Document ID: chunk:federal_register_of_legislation:C2010A00058:schedule:4:p1
Version: federal_register_of_legislation:C2010A00058
Segment Type: schedule
Provision Reference: sch 4 (pt 1/22)
Character Range: 4743–7821

Schedule 4—Decision No. 11428‑(97/6), dated 27 January 1997, of the Executive Board of the Fund, as amended by Decision No. 14577‑(10/35), dated 12 April 2010, of the Executive Board of the Fund
Note: See subsection 3(1).

              New Arrangements to Borrow

Preamble

In order to enable the International Monetary Fund (the "Fund") to fulfill more effectively its role in the international monetary system, a number of countries with the financial capacity to support the international monetary system have agreed to provide resources to the Fund up to specified amounts in accordance with the terms and conditions of this decision. As the Fund is a quota‑based institution, the credit arrangements provided for under the terms of this decision shall only be drawn upon when quota resources need to be supplemented in order to forestall or cope with an impairment of the international monetary system. In order to give effect to these intentions, the following terms and conditions are adopted under Article VII, Section 1(i) of the Fund's Articles of Agreement.

Paragraph 1. Definitions

(a) As used in this decision the term:
              (i) "amount of a credit arrangement" means the maximum amount expressed in special drawing rights that a participant undertakes to make available to the Fund under a credit arrangement;

              (ii) "Articles" means the Articles of Agreement of the Fund;

              (iii) "available commitment" means a participant's credit arrangement less any drawn and outstanding balances;

              (iv) "borrowed currency" or "currency borrowed" means currency transferred to the Fund's account under a credit arrangement;

              (v) "call" means a notice by the Fund to a participant to make a transfer under its credit arrangement to the Fund's account;

              (vi) "credit arrangement" means an undertaking to provide resources to the Fund on the terms and conditions of this decision;

              (vii) "currency actually convertible" means currency included in the Fund's quarterly financial transactions plan for transfers;

              (viii) "drawer" means a member that purchases borrowed currency from the General Resources Account of the Fund;

              (ix) "indebtedness of the Fund" means the amount the Fund is committed to repay under a credit arrangement;

    (x) "member" means a member of the Fund;

              (xi)  "participant" means a participating member or a participating institution;

              (xii) "participating institution" means an official institution of a member that has entered into a credit arrangement with the Fund with the consent of the member; and

              (xiii) "participating member" means a member that has entered into a credit arrangement with the Fund.

(b) For the purposes of this decision, the Monetary Authority of Hong Kong (the "HKMA") shall be regarded as an official institution of the member whose territories include Hong Kong, provided that:
              (i) loans by the HKMA and payments by the Fund to the HKMA under