Document ID: chunk:federal_register_of_legislation:C1968A00130:body:0:p11
Version: federal_register_of_legislation:C1968A00130
Segment Type: other
Provision Reference: 
Character Range: 25019–27837

Participants
   Each member of the Fund that deposits with the Fund an instrument setting forth that it undertakes all the obligations of a participant in the Special Drawing Account in accordance with its law and that it has taken all steps necessary to enable it to carry out all of these obligations shall become a participant in the Special Drawing Account as of the date the instrument is deposited, except that no member shall become a participant before Articles XXI through XXXII and Schedules F through I have entered into force and instruments have been deposited under this Section by members that have at least seventy-five percent of the total of quotas.
Section 2. General Account as a holder
   The Fund may accept and hold special drawing rights in the General Account and use them, in accordance with the provisions of this Agreement.
Section 3. Other holders
   The Fund by an eighty-five percent majority of the total voting power may prescribe:
       (i) as holders, non-members, members that are non-participants, and institutions that perform functions of a central bank for more than one member;

       (ii) the terms and conditions on which these holders may be permitted to accept, hold, and use special drawing rights, in operations and transactions with participants; and
       (iii) the terms and conditions on which participants may enter into operations and transactions with these holders.
The terms and conditions prescribed by the Fund for the use of special drawing rights by prescribed holders and by participants in operations and transactions with them shall be consistent with the provisions of this Agreement.

Article XXIV
ALLOCATION AND CANCELLATION OF SPECIAL DRAWING RIGHTS
Section 1. Principles and considerations governing allocation and cancellation
(a) In all its decisions with respect to the allocation and cancellation of special drawing rights the Fund shall seek to meet the long-term global need, as and when it arises, to supplement existing reserve assets in such manner as will promote the attainment of its purposes and will avoid economic stagnation and deflation as well as excess demand and inflation in the world.
(b) The first decision to allocate special drawing rights shall take into account, as special considerations, a collective judgment that there is a global need to supplement reserves, and the attainment of a better balance of payments equilibrium, as well as the likelihood of a better working of the adjustment process in the future.
Section 2. Allocation and cancellation
(a) Decisions of the Fund to allocate or cancel special drawing rights shall be made for basic periods which shall run consecutively and shall be five years in duration. The first basic period shall begin on the date of the first decision to allocate special drawing