This Agreement is based on Article VII, Section 1(i) of the Fund`s Articles of Agreement, which authorizes the Fund to borrow from Fund Members or other sources where it considers it appropriate to replenish its assets in a Member`s currency in the General Resources Account (GRA). After the date of termination, the Fund shall pay interest on the outstanding special drawing rights that exist according to an outgoing participant and the resigning participant shall pay the fees for all outstanding obligations due to the Fund, at the times and rates set out in Article XX. Payment shall be made in special drawing rights. a participant resilises the right to obtain special drawing rights with a currency freely usable to pay fees or investments in a transaction with a participant designated by the Fund or by the agreement of another holder, or to have special drawing rights perceived as interest on a transaction with a participant designated in accordance with Article XIX; Section 5 or by appointment with another holder. Articles and sections. Articles are no more than the title (or “caption”) of the sections just below. The sections contain the provisions relating to a particular subject. A section can be composed of one or more sentences, just like a novelist who is summarized theme by subject. In American-style contracts, both articles and sections tend to be longer than European-style contracts.
Below you will find an example of contractual elements: the currency that the Fund receives from a resilient participant is used by the Fund to exchange the participants` special drawing rights in relation to the amount for which each participant`s outstanding special drawing rights exceed its cumulative net allocation at the time of receipt of the currency by the Fund. The Special Drawing Rights so collected and the Special Drawing Rights that the resilient Participant obtains and deducts from that rate in accordance with the provisions of this Agreement for the purpose of executing a rate due under a transaction agreement or Annex H.1. Where the commitment remaining after the clearing referred to in point (b) of Article XXIV(2) is concluded by the resigning participant and the transaction agreement between the Fund and the terminating participant is not agreed within six months of the date of termination, the Fund shall terminate that balance of the special drawing rights in equal half-yearly instalments within a maximum period of five years from the date of termination. date of termination. The Fund shall pay that balance, in accordance with its disposition, either by paying to the resigning participant the sums that the remaining participants have made available to the Fund in accordance with Article XXIV, Section 5, or by authorizing the resigning participant to use its special drawing rights to obtain its own currency or a freely usable currency from a participant designated by the Fund; the general resources account or any other holder. . . .