS TO ENSURE THAT THE PROCEEDS OF ANY FINANCING ARE USED ONLY FOR THE PURPOSES FOR WHICH THE FINANCING WAS PROVIDED, WITH DUE ATTENTION TO CONSIDERATIONS OF ECONOMY, EFFICIENCY AND COMPETITIVE INTERNATIONAL TRADE AND WITHOUT REGARD TO POLITICAL OR OTHER NON-ECONOMIC INFLUENCES OR CONSIDERATIONS.

6.  FUNDS TO BE PROVIDED UNDER ANY FINANCING OPERATIONS SHALL BE MADE AVAILABLE TO THE RECIPIENT ONLY TO MEET EXPENSES IN CONNECTION WITH THE PROJECT AS THEY ARE ACTUALLY INCURRED.

7.  THE FUND SHALL BE GUIDED BY SOUND DEVELOPMENT BANKING PRINCIPLES IN ITS OPERATIONS.

8.  THE FUND SHALL NOT ENGAGE IN REFINANCING OPERATIONS.

9.  IN MAKING A LOAN, THE FUND SHALL PAY DUE REGARD TO THE PROSPECTS THAT THE BORROWER AND THE GUARANTOR, IF ANY, WILL BE ABLE TO MEET THEIR OBLIGATIONS.

10.  IN CONSIDERING AN APPLICATION FOR FINANCING, THE FUND SHALL PAY DUE REGARD TO THE RELEVANT SELF-HELP MEASURES BEING TAKEN BY THE RECIPIENT AND, WHERE THE RECIPIENT IS NOT A MEMBER, BY BOTH THE RECIPIENT AND THE MEMBER OR MEMBERS WHOSE TERRITORIES THE PROJECT OR PROGRAMME IS INTENDED TO SERVE.

11.  THE FUND SHALL ADOPT SUCH MEASURES AS SHALL BE REQUIRED TO ENSURE THE EFFECTIVE APPLICATION OF THIS ARTICLE.

ARTICLE 16.  FORM AND TERMS OF FINANCING

1.  FINANCING BY THE FUND FROM RESOURCES PROVIDED UNDER ARTICLES 5, 6 AND 7, AND FROM REPAYMENTS OF, AND INCOME ARISING FROM, SUCH FINANCING, SHALL TATE THE FORM OF LOANS.  THE FUND MAY PROVIDE OTHER FINANCING, INCLUDING GRANTS, OUT OF RESOURCES RECEIVED PURSUANT TO ARRANGEMENTS UNDER ARTICLE 8 EXPRESSLY AUTHORIZING SUCH FINANCING.

2.  (A) SUBJECT TO THE PROVISIONS OF THE FOREGOING PARAGRAPH, FINANCING BY THE FUND SHALL BE ON SUCH CONCESSIONAL TERMS AS MAY BE APPROPRIATE.

(B) WHERE THE BORROWER IS A MEMBER, OR AN INTER-GOVERNMENTAL BODY TO WHICH ONE OR MORE MEMBERS BELONG, THE FUND SHALL, IN ESTABLISHING THE TERMS OF FINANCING, TAKE ACCOUNT PRIMARILY OF THE ECONOMIC CIRCUMSTANCES AND PROSPECTS OF THE MEMBER OR MEMBERS FOR WHOSE BENEFIT THE FINANCING IS BEING PROVIDED AND, IN ADDITION, OF THE NATURE AND REQUIREMENTS OF THE PROJECT OR PROGRAMME CONCERNED.

3.  THE FUND MAY PROVIDE FINANCING FOR: (A) ANY MEMBER OR ANY GEOGRAPHICAL OR ADMINISTRATIVE SUBDIVISION OR AGENCY THEREOF; (B) ANY INSTITUTION OR UNDERTAKING IN THE TERRITORY OF ANY MEMBER; AND (C) ANY REGIONAL OR SUB-REGIONAL AGENCY OR INSTITUTION CONCERNED WITH DEVELOPMENT IN THE TERRITORIES OF MEMBERS.  ALL SUCH FINANCING SHALL, IN THE OPINION OF THE FUND, BE FOR THE FURTHERANCE OF THE PURPOSES OF THIS AGREEMENT.  WHERE THE BORROWER IS NOT ITSELF A MEMBER, THE FUND SHALL REQUIRE A SUITABLE GOVERNMENTAL OR OTHER GUARANTEE OR GUARANTEES.

4.  THE FUND MAY MAKE FOREIGN EXCHANGE AVAILABLE TO MEET LOCAL EXPENDITURE ON A PROJECT WHEN AND TO THE EXTENT WHICH, IN THE OPINION OF THE FUND, THIS IS NECESSARY OR APPROPRIATE FOR THE PURPOSES OF THE LOAN, HAVING REGARD TO THE ECONOMIC POSITION AND PROSPECTS OF THE MEMBER OR MEMBERS FOR WHOSE BENEFIT THE FINANCING IS BEING PROVIDED, AND TO THE NATURE AND REQUIREMENTS OF THE PROJECT.

5.  LOANS SHALL BE REPAYABLE IN THE CURRENCY OR CURRENCIES LOANED, OR IN SUCH OTHER FREELY CONVERTIBLE CURRENCY OR CURRENCIES AS THE FUND SHALL DETERMINE.

6.  BEFORE ANY FINANCING IS MADE AVAILABLE TO OR FOR THE BENEFIT OF A MEMBER OR FOR A PROJECT IN THE TERRITORY OF A MEMBER, THE FUND SHALL BE SATISFIED THAT SUCH MEMBER HAS TAKEN ALL SUCH ADMINISTRATIVE AND LEGISLATIVE MEASURES IN RESPECT OF ITS TERRITORY AS ARE NECESSARY TO GIVE EFFECT TO THE PROVISIONS OF ARTICLE 11(4) AND CHAPTER VIII AS IF THE MEMBER WERE A STATE PARTICIPANT, AND IT SHALL BE A TERM OF SUCH FINANCING THAT SUCH ADMINISTRATIVE AND LEGISLATIVE MEASURES SHALL BE MAINTAINED, AND THAT IN THE EVENT OF ANY DISPUTE BETWEEN THE FUND AND A MEMBER, AND IN THE ABSENCE OF ANY OTHER PROVISION THEREFOR, THE PROVISIONS OF ARTICLE 53 SHALL HAVE EFFECT, AS IF THE MEMBER WERE A STATE PARTICIPANT IN THE CIRCUMSTANCES TO WHICH THAT ARTICLE APPLIES.

ARTICLE 17.  REVIEW AND EVALUATION

A COMPREHENSIVE AND CONTINUING REVIEW OF COMPLETED PROJECTS, PROGRAMMES AND ACTIVITIES FINANCED BY THE FUND SHALL BE CARRIED OUT TO AID THE BOARD OF DIRECTORS AND THE PRESIDENT IN DETERMINING THE EFFECTIVENESS OF THE FUND IN ACCOMPLISHING ITS PURPOSES.  THE PRESIDENT, WITH THE AGREEMENT OF THE BOARD OF DIRECTORS, SHALL MAKE ARRANGEMENTS FOR CARRYING OUT THIS REVIEW AND ITS RESULTS SHALL BE REPORTED THROUGH THE PRESIDENT TO THE BOARD OF DIRECTORS.

ARTICLE 18.  CO-OPERATION WITH OTHER INTERNATIONAL ORGANIZATIONS, OTHER INSTITUTIONS AND STATES

IN FURTHERANCE OF ITS PURPOSES, THE FUND SHALL SEEK TO CO-OPERATE, AND MAY ENTER INTO ARRANGEMENTS FOR CO-OPERATION, WITH OTHER INTERNATIONAL ORGANIZATIONS, REGIONAL AND SUB-REGIONAL ORGANIZATIONS, OTHER INSTITUTIONS AND STATES, PROVIDED THAT NO SUCH ARRANGEMENT SHALL BE MADE WITH A STATE WHICH IS NOT A MEMBER OR A PARTICIPANT OR WITH AN AGENCY OF SUCH STATE UNLESS IT SHALL HAVE BEEN APPROVED BY AN EIGHTY-FIVE PER CENT MAJORITY OF THE TOTAL VOTING POWER OF THE PARTICIPANTS.

ARTICLE 19.  TECHNICAL ASSISTANCE

IN FURTHERANCE OF ITS PURPOSES, THE FUND MAY PROVIDE TECHNICAL ASSISTANCE, BUT SUCH ASSISTANCE WILL NORMALLY BE ON A REIMBURSABLE BASIS IF IT IS NOT PROVIDED FROM SPECIAL TECHNICAL ASSISTANCE GRANTS OR OTHER MEANS MADE AVAILABLE TO THE FUND FOR THE PURPOSE.

ARTICLE 20.  MISCELLANEOUS OPERATIONS

IN ADDITION TO THE POWERS PROVIDED FOR ELSEWHERE IN THIS AGREEMENT, THE FUND MAY UNDERTAKE SUCH OTHER ACTIVITIES INCIDENTAL TO ITS OPERATIONS AS SHALL BE NECESSARY OR DESIRABLE IN FURTHERANCE OF ITS PURPOSES AND CONSISTENT WITH THE PROVISIONS OF THIS AGREEMENT.

ARTICLE 21.  POLITICAL ACTIVITY PROHIBITED

NEITHER THE FUND, NOR ANY OFFICIALS OR OTHER PERSONS ACTING ON ITS BEHALF, SHALL INTERFERE IN THE POLITICAL AFFAIRS OF ANY MEMBER; NOR SHALL THEY BE INFLUENCED IN THEIR DECISIONS BY THE POLITICAL CHARACTER OF THE MEMBER OR MEMBERS CONCERNED.  ONLY CONSIDERATIONS RELEVANT TO THE ECONOMIC AND SOCIAL DEVELOPMENT OF MEMBERS SHALL BE RELEVANT TO SUCH DECISIONS, AND THESE CONSIDERATIONS SHALL BE WEIGHED IMPARTIALLY TO ACHIEVE THE PURPOSES STATED IN THIS AGREEMENT.

CHAPTER VI ORGANIZATION AND MANAGEMENT

ARTICLE 22.  ORGANIZATION OF THE FUND

THE FUND SHALL HAVE A BOARD OF GOVERNORS, A BOARD OF DIRECTORS AND A PRESIDENT.  THE FUND WILL UTILISE THE OFFICERS, STAFF, ORGANIZATION, SERVICES AND FACILITIES OF THE BANK TO CARRY OUT ITS FUNCTIONS AND, IF THE BOARD OF DIRECTORS RECOGNIZES THAT THERE IS NEED FOR ADDITIONAL PERSONNEL, WILL HAVE SUCH PERSONNEL WHO SHALL BE ENGAGED BY THE PRESIDENT PURSUANT TO ARTICLE 30(4) (V).

ARTICLE 23.  BOARD OF GOVERNORS: POWERS

1.  ALL THE POWERS OF THE FUND SHALL BE VESTED IN THE BOARD OF GOVERNORS.

2.  THE BOARD OF GOVERNORS MAY DELEGATE TO THE BOARD OF DIRECTORS ALL ITS POWERS, EXCEPT THE POWER TO:

(I) ADMIT NEW PARTICIPANTS AND DETERMINE THE TERMS OF THEIR ADMISSION;

(II) AUTHORIZE INCREASES IN SUBSCRIPTION UNDER ARTICLE 7 AND DETERMINE THE TERMS AND CONDITIONS RELATING THERETO;

(III) SUSPEND A PARTICIPANT;

(IV) DECIDE APPEALS FROM DECISIONS MADE BY THE BOARD OF DIRECTORS CONCERNING THE INTERPRETATION OR APPLICATION OF THIS AGREEMENT;

(V) AUTHORIZE THE CONCLUSION OF GENERAL ARRANGEMENTS FOR CO-OPERATION WITH OTHER INTERNATIONAL ORGANIZATIONS, OTHER THAN ARRANGEMENTS OF A TEMPORARY OR ADMINISTRATIVE CHARACTER;

(VI) SELECT EXTERNAL AUDITORS TO AUDIT THE ACCOUNTS OF THE FUND AND CERTIFY THE BALANCE SHEET AND STATEMENT OF THE INCOME AND EXPENDITURES OF THE FUND;

(VII) APPROVE, AFTER REVIEWING THE REPORT OF THE AUDITORS, THE BALANCE SHEET AND THE STATEMENT OF THE INCOME AND EXPENDITURES OF THE FUND;

(VIII) AMEND THIS AGREEMENT;

(IX) DECIDE TO TERMINATE THE OPERATIONS OF THE FUND AND DISTRIBUTE ITS ASSETS; AND

(X) EXERCISE SUCH OTHER POWERS AS ARE EXPRESSLY ASSIGNED TO THE BOARD OF GOVERNORS IN THIS AGREEMENT.

3.  THE BOARD OF GOVERNORS MAY AT ANY TIME REVOKE THE DELEGATION OF ANY MATTER TO THE BOARD OF DIRECTORS.

ARTICLE 24.  BOARD OF GOVERNORS: COMPOSITION

1.  THE GOVERNORS AND ALTERNATE GOVERNORS OF THE BANK SHALL BE EX OFFICIO GOVERNORS AND ALTERNATE GOVERNORS RESPECTIVELY OF THE FUND.  THE PRESIDENT OF THE BANK SHALL NOTIFY TO THE FUND AS NECESSARY THE NAMES OF SUCH GOVERNORS AND ALTERNATES.

2.  EACH STATE PARTICIPANT WHICH IS NOT A MEMBER SHALL APPOINT ONE GOVERNOR AND ONE ALTERNATE GOVERNOR WHO SHALL SERVE AT THE PLEASURE OF THE APPOINTING PARTICIPANT.

3.  NO ALTERNATE MAY VOTE EXCEPT IN THE ABSENCE OF HIS PRINCIPAL.

4.  SUBJECT TO THE PROVISIONS OF ARTICLE 60(4), GOVERNORS AND ALTERNATES SHALL SERVE AS SUCH WITHOUT PAYMENT OF REMUNERATION OR EXPENSES BY THE FUND.

ARTICLE 25.  BOARD OF GOVERNORS: PROCEDURE

1.  THE BOARD OF GOVERNORS SHALL HOLD AN ANNUAL MEETING AND SUCH OTHER MEETINGS AS MAY BE PROVIDED FOR BY THE BOARD OR CALLED BY THE BOARD OF DIRECTORS.  THE CHAIRMAN OF THE BOARD OF GOVERNORS OF THE BANK SHALL BE EX OFFICIO CHAIRMAN OF THE BOARD OF GOVERNORS OF THE FUND.

2.  THE ANNUAL MEETING OF THE BOARD OF GOVERNORS SHALL BE HELD IN CONJUNCTION WITH THE ANNUAL MEETING OF THE BOARD OF GOVERNORS OF THE BANK.

3.  A QUORUM FOR ANY MEETING OF THE BOARD OF GOVERNORS SHALL BE A MAJORITY OF THE TOTAL NUMBER OF GOVERNORS, REPRESENTING NOT LESS THAN THREE-FOURTHS OF THE TOTAL VOTING POWER OF THE PARTICIPANTS.

4.  THE BOARD OF GOVERNORS MAY BY REGULATION ESTABLISH A PROCEDURE WHEREBY THE BOARD OF DIRECTORS MAY, WHEN IT DEEMS SUCH ACTION ADVISABLE, OBTAIN A VOTE OF THE GOVERNORS ON A SPECIFIC QUESTION WITHOUT CALLING A MEETING OF THE BOARD OF GOVERNORS.

5.  THE BOARD OF GOVERNORS, AND THE BOARD OF DIRECTORS TO THE EXTENT AUTHORIZED BY THE BOARD OF GOVERNORS, MAY ESTABLISH SUCH SUBSIDIARY COMMITTEES AS MAY BE NECESSARY OR APPROPRIATE TO CONDUCT THE BUSINESS OF THE FUND.

6.  THE BOARD OF GOVERNORS, AND THE BOARD OF DIRECTORS TO THE EXTENT AUTHORIZED BY THE BOARD OF GOVERNORS OR BY THIS AGREEMENT, MAY ADOPT SUCH REGULATIONS, NOT INCONSISTENT WITH THIS AGREEMENT, AS SHALL BE NECESSARY OR APPROPRIATE FOR THE CONDUCT OF THE BUSINESS OF THE FUND.

ARTICLE 26.  BOARD OF DIRECTORS: FUNCTIONS

WITHOUT PREJUDICE TO THE POWERS OF THE BOARD OF GOVERNORS PROVIDED FOR IN ARTICLE 23, THE BOARD OF DIRECTORS SHALL BE RESPONSIBLE FOR THE DIRECTION OF THE GENERAL OPERATIONS OF THE FUND AND FOR THIS PURPOSE SHALL EXERCISE ANY FUNCTIONS EXPRESSLY GIVEN TO IT IN THIS AGREEMENT OR DELEGATED TO IT BY THE BOARD OF GOVERNORS AND, IN PARTICULAR, SHALL:

(I) PREPARE THE WORK OF THE BOARD OF GOVERNORS;

(II) IN CONFORMITY WITH THE GENERAL DIRECTIVES OF THE BOARD OF GOVERNORS, TAKE DECISIONS REGARDING INDIVIDUAL LOANS AND OTHER FORMS OF FINANCING TO BE PROVIDED BY THE FUND UNDER THIS AGREEMENT;

(III) ADOPT SUCH RULES, REGULATIONS OR OTHER MEASURES AS MAY BE REQUIRED TO ENSURE THAT PROPER AND ADEQUATE AUDITED ACCOUNTS AND RECORDS ARE KEPT IN RELATION TO THE OPERATIONS OF THE FUND;

(IV) ENSURE THAT THE FUND IS SERVED IN THE MOST EFFICIENT AND ECONOMICAL MANNER;

(V) SUBMIT TO THE BOARD OF GOVERNORS, FOR APPROVAL AT EACH ANNUAL MEETING, THE ACCOUNTS FOR EACH FINANCIAL YEAR IN A FORM WHICH DISTINGUISHES, TO THE EXTENT NECESSARY, BETWEEN THE ACCOUNTS OF THE GENERAL OPERATIONS OF THE FUND AND OF SUCH OPERATIONS AS ARE FINANCED FROM CONTRIBUTIONS MADE AVAILABLE TO THE FUND UNDER ARTICLE 8;

(VI) SUBMIT TO THE BOARD OF GOVERNORS FOR APPROVAL AT EACH ANNUAL MEETING AN ANNUAL REPORT; AND

(VII) APPROVE THE BUDGET AND GENERAL LENDING PROGRAMME AND POLICIES OF THE FUND, IN ACCORDANCE WITH THE RESOURCES RESPECTIVELY AVAILABLE FOR THESE PURPOSES.

ARTICLE 27.  BOARD OF DIRECTORS: COMPOSITION

1.  THERE SHALL BE A BOARD OF DIRECTORS COMPOSED OF TWELVE DIRECTORS.

2.  THE STATE PARTICIPANTS SHALL, PURSUANT TO SCHEDULE B, SELECT SIX DIRECTORS AND SIX ALTERNATE DIRECTORS.

3.  THE BANK SHALL, PURSUANT TO SCHEDULE B, DESIGNATE SIX DIRECTORS AND THEIR ALTERNATES FROM THE BOARD OF DIRECTORS OF THE BANK.

4.  AN ALTERNATE DIRECTOR OF THE FUND MAY ATTEND ALL MEETINGS OF THE BOARD OF DIRECTORS BUT SHALL NEITHER PARTICIPATE NOR VOTE EXCEPT IN THE ABSENCE OF HIS PRINCIPAL.

5.  THE BOARD OF DIRECTORS SHALL INVITE THE OTHER DIRECTORS OF THE BANK AND THEIR ALTERNATES TO ATTEND MEETINGS OF THE BOARD OF DIRECTORS AS OBSERVERS AND ANY SUCH BANK DIRECTOR OR, IN HIS ABSENCE, HIS ALTERNATE MAY PARTICIPATE IN THE DISCUSSION OF ANY PROPOSED PROJECT DESIGNED TO BENEFIT THE COUNTRY WHICH HE REPRESENTS IN THE BOARD OF DIRECTORS OF THE BANK.

6.  (A) A DIRECTOR DESIGNATED BY THE BANK SHALL HOLD OFFICE UNTIL HIS SUCCESSOR SHALL HAVE BEEN DESIGNATED PURSUANT TO SCHEDULE B AND SHALL HAVE ASSUMED OFFICE.  IF A DIRECTOR DESIGNATED BY THE BANK SHALL CEASE TO BE A DIRECTOR OF THE BANK HE SHALL CEASE TO BE A DIRECTOR OF THE FUND.

(B) THE TERM OF OFFICE OF DIRECTORS SELECTED BY STATE PARTICIPANTS SHALL BE THREE YEARS, BUT SHALL TERMINATE WHENEVER A GENERAL INCREASE IN SUBSCRIPTIONS PURSUANT TO ARTICLE 7 (1) BECOMES EFFECTIVE.  SUCH DIRECTORS SHALL BE ELIGIBLE FOR A FURTHER TERM OR TERMS OF OFFICE.  THEY SHALL CONTINUE IN OFFICE UNTIL THEIR SUCCESSORS HAVE BEEN SELECTED AND HAVE ASSUMED OFFICE.  IF THE OFFICE OF SUCH A DIRECTOR SHALL BECOME VACANT BEFORE THE EXPIRATION OF HIS TERM OF OFFICE, THE VACANCY SHALL BE FILLED BY A NEW DIRECTOR SELECTED BY THE STATE PARTICIPANT OR PARTICIPANTS WHOSE VOTES HIS PREDECESSOR WAS ENTITLED TO CAST.  SUCH SUCCESSOR DIRECTOR SHALL HOLD OFFICE FOR THE REMAINDER OF THE TERM OF OFFICE OF HIS PREDECESSOR.

(C) WHILE THE OFFICE OF A DIRECTOR REMAINS VACANT THE ALTERNATE OF THE FORMER DIRECTOR SHALL EXERCISE THE POWERS OF THE LATTER EXCEPT THAT OF APPOINTING AN ALTERNATE, OTHER THAN A TEMPORARY ALTERNATE TO REPRESENT HIM AT MEETINGS WHEN HE CANNOT BE PRESENT.

7.  IF A STATE SHALL BECOME A STATE PARTICIPANT PURSUANT TO ARTICLE 3 (3), OR A STATE PARTICIPANT SHALL INCREASE ITS SUBSCRIPTION, OR IF FOR ANY OTHER REASON THE VOTING RIGHTS OF INDIVIDUAL STATE PARTICIPANTS SHOULD CHANGE BETWEEN THE TIMES PROVIDED FOR THE SELECTION OF DIRECTORS REPRESENTING STATE PARTICIPANTS:

(I) THERE SHALL BE NO CHANGE IN DIRECTORS AS A RESULT THEREOF, PROVIDED THAT IF A DIRECTOR SHALL CEASE TO HAVE ANY VOTING RIGHTS, HIS TERM OF OFFICE AND THAT OF HIS ALTERNATE SHALL TERMINATE FORTHWITH.

(II) VOTING RIGHTS OF STATE PARTICIPANTS AND OF THE DIRECTORS SELECTED BY THEM SHALL BE ADJUSTED AS OF THE EFFECTIVE DATE OF THE INCREASE IN SUBSCRIPTION OR THE NEW SUBSCRIPTION OR OTHER CHANGE IN VOTING RIGHTS, AS THE CASE MAY BE; AND

(III) IF SUCH A NEW STATE PARTICIPANT SHALL HAVE VOTING RIGHTS, IT MAY DESIGNATE A DIRECTOR THEN REPRESENTING ONE OR MORE STATE PARTICIPANTS TO REPRESENT IT AND CAST ITS VOTES UNTIL THE NEXT GENERAL SELECTION OF STATE PARTICIPANT DIRECTORS.

8.  DIRECTORS AND ALTERNATES SHALL SERVE AS SUCH WITHOUT PAYMENT OF REMUNERATION OR EXPENSES BY THE FUND.

ARTICLE 28.  BOARD OF DIRECTORS: PROCEDURE

1.  THE BOARD OF DIRECTORS SHALL MEET AS OFTEN AS THE BUSINESS OF THE FUND MAY REQUIRE.  THE CHAIRMAN SHALL CALL A MEETING OF THE BOARD OF DIRECTORS WHENEVER REQUESTED TO DO SO BY FOUR DIRECTORS.

2.  A QUORUM FOR ANY MEETING OF THE BOARD OF DIRECTORS SHALL BE A MAJORITY OF THE TOTAL NUMBER OF DIRECTORS HAVING NOT LESS THAN THREE-FOURTHS OF THE TOTAL VOTING POWER OF THE PARTICIPANTS.

ARTICLE 29.  VOTING

1.  THE BANK, AND THE STATE PARTICIPANTS AS A GROUP, SHALL EACH HAVE 1,000 VOTES.

2.  EACH GOVERNOR OF THE FUND WHO IS A GOVERNOR OF THE BANK SHALL HAVE, AND SHALL BE ENTITLED TO CAST, SUCH PROPORTIONATE SHARE OF THE BANK'S VOTES AS SHALL HAVE BEEN NOTIFIED TO THE FUND BY THE PRESIDENT OF THE BANK.

3.  EACH STATE PARTICIPANT SHALL HAVE A PROPORTIONATE SHARE OF THE AGGREGATE VOTES OF THE STATE PARTICIPANTS BASED ON THE SUBSCRIPTIONS OF SUCH PARTICIPANT MADE PURSUANT TO ARTICLE 6 AND, TO THE EXTENT AGREED BY THE STATE PARTICIPANTS IN CONNECTION WITH ADDITIONAL SUBSCRIPTIONS AUTHORIZED UNDER ARTICLE 7(1) AND (2), ON SUCH ADDITIONAL SUBSCRIPTIONS.  IN VOTING IN THE BOARD OF GOVERNORS, EACH GOVERNOR REPRESENTING A STATE PARTICIPANT SHALL BE ENTITLED TO CAST THE VOTES OF THE PARTICIPANT HE REPRESENTS.

4.  IN VOTING IN THE BOARD OF DIRECTORS, DIRECTORS DESIGNATED BY THE BANK SHALL TOGETHER HAVE 1,000 VOTES AND DIRECTORS SELECTED BY THE STATE PARTICIPANTS SHALL TOGETHER HAVE 1,000 VOTES.  EACH DIRECTOR DESIGNATED BY THE BANK SHALL HAVE THE NUMBER OF VOTES ALLOCATED TO HIM BY THE BANK AS SET FORTH IN THE NOTIFICATION OF HIS DESIGNATION, GIVEN PURSUANT TO PART I OF SCHEDULE B.  EACH DIRECTOR SELECTED BY ONE OR MORE STATE PARTICIPANTS SHALL HAVE THE NUMBER OF VOTES HELD BY THE PARTICIPANT OR PARTICIPANTS WHICH SELECTED HIM.

5.  EACH BANK DIRECTOR SHALL CAST HIS VOTES AS A UNIT.  A DIRECTOR REPRESENTING MORE THAN ONE STATE PARTICIPANT MAY CAST SEPARATELY THE VOTES OF THE STATES HE REPRESENTS.

6.  NOTWITHSTANDING ANY OF THE OTHER PROVISIONS OF THIS AGREEMENT:

(I) IF A REGIONAL MEMBER SHALL BE OR BECOME A STATE PARTICIPANT IT SHALL NOT HAVE OR ACQUIRE ANY VOTES BY REASON OF SUCH PARTICIPATION AND IF A REGIONAL STATE PARTICIPANT BECOMES A MEMBER IT SHALL CEASE AS OF THE EFFECTIVE DATE OF SUCH MEMBERSHIP TO HAVE ANY VOTES AS A STATE PARTICIPANT; AND

(II) IF A NON-REGIONAL STATE SHALL BE OR BECOME BOTH A STATE PARTICIPANT AND A MEMBER IT SHALL, BUT SOLELY FOR THE PURPOSES OF THIS AGREEMENT, BE TREATED IN ALL RESPECTS AS IF IT WERE NOT A MEMBER.

7.  EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT, ALL MATTERS BEFORE THE BOARD OF GOVERNORS OR THE BOARD OF DIRECTORS SHALL BE DECIDED BY A THREE-FOURTHS MAJORITY OF THE TOTAL VOTING POWER OF THE PARTICIPANTS.

ARTICLE 30.  THE PRESIDENT

1.  THE PRESIDENT OF THE BANK SHALL BE EX OFFICIO PRESIDENT OF THE FUND.  HE SHALL BE CHAIRMAN OF THE BOARD OF DIRECTORS BUT SHALL HAVE NO VOTE.  HE MAY PARTICIPATE IN MEETINGS OF THE BOARD OF GOVERNORS BUT SHALL NOT VOTE.

2.  THE PRESIDENT SHALL BE THE LEGAL REPRESENTATIVE OF THE FUND.

3.  IN THE EVENT THAT THE PRESIDENT OF THE BANK IS ABSENT OR HIS OFFICE SHOULD BECOME VACANT, THE PERSON FOR THE TIME BEING DESIGNATED TO PERFORM THE DUTIES OF PRESIDENT OF THE BANK SHALL ACT AS PRESIDENT OF THE FUND.

4.  SUBJECT TO ARTICLE 26, THE PRESIDENT SHALL CONDUCT THE ORDINARY BUSINESS OF THE FUND AND, IN PARTICULAR, SHALL:

(I) PROPOSE THE OPERATING AND ADMINISTRATIVE BUDGETS;

(II) PROPOSE THE OVERALL FINANCING PROGRAMME;

(III) ARRANGE FOR THE STUDY AND APPRAISAL OF PROJECTS AND PROGRAMMES FOR FINANCING BY THE FUND IN ACCORDANCE WITH ARTICLE 15(3);

(IV) DRAW, AS NEEDED, ON THE OFFICERS, STAFF, ORGANIZATION, SERVICES AND FACILITIES OF THE BANK TO CARRY OUT THE BUSINESS OF THE FUND AND SHALL BE RESPONSIBLE TO THE BOARD OF DIRECTORS FOR ENSURING AND CONTROLLING THE PROPER ORGANIZATION, STAFFING AND SERVICES PROVIDED UNDER ARTICLE 22; AND

(V) ENGAGE THE SERVICES OF SUCH PERSONNEL, INCLUDING CONSULTANTS AND EXPERTS, AS MAY BE NEEDED BY THE FUND, AND MAY TERMINATE SUCH SERVICES.

ARTICLE 31.  RELATIONSHIP TO THE BANK

1.  THE FUND SHALL REIMBURSE THE BANK FOR THE FAIR VALUE OF ITS USE OF THE OFFICERS, STAFF, ORGANIZATION,  SERVICES AND FACILITIES OF THE BANK, IN ACCORDANCE WITH ARRANGEMENTS MADE BETWEEN THE FUND AND THE BANK.

2.  THE FUND SHALL BE AN ENTITY JURIDICALLY SEPARATE AND DISTINCT FROM THE BANK AND ASSETS OF THE FUND SHALL BE KEPT SEPARATE AND APART FROM THOSE OF THE BANK.

3.  NOTHING IN THIS AGREEMENT SHALL MAKE THE FUND LIABLE FOR THE ACTS OR OBLIGATIONS OF THE BANK, OR THE BANK LIABLE FOR THE ACTS OR OBLIGATIONS OF THE FUND.

ARTICLE 32.  OFFICE OF THE FUND

THE OFFICE OF THE FUND SHALL BE THE PRINCIPAL OFFICE OF THE BANK.

ARTICLE 33.  DEPOSITORIES

EACH STATE PARTICIPANT SHALL DESIGNATE ITS CENTRAL BANK OR SUCH OTHER INSTITUTION AS MAY BE ACCEPTABLE TO THE FUND AS A DEPOSITORY IN WHICH THE FUND MAY KEEP HOLDINGS OF SUCH PARTICIPANT'S CURRENCY OR OTHER ASSETS OF THE FUND.  IN THE ABSENCE OF ANY DIFFERENT DESIGNATION, THE DEPOSITORY FOR EACH MEMBER SHALL BE THE DEPOSITORY DESIGNATED BY IT FOR THE PURPOSES OF THE AGREEMENT ESTABLISHING THE BANK.

ARTICLE 34.  CHANNEL OF COMMUNICATION

EACH STATE PARTICIPANT SHALL DESIGNATE AN APPROPRIATE AUTHORITY WITH WHICH THE FUND MAY COMMUNICATE IN CONNECTION WITH ANY MATTER ARISING UNDER THIS AGREEMENT.  IN THE ABSENCE OF ANY DIFFERENT DESIGNATION, THE CHANNEL OF COMMUNICATION DESIGNATED BY A MEMBER FOR THE BANK SHALL BE ITS CHANNEL FOR THE FUND.

ARTICLE 35.  PUBLICATION OF REPORTS AND PROVISION OF INFORMATION

1.  THE FUND SHALL PUBLISH AN ANNUAL REPORT CONTAINING AN AUDITED STATEMENT OF ITS ACCOUNTS AND SHALL CIRCULATE TO PARTICIPANTS AND MEMBERS AT APPROPRIATE INTERVALS A SUMMARY STATEMENT OF ITS FINANCIAL POSITION AND AN INCOME AND EXPENDITURES STATEMENT SHOWING THE RESULTS OF ITS OPERATIONS.

2.  THE FUND MAY PUBLISH SUCH OTHER REPORTS AS IT DEEMS DESIRABLE TO CARRY OUT ITS PURPOSES.

3.  COPIES OF ALL REPORTS, STATEMENTS AND PUBLICATIONS MADE UNDER THIS ARTICLE SHALL BE DISTRIBUTED TO PARTICIPANTS AND MEMBERS.

ARTICLE 36.  ALLOCATION OF NET INCOME

THE BOARD OF GOVERNORS SHALL DETERMINE FROM TIME TO TIME THE DISPOSITION OF THE FUND'S NET INCOME, HAVING DUE REGARD TO PROVISION FOR RESERVES AND CONTINGENCIES.

CHAPTER VII WITHDRAWAL; SUSPENSION OF PARTICIPATION; TERMINATION OF OPERATIONS

ARTICLE 37.  WITHDRAWAL BY PARTICIPANTS

ANY PARTICIPANT MAY WITHDRAW FROM PARTICIPATION IN THE FUND AT ANY TIME BY TRANSMITTING A NOTICE IN WRITING TO THE FUND AT ITS PRINCIPAL OFFICE.  WITHDRAWAL SHALL BECOME EFFECTIVE UPON THE DATE SUCH NOTICE IS RECEIVED OR UPON SUCH DATE, NOT MORE THAN SIX MONTHS THEREAFTER, AS MAY BE SPECIFIED IN SUCH NOTICE.

ARTICLE 38.  SUSPENSION OF PARTICIPATION

1.  IF A PARTICIPANT FAILS TO FULFIL ANY OF ITS OBLIGATIONS TO THE FUND, THE FUND MAY SUSPEND ITS PARTICIPATION BY DECISION OF THE BOARD OF GOVERNORS.  THE PARTICIPANT SO SUSPENDED SHALL AUTOMATICALLY CEASE TO BE A PARTICIPANT ONE YEAR FROM THE DATE OF ITS SUSPENSION UNLESS A DECISION IS TAKEN BY THE BOARD OF GOVERNORS TO RESTORE THE PARTICIPANT TO GOOD STANDING.

2.  WHILE UNDER SUSPENSION, A PARTICIPANT SHALL NOT BE ENTITLED TO EXERCISE ANY RIGHTS UNDER THIS AGREEMENT EXCEPT THE RIGHT OF WITHDRAWAL, BUT SHALL REMAIN SUBJECT TO ALL OBLIGATIONS.

ARTICLE 39.  RIGHTS AND DUTIES OF STATES CEASING TO BE PARTICIPANTS

1.  WHEN A STATE CEASES TO BE A PARTICIPANT, IT SHALL HAVE NO RIGHTS UNDER THIS AGREEMENT EXCEPT AS PROVIDED IN THIS ARTICLE AND IN ARTICLE 53 BUT IT SHALL, EXCEPT AS IN THIS ARTICLE OTHERWISE PROVIDED, REMAIN LIABLE FOR ALL FINANCIAL OBLIGATIONS UNDERTAKEN BY IT TO THE FUND, WHETHER AS A PARTICIPANT, BORROWER, GUARANTOR OR OTHERWISE.

2.  WHEN A STATE CEASES TO BE A PARTICIPANT, THE FUND AND THE STATE SHALL PROCEED TO A SETTLEMENT OF ACCOUNTS.  AS PART OF SUCH SETTLEMENT OF ACCOUNTS, THE FUND AND THE STATE MAY AGREE ON THE AMOUNTS TO BE PAID TO THE STATE ON ACCOUNT OF ITS SUBSCRIPTION AND ON THE TIME AND CURRENCIES OF PAYMENT.  THE TERM "SUBSCRIPTION" WHEN USED IN RELATION TO ANY PARTICIPANT SHALL FOR THE PURPOSES OF THIS ARTICLE AND ARTICLE 40 BE DEEMED TO INCLUDE BOTH THE INITIAL SUBSCRIPTION AND ANY ADDITIONAL SUBSCRIPTION OF SUCH PARTICIPANT.

3.  PENDING SUCH AGREEMENT, AND IN ANY EVENT IF NO SUCH AGREEMENT IS REACHED WITHIN SIX MONTHS FROM THE DATE WHEN THE STATE CEASED TO BE A PARTICIPANT OR SUCH OTHER TIME AS MAY BE AGREED UPON BY THE FUND AND THE STATE, THE FOLLOWING PROVISIONS SHALL APPLY:

(I) THE STATE SHALL BE RELIEVED OF ANY FURTHER LIABILITY TO THE FUND ON ACCOUNT OF ITS SUBSCRIPTION, EXCEPT THAT THE STATE SHALL PAY TO THE FUND ON THEIR DUE DATES AMOUNTS OF ITS SUBSCRIPTION UNPAID ON THE DATE WHEN THE STATE CEASED TO BE A PARTICIPANT AND WHICH IN THE OPINION OF THE FUND ARE NEEDED BY IT TO MEET ITS COMMITMENTS AS OF THAT DATE UNDER ITS FINANCING OPERATIONS;

(II) THE FUND SHALL RETURN TO THE STATE FUNDS PAID IN BY THE STATE ON ACCOUNT OF ITS SUBSCRIPTION OR DERIVED THEREFROM AS PRINCIPAL REPAYMENTS AND HELD BY THE FUND ON THE DATE WHEN THE STATE CEASED TO BE A PARTICIPANT, EXCEPT TO THE EXTENT THAT IN THE OPINION OF THE FUND SUCH FUNDS WILL BE NEEDED BY IT TO MEET ITS COMMITMENTS AS OF THAT DATE UNDER ITS FINANCING OPERATIONS;

(III) THE FUND SHALL PAY TO THE STATE A PRO RATA SHARE OF ALL PRINCIPAL REPAYMENTS RECEIVED BY THE FUND AFTER THE DATE ON WHICH THE STATE CEASES TO BE A PARTICIPANT ON LOANS CONTRACTED PRIOR THERETO, EXCEPT THOSE MADE OUT OF RESOURCES PROVIDED TO THE FUND UNDER ARRANGEMENTS SPECIFYING SPECIAL LIQUIDATION RIGHTS.  SUCH SHARE SHALL BE SUCH PROPORTION OF THE TOTAL PRINCIPAL AMOUNT OF SUCH LOANS AS THE TOTAL AMOUNT PAID BY THE STATE ON ACCOUNT OF ITS SUBSCRIPTION AND NOT RETURNED TO IT PURSUANT TO SUB-PARAGRAPH (II) ABOVE SHALL BEAR TO THE TOTAL AMOUNT PAID BY ALL PARTICIPANTS ON ACCOUNT OF THEIR SUBSCRIPTIONS WHICH SHALL HAVE BEEN USED OR IN THE OPINION OF THE FUND WILL BE NEEDED BY IT TO MEET ITS COMMITMENTS UNDER ITS FINANCING OPERATIONS AS OF THE DATE ON WHICH THE STATE CEASES TO BE A PARTICIPANT.  SUCH PAYMENT BY THE FUND SHALL BE MADE IN INSTALMENTS WHEN AND AS SUCH PRINCIPAL REPAYMENTS ARE RECEIVED BY THE FUND, BUT NOT MORE FREQUENTLY THAN ANNUALLY.SUCH INSTALMENTS SHALL BE PAID IN THE CURRENCIES RECEIVED BY THE FUND EXCEPT THAT THE FUND MAY IN ITS DISCRETION MAKE PAYMENT IN THE CURRENCY OF THE STATE CONCERNED;

(IV) ANY AMOUNT DUE TO THE STATE ON ACCOUNT OF ITS SUBSCRIPTION MAY BE WITHHELD SO LONG AS THAT STATE, OR ANY SUB-DIVISION OR ANY AGENCY OF ANY OF THE FOREGOING REMAINS LIABLE, AS BORROWER OR GUARANTOR, TO THE FUND, AND SUCH AMOUNT MAY, AT THE OPTION OF THE FUND, BE APPLIED AGAINST ANY SUCH LIABILITY AS IT MATURES;

(V) IN NO EVENT SHALL THE STATE RECEIVE UNDER THIS PARAGRAPH AN AMOUNT EXCEEDING, IN THE AGGREGATE, THE LESSER OF THE TWO FOLLOWING:

(1) THE AMOUNT PAID BY THE STATE ON ACCOUNT OF ITS SUBSCRIPTION, OR

(2) SUCH PROPORTION OF THE NET ASSETS OF THE FUND, AS SHOWN ON THE BOOKS OF THE FUND AS OF THE DATE ON WHICH THE STATE CEASED TO BE A PARTICIPANT, AS THE AMOUNT OF ITS SUBSCRIPTION SHALL BEAR TO THE AGGREGATE AMOUNT OF THE SUBSCRIPTIONS OF ALL PARTICIPANTS;

(VI) ALL CALCULATIONS REQUIRED HEREUNDER SHALL BE MADE ON SUCH BASIS AS SHALL BE REASONABLY DETERMINED BY THE FUND.

4.  IN NO EVENT SHALL ANY AMOUNT DUE TO A STATE UNDER THIS ARTICLE BE PAID UNTIL SIX MONTHS AFTER THE DATE UPON WHICH THE STATE CEASES TO BE A PARTICIPANT.  IF WITHIN SIX MONTHS OF THE DATE UPON WHICH ANY STATE CEASES TO BE A PARTICIPANT THE FUND TERMINATES ITS OPERATIONS UNDER ARTICLE 40, ALL RIGHTS OF SUCH STATE SHALL BE DETERMINED BY THE PROVISIONS OF SUCH ARTICLE 40, AND SUCH STATE SHALL BE CONSIDERED A PARTICIPANT IN THE FUND FOR PURPOSES OF SUCH ARTICLE 40, EXCEPT THAT IT SHALL HAVE NO VOTING RIGHTS.

ARTICLE 40.  TERMINATION OF OPERATIONS AND SETTLEMENT OF OBLIGATIONS

1.  THE FUND MAY TERMINATE ITS OPERATIONS BY VOTE OF THE BOARD OF GOVERNORS.  WITHDRAWAL BY THE BANK OR ALL THE STATE PARTICIPANTS PURSUANT TO ARTICLE 37 SHALL CONSTITUTE A TERMINATION OF OPERATIONS BY THE FUND.  AFTER SUCH TERMINATION OF OPERATIONS THE FUND SHALL FORTHWITH CEASE ALL ACTIVITIES, EXCEPT THOSE INCIDENTAL TO THE ORDERLY REALIZATION, CONSERVATION AND PRESERVATION OF ITS ASSETS AND SETTLEMENT OF ITS OBLIGATIONS.  UNTIL FINAL SETTLEMENT OF SUCH OBLIGATIONS AND DISTRIBUTION OF SUCH ASSETS, THE FUND SHALL REMAIN IN EXISTENCE AND ALL MUTUAL RIGHTS AND OBLIGATIONS OF THE FUND AND THE PARTICIPANTS UNDER THIS AGREEMENT SHALL CONTINUE UNIMPAIRED, EXCEPT THAT NO PARTICIPANT SHALL BE SUSPENDED OR SHALL WITHDRAW AND THAT NO DISTRIBUTION SHALL BE MADE TO PARTICIPANTS EXCEPT AS IN THIS ARTICLE PROVIDED.

2.  NO DISTRIBUTION SHALL BE MADE TO PARTICIPANTS ON ACCOUNT OF THEIR SUBSCRIPTIONS UNTIL ALL LIABILITIES TO CREDITORS SHALL HAVE BEEN DISCHARGED OR PROVIDED FOR AND UNTIL THE BOARD OF GOVERNORS SHALL HAVE DECIDED TO MAKE SUCH DISTRIBUTION.

3.  SUBJECT TO THE FOREGOING AND TO ANY SPECIAL ARRANGEMENTS FOR THE DISPOSITION OF RESOURCES AGREED UPON IN CONNECTION WITH THE PROVISION OF SUCH RESOURCES TO THE FUND, THE FUND SHALL DISTRIBUTE ITS ASSETS TO PARTICIPANTS PRO RATA IN PROPORTION TO AMOUNTS PAID IN BY THEM ON ACCOUNT OF THEIR SUBSCRIPTIONS.  ANY DISTRIBUTION PURSUANT TO THE FOREGOING PROVISION OF THIS PARAGRAPH SHALL BE SUBJECT, IN THE CASE OF ANY PARTICIPANT, TO PRIOR SETTLEMENT OF ALL OUTSTANDING CLAIMS BY THE FUND AGAINST SUCH PARTICIPANT.  SUCH DISTRIBUTION SHALL BE MADE AT SUCH TIMES, IN SUCH CURRENCIES, AND IN CASH OR OTHER ASSETS, AS THE FUND SHALL DEEM FAIR AND EQUITABLE.  DISTRIBUTION TO THE SEVERAL PARTICIPANTS NEED NOT BE UNIFORM IN RESPECT OF THE TYPE OF ASSETS DISTRIBUTED OR OF THE CURRENCIES IN WHICH THEY ARE EXPRESSED.

4.  ANY PARTICIPANT RECEIVING ASSETS DISTRIBUTED BY THE FUND PURSUANT TO THIS ARTICLE OR ARTICLE 39 SHALL ENJOY THE SAME RIGHTS WITH RESPECT TO SUCH ASSETS AS THE FUND ENJOYED PRIOR TO THEIR DISTRIBUTION.

CHAPTER VIII STATUS; IMMUNITIES; EXEMPTIONS AND PRIVILEGES

ARTICLE 41.  PURPOSE OF CHAPTER

TO ENABLE THE FUND EFFECTIVELY TO FULFIL ITS PURPOSE AND CARRY OUT THE FUNCTIONS ENTRUSTED TO IT, THE STATUS, IMMUNITIES, EXEMPTIONS AND PRIVILEGES SET FORTH IN THIS CHAPTER SHALL BE ACCORDED TO THE FUND IN THE TERRITORY OF EACH STATE PARTICIPANT, AND EACH STATE PARTICIPANT SHALL INFORM THE FUND OF THE SPECIFIC ACTION WHICH IT HAS TAKEN FOR SUCH PURPOSE.

ARTICLE 42.  STATUS

THE FUND SHALL POSSESS FULL JURIDICAL PERSONALITY AND, IN PARTICULAR, FULL CAPACITY:

(I) TO CONTRACT;

(II) TO ACQUIRE, AND DISPOSE OF, IMMOVABLE AND MOVABLE PROPERTY; AND

(III) TO INSTITUTE LEGAL PROCEEDINGS.

ARTICLE 43.  LEGAL PROCESS

1.  THE FUND SHALL ENJOY IMMUNITY FROM EVERY FORM OF LEGAL PROCESS, EXCEPT IN CASES ARISING OUT OF OR IN CONNECTION WITH THE EXERCISE OF ITS POWERS TO RECEIVE LOANS IN ACCORDANCE WITH ARTICLE 8, IN WHICH CASE ACTIONS MAY BE BROUGHT AGAINST THE FUND IN A COURT OF COMPETENT JURISDICTION IN THE TERRITORY OF A COUNTRY IN WHICH THE FUND HAS ITS OFFICE, OR HAS APPOINTED AN AGENT FOR THE PURPOSE OF ACCEPTING SERVICE OR NOTICE OF PROCESS, OR HAS OTHERWISE AGREED TO BE SUED.

2.  NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH 1, NO ACTION SHALL BE BROUGHT AGAINST THE FUND BY ANY PARTICIPANT, OR BY ANY AGENCY OR INSTRUMENTALITY OF A PARTICIPANT, OR BY ANY ENTITY OR PERSON DIRECTLY OR INDIRECTLY ACTING FOR OR DERIVING CLAIMS FROM A PARTICIPANT OR FROM ANY AGENCY OR INSTRUMENTALITY OF A PARTICIPANT.  PARTICIPANTS SHALL HAVE RECOURSE TO SUCH SPECIAL PROCEDURES FOR THE SETTLEMENT OF DISPUTES BETWEEN THE FUND AND ITS PARTICIPANTS AS MAY BE PRESCRIBED IN THIS AGREEMENT, IN THE BY-LAWS AND REGULATIONS OF THE FUND, OR IN CONTRACTS ENTERED INTO WITH THE FUND.

3.  THE FUND SHALL ALSO MAKE PROVISION FOR APPROPRIATE MODES OF SETTLEMENT OF DISPUTES IN CASES WHICH DO NOT COME WITHIN THE PROVISIONS OF PARAGRAPH (2) AND OF ARTICLES 52 AND 53 AND WHICH ARE SUBJECT TO THE IMMUNITY OF THE FUND BY VIRTUE OF PARAGRAPH (1) OF THIS ARTICLE.

4.  WHERE BY VIRTUE OF ANY OF THE PROVISIONS OF THIS AGREEMENT THE FUND DOES NOT ENJOY IMMUNITY FROM LEGAL PROCESS, THE FUND, AND ITS PROPERTY AND ASSETS WHEREVER LOCATED AND BY WHOMSOEVER HELD, SHALL NEVERTHELESS BE IMMUNE FROM ALL FORMS OF SEIZURE, ATTACHMENT OR EXECUTION BEFORE THE DELIVERY OF FINAL JUDGEMENT AGAINST THE FUND.

ARTICLE 44.  IMMUNITY OF ASSETS

PROPERTY AND ASSETS OF THE FUND, WHEREVER LOCATED AND BY WHOMSOEVER HELD, SHALL BE IMMUNE FROM SEARCH, REQUISITION, CONFISCATION, EXPROPRIATION OR ANY OTHER FORM OF TAKING OR FORECLOSURE BY EXECUTIVE OR LEGISLATIVE ACTION.

ARTICLE 45.  IMMUNITY OF ARCHIVES

THE ARCHIVES OF THE FUND, AND, IN GENERAL, ALL DOCUMENTS BELONGING TO IT, OR HELD BY IT, SHALL BE INVIOLABLE, WHEREVER LOCATED.

ARTICLE 46.  FREEDOM OF ASSETS FROM RESTRICTION

TO THE EXTENT NECESSARY TO CARRY OUT THE PURPOSE AND FUNCTIONS OF THE FUND, AND SUBJECT TO THE PROVISIONS OF THIS AGREEMENT, ALL PROPERTY AND OTHER ASSETS OF THE FUND SHALL BE FREE FROM RESTRICTION BY FINANCIAL CONTROLS, REGULATIONS, OR MORATORIA OF ANY KIND.

ARTICLE 47.  PRIVILEGE FOR COMMUNICATIONS

OFFICIAL COMMUNICATIONS OF THE FUND SHALL BE ACCORDED BY EACH STATE PARTICIPANT THE SAME TREATMENT AS IT ACCORDS TO THE OFFICIAL COMMUNICATIONS OF OTHER INTERNATIONAL FINANCIAL INSTITUTIONS OF WHICH IT IS A MEMBER.

ARTICLE 48.  IMMUNITIES AND PRIVILEGES OF OFFICIALS AND PERSONNEL

ALL GOVERNORS AND DIRECTORS, AND THEIR ALTERNATES, THE PRESIDENT AND PERSONNEL, INCLUDING EXPERTS PERFORMING MISSIONS FOR THE FUND:

(I) SHALL BE IMMUNE FROM LEGAL PROCESS WITH RESPECT TO ACTS PERFORMED BY THEM IN THEIR OFFICIAL CAPACITY;

(II) WHEN THEY ARE NOT LOCAL NATIONALS, SHALL BE ACCORDED NO LESS FAVOURABLE IMMUNITIES FROM IMMIGRATION RESTRICTIONS, ALIEN REGISTRATION REQUIREMENTS AND NATIONAL SERVICE OBLIGATIONS, AND NO LESS FAVOURABLE FACILITIES AS REGARDS EXCHANGE REGULATIONS, THAN ARE ACCORDED BY THE STATE PARTICIPANT CONCERNED TO THE REPRESENTATIVES, OFFICIALS AND EMPLOYEES OF COMPARABLE RANK OF ANY OTHER INTERNATIONAL FINANCIAL INSTITUTION OF WHICH IT IS A MEMBER; AND

(III) SHALL BE GRANTED NO LESS FAVOURABLE TREATMENT IN RESPECT OF TRAVELLING FACILITIES THAN IS ACCORDED BY THE STATE PARTICIPANT CONCERNED TO REPRESENTATIVES, OFFICIALS AND EMPLOYEES OF COMPARABLE RANK OF ANY OTHER INTERNATIONAL FINANCIAL INSTITUTION OF WHICH IT IS A MEMBER.

ARTICLE 49.  EXEMPTION FROM TAXATION

1.  THE FUND, ITS ASSETS, PROPERTY, INCOME, OPERATIONS AND TRANSACTIONS SHALL BE EXEMPT FROM ALL DIRECT TAXATION, AND FROM ALL CUSTOMS DUTIES, OR TAXES HAVING EQUIVALENT EFFECT, ON GOODS IMPORTED OR EXPORTED FOR ITS OFFICIAL USE.  THE FUND SHALL ALSO BE EXEMPT FROM ANY OBLIGATION FOR THE PAYMENT, WITHHOLDING OR COLLECTION OF ANY TAX OR DUTY.

2.  NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH 1, THE FUND SHALL NOT CLAIM EXEMPTION FROM TAXES WHICH ARE NO MORE THAN CHARGES FOR SERVICES RENDERED.

3.  ARTICLES IMPORTED UNDER AN EXEMPTION PROVIDED FOR BY PARAGRAPH I SHALL NOT BE SOLD IN THE TERRITORY OF THE STATE PARTICIPANT WHICH GRANTED THE EXEMPTION EXCEPT UNDER CONDITIONS AGREED WITH THAT PARTICIPANT.

4.  NO TAX SHALL BE LEVIED ON OR IN RESPECT OF SALARIES AND EMOLUMENTS PAID BY THE FUND TO THE PRESIDENT AND PERSONNEL INCLUDING EXPERTS PERFORMING MISSIONS FOR IT.

ARTICLE 50.  WAIVER BY THE FUND

1.  THE IMMUNITIES, EXEMPTIONS AND PRIVILEGES PROVIDED IN THIS CHAPTER ARE GRANTED IN THE INTERESTS OF THE FUND.  THE BOARD OF DIRECTORS MAY WAIVE, TO SUCH EXTENT AND UPON SUCH CONDITIONS AS IT MAY DETERMINE, THE IMMUNITIES, EXEMPTIONS AND PRIVILEGES PROVIDED IN THIS CHAPTER IN CASES WHERE ITS ACTION WOULD IN ITS OPINION FURTHER THE INTERESTS OF THE FUND.

2.  REGARDLESS OF THE PROVISIONS OF PARAGRAPH 1, THE PRESIDENT SHALL HAVE THE RIGHT AND THE DUTY TO WAIVE THE IMMUNITY OF ANY OF THE PERSONNEL, INCLUDING EXPERTS PERFORMING MISSIONS FOR THE FUND, IN CASES WHERE, IN HIS OPINION, THE IMMUNITY WOULD IMPEDE THE COURSE OF JUSTICE AND CAN BE WAIVED WITHOUT PREJUDICE TO THE INTERESTS OF THE FUND.

CHAPTER IX AMENDMENTS

ARTICLE 51.

1.  ANY PROPOSAL TO INTRODUCE MODIFICATIONS TO THIS AGREEMENT, WHETHER EMANATING FROM A PARTICIPANT, A GOVERNOR OR THE BOARD OF DIRECTORS, SHALL BE COMMUNICATED TO THE CHAIRMAN OF THE BOARD OF GOVERNORS, WHO SHALL BRING THE PROPOSAL BEFORE THAT BOARD.  IF THE PROPOSED AMENDMENT IS APPROVED BY THE BOARD, THE FUND SHALL, BY CIRCULAR LETTER OR TELEGRAM, ASK THE PARTICIPANTS WHETHER THEY ACCEPT THE PROPOSED AMENDMENT.  WHEN THREE-FOURTHS OF THE PARTICIPANTS HAVING EIGHTY-FIVE PER CENT OF THE VOTING POWER HAVE ACCEPTED THE PROPOSED AMENDMENT, THE FUND SHALL CERTIFY THE FACT BY FORMAL COMMUNICATION ADDRESSED TO THE PARTICIPANTS.  AMENDMENTS SHALL ENTER INTO FORCE FOR ALL PARTICIPANTS THREE MONTHS AFTER THE DATE OF THE FORMAL COMMUNICATION PROVIDED FOR IN THIS PARAGRAPH UNLESS THE BOARD OF GOVERNORS SPECIFIES A DIFFERENT PERIOD OR DATE.

2.  NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH 1, THE UNANIMOUS APPROVAL OF THE BOARD OF GOVERNORS SHALL BE REQUIRED FOR THE APPROVAL OF ANY AMENDMENT MODIFYING:

(I) THE LIMITATION ON LIABILITY PROVIDED FOR IN ARTICLE 10;

(II) THE PROVISIONS OF ARTICLE 7 (2) AND (3) RELATING TO THE SUBSCRIPTION OF ADDITIONAL FUNDS;

(III) THE RIGHT TO WITHDRAW FROM THE FUND; AND

(IV) THE VOTING MAJORITY REQUIREMENTS CONTAINED IN THIS AGREEMENT.

CHAPTER X INTERPRETATION AND ARBITRATION

ARTICLE 52.  INTERPRETATION

1.  ANY QUESTION OF INTERPRETATION OR APPLICATION OF THE PROVISIONS OF THIS AGREEMENT ARISING BETWEEN ANY PARTICIPANT AND THE FUND OR BETWEEN ANY PARTICIPANTS SHALL BE SUBMITTED TO THE BOARD OF DIRECTORS FOR DECISION.  IF THERE IS NO DIRECTOR OF ITS NATIONALITY ON THAT BOARD, A STATE PARTICIPANT PARTICULARLY AFFECTED BY THE QUESTION UNDER CONSIDERATION SHALL BE ENTITLED TO DIRECT REPRESENTATION IN SUCH CASES.  SUCH RIGHT OF REPRESENTATION SHALL BE REGULATED BY THE BOARD OF GOVERNORS.

2.  IN ANY CASE WHERE THE BOARD OF DIRECTORS HAS GIVEN A DECISION UNDER PARAGRAPH I, ANY PARTICIPANT MAY REQUIRE THAT THE QUESTION BE REFERRED TO THE BOARD OF GOVERNORS, WHOSE DECISION SHALL BE FINAL.  PENDING THE DECISION OF THE BOARD OF GOVERNORS, THE FUND MAY, SO FAR AS IT DEEMS NECESSARY, ACT ON THE BASIS OF THE DECISION OF THE BOARD OF DIRECTORS.

ARTICLE 53.  ARBITRATION

IN THE CASE OF A DISPUTE BETWEEN THE FUND AND A STATE WHICH HAS CEASED TO BE A PARTICIPANT, OR BETWEEN THE FUND AND ANY PARTICIPANT UPON THE TERMINATION OF THE OPERATIONS OF THE FUND, SUCH DISPUTE SHALL BE SUBMITTED TO ARBITRATION BY A TRIBUNAL OF THREE ARBITRATORS.  ONE OF THE ARBITRATORS SHALL BE APPOINTED BY THE FUND, ANOTHER BY THE PARTICIPANT OR FORMER PARTICIPANT CONCERNED, AND THE TWO PARTIES SHALL APPOINT THE THIRD ARBITRATOR, WHO SHALL BE THE CHAIRMAN.  IF WITHIN FORTY-FIVE DAYS OF RECEIPT OF THE REQUEST FOR ARBITRATION EITHER PARTY HAS NOT APPOINTED AN ARBITRATOR OR IF WITHIN THIRTY DAYS OF THE APPOINTMENT OF TWO ARBITRATORS THE THIRD ARBITRATOR HAS NOT BEEN APPOINTED, EITHER PARTY MAY REQUEST THE PRESIDENT OF THE INTERNATIONAL COURT OF JUSTICE, OR SUCH OTHER AUTHORITY AS MAY HAVE BEEN PRESCRIBED BY REGULATIONS ADOPTED BY THE BOARD OF GOVERNORS, TO APPOINT AN ARBITRATOR.  THE PROCEDURE OF THE ARBITRATION SHALL BE FIXED BY THE ARBITRATORS, BUTTHE THIRD ARBITRATOR SHALL HAVE FULL POWER TO SETTLE ALL QUESTIONS OF PROCEDURE IN ANY CASE OF DISAGREEMENT WITH RESPECT THERETO.  A MAJORITY VOTE OF THE ARBITRATORS SHALL BE SUFFICIENT TO REACH A DECISION, WHICH SHALL BE FINAL AND BINDING UPON THE PARTIES.

CHAPTER XI FINAL PROVISIONS

ARTICLE 54.  SIGNATURE

THE ORIGINAL OF THIS AGREEMENT SHALL REMAIN OPEN UNTIL 31 MARCH 1973 FOR SIGNATURE BY THE BANK AND BY THE STATES WHOSE NAMES ARE SET FORTH IN SCHEDULE A.

ARTICLE 55.  RATIFICATION, ACCEPTANCE OR APPROVAL

1.  THIS AGREEMENT SHALL BE SUBJECT TO RATIFICATION, ACCEPTANCE OR APPROVAL BY THE SIGNATORIES.

2.  INSTRUMENTS OF RATIFICATION, ACCEPTANCE OR APPROVAL SHALL BE DEPOSITED WITH THE BANK AT ITS PRINCIPAL OFFICE BY EACH SIGNATORY BEFORE 31 DECEMBER 1973, PROVIDED THAT, IF THIS AGREEMENT SHALL NOT HAVE ENTERED INTO FORCE BY THAT DATE IN ACCORDANCE WITH ARTICLE 56, THE BOARD OF DIRECTORS OF THE BANK MAY EXTEND THE PERIOD FOR DEPOSIT OF INSTRUMENTS OF RATIFICATION, ACCEPTANCE OR APPROVAL BY NOT MORE THAN SIX MONTHS.

ARTICLE 56.  ENTRY INTO FORCE

THIS AGREEMENT SHALL ENTER INTO FORCE ON THE DATE ON WHICH THE BANK AND EIGHT SIGNATORY STATES WHOSE INITIAL SUBSCRIPTIONS, AS SET FORTH IN SCHEDULE A TO THIS AGREEMENT, COMPRISE IN AGGREGATE NOT LESS THAN 55 MILLION UNITS OF ACCOUNT, HAVE DEPOSITED THEIR INSTRUMENTS OF RATIFICATION, ACCEPTANCE OR APPROVAL.

ARTICLE 57.  PARTICIPATION

1.  A SIGNATORY WHOSE INSTRUMENT OF RATIFICATION, ACCEPTANCE OR APPROVAL IS DEPOSITED ON OR BEFORE THE DATE ON WHICH THIS AGREEMENT ENTERS INTO FORCE SHALL BECOME A PARTICIPANT ON THAT DATE.  A SIGNATORY WHOSE INSTRUMENT OF RATIFICATION, ACCEPTANCE OR APPROVAL IS DEPOSITED THEREAFTER AND BEFORE THE DATE PRESCRIBED IN OR PURSUANT TO ARTICLE 55 (2) SHALL BECOME A PARTICIPANT ON THE DATE OF SUCH DEPOSIT.

2.  A STATE WHICH IS NOT AN ORIGINAL PARTICIPANT MAY BECOME A PARTICIPANT PURSUANT TO ARTICLE 3 (3), AND NOTWITHSTANDING THE PROVISIONS OF ARTICLES 54 AND 55, SUCH PARTICIPATION SHALL BE EFFECTED BY SIGNING THIS AGREEMENT AND BY DEPOSITING WITH THE BANK AN INSTRUMENT OF RATIFICATION, ACCEPTANCE OR APPROVAL, WHICH SHALL TAKE EFFECT ON THE DATE OF SUCH DEPOSIT.

ARTICLE 58.  RESERVATIONS

A STATE MAY, WHEN DEPOSITING ITS INSTRUMENT OF RATIFICATION, ACCEPTANCE OR APPROVAL, DECLARE:

(I) THAT IN ITS TERRITORY THE IMMUNITY CONFERRED BY ARTICLE 43 (1) AND BY ARTICLE 48 (I) SHALL NOT APPLY IN RELATION TO A CIVIL ACTION ARISING OUT OF AN ACCIDENT CAUSED BY A MOTOR VEHICLE BELONGING TO THE FUND OR OPERATED ON ITS BEHALF, OR TO A TRAFFIC OFFENCE COMMITTED BY THE DRIVER OF SUCH A VEHICLE;

(II) THAT IT RETAINS FOR ITSELF AND ITS POLITICAL SUBDIVISIONS THE RIGHT TO TAX SALARIES AND EMOLUMENTS PAID BY THE FUND TO THAT STATE'S CITIZENS, NATIONALS OR RESIDENTS;

(III) THAT IT UNDERSTANDS THAT THE FUND WILL NOT NORMALLY CLAIM EXEMPTION FROM EXCISE DUTIES LEVIED BY THAT STATE ON GOODS ORIGINATING IN ITS TERRITORY, AND FROM TAXES ON THE SALE OF MOVABLE AND IMMOVABLE PROPERTY, WHICH FORM PART OF THE PRICE TO BE PAID, BUT THAT WHERE THE FUND IS MAKING IMPORTANT PURCHASES FOR OFFICIAL USE OF PROPERTY ON WHICH SUCH DUTIES AND TAXES HAVE BEEN CHARGED OR ARE CHARGEABLE, WHENEVER POSSIBLE, APPROPRIATE ADMINISTRATIVE ARRANGEMENTS WILL BE MADE BY THAT STATE FOR THE REMISSION OR RETURN OF THE AMOUNT OF DUTY OR TAX; AND

(IV) THAT THE PROVISIONS OF ARTICLE 49 (3) SHALL APPLY TO ARTICLES IN RESPECT OF WHICH A REMISSION OR RETURN OF DUTY OR TAX HAS BEEN MADE BY THAT STATE PURSUANT TO THE ARRANGEMENTS REFERRED TO IN SUB-PARAGRAPH (III).

ARTICLE 59.  NOTIFICATION

THE BANK SHALL NOTIFY ALL SIGNATORIES OF:

(A) ANY SIGNATURE;

(B) ANY DEPOSIT OF AN INSTRUMENT OF RATIFICATION, ACCEPTANCE OR APPROVAL;

(C) THE DATE OF ENTRY INTO FORCE OF THIS AGREEMENT; AND

(D) ANY DECLARATIONS OR RESERVATIONS MADE AT THE TIME OF DEPOSIT OF AN INSTRUMENT OF RATIFICATION, ACCEPTANCE OR APPROVAL.

ARTICLE 60.  INAUGURAL MEETING

1.  AS SOON AS THIS AGREEMENT ENTERS INTO FORCE, EACH STATE PARTICIPANT SHALL APPOINT A GOVERNOR, AND THE CHAIRMAN OF THE BOARD OF GOVERNORS SHALL CALL THE INAUGURAL MEETING OF THE BOARD OF GOVERNORS.

2.  AT THE INAUGURAL MEETING:

(I) TWELVE DIRECTORS OF THE FUND SHALL BE DESIGNATED AND SELECTED PURSUANT TO ARTICLE 27 (2) AND (3); AND

(II) ARRANGEMENTS SHALL BE MADE FOR DETERMINING THE DATE ON WHICH THE FUND SHALL COMMENCE OPERATIONS.

3.  THE FUND SHALL NOTIFY ALL PARTICIPANTS OF THE DATE OF COMMENCEMENT OF ITS OPERATIONS.

4.  REASONABLE AND NECESSARY EXPENSES INCURRED BY THE BANK IN ESTABLISHING THE FUND, INCLUDING SUBSISTENCE EXPENSES OF GOVERNORS AND THEIR ALTERNATES IN ATTENDING THE INAUGURAL MEETING, SHALL BE REIMBURSED BY THE FUND.

IN WITNESS WHEREOF THE UNDERSIGNED, BEING THEREUNTO DULY AUTHORIZED, HAVE SIGNED THIS AGREEMENT.

DONE AT ABIDJAN, THIS TWENTY-NINTH DAY OF NOVEMBER, ONE THOUSAND NINE HUNDRED AND SEVENTY-TWO, IN THE ENGLISH AND FRENCH LANGUAGES, BOTH TEXTS BEING EQUALLY AUTHENTIC, IN A SINGLE COPY, WHICH SHALL REMAIN DEPOSITED WITH THE BANK.

THE BANK SHALL TRANSMIT CERTIFIED COPIES OF THIS AGREEMENT TO EACH SIGNATORY.

ANNEX MODIFICATIONS AND ADDITIONS TO THE INTERNATIONAL CONVENTION FOR THE SAFETY OF LIFE AT SEA, 1974

CHAPTER I GENERAL PROVISIONS

PART A - APPLICATION, DEFINITIONS, ETC.

REGULATION 2 DEFINITIONS

THE FOLLOWING PARAGRAPH IS ADDED TO THE EXISTING TEXT:

(N) "AGE OF A SHIP" MEANS THE ELAPSED PERIOD OF TIME DETERMINED FROM THE YEAR OF BUILD AS INDICATED ON THE SHIP'S REGISTRY PAPERS.

PART B - SURVEYS AND CERTIFICATES

REGULATION 6 INSPECTION AND SURVEY

THE EXISTING TEXT OF REGULATION 6 IS REPLACED BY THE FOLLOWING:

(A) THE INSPECTION AND SURVEY OF SHIPS, SO FAR AS REGARDS THE ENFORCEMENT OF THE PROVISIONS OF THE PRESENT REGULATIONS AND THE GRANTING OF EXEMPTIONS THEREFROM, SHALL BE CARRIED OUT BY OFFICERS OF THE ADMINISTRATION.  THE ADMINISTRATION MAY, HOWEVER, ENTRUST THE INSPECTIONS AND SURVEYS EITHER TO SURVEYORS NOMINATED FOR THE PURPOSE OR TO ORGANIZATIONS RECOGNIZED BY IT.

(B) THE ADMINISTRATION SHALL INSTITUTE ARRANGEMENTS FOR UNSCHEDULED INSPECTIONS TO BE CARRIED OUT DURING THE PERIOD OF VALIDITY OF THE CERTIFICATE.  SUCH INSPECTIONS SHALL ENSURE THAT THE SHIP AND ITS EQUIPMENT REMAIN IN ALL RESPECTS SATISFACTORY FOR THE SERVICE FOR WHICH THE SHIP IS INTENDED.  THESE INSPECTIONS MAY BE CARRIED OUT BY THE ADMINISTRATION'S OWN INSPECTION SERVICES, OR BY NOMINATED SURVEYORS, OR BY RECOGNIZED ORGANIZATIONS, OR BY OTHER PARTIES UPON REQUEST OF THE ADMINISTRATION.  WHERE THE ADMINISTRATION, UNDER THE PROVISIONS OF REGULATIONS 8 AND 10 OF THIS CHAPTER, ESTABLISHES MANDATORY ANNUAL SURVEYS, THE ABOVE UNSCHEDULED INSPECTIONS SHALL NOT BE OBLIGATORY.

(C) AN ADMINISTRATION NOMINATING SURVEYORS OR RECOGNIZING ORGANIZATIONS TO CONDUCT INSPECTIONS AND SURVEYS AS SET FORTH IN PARAGRAPHS (A) AND (B) OF THIS REGULATION SHALL AS A MINIMUM EMPOWER ANY NOMINATED SURVEYOR OR RECOGNIZED ORGANIZATION TO:

(I) REQUIRE REPAIRS TO A SHIP, AND

(II) CARRY OUT INSPECTIONS AND SURVEYS IF REQUESTED BY THE APPROPRIATE AUTHORITIES OF A PORT STATE.

THE ADMINISTRATION SHALL NOTIFY THE ORGANIZATION OF THE SPECIFIC RESPONSIBILITIES AND CONDITIONS OF THE AUTHORITY DELEGATED TO NOMINATED SURVEYORS OR RECOGNIZED ORGANIZATIONS.

(D) WHEN A NOMINATED SURVEYOR OR RECOGNIZED ORGANIZATION DETERMINES THAT THE CONDITION OF THE SHIP OR ITS EQUIPMENT DOES NOT CORRESPOND SUBSTANTIALLY WITH THE PARTICULARS OF THE CERTIFICATE OR IS SUCH THAT THE SHIP IS NOT FIT TO PROCEED TO SEA WITHOUT DANGER TO THE SHIP, OR PERSONS ON BOARD, SUCH SURVEYOR OR ORGANIZATION SHALL IMMEDIATELY ENSURE THAT CORRECTIVE ACTION IS TAKEN AND SHALL IN DUE COURSE NOTIFY THE ADMINISTRATION.  IF SUCH CORRECTIVE ACTION IS NOT TAKEN THE RELEVANT CERTIFICATE SHOULD BE WITHDRAWN AND THE ADMINISTRATION SHALL BE NOTIFIED IMMEDIATELY; AND, IF THE SHIP IS IN THE PORT OF ANOTHER PARTY, THE APPROPRIATE AUTHORITIES OF THE PORT STATE SHALL ALSO BE NOTIFIED IMMEDIATELY.  WHEN AN OFFICER OF THE ADMINISTRATION, A NOMINATED SURVEYOR OR RECOGNIZED ORGANIZATION HAS NOTIFIED THE APPROPRIATE AUTHORITIES OF THE PORT STATE, THE GOVERNMENT OF THE PORT STATE CONCERNED SHALL GIVE SUCH OFFICER, SURVEYOR OR ORGANIZATION ANY NECESSARY ASSISTANCE TO CARRY OUT THEIR OBLIGATIONS UNDER THIS REGULATION.  WHEN APPLICABLE, THE GOVERNMENT OF THE PORT STATE CONCERNED SHALL ENSURE THAT THE SHIP SHALL NOT SAIL UNTIL IT CAN PROCEED TO SEA, OR LEAVE PORT FOR THE PURPOSE OF PROCEEDING TO THE APPROPRIATE REPAIR YARD, WITHOUT DANGER TO THE SHIP OR PERSONS ON BOARD.

(E) IN EVERY CASE, THE ADMINISTRATION SHALL FULLY GUARANTEE THE COMPLETENESS AND EFFICIENCY OF THE INSPECTION AND SURVEY, AND SHALL UNDERTAKE TO ENSURE THE NECESSARY ARRANGEMENTS TO SATISFY THIS OBLIGATION.

REGULATION 7 SURVEYS OF PASSENGER SHIPS

THE EXISTING TEXT OF PARAGRAPH (B)(III) IS REPLACED BY THE FOLLOWING:

(III) A SURVEY EITHER GENERAL OR PARTIAL, ACCORDING TO THE CIRCUMSTANCES, SHALL BE MADE AFTER A REPAIR RESULTING FROM INVESTIGATIONS PRESCRIBED IN REGULATION 11 OF THIS CHAPTER, OR WHENEVER ANY IMPORTANT REPAIRS OR RENEWALS ARE MADE.  THE SURVEY SHALL BE SUCH AS TO ENSURE THAT THE NECESSARY REPAIRS OR RENEWALS HAVE BEEN EFFECTIVELY MADE, THAT THE MATERIAL AND WORKMANSHIP OF SUCH REPAIRS OR RENEWALS ARE IN ALL RESPECTS SATISFACTORY, AND THAT THE SHIP COMPLIES IN ALL RESPECTS WITH THE PROVISIONS OF THE CONVENTION AND THE PRESENT PROTOCOL AND OF THE INTERNATIONAL REGULATIONS FOR PREVENTING COLLISIONS AT SEA IN FORCE, AND OF THE LAWS, DECREES, ORDERS AND REGULATIONS PROMULGATED AS A RESULT THEREOF BY THE ADMINISTRATION.

REGULATION 8 SURVEYS OF LIFE-SAVING APPLIANCES AND OTHER EQUIPMENT OF CARGO SHIPS

THE EXISTING TEXT OF REGULATION 8 IS REPLACED BY THE FOLLOWING:

(A) THE LIFE-SAVING APPLIANCES, EXCEPT A RADIOTELEGRAPH INSTALLATION IN A MOTOR LIFEBOAT OR A PORTABLE RADIO APPARATUS FOR SURVIVAL CRAFT, THE ECHO-SOUNDING DEVICE, THE GYRO-COMPASS, THE FIRE-EXTINGUISHING APPLIANCES AND THE INERT GAS SYSTEM OF CARGO SHIPS TO WHICH CHAPTERS II-1, II-2, III AND V OF THE CONVENTION AND THE PRESENT PROTOCOL APPLY, SHALL BE SUBJECT TO INITIAL AND SUBSEQUENT SURVEYS AS PRESCRIBED FOR PASSENGER SHIPS IN REGULATION 7 OF CHAPTER I OF THE CONVENTION AND THE PRESENT PROTOCOL WITH THE SUBSTITUTION OF 24 MONTHS FOR 12 MONTHS IN SUB-PARAGRAPH (A)(II) OF THAT REGULATION.  THE FIRE CONTROL PLANS IN NEW SHIPS AND THE PILOT LADDERS, MECHANICAL PILOT HOISTS, LIGHTS, SHAPES AND MEANS OF MAKING SOUND SIGNALS CARRIED BY NEW AND EXISTING SHIPS SHALL BE INCLUDED IN THE SURVEYS FOR THE PURPOSE OF ENSURING THAT THEY COMPLY FULLY WITH THE REQUIREMENTS OF THE CONVENTION AND THE PRESENT PROTOCOL AND, WHERE APPLICABLE, THE INTERNATIONAL REGULATIONS FOR PREVENTING COLLISIONS AT SEA IN FORCE.

(B) INTERMEDIATE SURVEYS SHALL BE MADE FOR TANKERS OF TEN YEARS OF AGE AND OVER, WITHIN THREE MONTHS BEFORE OR AFTER THE ANNIVERSARY DATE OF THE CARGO SHIP SAFETY EQUIPMENT CERTIFICATE, TO ENSURE THAT EQUIPMENT SPECIFIED IN PARAGRAPH (A) OF THIS REGULATION HAS BEEN MAINTAINED IN ACCORDANCE WITH REGULATION 11 OF THIS CHAPTER AND THAT IT IS IN GOOD WORKING CONDITION.  SUCH INTERMEDIATE SURVEYS SHALL BE ENDORSED ON THE CARGO SHIP SAFETY EQUIPMENT CERTIFICATE ISSUED IN ACCORDANCE WITH REGULATION 12(A)(III) OF CHAPTER I OF THE CONVENTION.

REGULATION 10 SURVEYS OF HULL, MACHINERY AND EQUIPMENT OF CARGO SHIPS

THE EXISTING TEXT OF REGULATION 10 IS REPLACED BY THE FOLLOWING:

(A) THE HULL, MACHINERY AND EQUIPMENT (OTHER THAN ITEMS IN RESPECT OF WHICH CARGO SHIP SAFETY EQUIPMENT CERTIFICATES, CARGO SHIP SAFETY RADIOTELEGRAPHY CERTIFICATES OR CARGO SHIP RADIOTELEPHONY CERTIFICATES ARE ISSUED) OF A CARGO SHIP SHALL BE SURVEYED ON COMPLETION AND THEREAFTER IN SUCH A MANNER AS THE ADMINISTRATION MAY CONSIDER NECESSARY IN ORDER TO ENSURE THAT THEIR CONDITION IS IN ALL RESPECTS SATISFACTORY AND AT THE FOLLOWING INTERVALS:

(I) AT INTERVALS SPECIFIED BY THE ADMINISTRATION BUT NOT EXCEEDING FIVE YEARS (PERIODICAL SURVEYS);

(II) IN ADDITION TO SUCH PERIODICAL SURVEYS A TANKER OF TEN YEARS OF AGE AND OVER SHALL UNDERGO A MINIMUM OF ONE INTERMEDIATE SURVEY DURING THE PERIOD OF VALIDITY OF ITS CARGO SHIP SAFETY CONSTRUCTION CERTIFICATE.  IN CASES WHERE ONLY ONE SUCH INTERMEDIATE SURVEY IS CARRIED OUT IN ANY ONE CERTIFICATE VALIDITY PERIOD, IT SHALL BE HELD NOT BEFORE SIX MONTHS PRIOR TO, NOR LATER THAN SIX MONTHS AFTER, THE HALF-WAY DATE OF THE CERTIFICATE'S PERIOD OF VALIDITY.

(B) THE INITIAL AND PERIODICAL SURVEY SHALL BE SUCH AS TO ENSURE THAT THE ARRANGEMENTS, MATERIAL AND SCANTLINGS OF THE STRUCTURE, BOILERS AND OTHER PRESSURE VESSELS, THEIR APPURTENANCES, MAIN AND AUXILIARY MACHINERY INCLUDING STEERING GEAR AND ASSOCIATED CONTROL SYSTEMS, ELECTRICAL INSTALLATION AND OTHER EQUIPMENT ARE IN ALL RESPECTS SATISFACTORY FOR THE SERVICE FOR WHICH THE SHIP IS INTENDED.  SUCH SURVEYS SHALL, IN THE CASE OF TANKERS, ALSO INCLUDE INSPECTION OF THE OUTSIDE OF THE SHIP'S BOTTOM, PUMP ROOMS, CARGO AND BUNKER PIPING SYSTEMS, VENT PIPING, PRESSURE VACUUM VALVES AND FLAME SCREENS.

(C) THE INTERMEDIATE SURVEY OF TANKERS OF TEN YEARS OF AGE AND OVER SHALL INCLUDE INSPECTION OF STEERING GEAR EQUIPMENT AND ASSOCIATED CONTROL SYSTEMS, PUMP ROOMS, CARGO AND BUNKER PIPING SYSTEMS ON DECK AND IN PUMP ROOMS, VENT PIPING, PRESSURE VACUUM VALVES AND FLAME SCREENS, THE ELECTRICAL INSTALLATIONS IN DANGEROUS ZONES, AND THE OUTSIDE OF THE SHIP'S BOTTOM.  IN ADDITION TO THE VISUAL INSPECTION OF THE ELECTRICAL INSTALLATION, THE INSULATION RESISTANCE OF THE ELECTRICAL EQUIPMENT IN DANGEROUS ZONES IS TO BE TESTED.  IF, UPON EXAMINATION, THERE SHOULD BE ANY DOUBT AS TO THE CONDITION OF THE PIPING, EXTRA MEASURES, SUCH AS PRESSURE TESTS AND THICKNESS DETERMINATION, SHALL BE TAKEN AS NECESSARY.  SUCH INTERMEDIATE SURVEYS SHALL BE ENDORSED ON THE CARGO SHIP SAFETY CONSTRUCTION CERTIFICATE ISSUED IN ACCORDANCE WITH REGULATION 12(A)(II) OF CHAPTER I OF THE CONVENTION.

(D) A SURVEY, EITHER GENERAL OR PARTIAL ACCORDING TO THE CIRCUMSTANCES, SHALL BE MADE WHEN REQUIRED AFTER AN INVESTIGATION PRESCRIBED IN REGULATION 11 OF THIS CHAPTER, OR WHENEVER ANY IMPORTANT REPAIRS OR RENEWALS ARE MADE.  THE SURVEY SHALL BE SUCH AS TO ENSURE THAT THE NECESSARY REPAIRS OR RENEWALS HAVE BEEN EFFECTIVELY MADE, THAT THE MATERIAL AND WORKMANSHIP OF SUCH REPAIRS OR RENEWALS ARE IN ALL RESPECTS SATISFACTORY, AND THAT THE SHIP IS FIT TO PROCEED TO SEA WITHOUT DANGER TO THE SHIP OR PERSONS ON BOARD.

REGULATION 11 MAINTENANCE OF CONDITIONS AFTER SURVEY

THE EXISTING TEXT OF REGULATION 11 IS REPLACED BY THE FOLLOWING:

(A) THE CONDITION OF THE SHIP AND ITS EQUIPMENT SHALL BE MAINTAINED TO CONFORM WITH THE PROVISIONS OF THE CONVENTION AND THE PRESENT PROTOCOL TO ENSURE THAT THE SHIP IN ALL RESPECTS WILL REMAIN FIT TO PROCEED TO SEA WITHOUT DANGER TO THE SHIP OR PERSONS ON BOARD.

(B) AFTER ANY SURVEY OF THE SHIP UNDER REGULATIONS 6, 7, 8, 9 OR 10 OF CHAPTER I OF THE CONVENTION AND THE PRESENT PROTOCOL HAS BEEN COMPLETED, NO CHANGE SHALL BE MADE IN THE STRUCTURAL ARRANGEMENT, MACHINERY, EQUIPMENT AND OTHER ITEMS COVERED BY THE SURVEY, WITHOUT THE SANCTION OF THE ADMINISTRATION.

(C) WHENEVER AN ACCIDENT OCCURS TO A SHIP OR A DEFECT IS DISCOVERED, EITHER OF WHICH AFFECTS THE SAFETY OF THE SHIP OR THE EFFICIENCY OR COMPLETENESS OF ITS LIFE-SAVING APPLIANCES OR OTHER EQUIPMENT, THE MASTER OR OWNER OF THE SHIP SHALL REPORT AT THE EARLIEST OPPORTUNITY TO THE ADMINISTRATION, THE NOMINATED SURVEYOR OR RECOGNIZED ORGANIZATION RESPONSIBLE FOR ISSUING THE RELEVANT CERTIFICATE, WHO SHALL CAUSE INVESTIGATIONS TO BE INITIATED TO DETERMINE WHETHER A SURVEY, AS REQUIRED BY REGULATIONS 6, 7, 8, 9 OR 10 OF CHAPTER I OF THE CONVENTION AND THE PRESENT PROTOCOL, IS NECESSARY.  IF THE SHIP IS IN A PORT OF ANOTHER PARTY, THE MASTER OR OWNER SHALL ALSO REPORT IMMEDIATELY TO THE APPROPRIATE AUTHORITIES OF THE PORT STATE AND THE NOMINATED SURVEYOR OR RECOGNIZED ORGANIZATION SHALL ASCERTAIN THAT SUCH A REPORT HAS BEEN MADE.

REGULATION 14 DURATION AND VALIDITY OF CERTIFICATES

THE EXISTING TEXT OF REGULATION 14 IS REPLACED BY THE FOLLOWING:

(A) CERTIFICATES OTHER THAN THE CARGO SHIP SAFETY CONSTRUCTION CERTIFICATE, THE CARGO SHIP SAFETY EQUIPMENT CERTIFICATE AND ANY EXEMPTION CERTIFICATE SHALL BE ISSUED FOR A PERIOD NOT EXCEEDING 12 MONTHS.  THE CARGO SHIP SAFETY CONSTRUCTION CERTIFICATE SHALL BE ISSUED FOR A PERIOD NOT EXCEEDING FIVE YEARS.  THE CARGO SHIP SAFETY EQUIPMENT CERTIFICATE SHALL BE ISSUED FOR A PERIOD NOT EXCEEDING 24 MONTHS.  EXEMPTION CERTIFICATES SHALL NOT BE VALID FOR LONGER THAN THE PERIOD OF THE CERTIFICATES TO WHICH THEY REFER.

(B) NO EXTENSION OF THE FIVE-YEAR PERIOD OF VALIDITY OF THE CARGO SHIP SAFETY CONSTRUCTION CERTIFICATE SHALL BE PERMITTED.

(C) IF A SURVEY TAKES PLACE WITHIN TWO MONTHS BEFORE THE END OF THE PERIOD FOR WHICH A CARGO SHIP SAFETY RADIOTELEGRAPHY CERTIFICATE OR A CARGO SHIP SAFETY RADIOTELEPHONY CERTIFICATE ISSUED IN RESPECT OF CARGO SHIPS OF 300 TONS GROSS TONNAGE AND UPWARDS, BUT LESS THAN 500 TONS GROSS TONNAGE, WAS ORIGINALLY ISSUED, THAT CERTIFICATE MAY BE WITHDRAWN, AND A NEW CERTIFICATE MAY BE ISSUED WHICH SHALL EXPIRE 12 MONTHS AFTER THE END OF THE SAID PERIOD.

(D) IF THE SHIP AT THE TIME WHEN A CERTIFICATE, OTHER THAN THAT REFERRED TO IN PARAGRAPH (B) OF THIS REGULATION, EXPIRES IS NOT IN A PORT OF THE COUNTRY IN WHICH IT IS REGISTERED OR IS TO BE SURVEYED, THE ADMINISTRATION MAY EXTEND THE CERTIFICATE, BUT SUCH EXTENSION SHALL BE GRANTED ONLY FOR THE PURPOSE OF ALLOWING THE SHIP TO COMPLETE ITS VOYAGE TO THE COUNTRY IN WHICH IT IS REGISTERED OR IS TO BE SURVEYED, AND THEN ONLY IN CASES WHERE IT APPEARS PROPER AND REASONABLE TO DO SO.

(E) NO CERTIFICATE SHALL BE EXTENDED UNDER THE PROVISIONS OF PARAGRAPH (D) OF THIS REGULATION FOR A LONGER PERIOD THAN FIVE MONTHS, AND A SHIP TO WHICH AN EXTENSION IS GRANTED SHALL NOT, ON ITS ARRIVAL IN THE COUNTRY IN WHICH IT IS REGISTERED OR THE PORT IN WHICH IT IS TO BE SURVEYED, BE ENTITLED BY VIRTUE OF SUCH EXTENSION TO LEAVE THAT PORT OR COUNTRY WITHOUT HAVING OBTAINED A NEW CERTIFICATE.

(F) A CERTIFICATE, OTHER THAN THAT REFERRED TO IN PARAGRAPH (B) OF THIS REGULATION, WHICH HAS NOT BEEN EXTENDED UNDER THE FOREGOING PROVISIONS OF THIS REGULATION, MAY BE EXTENDED BY THE ADMINISTRATION FOR A PERIOD OF GRACE UP TO ONE MONTH FROM THE DATE OF EXPIRY STATED ON IT.

(G) A CERTIFICATE SHALL CEASE TO BE VALID:

(I) IF THE INSPECTIONS AND SURVEYS ARE NOT CARRIED OUT WITHIN THE PERIODS SPECIFIED UNDER REGULATIONS 7(A), 8, 9 AND 10(A) OF CHAPTER I OF THE CONVENTION AND THE PRESENT PROTOCOL OR AS THEY MAY HAVE BEEN EXTENDED IN ACCORDANCE WITH PARAGRAPHS (D), (E) OR (F) OF THIS REGULATION, OR

(II) UPON TRANSFER OF THE SHIP TO THE FLAG OF ANOTHER GOVERNMENT.  A NEW CERTIFICATE SHALL ONLY BE ISSUED WHEN THE GOVERNMENT ISSUING THE NEW CERTIFICATE IS FULLY SATISFIED THAT THE SHIP IS IN COMPLIANCE WITH THE REQUIREMENTS OF REGULATION 11(A) AND (B) OF THIS CHAPTER.  IN THE CASE OF A TRANSFER BETWEEN PARTIES, IF REQUESTED WITHIN THREE MONTHS AFTER THE TRANSFER HAS TAKEN PLACE, THE GOVERNMENT OF THE PARTY WHOSE FLAG THE SHIP WAS FORMERLY ENTITLED TO FLY SHALL, AS SOON AS POSSIBLE, TRANSMIT TO THE ADMINISTRATION COPIES OF THE CERTIFICATES CARRIED BY THE SHIP BEFORE THE TRANSFER AND, IF AVAILABLE, COPIES OF THE RELEVANT SURVEY REPORTS.

REGULATION 19 CONTROL

THE EXISTING TEXT OF REGULATION 19 IS REPLACED BY THE FOLLOWING:

(A) EVERY SHIP WHEN IN A PORT OF ANOTHER PARTY IS SUBJECT TO CONTROL BY OFFICERS DULY AUTHORIZED BY SUCH GOVERNMENT IN SO FAR AS THIS CONTROL IS DIRECTED TOWARDS VERIFYING THAT THE CERTIFICATES ISSUED UNDER REGULATION 12 OR REGULATION 13 OF CHAPTER I OF THE CONVENTION ARE VALID.

(B) SUCH CERTIFICATES, IF VALID, SHALL BE ACCEPTED UNLESS THERE ARE CLEAR GROUNDS FOR BELIEVING THAT THE CONDITION OF THE SHIP OR OF ITS EQUIPMENT DOES NOT CORRESPOND SUBSTANTIALLY WITH THE PARTICULARS OF ANY OF THE CERTIFICATES OR THAT THE SHIP AND ITS EQUIPMENT ARE NOT IN COMPLIANCE WITH THE PROVISIONS OF REGULATION 11(A) AND (B) OF THIS CHAPTER.

(C) IN THE CIRCUMSTANCES GIVEN IN PARAGRAPH (B) OF THIS REGULATION OR WHERE A CERTIFICATE HAS EXPIRED OR CEASED TO BE VALID, THE OFFICER CARRYING OUT THE CONTROL SHALL TAKE STEPS TO ENSURE THAT THE SHIP SHALL NOT SAIL UNTIL IT CAN PROCEED TO SEA OR LEAVE THE PORT FOR THE PURPOSE OF PROCEEDING TO THE APPROPRIATE REPAIR YARD WITHOUT DANGER TO THE SHIP OR PERSONS ON BOARD.

(D) IN THE EVENT OF THIS CONTROL GIVING RISE TO AN INTERVENTION OF ANY KIND, THE OFFICER CARRYING OUT THE CONTROL SHALL FORTHWITH INFORM, IN WRITING, THE CONSUL OR, IN HIS ABSENCE, THE NEAREST DIPLOMATIC REPRESENTATIVE OF THE STATE WHOSE FLAG THE SHIP IS ENTITLED TO FLY OF ALL THE CIRCUMSTANCES IN WHICH INTERVENTION WAS DEEMED NECESSARY.  IN ADDITION, NOMINATED SURVEYORS OR RECOGNIZED ORGANIZATIONS RESPONSIBLE FOR THE ISSUE OF THE CERTIFICATES SHALL ALSO BE NOTIFIED.  THE FACTS CONCERNING THE INTERVENTION SHALL BE REPORTED TO THE ORGANIZATION.

(E) THE PORT STATE AUTHORITY CONCERNED SHALL NOTIFY ALL RELEVANT INFORMATION ABOUT THE SHIP TO THE AUTHORITIES OF THE NEXT PORT OF CALL, IN ADDITION TO PARTIES MENTIONED IN PARAGRAPH (D) OF THIS REGULATION, IF IT IS UNABLE TO TAKE ACTION AS SPECIFIED IN PARAGRAPHS (C) AND (D) OF THIS REGULATION OR IF THE SHIP HAS BEEN ALLOWED TO PROCEED TO THE NEXT PORT OF CALL.

(F) WHEN EXERCISING CONTROL UNDER THIS REGULATION ALL POSSIBLE EFFORTS SHALL BE MADE TO AVOID A SHIP BEING UNDULY DETAINED OR DELAYED.  IF A SHIP IS THEREBY UNDULY DETAINED OR DELAYED IT SHALL BE ENTITLED TO COMPENSATION FOR ANY LOSS OR DAMAGE SUFFERED.

CHAPTER II-1 CONSTRUCTION - SUBDIVISION AND STABILITY, MACHINERY AND ELECTRICAL INSTALLATIONS

PART A - GENERAL

REGULATION 1 APPLICATION

THE FOLLOWING SUB-PARAGRAPHS ARE ADDED TO THE EXISTING TEXT OF PARAGRAPH (B) :

(III) NOTWITHSTANDING THE PROVISIONS OF SUB-PARAGRAPH (II) OF THIS PARAGRAPH AND SUB-PARAGRAPH (A) (III) OF THIS REGULATION, FOR THE PURPOSES OF PARAGRAPH (D) OF REGULATION 29 OF THIS CHAPTER, A NEW TANKER MEANS A TANKER:

(1) FOR WHICH THE BUILDING CONTRACT IS PLACED AFTER 1 JUNE 1979; OR

(2) IN THE ABSENCE OF A BUILDING CONTRACT, THE KEEL OF WHICH IS LAID, OR WHICH IS AT A SIMILAR STAGE OF CONSTRUCTION AFTER 1 JANUARY 1980; OR

(3) THE DELIVERY OF WHICH IS AFTER 1 JUNE 1982; OR

(4) WHICH HAS UNDERGONE AN ALTERATION OR MODIFICATION OF A MAJOR CHARACTER:

(A) FOR WHICH THE CONTRACT IS PLACED AFTER 1 JUNE 1979; OR

(B) IN THE ABSENCE OF A CONTRACT, THE CONSTRUCTION WORK OF WHICH IS BEGUN AFTER 1 JANUARY 1980; OR

(C) WHICH IS COMPLETED AFTER 1 JUNE 1982.

(IV) FOR THE PURPOSES OF PARAGRAPH (D) OF REGULATION 29 OF THIS CHAPTER, AN EXISTING TANKER IS A TANKER WHICH IS NOT A NEW TANKER AS DEFINED IN SUB-PARAGRAPH (III) OF THIS PARAGRAPH.

(V) FOR THE PURPOSES OF SUB-PARAGRAPH (III) OF THIS PARAGRAPH, CONVERSION OF AN EXISTING TANKER OF 20,000 METRIC TONS DEADWEIGHT AND UPWARDS TO MEET THE REQUIREMENTS OF THE PRESENT PROTOCOL OR THE PROTOCOL OF 1978 RELATING TO THE INTERNATIONAL CONVENTION FOR THE PREVENTION OF POLLUTION FROM SHIPS, 1973, SHALL NOT BE DEEMED TO CONSTITUTE AN ALTERATION OR MODIFICATION OF A MAJOR CHARACTER.

REGULATION 2 DEFINITIONS

THE FOLLOWING PARAGRAPHS ARE ADDED TO THE EXISTING TEXT:

(K) THE REMOTE STEERING GEAR CONTROL SYSTEM IS THE MEANS BY WHICH REQUIRED RUDDER MOVEMENTS ARE TRANSMITTED FROM THE NAVIGATING BRIDGE TO THE STEERING GEAR POWER UNIT CONTROLS.

(L) THE MAIN STEERING GEAR IS THE MACHINERY, THE STEERING GEAR POWER UNITS, IF ANY, AND ANCILLARY EQUIPMENT AND THE MEANS OF APPLYING TORQUE TO THE RUDDER STOCK (E.G.TILLER OR QUADRANT) NECESSARY FOR EFFECTING MOVEMENT OF THE RUDDER FOR THE PURPOSE OF STEERING THE SHIP UNDER NORMAL SERVICE CONDITIONS.

(M) THE STEERING GEAR POWER UNIT IS:

(I) IN THE CASE OF ELECTRIC STEERING GEAR, AN ELECTRIC MOTOR AND ITS ASSOCIATED ELECTRICAL EQUIPMENT;

(II) IN THE CASE OF ELECTRO-HYDRAULIC STEERING GEAR, AN ELECTRIC MOTOR AND ITS ASSOCIATED ELECTRICAL EQUIPMENT AND CONNECTED PUMP;

(III) IN THE CASE OF OTHER HYDRAULIC STEERING GEAR, A DRIVING ENGINE AND CONNECTED PUMP.

(N) THE AUXILIARY STEERING GEAR IS THAT EQUIPMENT WHICH IS PROVIDED FOR EFFECTING MOVEMENT OF THE RUDDER FOR THE PURPOSE OF STEERING THE SHIP IN THE EVENT OF FAILURE OF THE MAIN STEERING GEAR.

PART C - MACHINERY AND ELECTRICAL INSTALLATIONS

REGULATION 29 STEERING GEAR

THE FOLLOWING PARAGRAPH IS ADDED TO THE EXISTING TEXT:

(D) TANKERS ONLY

(I) THE FOLLOWING SHALL APPLY TO EVERY NEW TANKER OF 10,000 TONS GROSS TONNAGE AND UPWARDS AND, NOT LATER THAN TWO YEARS FROM THE DATE OF ENTRY INTO FORCE OF THE PRESENT PROTOCOL, TO EVERY EXISTING TANKER OF 10,000 TONS GROSS TONNAGE AND UPWARDS:

(1) TWO REMOTE STEERING GEAR CONTROL SYSTEMS SHALL BE PROVIDED, EACH OF WHICH SHALL BE OPERABLE SEPARATELY FROM THE NAVIGATING BRIDGE.  THIS DOES NOT REQUIRE DUPLICATION OF THE STEERING WHEEL OR STEERING LEVER.  IN THE EVENT OF FAILURE OF THE REMOTE STEERING GEAR CONTROL SYSTEM IN OPERATION, THE OTHER SYSTEM SHALL BE CAPABLE OF BEING BROUGHT INTO IMMEDIATE OPERATION FROM A POSITION ON THE NAVIGATING BRIDGE.  EACH REMOTE STEERING GEAR CONTROL SYSTEM, IF ELECTRIC, SHALL BE SERVED BY ITS OWN SEPARATE CIRCUIT SUPPLIED FROM THE STEERING GEAR POWER CIRCUIT FROM A POINT WITHIN THE STEERING GEAR COMPARTMENT.  IN THE EVENT OF FAILURE OF ELECTRICAL POWER SUPPLY TO A REMOTE STEERING GEAR CONTROL SYSTEM AN ALARM SHALL BE GIVEN ON THE NAVIGATING BRIDGE.  THE ALARMS REQUIRED IN THIS SUB-PARAGRAPH SHALL BE BOTH AUDIBLE AND VISUAL AND SITUATED IN A POSITION ON THE NAVIGATING BRIDGE WHERE THEY CAN BE READILY OBSERVED;

(2) CONTROL OF THE MAIN STEERING GEAR SHALL ALSO BE PROVIDED IN THE STEERING GEAR COMPARTMENT;

(3) MEANS SHALL BE PROVIDED IN THE STEERING GEAR COMPARTMENT TO DISCONNECT THE REMOTE STEERING GEAR CONTROL SYSTEM FROM THE POWER CIRCUIT;

(4) A MEANS OF COMMUNICATION SHALL BE PROVIDED BETWEEN THE NAVIGATING BRIDGE AND THE STEERING GEAR COMPARTMENT;

(5) THE EXACT ANGULAR POSITION OF THE RUDDER SHALL BE INDICATED ON THE NAVIGATING BRIDGE.  THE RUDDER ANGLE INDICATION SHALL BE INDEPENDENT OF THE REMOTE STEERING GEAR CONTROL SYSTEM; AND

(6) THE ANGULAR POSITION OF THE RUDDER SHALL BE RECOGNIZABLE IN THE STEERING GEAR COMPARTMENT.

(II) IN EVERY NEW TANKER OF 10,000 TONS GROSS TONNAGE AND UPWARDS, IN ADDITION TO THE REQUIREMENTS OF PARAGRAPH (A) AND SUB-PARAGRAPH (D) (I) OF THIS REGULATION, THE FOLLOWING SHALL APPLY:

(1) THE MAIN STEERING GEAR SHALL COMPRISE TWO OR MORE IDENTICAL POWER UNITS AND IT SHALL BE CAPABLE OF OPERATING THE RUDDER AS REQUIRED BY SUB-PARAGRAPH (D) (II) (2) OF THIS REGULATION WHILE OPERATING WITH ONE OR MORE POWER UNITS.  AS FAR AS REASONABLE AND PRACTICABLE, THE MAIN STEERING GEAR SHALL BE SO ARRANGED THAT A SINGLE FAILURE IN ITS PIPING OR IN ONE OF THE POWER UNITS WILL NOT IMPAIR THE INTEGRITY OF THE REMAINING PART OF THE STEERING GEAR.  ALL MECHANICAL COUPLINGS WHICH ARE PART OF THE STEERING GEAR AND THE MECHANICAL CONNEXION WITH ANY REMOTE STEERING GEAR CONTROL SYSTEM, IF ANY, SHALL BE OF SOUND AND RELIABLE CONSTRUCTION TO THE SATISFACTION OF THE ADMINISTRATION;

(2) THE MAIN STEERING GEAR SHALL, WITH THE SHIP AT ITS DEEPEST SEA-GOING DRAUGHT, BE CAPABLE OF PUTTING THE RUDDER OVER FROM 35 DEGREES ON ONE SIDE TO 35 DEGREES ON THE OTHER SIDE WITH THE SHIP RUNNING AHEAD AT MAXIMUM SERVICE SPEED.  THE RUDDER SHALL BE CAPABLE OF BEING PUT OVER FROM 35 DEGREES ON EITHER SIDE TO 30 DEGREES ON THE OTHER SIDE IN NOT MORE THAN 28 SECONDS, UNDER THE SAME CONDITIONS;

(3) THE MAIN STEERING GEAR SHALL BE OPERATED BY POWER WHERE NECESSARY TO FULFIL THE REQUIREMENTS OF SUB-PARAGRAPH (D) (II) (2) OF THIS REGULATION;

(4) THE MAIN STEERING GEAR POWER UNITS SHALL BE ARRANGED TO START AUTOMATICALLY WHEN POWER IS RESTORED AFTER A POWER FAILURE;

(5) IN THE EVENT OF FAILURE OF ANY OF THE STEERING GEAR POWER UNITS AN ALARM SHALL BE GIVEN ON THE NAVIGATING BRIDGE.  EVERY STEERING GEAR POWER UNIT SHALL BE CAPABLE OF BEING BROUGHT INTO OPERATION EITHER AUTOMATICALLY OR MANUALLY FROM A POSITION ON THE NAVIGATING BRIDGE; AND

(6) AN ALTERNATIVE POWER SUPPLY, AT LEAST SUFFICIENT TO SUPPLY A STEERING GEAR POWER UNIT SO AS TO ENABLE IT TO MOVE THE RUDDER AS SPECIFIED BELOW, AND ALSO TO SUPPLY ITS ASSOCIATED REMOTE STEERING GEAR CONTROL SYSTEM AND THE RUDDER ANGLE INDICATOR, SHALL BE PROVIDED, AUTOMATICALLY, WITHIN 45 SECONDS, EITHER FROM THE EMERGENCY SOURCE OF ELECTRICAL POWER, OR FROM ANOTHER INDEPENDENT SOURCE OF POWER LOCATED IN THE STEERING GEAR COMPARTMENT.  THIS INDEPENDENT SOURCE OF POWER SHALL BE USED ONLY FOR THIS PURPOSE AND SHALL HAVE A CAPACITY SUFFICIENT FOR HALF AN HOUR OF CONTINUOUS OPERATION.  THE STEERING GEAR POWER UNIT, WHEN BEING SUPPLIED BY THE ALTERNATIVE POWER SUPPLY, SHALL AT LEAST BE CAPABLE OF PUTTING THE RUDDER OVER FROM 15 DEGREES ON ONE SIDE TO 15 DEGREES ON THE OTHER SIDE IN NOT MORE THAN 60 SECONDS WITH THE SHIP AT ITS DEEPEST SEA-GOING DRAUGHT WHILE RUNNING AT ONE HALF OF ITS MAXIMUM SERVICE SPEED AHEAD OR 7 KNOTS, WHICHEVER IS THE GREATER.

CHAPTER II-2 CONSTRUCTION - FIRE PROTECTION, FIRE DETECTION AND FIRE EXTINCTION

PART A - GENERAL

REGULATION 1 APPLICATION

THE FOLLOWING SUB-PARAGRAPHS ARE ADDED TO THE EXISTING TEXT OF PARAGRAPH (A):

(IV) NOTWITHSTANDING THE PROVISIONS OF SUB-PARAGRAPHS (II) AND (III) OF THIS PARAGRAPH, FOR THE PURPOSES OF PARAGRAPH (A) (II) OF REGULATION 55 AND OF REGULATION 60 OF THIS CHAPTER, A NEW TANKER MEANS A TANKER:

(1) FOR WHICH THE BUILDING CONTRACT IS PLACED AFTER 1 JUNE 1979; OR

(2) IN THE ABSENCE OF A BUILDING CONTRACT, THE KEEL OF WHICH IS LAID, OR WHICH IS AT A SIMILAR STAGE OF CONSTRUCTION AFTER 1 JANUARY 1980; OR

(3) THE DELIVERY OF WHICH IS AFTER 1 JUNE 1982; OR

(4) WHICH HAS UNDERGONE AN ALTERATION OR MODIFICATION OF A MAJOR CHARACTER:

(A) FOR WHICH THE CONTRACT IS PLACED AFTER 1 JUNE 1979; OR

(B) IN THE ABSENCE OF A CONTRACT, THE CONSTRUCTION WORK OF WHICH IS BEGUN AFTER 1 JANUARY 1980; OR

(C) WHICH IS COMPLETED AFTER 1 JUNE 1982.

(V) FOR THE PURPOSES OF PARAGRAPH (A) (II) OF REGULATION 55 AND OF REGULATION 60 OF THIS CHAPTER, AN EXISTING TANKER IS A TANKER WHICH IS NOT A NEW TANKER AS DEFINED IN SUB-PARAGRAPH (IV) OF THIS PARAGRAPH.

(VI) FOR THE PURPOSES OF SUB-PARAGRAPH (IV) OF THIS PARAGRAPH, CONVERSION OF AN EXISTING TANKER OF 20,000 METRIC TONS DEADWEIGHT AND UPWARDS TO MEET THE REQUIREMENTS OF THE PRESENT PROTOCOL OR THE PROTOCOL OF 1978 RELATING TO THE INTERNATIONAL CONVENTION FOR THE PREVENTION OF POLLUTION FROM SHIPS, 1973 SHALL NOT BE DEEMED TO CONSTITUTE AN ALTERATION OR MODIFICATION OF A MAJOR CHARACTER.

REGULATION 3 DEFINITIONS

THE EXISTING TEXT OF PARAGRAPH (V) IS REPLACED BY THE FOLLOWING:

(V) "LIGHTWEIGHT" MEANS THE DISPLACEMENT OF A SHIP IN METRIC TONS WITHOUT CARGO, FUEL, LUBRICATING OIL, BALLAST WATER, FRESH WATER AND FEED WATER IN TANKS, CONSUMABLE STORES, AND PASSENGERS AND CREW AND THEIR EFFECTS.

THE FOLLOWING PARAGRAPH IS ADDED TO THE EXISTING TEXT:

(X) "CRUDE OIL" MEANS ANY OIL OCCURRING NATURALLY IN THE EARTH WHETHER OR NOT TREATED TO RENDER IT SUITABLE FOR TRANSPORTATION AND INCLUDES:

(I) CRUDE OIL FROM WHICH CERTAIN DISTILLATE FRACTIONS MAY HAVE BEEN REMOVED; AND

(II) CRUDE OIL TO WHICH CERTAIN DISTILLATE FRACTIONS MAY HAVE BEEN ADDED.

PART E - FIRE SAFETY MEASURES FOR TANKERS

REGULATION 55 APPLICATION

THE EXISTING TEXT OF THIS REGULATION IS REPLACED BY THE FOLLOWING:

(A) UNLESS EXPRESSLY PROVIDED OTHERWISE:

(I) THIS PART SHALL APPLY TO ALL NEW TANKERS CARRYING CRUDE OIL AND PETROLEUM PRODUCTS HAVING A FLASHPOINT NOT EXCEEDING 60ﾟC (140ﾟF) (CLOSED CUP TEST) AS DETERMINED BY AN APPROVED FLASHPOINT APPARATUS AND A REID VAPOUR PRESSURE WHICH IS BELOW ATMOSPHERIC PRESSURE AND OTHER LIQUID PRODUCTS HAVING A SIMILAR FIRE HAZARD; AND

(II) IN ADDITION, ALL SHIPS COVERED BY THIS PART SHALL COMPLY WITH THE REQUIREMENTS OF REGULATIONS 52, 53 AND 54 OF CHAPTER II-2 OF THE CONVENTION EXCEPT THAT FIXED GAS FIRE-EXTINGUISHING SYSTEMS FOR CARGO SPACES SHALL NOT BE USED FOR NEW TANKERS AND FOR THOSE EXISTING TANKERS COMPLYING WITH REGULATION 60 OF THIS CHAPTER.  FOR EXISTING TANKERS NOT REQUIRED TO COMPLY WITH REGULATION 60, THE ADMINISTRATION, IN APPLYING THE REQUIREMENTS OF PARAGRAPH (F) OF REGULATION 52, MAY ACCEPT A FROTH SYSTEM CAPABLE OF DISCHARGING FROTH INTERNALLY OR EXTERNALLY TO THE TANKS.  THE DETAILS OF THE INSTALLATION SHALL BE TO THE SATISFACTION OF THE ADMINISTRATION.

(B) WHERE CARGOES OTHER THAN THOSE REFERRED TO IN SUB-PARAGRAPH (A) (I) OF THIS REGULATION WHICH INTRODUCE ADDITIONAL FIRE HAZARDS ARE INTENDED TO BE CARRIED, ADDITIONAL SAFETY MEASURES SHALL BE REQUIRED TO THE SATISFACTION OF THE ADMINISTRATION.

(C) COMBINATION CARRIERS SHALL NOT CARRY SOLID CARGOES UNLESS ALL CARGO TANKS ARE EMPTY OF OIL AND GAS FREED OR UNLESS, IN EACH CASE, THE ADMINISTRATION IS SATISFIED WITH THE ARRANGEMENTS PROVIDED.

REGULATION 60 CARGO TANK PROTECTION

THE EXISTING TEXT OF THIS REGULATION IS REPLACED BY THE FOLLOWING:

(A) FOR NEW TANKERS OF 20,000 METRIC TONS DEADWEIGHT AND UPWARDS, THE PROTECTION OF THE CARGO TANKS DECK AREA AND CARGO TANKS SHALL BE ACHIEVED BY A FIXED DECK FROTH SYSTEM AND A FIXED INERT GAS SYSTEM IN ACCORDANCE WITH THE REQUIREMENTS OF REGULATIONS 61 AND 62 OF CHAPTER II-2 OF THE CONVENTION EXCEPT THAT IN LIEU OF THE ABOVE INSTALLATIONS THE ADMINISTRATION, AFTER HAVING GIVEN CONSIDERATION TO THE SHIP'S ARRANGEMENT AND EQUIPMENT, MAY ACCEPT OTHER COMBINATIONS OF FIXED INSTALLATIONS IF THEY AFFORD PROTECTION EQUIVALENT TO THE ABOVE, IN ACCORDANCE WITH REGULATION 5 OF CHAPTER I OF THE CONVENTION.

(B) TO BE CONSIDERED EQUIVALENT, THE SYSTEM PROPOSED IN LIEU OF THE DECK FROTH SYSTEM SHALL:

(I) BE CAPABLE OF EXTINGUISHING SPILL FIRES AND ALSO PRECLUDE IGNITION OF SPILLED OIL NOT YET IGNITED; AND

(II) BE CAPABLE OF COMBATING FIRES IN RUPTURED TANKS.

(C) TO BE CONSIDERED EQUIVALENT, THE SYSTEM PROPOSED IN LIEU OF THE FIXED INERT GAS SYSTEM SHALL:

(I) BE CAPABLE OF PREVENTING DANGEROUS ACCUMULATIONS OF EXPLOSIVE MIXTURES IN INTACT CARGO TANKS DURING NORMAL SERVICE THROUGHOUT THE BALLAST VOYAGE AND NECESSARY IN-TANK OPERATIONS; AND

(II) BE SO DESIGNED AS TO MINIMIZE THE RISK OF IGNITION FROM THE GENERATION OF STATIC ELECTRICITY BY THE SYSTEM ITSELF.

(D) ANY EXISTING TANKER OF 20,000 METRIC TONS DEADWEIGHT AND UPWARDS ENGAGED IN THE TRADE OF CARRYING CRUDE OIL SHALL BE FITTED WITH AN INERT GAS SYSTEM, COMPLYING WITH THE REQUIREMENTS OF PARAGRAPH (A) OF THIS REGULATION, NOT LATER THAN A DATE:

(I) FOR A TANKER OF 70,000 METRIC TONS DEADWEIGHT AND UPWARDS, TWO YEARS AFTER THE DATE OF ENTRY INTO FORCE OF THE PRESENT PROTOCOL; AND

(II) FOR A TANKER OF LESS THAN 70,000 METRIC TONS DEADWEIGHT, FOUR YEARS AFTER THE DATE OF ENTRY INTO FORCE OF THE PRESENT PROTOCOL, EXCEPT THAT FOR TANKERS LESS THAN 40,000 TONS DEADWEIGHT NOT FITTED WITH TANK WASHING MACHINES HAVING AN INDIVIDUAL THROUGHPUT OF GREATER THAN 60 CUBIC METRES PER HOUR, THE ADMINISTRATION MAY EXEMPT EXISTING TANKERS FROM THE REQUIREMENTS OF THIS PARAGRAPH, IF IT WOULD BE UNREASONABLE AND IMPRACTICABLE TO APPLY THESE REQUIREMENTS, TAKING INTO ACCOUNT THE SHIP'S DESIGN CHARACTERISTICS.

(E) ANY EXISTING TANKER OF 40,000 METRIC TONS DEADWEIGHT AND UPWARDS ENGAGED IN THE TRADE OF CARRYING OIL OTHER THAN CRUDE OIL AND ANY SUCH TANKER OF 20,000 METRIC TONS DEADWEIGHT AND UPWARDS ENGAGED IN THE TRADE OF CARRYING OIL OTHER THAN CRUDE OIL FITTED WITH TANK WASHING MACHINES HAVING AN INDIVIDUAL THROUGHPUT OF GREATER THAN 60 CUBIC METRES PER HOUR SHALL BE FITTED WITH AN INERT GAS SYSTEM, COMPLYING WITH THE REQUIREMENTS OF PARAGRAPH (A) OF THIS REGULATION, NOT LATER THAN A DATE:

(I) FOR A TANKER OF 70,000 METRIC TONS DEADWEIGHT AND UPWARDS, TWO YEARS AFTER THE DATE OF ENTRY INTO FORCE OF THE PRESENT PROTOCOL; AND

(II) FOR A TANKER OF LESS THAN 70,000 METRIC TONS DEADWEIGHT, FOUR YEARS AFTER THE DATE OF ENTRY INTO FORCE OF THE PRESENT PROTOCOL.

(F) ANY TANKER OPERATING WITH A CARGO TANK CLEANING PROCEDURE USING CRUDE OIL WASHING SHALL BE FITTED WITH AN INERT GAS SYSTEM COMPLYING WITH THE REQUIREMENTS OF REGULATION 62 OF CHAPTER II-2 OF THE CONVENTION AND WITH FIXED TANK WASHING MACHINES.

(G) ALL TANKERS FITTED WITH A FIXED INERT GAS SYSTEM SHALL BE PROVIDED WITH A CLOSED ULLAGE SYSTEM.

(H) ANY NEW TANKER OF 2,000 TONS GROSS TONNAGE AND UPWARDS NOT COVERED BY PARAGRAPH (A) OF THIS REGULATION SHALL BE PROVIDED WITH A FROTH SYSTEM, CAPABLE OF DISCHARGING FROTH INTERNALLY OR EXTERNALLY, TO THE TANKS.  THE DETAILS OF SUCH INSTALLATION SHALL BE TO THE SATISFACTION OF THE ADMINISTRATION.

CHAPTER V SAFETY OF NAVIGATION

REGULATION 12 SHIPBORNE NAVIGATIONAL EQUIPMENT

THE EXISTING TEXT OF PARAGRAPH (A) IS REPLACED BY THE FOLLOWING:

(A) ALL SHIPS OF 1,600 TONS GROSS TONNAGE AND UPWARDS BUT LESS THAN 10,000 TONS GROSS TONNAGE SHALL BE FITTED WITH AT LEAST ONE RADAR.  ALL SHIPS OF 10,000 TONS GROSS TONNAGE AND UPWARDS SHALL BE FITTED WITH AT LEAST TWO RADARS, EACH CAPABLE OF OPERATING INDEPENDENTLY OF THE OTHER.  ALL RADARS FITTED IN COMPLIANCE WITH THIS REGULATION SHALL BE OF A TYPE APPROVED BY THE ADMINISTRATION AND SHALL CONFORM TO OPERATIONAL STANDARDS NOT INFERIOR TO THOSE ADOPTED BY THE ORGANIZATION.  FACILITIES FOR PLOTTING RADAR READINGS SHALL BE PROVIDED ON THE BRIDGE IN THOSE SHIPS.

REGULATION 19 USE OF THE AUTOMATIC PILOT

THE FOLLOWING PARAGRAPH IS ADDED TO THE EXISTING TEXT:

(D) THE MANUAL STEERING SHALL BE TESTED AFTER PROLONGED USE OF THE AUTOMATIC PILOT, AND BEFORE ENTERING AREAS WHERE NAVIGATION DEMANDS SPECIAL CAUTION.

THE FOLLOWING NEW REGULATIONS ARE ADDED TO THIS CHAPTER:

REGULATION 19-1 OPERATION OF STEERING GEAR

IN AREAS WHERE NAVIGATION DEMANDS SPECIAL CAUTION, SHIPS SHALL HAVE MORE THAN ONE STEERING GEAR POWER UNIT IN OPERATION WHEN SUCH UNITS ARE CAPABLE OF SIMULTANEOUS OPERATION.

REGULATION 19-2 STEERING GEAR - TESTING AND DRILLS

(A) WITHIN 12 HOURS BEFORE DEPARTURE, THE SHIP'S STEERING GEAR SHALL BE CHECKED AND TESTED BY THE SHIP'S CREW.  THE TEST PROCEDURE SHALL INCLUDE, WHERE APPLICABLE, THE OPERATION OF THE FOLLOWING:

(I) THE MAIN STEERING GEAR;

(II) THE AUXILIARY STEERING GEAR;

(III) THE REMOTE STEERING GEAR CONTROL SYSTEMS;

(IV) THE STEERING POSITIONS LOCATED ON THE NAVIGATING BRIDGE;

(V) THE EMERGENCY POWER SUPPLY;

(VI) THE RUDDER ANGLE INDICATORS IN RELATION TO THE ACTUAL POSITION OF THE RUDDER;

(VII) THE REMOTE STEERING GEAR CONTROL SYSTEM POWER FAILURE ALARMS; AND

(VIII) THE STEERING GEAR POWER UNIT FAILURE ALARMS.

(B) THE CHECKS AND TESTS SHALL INCLUDE:

(I) THE FULL MOVEMENT OF THE RUDDER ACCORDING TO THE REQUIRED CAPABILITIES OF THE STEERING GEAR;

(II) A VISUAL INSPECTION OF THE STEERING GEAR AND ITS CONNECTING LINKAGE; AND

(III) THE OPERATION OF THE MEANS OF COMMUNICATION BETWEEN THE NAVIGATING BRIDGE AND STEERING GEAR COMPARTMENT.

(C) (I) SIMPLE OPERATING INSTRUCTIONS WITH A BLOCK DIAGRAM SHOWING THE CHANGE-OVER PROCEDURES FOR REMOTE STEERING GEAR CONTROL SYSTEMS AND STEERING GEAR POWER UNITS SHALL BE PERMANENTLY DISPLAYED ON THE NAVIGATING BRIDGE AND IN THE STEERING GEAR COMPARTMENT.

(II) ALL OFFICERS CONCERNED WITH THE OPERATION AND/OR MAINTENANCE OF STEERING GEAR SHALL BE FAMILIAR WITH THE OPERATION OF THE STEERING SYSTEMS FITTED ON THE SHIP AND WITH THE PROCEDURES FOR CHANGING FROM ONE SYSTEM TO ANOTHER.

(D) IN ADDITION TO THE ROUTINE CHECKS AND TESTS PRESCRIBED IN PARAGRAPHS (A) AND (B) OF THIS REGULATION, EMERGENCY STEERING DRILLS SHALL TAKE PLACE AT LEAST ONCE EVERY THREE MONTHS IN ORDER TO PRACTISE EMERGENCY STEERING PROCEDURES.  THESE DRILLS SHALL INCLUDE DIRECT CONTROL FROM WITHIN THE STEERING GEAR COMPARTMENT, THE COMMUNICATIONS PROCEDURE WITH THE NAVIGATING BRIDGE AND, WHERE APPLICABLE, THE OPERATION OF ALTERNATIVE POWER SUPPLIES.

(E) THE ADMINISTRATION MAY WAIVE THE REQUIREMENT TO CARRY OUT THE CHECKS AND TESTS PRESCRIBED IN PARAGRAPHS (A) AND (B) OF THIS REGULATION FOR SHIPS WHICH REGULARLY PLY ON VOYAGES OF SHORT DURATION.  SUCH SHIPS SHALL CARRY OUT THESE CHECKS AND TESTS AT LEAST ONCE EVERY WEEK.

(F) THE DATE UPON WHICH THE CHECKS AND TESTS PRESCRIBED IN PARAGRAPHS (A) AND (B) OF THIS REGULATION ARE CARRIED OUT AND THE DATE AND DETAILS OF EMERGENCY STEERING DRILLS CARRIED OUT UNDER PARAGRAPH (D) OF THIS REGULATION, SHALL BE RECORDED IN THE LOG BOOK AS MAY BE PRESCRIBED BY THE ADMINISTRATION.

APPENDIX

FORM OF SAFETY CONSTRUCTION CERTIFICATE FOR CARGO SHIPS

THE FOLLOWING FORM OF SUPPLEMENT IS ADDED TO THE EXISTING FORM:

SUPPLEMENT TO THE CARGO SHIP SAFETY CONSTRUCTION CERTIFICATE (OFFICIAL SEAL) (COUNTRY) ISSUED UNDER THE PROVISIONS OF THE PROTOCOL OF 1978 RELATING TO THE INTERNATIONAL CONVENTION FOR THE SAFETY OF LIFE AT SEA, 1974 NAME OF SHIP DISTINCTIVE NUMBER OR LETTERS PORT OF REGISTRY DEADWEIGHT OF SHIP (METRIC TONS) YEAR OF BUILD TYPE OF SHIP: TANKER ENGAGED IN THE TRADE OF CARRYING CRUDE OIL* TANKER ENGAGED IN THE TRADE OF CARRYING OIL OTHER THAN CRUDE OIL* TANKER ENGAGED IN THE TRADE OF CARRYING CRUDE/OTHER OIL* CARGO SHIP OTHER THAN A TANKER ENGAGED IN THE TRADE OF CARRYING OIL* * DELETE AS APPROPRIATE.  DATE OF CONTRACT FOR BUILDING OR ALTERATION OR MODIFICATION OF A MAJOR CHARACTER ..... DATE ON WHICH KEEL WAS LAID OR SHIP WAS AT A SIMILAR STAGE OF CONSTRUCTION OR ON WHICH AN ALTERATION OR MODIFICATION OF A MAJOR CHARACTER WAS COMMENCED ..... DATE OF DELIVERY OR COMPLETION OF AN ALTERATION OR MODIFICATION OF A MAJOR CHARACTER ..... THIS IS TO CERTIFY: THATTHE SHIP HAS BEEN SURVEYED IN ACCORDANCE WITH REGULATION 10 OF CHAPTER I OF THE PROTOCOL OF 1978 RELATING TO THE INTERNATIONAL CONVENTION FOR THE SAFETY OF LIFE AT SEA, 1974; AND THAT THE SURVEY SHOWED THAT THE CONDITION OF THE HULL, MACHINERY AND EQUIPMENT AS DEFINED IN THE ABOVE REGULATION WAS IN ALL RESPECTS SATISFACTORY AND THAT THE SHIP COMPLIED WITH THE REQUIREMENTS OF THAT PROTOCOL.  THIS CERTIFICATE IS VALID UNTIL ..... SUBJECT TO INTERMEDIATE SURVEY(S) AT INTERVALS OF ..... ISSUED AT ..... (PLACE OF ISSUE OF CERTIFICATE) ..... 19.. ..... (SIGNATURE OF DULY AUTHORIZED OFFICIAL ISSUING THE CERTIFICATE) (SEAL OR STAMP OF THE ISSUING AUTHORITY, AS APPROPRIATE) THIS SUPPLEMENT SHALL BE PERMANENTLY ATTACHED TO THE CARGO SHIP SAFETY CONSTRUCTION CERTIFICATE.

INTERMEDIATE SURVEY THIS IS TO CERTIFY THAT AT AN INTERMEDIATE SURVEY REQUIRED BY REGULATION 10 OF CHAPTER I OF THE PROTOCOL OF 1978 RELATING TO THE INTERNATIONAL CONVENTION FOR THE SAFETY OF LIFE AT SEA, 1974, THIS SHIP WAS FOUND TO COMPLY WITH THE RELEVANT PROVISIONS OF THAT PROTOCOL.  SIGNED..... (SIGNATURE OF DULY AUTHORIZED OFFICIAL) PLACE..... DATE..... NEXT INTERMEDIATE SURVEY DUE..... (SEAL OR STAMP OF THE AUTHORITY, AS APPROPRIATE) SIGNED..... (SIGNATURE OF DULY AUTHORIZED OFFICIAL) PLACE..... DATE..... NEXT INTERMEDIATE SURVEY DUE..... (SEAL OR STAMP OF THE AUTHORITY, AS APPROPRIATE) SIGNED..... (SIGNATURE OF DULY AUTHORIZED OFFICIAL) PLACE..... DATE..... NEXT INTERMEDIATE SURVEY DUE..... (SEAL OR STAMP OF THE AUTHORITY, AS APPROPRIATE) SIGNED..... (SIGNATURE OF DULY AUTHORIZED OFFICIAL) PLACE..... DATE..... (SEAL OR STAMP OF THE AUTHORITY, AS APPROPRIATE)

FORM OF SAFETY EQUIPMENT CERTIFICATE FOR CARGO SHIPS

THE FOLLOWING FORM OF SUPPLEMENT IS ADDED TO THE EXISTING FORM:

SUPPLEMENT TO THE CARGO SHIP SAFETY EQUIPMENT CERTIFICATE (OFFICIAL SEAL) (COUNTRY) ISSUED UNDER THE PROVISIONS OF THE PROTOCOL OF 1978 RELATING TO THE INTERNATIONAL CONVENTION FOR THE SAFETY OF LIFE AT SEA, 1974 NAME OF SHIP DISTINCTIVE NUMBER OR LETTERS PORT OF REGISTRY DEADWEIGHT OF SHIP (METRIC TONS) YEAR OF BUILD TYPE OF SHIP: TANKER ENGAGED IN THE TRADE OF CARRYING CRUDE OIL* TANKER ENGAGED IN THE TRADE OF CARRYING OIL OTHER THAN CRUDE OIL* TANKER ENGAGED IN THE TRADE OF CARRYING CRUDE/OTHER OIL* CARGO SHIP OTHER THAN A TANKER ENGAGED IN THE TRADE OF CARRYING OIL* * DELETE AS APPROPRIATE.  DATE OF CONTRACT FOR BUILDING OR ALTERATION OR MODIFICATION OF A MAJOR CHARACTER ..... DATE ON WHICH KEEL WAS LAID OR SHIP WAS AT A SIMILAR STAGE OF CONSTRUCTION OR ON WHICH AN ALTERATION OR MODIFICATION OF A MAJOR CHARACTER WAS COMMENCED ..... DATE OF DELIVERY OR COMPLETION OF AN ALTERATION OR MODIFICATION OF A MAJOR CHARACTER ..... THIS IS TO CERTIFY: THAT THE SHIP HAS BEEN SURVEYED IN ACCORDANCE WITH REGULATION 8 OF CHAPTER I OF THE PROTOCOL OF 1978 RELATING TO THE INTERNATIONAL CONVENTION FOR THE SAFETY OF LIFE AT SEA, 1974; AND THAT THE SURVEY SHOWED THAT THE CONDITION OF THE SAFETY EQUIPMENT AS DEFINED IN THE ABOVE REGULATION WAS IN ALL RESPECTS SATISFACTORY AND THAT THE SHIP COMPLIED WITH THE REQUIREMENTS OF THAT PROTOCOL.  THIS CERTIFICATE IS VALID UNTIL ..... SUBJECT TO INTERMEDIATE SURVEY(S) AT INTERVALS OF ..... ISSUED AT ..... (PLACE OF ISSUE OF CERTIFICATE) ..... 19.. ..... (SIGNATURE OF DULY AUTHORIZED OFFICIAL ISSUING THE CERTIFICATE) (SEAL OR STAMP OF THE ISSUING AUTHORITY, AS APPROPRIATE) THIS SUPPLEMENT SHALL BE PERMANENTLY ATTACHED TO THE CARGO SHIP SAFETY EQUIPMENT CERTIFICATE.

INTERMEDIATE SURVEY THIS IS TO CERTIFY THAT AT AN INTERMEDIATE SURVEY REQUIRED BY REGULATION 8 OF CHAPTER I OF THE PROTOCOL OF 1978 RELATING TO THE INTERNATIONAL CONVENTION FOR THE SAFETY OF LIFE AT SEA, 1974, THE SHIP WAS FOUND TO COMPLY WITH THE RELEVANT PROVISIONS OF THAT PROTOCOL.  SIGNED ..... (SIGNATURE OF DULY AUTHORIZED OFFICIAL) PLACE ..... DATE ..... NEXT INTERMEDIATE SURVEY DUE ..... (SEAL OR STAMP OF THE AUTHORITY, AS APPROPRIATE) SIGNED ..... (SIGNATURE OF DULY AUTHORIZED OFFICIAL) PLACE ..... DATE ..... (SEAL OR STAMP OF THE AUTHORITY, AS APPROPRIATE) UNDER THE PROVISIONS OF REGULATION 14 OF CHAPTER I OF THE PROTOCOL THE VALIDITY OF THIS CERTIFICATE IS EXTENDED UNTIL ..... SIGNED ..... (SIGNATURE OF DULY AUTHORIZED OFFICIAL) PLACE ..... DATE ..... (SEAL OR STAMP OF THE AUTHORITY, AS APPROPRIATE)