## bylaea2019001 ## Source details **Canonical URL:** [bylaea2019001](https://www.imf.org/-/media/files/publications/by-laws/2019/english/bylaea2019001.pdf) ## Other formats - [Markdown version](/-/media/files/publications/by-laws/2019/english/bylaea2019001.pdf.md) - [Structured JSON version](/-/media/files/publications/by-laws/2019/english/bylaea2019001.pdf.json) --- ### Places of Business and Board of Governors (Sections 1–13) - Principal office and branches - The principal office of the Fund shall be located within the metropolitan area of Washington, DC, United States of America. - The Executive Board may establish and maintain agencies or branch offices at any place in the territories of other members when necessary to facilitate the efficient conduct of the business of the Fund. - Adopted March 16, 1946, amended June 13, 1978. - General Department and Special Drawing Rights Department (Section 2) - References to members, Governors, and Executive Directors in matters exclusively pertaining to the Special Drawing Rights Department refer only to: - members that are participants, or - Governors appointed by members that are participants, and - Executive Directors elected or designated by at least one member that is a participant. - Adopted October 2, 1969; amended June 13, 1978; amended March 26, 2013, effective January 26, 2016. - Meetings of the Board of Governors (Section 3) - Regular meetings: annual intervals unless Board decides otherwise; Board determines time and place; Executive Board may change time and place because of special circumstances. - Special meetings: may be called at any time by the Board of Governors or the Executive Board; shall be called upon request of fifteen members of the Fund or of members having in the aggregate one-quarter of the total voting power. - Meetings in a member’s territory require written assurances satisfactory to the Fund regarding immunities, privileges, and other facilities. - Adopted March 16, 1946; amended October 2, 1946; amended June 13, 1978. - Notice of Meetings (Section 4) - The Managing Director shall give notice by rapid means: - Not less than 42 days prior to the date set for the meeting, except - In urgent cases, not less than ten days prior to the date set for the meeting. - Adopted March 16, 1946; amended October 2, 1946; amended June 13, 1978. - Attendance, Observers, Agenda, and Chair selection (Sections 5–7) - Executive Director and Alternate may attend and participate in all meetings of the Board of Governors but shall not vote unless entitled as Governor or Alternate or temporary Alternate. - The Chairman, in consultation with the Executive Board, may invite observers; the World Trade Organization is entitled to send a member of the Secretariat as an observer. - The Managing Director prepares and transmits the agenda under Executive Board direction; additional agenda subjects require notice not less than seven days prior to the meeting, with exceptions in special circumstances. - At each regular meeting the Board shall select a Governor to act as Chairman and at least two other Governors to act as Vice-Chairmen to serve until the end of the next regular meeting. - Adopted March 16, 1946; various amendments cited. - Secretary, Minutes, and Annual Report (Sections 8–10) - The Secretary of the Fund serves as Secretary of the Board of Governors. - Board shall keep a summary record of proceedings, available to all members and filed with the Executive Board. - The Executive Board shall prepare an annual report to the Board of Governors reviewing policies, activities, the international monetary system including adequacy of global reserves, conduct of General and SDR Departments, and performance of financial services including administration of resources contributed by members. - Adopted March 16, 1946; amendments cited. - Voting, Proxies, and Voting Without Meeting (Sections 11–13) - Decisions of the Board of Governors made by a majority of the votes cast except where Articles specify otherwise. - No Governor or Alternate may vote by proxy or by any other method than in person; temporary Alternates may be designated when regularly designated Alternate is unable to be present. - Voting without meeting: Executive Board may request Governors to vote without meeting when action must not be postponed and does not warrant a special meeting; if replies do not include a majority of the Governors exercising two-thirds of the total voting power (the quorum required for the Board), the motion shall be considered lost. - Adopted March 16, 1946; amendments cited. ### Terms of Service (Section 14) - Reimbursement and Tax Allowance - Governors and Alternates shall receive reimbursement for reasonable expenses incurred in attending meetings of the Board of Governors, except for travel expenses. - Pending national tax exemption action, a tax allowance determined by the Executive Board shall be paid to: - the Governors and the Executive Directors, and their Alternates, - the Managing Director, - staff members and other employees of the Fund, except those whose employment contracts state otherwise. - In computing tax adjustment it shall be presumed that income received from the Fund is the individual's total income; salary scales and expense allowances are stated as net on that basis. - Managing Director: Salary, Expenses, and Term - Salary determined by the Board of Governors and included in contract. - Fund pays reasonable expenses including travel, family expenses, and moving once to and from the seat of the Fund. - Contract term: five years; may be renewed for the same or a shorter term at Executive Board discretion. - Executive Directors and Alternates: Availability and Temporary Alternates - Shall devote all the time and attention to Fund business required and be continuously available at the principal office of the Fund. - Temporary Alternate designations: - May act for periods not exceeding fifteen business days in aggregate per year; - In special circumstances, additional aggregate period not exceeding fifteen business days; - When both positions vacant, temporary Alternate may continue until election effective date or the end of a six-month period, whichever is earlier. - Temporary Alternates receive no salary or expense allowance. - Remuneration, Supplemental Allowances, and the Joint Committee - Executive Directors and Alternates entitled to remuneration (salary and supplemental allowances) at annual rates determined by the Board of Governors; changes only by Board action. - A standing Joint Committee on the Remuneration of Executive Directors and their Alternates shall be constituted following each regular meeting of the Boards of Governors of the Fund and Bank; committee membership and duties specified. - The Joint Committee shall make recommendations and submit reports to the Board of Governors for a vote, including via voting without meeting per Section 13. - Travel, Moving, Entertainment, and Family Transportation Allowances - Reimbursement for: - reasonable expenses for travel on official Fund business; - reasonable expenses for official entertainment of senior officials and relevant persons/media; - travel and transportation expenses for themselves, their families, and personal effects in moving once to and from the seat of the Fund. - In the third year of continuous full-time service and every second year thereafter, reimbursement for family transportation once to and from the country of which they or their spouses are nationals, subject to conditions on spouse nationality. - Home leave travel every second year reimbursed on basis of cabin- or economy-class accommodations. - Part-Time Service, Proration, and Dual Offices - Remuneration prorated where an Executive Director or Alternate devotes part-time service; aggregate salary when serving both Fund and Bank shall not exceed the full annual single salary as determined. - Individuals with dual offices may elect which salary or expense to take but shall not receive both. - Claims, Services, and Facilities - Claims for reimbursement must include representation that no other reimbursement will be claimed. - Secretarial and staff services, office space, and other incidental services provided by the Fund. - Source adoption/amendment history: Section 14 material as provided in the source. ### Applications for Membership (Section 21) and Related Provisions - Applicability and filing requirement - Any country may apply for membership by filing an application setting forth all relevant facts. - Executive Board reporting and recommendations - The Executive Board shall report on all applications to the Board of Governors. - When recommending admission, the Executive Board, after consultation with the applicant, shall recommend: - the amount of the quota, - the form of payment of the subscription, and - such other conditions as it deems appropriate for the Board of Governors. - Adoption/amendment history: Adopted March 16, 1946, amended June 13, 1978. - Related procedural provisions (summarized) - Section 22 (Compulsory Withdrawal): Executive Board consideration, notice to member, opportunity to state case orally and in writing; recommendation to Board of Governors. Adopted March 16, 1946, amended June 13, 1978. - Section 23 (Settlement of Disagreements with Withdrawing Member): President of the International Court of Justice prescribed to appoint an umpire for certain disagreements. Adopted March 16, 1946; amended October 2, 1969, and June 13, 1978. - Section 24 (Amendment of By-Laws): By-Laws may be amended by the Board of Governors at any meeting or by vote without a meeting as provided in [text truncated in source]. ### Rules and Regulations: Scope, Definitions, Executive Board Procedures (Section 13) - Scope (A) - Rules and Regulations supplement the Articles of Agreement and By-Laws; provide operating rules, procedures, regulations, and interpretation necessary to carry out Articles as supplemented by By-Laws. - Conflicts resolved in favor of Articles and By-Laws; Rules and Regulations amended as experience reveals need. - Terms and Definitions (B) - Executive Director: includes Alternate or temporary Alternate except where otherwise specified. - Staff: includes all officers or employees other than the Managing Director and those whose contracts state they are not staff members; excludes Executive Directors, Alternate Executive Directors, Senior Advisors, or Advisors to Executive Directors. - Chairman: Chairman or Acting Chairman of the Executive Board unless otherwise specified. - Agenda: ordinarily the list of items and supplementary documents. - Business day of the Fund: normal working hours 9:00 a.m. to 5:30 p.m. at the official time for the District of Columbia, Monday through Friday, except listed dates (including adjacent weekdays when a holiday falls on weekend): January 1; The third Monday in January; The third Monday in February; The last Monday in May; July 4; The first Monday in September; The second Monday in October; The fourth Thursday in November; The Friday following the fourth Thursday in November; December 25. - SDR: special drawing right; use “SDR” or “SDRs” as standard usage. - Executive Board rules (C) - Meetings called by Chairman as business requires; Chairman shall notify Executive Directors at least two business days in advance except in special circumstances. - Ordinary meetings open to Senior Advisors and Advisors to Executive Directors, the Secretary, and other staff as Chairman indicates; Deputy Managing Director entitled to attend all ordinary meetings. - Executive sessions held when Managing Director or any Executive Director desires; only Executive Directors, the Managing Director, and the Deputy Managing Director shall be present unless Board permits others. - Participation: Executive Directors may participate in all meetings and committees; in absence of Managing Director, Deputy Managing Director acts as Chairman and has a deciding vote in case of equal division. - Agenda: prepared by Chairman; new items notice at least two full business days before consideration except in special circumstances; matters not on agenda may be considered only by unanimous consent. - Voting: Chairman ordinarily ascertains sense of meeting; any Executive Director may require formal vote; no proxy voting except as the Executive Board may decide for telecommunication meetings. - Language: working language is English. - Minutes: Secretary prepares summary record under Managing Director direction; verbatim records kept only for archives if requested; draft minutes circulated to all Executive Directors and submitted for approval within a reasonable time. ### Selected Operational Rules and Financial Charges (Excerpts from Sections E, G, I, O, P, T) - Substitution of Securities for Currency (E) - Members may substitute non-negotiable, non-interest bearing notes or similar obligations for that part of the Fund’s currency holdings in the General Resources Account which exceed ¼ of 1 percent of the member’s quota; depository holds such notes for the Fund. - Member allowed 24 hours to deposit currency necessary to maintain the amount required under E-1 and E-2. - Operations and Transfers (G) - Fiscal agency designation, authentication of instructions, depository acting only on authenticated instructions. - For purchases (other than reserve tranche purchases or purchases under stand-by or extended arrangement), Fund shall promptly consider a duly authenticated request and, except when Executive Board decides otherwise, give instructions for transfer on the day of its decision approving the purchase (or not later than the close of the first business day following the decision if taken after the close of the business day). - Value dates: for purchases financed with resources borrowed under policy on enlarged access and in accordance with a stand-by or extended arrangement will normally be either the 15th or the last day of the month, or the preceding business day if not a business day. - Repurchases financed with resources borrowed under the policy on enlarged access should be made normally with a value date of either the 6th day or 22nd day of the month, or the next business day if not a business day, provided repurchase will be completed not later than seven years from the date of the purchase. - Charges and Remuneration (I) - Service charge on purchases from the General Resources Account: "0.5 per - cent", except no service charge for reserve tranche purchases. - Notification of charges: Fund shall notify members by cable after July 31, October 31, January 31, and April 30 of charges owed for the three calendar months ending on each such date; payable on the second business day following dispatch of notification. - Rate of charge on holdings in specified circumstances (I-6(4)): - (a) Rate determined as the SDR interest rate under Rule T-1 plus a margin expressed in basis points; margin set to cover estimated intermediation expense and to generate net income for placement to reserves; margin set for a period of two financial years with a comprehensive review before end of first year. - GRA arrangement charges and thresholds (I-8): - (a) Charge payable at beginning of each twelve-month period of an arrangement: - ¹5/100 of 1 percent per annum on amounts of up to 115 percent of the member’s quota that could be purchased during the relevant period; and - 3/10 of 1 percent per annum on amounts in excess of 115 percent and up to 575 percent of the member’s quota that could be purchased during the relevant period; and - 3/5 of 1 percent per annum on amounts in excess of 575 percent of the member’s quota that could be purchased during the relevant period. - (e) Instead of thresholds of 115 percent and 575 percent, thresholds of 200 percent and 1000 percent shall be used for computing charges and refunds for a member until the earlier of (i) the effective date of that member’s quota increase under the 14th General Review of Quotas, or (ii) February 26, 2016. - (f) A member with an arrangement in effect on February 17, 2016 may notify the Fund by February 25, 2016 to elect thresholds of 200 percent and 1000 percent in effect prior to the quota increase; elections cease as of the date of Fund approval of any augmentation; new arrangements after February 17, 2016 not eligible. - Remuneration accrues daily; amount accrued during each quarter paid as of beginning of following quarter. Rate of remuneration equal to 100 percent of the rate of interest on holdings of SDRs under Rule T-1 (the “SDR interest rate”). - Valuation and Operational Budget (O) - Valuation of the SDR (O-1): The value of the SDR shall be the sum of the values of the following amounts of the following currencies: - U.S. dollar 0.58252 - Euro 0.38671 - Chinese yuan 1.0174 - Japanese yen 11.900 - Pound sterling 0.085946 - Procedures for exchange of currency (O-4 to O-9): consult members; exchanges at rates determined under O-2; value date second business day after dispatch of instructions; no charge or commission under O-6 where applicable. - Operational Budget (O-10): Executive Board shall decide at least semi-annually on transactions plan (duration up to six months); paragraph (a) amended May 1, 2018, effective January 30, 2018. - Procedures for SDRs (P) and Interest/Charges on SDRs (T) - Transactions with designation: participants inform Fund of intention and desired freely usable currency not later than date Fund issues instructions (P-1); provision at exchange rate determined under O-2 at an official agency (P-2); no charge or commission (P-3). - Designation plans decided at annual intervals by Executive Board (P-5). - Recording: Fund records transaction when satisfied conformity with Articles and Rules; transaction recorded as of date currency is provided (P-9). - Interest and charges on SDRs (T-1): - Interest and charges accrue daily; amount accrued during each quarter paid as of beginning of following quarter. - Rate of interest on holdings of SDRs for each weekly period commencing each Monday equal to combined market interest rate as determined by Fund, provided that, if combined market rate is below 0.050 percent, the rate shall be established at 0.050 percent. - Combined market interest rate computed from components; components listed include U.S. dollar: Market yield for three-month U.S. Treasury bills; Euro: Three-month spot rate for euro area central government bonds with a rating of AA and above published by the European Central Bank; Chinese renminbi: Three-month benchmark yield for China Treasury bonds as published daily by the China Central Depository and Clearing Co., Ltd.; Japanese yen: Three-month Japanese Treasury Discount Bills; Pound sterling: Market yield for three-month U.K. Treasury bills. - T-2: Assessments levied promptly as of the end of each financial year on basis of reasonable estimate of expenses for the SDR Department; accounts of participants debited accordingly. - T-1 and related paragraphs: adoption and amendment history provided in source. - Financial year and reporting deadlines - J-4: Managing Director shall present annual administrative budget for Executive Board approval not later than April 1 of each year. - J-5: Managing Director shall present to the Executive Board not later than May 31 a summary of matters to be included in annual report; draft of annual report submitted at least two months before a regular meeting of Board of Governors. - J-6: Audited financial statements submitted to Executive Board at least two months before a regular meeting; if no regular meeting, as soon as possible after end of financial year. - J-9: Financial year shall begin on May 1 and end on the succeeding April 30. - J-3 reporting cadence: - Summary statements of operations through the General Department issued "at intervals of three months or less"; a monthly statement sent to each member of that member’s position. - Summary statement for the Special Drawing Rights Department issued "at intervals of three months or less"; periodic statement to each participant and other holder. - Summary statement for Accounts administered under Article V, Section 2(b) (except Staff Retirement Fund) issued "at intervals of three months or less"; monthly statement to each contributor and recipient. - Staff Retirement Fund reporting carried out in accordance with Staff Retirement Plan. - J-7 and J-8: External audit communications and review procedures and timing specified; adopted May 22, 1998. - Adoption/amendment histories for J provisions cited in source. ### Selected Governance, Eligibility, and Staff Rules (K, L, M, N) - Limitation, ineligibility, and suspension of voting rights (K) - Managing Director to report cases where a member appears not to fulfill obligations (K-1). - Executive Board may refrain from declaring ineligibility or indicate circumstances under which member may use general resources (K-2). - Before declaring ineligible or suspending voting rights, member shall be informed and given opportunity to state case orally and in writing (K-3, K-6). - Written reports required where resumption or termination requests are denied (K-4, K-7). - Capital transfers (L) - If large or sustained outflow of capital, member or any other member may notify Fund and request views; Fund may report and request member(s) to report on situation (L-1). - Fund requests prompt notification of measures taken when controls exercised to prevent use of general resources to meet capital outflows (L-2). - Each member shall inform the Fund in detail of measures to regulate international capital movements and changes thereto (L-3). - Relations with Non-Members (M) - Fund may request cooperation of any member to prevent transactions with non-members contrary to Articles; Fund may present reports and request cessation or modification of such transactions (M-1 to M-5). - Adopted and amended dates cited. - Staff Regulations (N) - Staff shall be nationals of members unless Executive Board authorizes exceptions; recruitment on wide geographical basis while securing highest standards of efficiency and technical competence (N-1). - Employment, classification, promotion, assignment without discrimination by sex, race, creed, or nationality (N-2). - Staff owe duty entirely to Fund, shall not accept instructions from external governments or authorities (N-3). - Standards of conduct, publication and speech restrictions, confidentiality and post-service restrictions, constraints on political activity, re-employment/pension rights, grievance procedures, and travel approval rules are specified (N-4 through N-16). - Managing Director shall inform Executive Board at least two weeks in advance of appointment/dismissal of positions graded equal to or above division chief (N-12). - Adopted and amendment dates cited. *Source: I. BY-LAWS OF THE INTERNATIONAL MONETARY FUND — extracted sections and Rules and Regulations as provided in the supplied PDF.* ### 1. Places of Business .........................................1 ### 1. Places of Business ### Principal office and branches - The principal office of the Fund shall be located within the metropolitan area of Washington, DC, United States of America. - The Executive Board may establish and maintain agencies or branch offices at any place in the territories of other members when necessary to facilitate the efficient conduct of the business of the Fund. - Adopted March 16, 1946, amended June 13, 1978. ### General Department and Special Drawing Rights Department (Section 2) - In matters pertaining exclusively to the Special Drawing Rights Department references in these By-Laws (other than in Sections 4, 5, 6, and 13(b)) to members of the Fund or to Governors and Executive Directors refer only to: - members that are participants, or - Governors appointed by members that are participants, and - Executive Directors elected or designated by at least one member that is a participant. - Adopted October 2, 1969; amended June 13, 1978; amended March 26, 2013, effective January 26, 2016. ### Meetings of the Board of Governors (Section 3) - Regular meetings: - Shall be at annual intervals unless the Board decides otherwise. - The Board of Governors determines time and place; the Executive Board may change time and place because of special circumstances. - “Regular meetings” means meetings subject to Section 3(a). - Special meetings: - May be called at any time by the Board of Governors or the Executive Board. - Shall be called upon request of fifteen members of the Fund or of members having in the aggregate one-quarter of the total voting power. - A requesting member must state reasons; the Managing Director shall notify all members of the request and reasons. - Meetings in a member’s territory require written assurances satisfactory to the Fund regarding immunities, privileges, and other facilities. - Adopted March 16, 1946; amended October 2, 1946; amended June 13, 1978. ### Notice of Meetings (Section 4) - The Managing Director shall give notice of the time and place of each meeting by rapid means of communication: - Not less than 42 days prior to the date set for the meeting, except - In urgent cases, not less than ten days prior to the date set for the meeting. - Adopted March 16, 1946; amended October 2, 1946; amended June 13, 1978. ### Attendance and Observers (Section 5) - Participation: - An Executive Director and his Alternate may attend and participate in all meetings of the Board of Governors. - They shall not be entitled to vote at such meetings unless they are entitled to vote as a Governor or an Alternate or temporary Alternate of a Governor. - Invitations and representations: - The Chairman, in consultation with the Executive Board, may invite observers to attend any meeting. - The Executive Board may invite the International Bank for Reconstruction and Development to send a representative who may participate but shall have no vote. - The Executive Board may accept invitations from the Bank to send a representative of the Fund to participate in meetings of the Bank’s Board of Governors or Executive Directors. - The World Trade Organization shall be entitled to send a member of the Secretariat as an observer to meetings of the Board of Governors. - Adopted March 16, 1946; amended June 13, 1978; paragraphs (a) and (b) amended October 2, 1946; paragraphs (c) and (d) adopted March 16, 1946; paragraph (e) adopted January 8, 1997. ### Agenda and additions (Section 6) - Preparation and transmission: - Under the Executive Board’s direction, the Managing Director shall prepare an agenda for each meeting and transmit it to each member with the notice of the meeting. - Adding subjects: - Any Governor may place additional subjects on the agenda by giving notice to the Managing Director not less than seven days prior to the meeting. - In special circumstances the Managing Director, by direction of the Executive Board, may at any time place additional subjects on the agenda. - The Managing Director shall notify members as promptly as possible of any additions to the agenda. - Any Governor(s) or the Board of Governors may request or place a subject on the agenda even though the seven-day notice requirement has not been met. - Arrangements for holding meetings are under the charge of the Chairman of the Board of Governors jointly with the Managing Director, except as otherwise directed by the Board. - Adopted March 16, 1946; amended October 2, 1946; amended June 13, 1978. ### Selection of Chairman and Vice-Chairmen (Section 7) - At each regular meeting the Board shall select: - a Governor to act as Chairman, and - at least two other Governors to act as Vice-Chairmen, - to serve until the end of the next regular meeting. - In the absence of the Chairman, the Vice-Chairman designated by the Chairman shall act in his place. - Adopted March 16, 1946; amended June 13, 1978. ### Secretary and Minutes (Sections 8–9) - Secretary: - The Secretary of the Fund shall serve as Secretary of the Board of Governors. - Adopted March 16, 1946. - Minutes: - The Board shall keep a summary record of its proceedings, available to all members and filed with the Executive Board for guidance. - Adopted March 16, 1946; amended June 13, 1978. ### Annual Report of the Executive Board (Section 10) - The Executive Board shall prepare an annual report for presentation to the Board of Governors that: - Discusses the policies and activities of the Fund. - Makes recommendations to the Board on problems confronting the Fund. - Reviews the functioning of the international monetary system, including the adequacy of global reserves. - Reviews the conduct of the business of the General Department and the Special Drawing Rights Department. - Reviews the performance of financial services by the Fund, including administration of resources contributed by members. - Adopted March 16, 1946; amended October 2, 1969; amended June 13, 1978. ### Voting and Proxies (Sections 11–12) - Voting at meetings: - Except as otherwise specifically provided in the Articles of Agreement, all decisions of the Board of Governors shall be made by a majority of the votes cast. - The Chairman may ascertain the sense of the meeting in lieu of a formal vote, but must require a formal vote upon request of any Governor. - Whenever a formal vote is required, the written text of the motion shall be distributed to voting members. - Adopted March 16, 1946; amended June 13, 1978. - Proxies: - No Governor or Alternate may vote at any meeting by proxy or by any other method than in person. - A member may make provision for designation of a temporary Alternate to vote for the Governor at any session at which the regularly designated Alternate is unable to be present. - Adopted March 16, 1946; amended June 13, 1978. ### Voting Without Meeting (Section 13) - Circumstances and procedure: - If the Executive Board judges that action by the Board of Governors must be taken which should not be postponed and does not warrant calling a special meeting, it shall request Governors to vote without meeting. - The Executive Board shall present a motion by rapid means of communication to each member. - Votes shall be cast during such period as the Executive Board may prescribe. - The Executive Board may provide that no Governor shall vote on a motion during such period after dispatch of the motion as it prescribes. - At the expiration of the prescribed voting period, the Executive Board shall record the results and the Managing Director shall notify all members. - If the replies received do not include a majority of the Governors exercising two-thirds of the total voting power (the quorum required for the Board), the motion shall be considered lost. - Adopted March 16, 1946; amended October 2, 1969; amended June 13, 1978. *Source: I. BY-LAWS OF THE INTERNATIONAL MONETARY FUND — Sections 1–13, as provided in the supplied PDF.* ### Section 14. Terms of Service ### Section 14. Terms of Service ### Reimbursement and Tax Allowance - Governors and Alternates shall receive reimbursement for reasonable expenses incurred in attending meetings of the Board of Governors, except for travel expenses. - Pending action by members to exempt from national taxation salaries and allowances paid out of the budget of the Fund, the following persons shall receive from the Fund a tax allowance that the Executive Board determines to be reasonably related to the taxes paid by them on such salaries and allowances: - the Governors and the Executive Directors, and their Alternates, - the Managing Director, - staff members and other employees of the Fund, except those whose employment contracts state otherwise. - In computing the amount of tax adjustment to be made with respect to any individual, it shall be presumed for the purposes of the computation that the income received from the Fund is his total income. All salary scales and expense allowances prescribed pursuant to this section are stated as net on the above basis. ### Managing Director: Salary, Expenses, and Term - The salary of the Managing Director shall be determined by the Board of Governors and shall be included in his contract. - The Fund shall also pay any reasonable expenses incurred by the Managing Director in the interest of the Fund (including travel and transportation expenses for himself, and expenses for his family, and his personal effects in moving once to the seat of the Fund during or immediately before his term of office and in moving once from the seat during or within a reasonable period after his term of office). - The contract of the Managing Director shall be for a term of five years and may be renewed for the same term or for a shorter term at the discretion of the Executive Board. ### Executive Directors and Alternates: Duties, Availability, and Temporary Alternates - Executive Directors and their Alternates shall devote all the time and attention to the business of the Fund that its interests require, and, between them, be continuously available at the principal office of the Fund; exceptions and temporary arrangements: - If both are unable to be available for reasons of health, absence on Fund business, or similar reasons, the Executive Director may designate a temporary Alternate to act for him for periods which shall not in the aggregate exceed fifteen business days in the course of any year of his service. - In special circumstances, the Executive Director may designate a temporary Alternate to serve for an additional aggregate period not exceeding fifteen business days. - When the positions of both the Executive Director and his Alternate become vacant, a temporary Alternate may continue to act until the effective date of the election of the successor Executive Director or the end of a six-month period, whichever is earlier. - A temporary Alternate shall receive no salary or expense allowance for his services in this capacity. ### Remuneration, Supplemental Allowances, and the Joint Committee - Executive Directors and their Alternates shall be entitled to remuneration in the form of salary and supplemental allowances at such annual rates as shall be determined from time to time by the Board of Governors. Remuneration as determined shall continue until changed by the Board of Governors. - A standing Joint Committee on the Remuneration of Executive Directors and their Alternates shall be constituted following each regular meeting of the Board of Governors, appointed by the Chairmen of the Boards of Governors of the Fund and Bank, and consisting of: - one of the Chairmen and two former Governors or Alternate Governors of the Fund or Bank, chosen by the Chairmen in consultation with the Managing Director of the Fund and the President of the Bank. - The Joint Committee shall: - consider all matters affecting the remuneration and other benefits of the Executive Directors of the Bank and Fund, and of their Alternates; - from time to time, but at least by July 1 of each year in which a regular election of Executive Directors is scheduled to be held, make recommendations for any action by the Board of Governors on the said matters as the Joint Committee shall deem advisable; - submit reports to the Board of Governors for a vote on any recommendation contained therein without meeting in accordance with Section 13 of the By-Laws. - In making proposals with respect to remuneration, the Committee shall bear in mind the functions of Executive Directors and their Alternates under the Articles of Agreement of the Fund in relation to those of the Managing Director. ### Travel, Moving, Entertainment, and Family Transportation Allowances - Executive Directors and their Alternates are to be reimbursed for: - all reasonable expenses for travel incurred on official Fund business; - reasonable expenses incurred in connection with official Fund business to entertain senior officials of the governments or central banks or relevant persons in the academic, public, or private sectors of the members that elected or designated them, and relevant members of the media; - travel and transportation expenses for themselves, their families, and their personal effects in moving once to the seat of the Fund during or immediately before their periods of service, and in moving once from the seat during or within a reasonable period after their periods of service. - In the third year of continuous full-time service in either capacity and in every second year of such service thereafter, Executive Directors and Alternates shall be entitled to reimbursement for the cost of transportation expenses for their families in travelling once to and from: - the country of which they or their spouses are nationals; provided that where the spouse is a national of a country other than that of the Executive Director or the Alternate, the reimbursement for transportation expenses to and from the country of the spouse does not exceed transportation expenses to and from the country of which the Executive Director or Alternate is a national. - For home leave travel every second year, reimbursement shall be made on the basis of cabin- or economy-class accommodations. ### Part-Time Service, Proration, and Dual Offices - Where not specified, it is assumed that the Executive Director or Alternate will be a full-time Executive Director or Alternate. Where it is intended that he shall not devote his full time, it shall be so indicated. - Where an Executive Director or Alternate indicates that he intends to devote only part of his time to the Fund, his remuneration shall be prorated on the basis of a representation by him of the proportion of his time he has devoted to the interests of the Fund. The representation shall be made at appropriate intervals. - Where an individual is serving both Fund and Bank, the aggregate of salary received from both shall not exceed the full annual single salary as determined in accordance with (e) above. - In all cases of salaries or expenses involving dual offices in the Fund or Bank, or both, the individual affected is entitled to take his choice as to which salary or expense he elects, but he shall not be entitled to both. ### Claims, Services, and Facilities - An individual putting forward a claim for reimbursement for any expenses incurred by him shall include therewith a representation that he has not received and will not claim reimbursement in respect to those expenses from any other source. - Secretarial and staff services, office space, and other services incidental to the performance of the duties of the Executive Directors and Alternates shall be provided by the Fund. *Source: https://www.imf.org/-/media/files/publications/by-laws/2019/english/bylaea2019001.pdf — Section 14. Terms of Service* ### Section 21. Applications for Membership ### Section 21. Applications for Membership ### Applicability and filing requirement - Any country may apply for membership in the Fund by filing with the Fund an application, which shall set forth all relevant facts. ### Executive Board reporting and recommendations - The Executive Board shall report on all applications to the Board of Governors. - When an application is submitted to the Board of Governors with a recommendation that the applicant country be admitted to membership, the Executive Board, after consultation with the applicant country, shall recommend to the Board of Governors: - the amount of the quota, - the form of payment of the subscription, and - such other conditions as, in the opinion of the Executive Board, the Board of Governors may wish to prescribe. ### Adoption and amendment history - Adopted March 16, 1946, amended June 13, 1978 ### Related procedural provisions included in the source text - Section 22. Compulsory Withdrawal: - Before any member is required to withdraw, the Executive Board shall consider the matter, inform the member in reasonable time of the complaint against it, and allow the member an adequate opportunity to state its case both orally and in writing. - The Executive Board shall recommend to the Board of Governors the action it deems appropriate. - The member shall be informed of the recommendation and the date on which its case will be considered by the Board of Governors and shall be given a reasonable time to present its case to the Board of Governors both orally and in writing. Any member so electing may waive this provision. - Adopted March 16, 1946, amended June 13, 1978 - Section 23. Settlement of Disagreements with Withdrawing Member: - The President of the International Court of Justice is prescribed as the authority to appoint an umpire whenever there arises a disagreement of the type referred to in Article XXI(d) or Article XXIX(c). - Adopted March 16, 1946, amended October 2, 1969, and June 13, 1978 - Section 24. Amendment of By-Laws: - These By-Laws may be amended by the Board of Governors at any meeting thereof or by vote without a meeting as provided in *Source: bylaea2019001 - Section 21. Applications for Membership (extracted text).* ### Section 13. ### Section 13 ### A — Scope of Rules and Regulations - These Rules and Regulations supplement the Articles of Agreement and the By-Laws adopted by the Board of Governors; they are not intended to replace any provision of either the Articles or the By-Laws. - The Rules and Regulations provide operating rules, procedures, regulations, and interpretation necessary and desirable to carry out the purposes and powers contained in the Articles, as supplemented by the By-Laws. - If any provision in the Rules and Regulations conflicts with any provision in the Articles or the By-Laws, the Articles and By-Laws shall prevail and an appropriate amendment shall be made to these Rules and Regulations. - Additions to, and changes of, the Rules and Regulations will be made as experience brings to light new problems or suggests modifications in procedures already adopted. ### B — Terms and Definitions - Executive Director: except where otherwise specified, includes the Alternate or the temporary Alternate. References in these Rules and Regulations to Executive Director (other than Rules C-1, C-5(a), C-15, and C-16) shall apply to an Executive Director elected or designated by at least one member that is a participant. - Staff: includes all officers or employees of the Fund other than the Managing Director and those whose contracts state they are not staff members. It does not include Executive Directors, Alternate Executive Directors, Senior Advisors, or Advisors to Executive Directors. - Chairman: refers to the Chairman or Acting Chairman of the Executive Board unless otherwise specified. - Agenda: ordinarily refers to both the list of items to be considered at a meeting and the supplementary documents pertinent thereto. - Business day of the Fund: normal working hours 9:00 a.m. to 5:30 p.m. at the official time for the District of Columbia, Monday through Friday, except the following dates (which include the preceding Friday whenever a listed date falls on a Saturday and the following Monday whenever one falls on a Sunday): - January 1 - The third Monday in January - The third Monday in February - The last Monday in May - July 4 - The first Monday in September - The second Monday in October - The fourth Thursday in November - The Friday following the fourth Thursday in November - December 25 - Definition of “business day” does not affect arrangements for receipt of messages at all times and for prompt action as required by the Articles, By-Laws, and Rules and Regulations. - SDR: refers to the special drawing right of the Fund. Use “SDR” or “SDRs” as standard usage in Fund documents, correspondence, and publications where a reference to special drawing rights is intended. ### C — The Executive Board (Meetings, Agenda, Voting, Language, Minutes) - Meetings - Meetings of the Executive Board shall be called by the Chairman as the business of the Fund may require; except in special circumstances the Chairman shall notify all Executive Directors at least two business days in advance. - The Chairman shall call a meeting at the request of any Executive Director. - Ordinary meetings shall be open to Senior Advisors and Advisors to Executive Directors, the Secretary, and such other staff members as the Chairman indicates; the Deputy Managing Director is entitled to attend all ordinary meetings. - Meetings shall be held in executive session whenever the Managing Director or any Executive Director so desires. Executive sessions: only Executive Directors, the Managing Director, and the Deputy Managing Director shall be present, except the Board may permit the Secretary, other staff, Senior Advisors, or Advisors to attend particular executive sessions. - The Executive Board shall meet at the principal office of the Fund unless it decides otherwise. - Participation and Chairing - Executive Directors may participate in all meetings of the Executive Board and of its committees. - In the absence of the Managing Director, the Deputy Managing Director acts as Chairman and has a deciding vote in case of an equal division. If both are absent, an Executive Director selected by the Executive Board shall act as Chairman, and an Executive Director serving as Acting Chairman retains the right to vote. - Agenda and Procedural Notice - The agenda for each meeting shall be prepared by the Chairman and shall include any item requested by an Executive Director. - Except in special circumstances the Chairman shall notify Executive Directors of new items on the agenda at least two full business days before consideration. - Matters not on the agenda may be considered only by unanimous consent of the Executive Directors present. - Unfinished agenda items are automatically included in the agenda of the next meeting unless decided otherwise. - Voting and Committees - The Chairman shall ordinarily ascertain the sense of the meeting in lieu of a formal vote. Any Executive Director may require a formal vote with votes cast as prescribed in Article XII, Section 3(i), or Article XXI(a)(ii). - There shall be no formal voting in committees and subcommittees; the committee chair determines the sense of the meeting (including alternative points of view) to be reported. - No Executive Director may vote except in person unless the Executive Board decides otherwise for a meeting convened by way of telecommunication; no proxy voting. - Language - The working language of the Fund is English. Discussion, documents, and reports shall ordinarily be in English; speeches or papers in other languages shall be translated into English. - Minutes - Under the direction of the Managing Director, the Secretary is responsible for preparing a summary record of Executive Board proceedings. - Verbatim records are kept for archives only if the Chairman or an Executive Director requests; verbatim records may assist preparation of summary records but shall be destroyed after a reasonable period. - Draft minutes shall be circulated to all Executive Directors as soon as possible after meetings and submitted for approval within a reasonable time. ### D — Application for Membership and Change in Quota - Application for Membership - When a country applies for membership, the application shall be placed promptly before the Executive Board, and reasonable time allowed for discussion and preliminary investigation before deciding whether to proceed with formal investigation. - If affirmative, the Fund may obtain all relevant information and discuss with the applicant matters relating to its application; any Executive Director may request additional information be asked of the applicant. - The Executive Board shall decide whether to submit an application for membership with its views to the Board of Governors for a vote without meeting or hold the application until the next meeting of the Board of Governors. - If the Executive Board decides not to proceed with formal investigation, it shall report that decision to the Board of Governors with reasons. - Quotas - When a member requests an adjustment of its quota, the Executive Board, after consulting the member, shall submit a written report on the request to the Board of Governors. - At least one year prior to a required general review of quotas, the Executive Board shall appoint a Committee of the Whole to study the matter and prepare a written report. If a general review is to be conducted earlier, a Committee of the Whole shall be appointed promptly. ### E — Substitution of Securities for Currency - Members authorized to substitute, under Article III, Section 4, non-negotiable, non-interest bearing notes or similar obligations payable to the Fund on demand for that part of the Fund’s currency holdings in the General Resources Account which exceed ¼ of 1 percent of the member’s quota; depository holds such notes for the Fund. - Such notes shall not be accepted until the Fund is satisfied they are in proper form and authorized. - Balances in administrative accounts of the Fund are not considered part of the currency holdings for this Rule. - The Executive Board may agree to alter the ¼ of 1 percent requirement for any member if circumstances warrant a different percentage. - A member is allowed 24 hours to deposit currency necessary to maintain the amount required under E-1 and E-2. ### F — Gold - Gold depositories shall be established in the United States, the United Kingdom, France, and India. Fund gold shall be held with depositories designated by the members in whose territories they are located at places agreed with the Fund. - The Fund may hold gold under earmark for members. ### G — Operations and Transactions - Each member shall designate a fiscal agency in accordance with Article V, Section 1, and may change the agency after notifying the Fund. - Instructions from a member for transfer of currency, SDRs, or gold between it and the General Department and for transfers of SDRs through the Special Drawing Rights Department shall be given by the fiscal agency and authenticated in the manner agreed by the Fund and the fiscal agency. - Depositories shall act only on instructions authenticated as agreed by the Fund and the depository. - Purchases and transfers - For purchases (other than reserve tranche purchases or purchases under a stand-by or extended arrangement), the Fund shall promptly consider a duly authenticated request and, except when the Executive Board decides otherwise, shall give instructions for transfer on the day of its decision approving the purchase (or not later than the close of the first business day following the decision if taken after the close of the business day). - For reserve tranche purchases, or for purchases under a stand-by or extended arrangement as specified, the Fund’s instructions to the appropriate depository to make the transfer shall be given not later than the close of the first business day following receipt of the request. - Value dates for purchases financed with resources borrowed under the policy on enlarged access and in accordance with a stand-by or extended arrangement will normally be either the 15th or the last day of the month, or the preceding business day if the selected day is not a business day; if a request is not received in time for the first such value date, the purchase will be executed at the next such value date. - Repurchases financed with resources borrowed under the policy on enlarged access should be made normally with a value date of either the 6th day or 22nd day of the month, or the next business day if not a business day, provided repurchase will be completed not later than seven years from the date of the purchase. - Members should consult the Fund in a timely manner on expected timing for purchases or repurchases to ascertain deadlines for requests or instructions. - Instructions for transfer of currency for any purchase, other than a reserve tranche purchase, shall be rescinded, to the extent feasible, during the period between issuance of instructions and the value date if, during that period, the member requesting the purchase has any overdue financial obligation to the Fund or is failing to meet a repurchase expectation pursuant to the Guidelines on Corrective Action with respect to a noncomplying purchase. - When a member expects to purchase an amount of another member’s currency unusually large in relation to that other member’s quota, it shall give the Managing Director as much notice as can reasonably be effected. ### H — Exchange Controls, Currency Practices, Agreements, and Information - The Fund shall keep all exchange controls under review and consult with members with a view to progressive removal of exchange restrictions in accordance with the Fund Agreement. - Complaints by a member that another member is not complying with obligations concerning exchange controls, discriminatory currency arrangements, or multiple currency practices shall give all facts pertinent to examination. - Upon receipt of a complaint, the Executive Board shall promptly arrange consultation with the members directly involved. - All requests by a member under Article VIII, Sections 2 and 3, for Fund approval to impose restrictions on payments and transfers for current international transactions, or for the use of discriminatory currency arrangements or multiple currency practices, shall be submitted to the Executive Board in writing with reasons. - The Executive Board shall decide each such request expeditiously. - The Fund shall arrange through fiscal agencies of members that frequent and regular information on market rates of members’ currencies bought and sold in their territories is made available to the Fund. - Pursuant to Article VIII, Section 5, the Fund shall arrange with members to report their official holdings of gold and foreign exchange to the Fund within thirty days of the end of each month. ### I — Charges in Respect of General Resources Account Transactions and Remuneration - Service charge on purchases from the General Resources Account: - The service charge payable by a member buying, in exchange for its own currency, the currency of another member or SDRs from the General Resources Account shall be 0.5 per - cent, except that no service charge shall be payable in respect of any purchase to the extent that it is a reserve tranche purchase. The service charge shall be paid at the time the transaction is consummated. - Notification and computation of charges - The Fund shall notify each member by cable, as soon as possible after July 31, October 31, January 31, and April 30, of the charges it owes to the Fund pursuant to Article V, Section 8(b) or (c) for the three calendar months ending on each such date. The charges shall be payable on the second business day following the dispatch of the notification. - Charges under Article V, Section 8(b) or (c) shall be computed for each member on the basis of the daily balances of its currency held by the Fund that are subject to charges. The Fund’s holdings of each member’s currency shall consist of all of its currency except amounts, not in excess of 0.1 percent of quota, in a special account to meet administrative expenses and amounts in sundry cash accounts. - Rate of charge on holdings in specified circumstances (I-6(4)) - The rate of charge on holdings (i) acquired as a result of a purchase under a policy that has been the subject of an exclusion under Article XXX(c), or (ii) that exceed the amount of the member’s quota after excluding any balances referred to in (i), shall be determined as follows: - (a) The rate of charge shall be determined as the SDR interest rate under Rule T-1 plus a margin expressed in basis points. The margin shall be set at a level that is adequate (i) to cover the estimated intermediation expense of the Fund for the period under (b) below, taking into account income from service charges, and (ii) to generate an amount of net income for placement to reserves. The appropriate amount for reserve contribution shall be assessed taking into account, in particular, the current level of precautionary balances, any floor or target for precautionary balances, and the expected contribution from surcharges and commitment fees to precautionary balances; provided, however, that the margin shall not be set at a level at which the basic rate of charge would result in the cost of Fund credit becoming too high or too low in relation to long-term credit market conditions as measured by appropriate benchmarks. Notwithstanding the above, in exceptional circumstances, the margin may be set at a level other than that which is adequate to cover estimated intermediation expenses of the Fund and to generate an amount of net income for placement to reserves. - (b) The margin shall be set for a period of two financial years. A comprehensive review of the Fund’s income position shall be held before the end of the first year of each such two-year period and the margin may be adjusted in the context of such a review, but only if this is warranted in view of fundamental changes in the underlying factors relevant for the establishment of the margin at the start of the two-year period. - GRA arrangement charges and reserve tranche thresholds (I-8) - For all GRA arrangements: - (a) Subject to paragraphs (e) and (f) below, a charge shall be payable at the beginning of each twelve-month period (“the relevant period”) of an arrangement as follows: - ¹5/100 of 1 percent per annum on amounts of up to 115 percent of the member’s quota that could be purchased during the relevant period; and - 3/10 of 1 percent per annum on amounts in excess of 115 percent and up to 575 percent of the member’s quota that could be purchased during the relevant period; and - 3/5 of 1 percent per annum on amounts in excess of 575 percent of the member’s quota that could be purchased during the relevant period. - (b) When a purchase is made under an arrangement, the amount of the charge paid under subparagraph (a) shall be reduced, and a refund equal to the reduction shall be made, as specified in subparagraphs (b)(i)–(iii). - (c) If a member notifies the Fund it wishes to cancel an arrangement, the Fund shall repay a portion of the charge representing the unexpired period at the date of cancellation for the amount that could still be purchased under the arrangement. - (d) Refunds and repayments shall be made in the media selected by the Fund. - (e) Instead of thresholds of 115 percent and 575 percent, thresholds of 200 percent and 1000 percent shall be used for computing charges and refunds for a member until the earlier of (i) the effective date of that member’s quota increase under the 14th General Review of Quotas, or (ii) February 26, 2016. - (f) A member with an arrangement in effect on February 17, 2016 may notify the Fund by February 25, 2016 to elect to have charges and refunds based on thresholds of 200 percent and 1000 percent of the member’s quota in effect prior to the effectiveness of the quota increase under the 14th General Review of Quotas, instead of 115 percent and 575 percent. Absent such notification, charges and refunds are determined under subparagraphs (a)–(d). An election under (f) ceases as of the date of Fund approval of any augmentation of an arrangement in effect on February 17, 2016. New arrangements approved after February 17, 2016 are not eligible for the election under (f). - Remuneration and rates (I-9, I-10) - Remuneration shall accrue daily. The amount accrued during each quarter of the financial year shall be paid as of the beginning of the following quarter. - A member that wishes to receive remuneration in its own currency (whole or specified portion) shall so notify the Fund. - The rate of remuneration shall be equal to 100 percent of the rate of interest on holdings of SDRs under Rule T-1 (referred to as the “SDR interest rate”). - The relationship of the rate of remuneration to the SDR interest rate will be referred to as the “remuneration coefficient.” ### J — Accounting and Reporting - Accounts and valuation - The accounts of the General Department shall be summarized, and financial statements relating to them expressed, in terms of the SDR. Currencies and other assets denominated in currency shall be valued in accordance with exchange rates under Article XIX, Section 7(a) and decisions of the Fund. - Gold held by the Fund on the date of the Second Amendment shall be valued on the basis of one SDR per 0.888 671 gram of fine gold; gold accepted by the Fund after that date shall be valued in terms of the SDR in such manner as the Executive Board shall decide. - The accounts of the Special Drawing Rights Department shall be kept in terms of the SDR. - An Account administered by the Fund under Article V, Section 2(b) shall be summarized and the financial statements relating to it expressed in terms of the SDR or, if the Fund so decides, in terms of a currency held in the Account. - Recordkeeping - The accounts of the General Department shall be kept to show clearly the nature and amount of each operation and transaction and the position of each member. - The accounts of the Special Drawing Rights Department shall be kept to show clearly the nature and amount of each operation and transaction in SDRs and the position of each participant, the Fund, and each other holder. *Source: byl aea2019001 - Section 13* ### Section 2(b) shall be kept in a manner that will show ### bylaea2019001 - Section 2(b) shall be kept in a manner that will show ### Accounting and reporting: summary statements and frequency - Section 2(b) requires records "kept in a manner that will show clearly the nature and amount of each operation and transaction, the position of each such Account, the position of each contributor, and the position of each recipient of resources from the Account." - J-3(a): A summary statement of the operations and transactions conducted through the General Department shall be issued "at intervals of three months or less." A monthly statement shall be sent to each member, setting forth the member’s position in the Accounts of the General Department and the details of operations and transactions between the member and the Fund other than operations and transactions of an administrative nature. - J-3(b): A summary statement for the Special Drawing Rights Department, and of the position of each participant and each other holder, shall be issued "at intervals of three months or less." A statement shall be sent periodically to each participant and each other holder, setting forth the position of the participant or the other holder and the details of operations and transactions involving the participant or the other holder. - J-3(c): A summary statement of operations and transactions for Accounts administered under Article V, Section 2(b), except the Staff Retirement Fund, shall be issued "at intervals of three months or less." A monthly statement shall be sent to each contributor and to each recipient of benefits through such an Account, setting forth the position of the contributor or the recipient, and the details of operations and transactions between the Account and the contributor or the recipient. - J-3(d): Accounting and reporting for the Staff Retirement Fund shall be carried out in accordance with the terms of the Staff Retirement Plan. - Adoption/amendment history for the above provisions: "Adopted September 25, 1946; amended September 18, 1969; April 1, 1978; and July 26, 1983" (initial Section 2(b) line) and "Adopted September 25, 1946; amended September 18, 1969; and April 1, 1978" (J-3(d)). ### Annual administrative budget, annual report, audit, and financial year - J-4 (Annual Administrative Budget): "Not later than April 1 of each year, the Managing Director shall present for the approval of the Executive Board the annual administrative budget of the Fund." The budget shall include a projection of the income of the Fund and of the expense of conducting the business of the Fund and of reimbursement of the General Resources Account in respect of the expenses of administration of the Special Disbursement Account, the Special Drawing Rights Department, and Accounts administered by the Fund under Article V, Section 2(b). - Adoption/amendment history: "Adopted September 25, 1946; amended February 20, 1948; September 18, 1969; and April 1, 1978." - J-5 (Annual Report): "Not later than May 31 of each year, the Managing Director shall present to the Executive Board for its consideration a summary of the matters which in his opinion should be included in the annual report to the Board of Governors." A draft of the annual report shall be submitted to the Executive Board "At least two months before a regular meeting of the Board of Governors." If no regular meeting is scheduled, the draft shall be submitted "as soon as possible after May 31 of the same year." - Adoption/amendment history: "Adopted September 25, 1946; amended April 1, 1978." - J-6 (Audit): "At least two months before a regular meeting of the Board of Governors, the audited financial statements of the Fund shall be submitted to the Executive Board for its consideration." If no regular meeting is scheduled, audited financial statements "shall be submitted as soon as possible after the end of the financial year of the Fund." - Adoption/amendment history: "Adopted September 25, 1946; amended April 1, 1978." - J-7 and J-8 (External audit communications and reviews): - J-7: When the external audit committee communicates views and suggestions pursuant to Section 20(f) of the By-Laws, those views and suggestions "shall be communicated at the same time to the Managing Director and the Executive Board." Adopted May 22, 1998. - J-8: Any review of the external audit process initiated by the Fund "shall be conducted under the direction of the Executive Board and the Managing Director and any report shall be communicated upon completion, at the same time, to the Executive Board and the Managing Director." Adopted May 22, 1998. - J-9 (Financial Year): The Fund’s financial year "shall begin on May 1 and end on the succeeding April 30." - Adoption/amendment history: "Adopted February 7, 1947; amended May 28, 1947, effective September 17, 1947; April 1, 1978; and May 22, 1998." ### Limitation, ineligibility, and suspension of voting rights (K) - K-1: The Managing Director "shall report to the Executive Board any case in which it appears to him that a member is not fulfilling obligations under the Articles other than obligations referred to in Rule S-1." Adopted September 25, 1946; amended September 18, 1969; and April 1, 1978. - K-2: When authorized by the Articles to declare a member ineligible to use the general resources, the Executive Board "may refrain from making the declaration and indicate the circumstances under which, and the extent to which, the member may make use of the general resources." Adopted September 25, 1946; amended April 1, 1978. - K-3: Before declaring a member ineligible pursuant to Article XXVI, Section 2(a), the Executive Board shall inform the member in reasonable time of the complaint and "allow the member an adequate opportunity for stating its case both orally and in writing." Adopted September 25, 1946; amended April 1, 1978. - K-4: If a member ineligible to use general resources, or whose use has been limited per K-2, requests resumption and the Executive Board decides not to permit resumption, "a written report shall be presented to the member stating what further action is required before such resumption will be permitted." Adopted September 25, 1946; corrected October 18, 1950; amended April 1, 1978. - K-5: When assets in the Special Disbursement Account are used to make a distribution to developing members under Article V, Section 12(f)(iii), the Executive Board "shall consider whether to permit a member that has been declared ineligible to use the general resources of the Fund under Article V, Section 5 to participate in the distribution before the ineligibility of the member has ceased." Adopted April 1, 1978. - K-6: Before suspending a member’s voting rights pursuant to Article XXVI, Section 2(b), the Executive Board shall inform the member in reasonable time of the complaint and "allow the member an adequate opportunity for stating its case both orally and in writing." Adopted March 10, 1993. - K-7: When a member whose voting rights have been suspended requests termination of the suspension and the Executive Board decides not to terminate it, "a written report shall be presented to the member stating what further action is required before such suspension will be terminated." Adopted March 10, 1993. ### Capital transfers (L) - L-1: If a large or sustained outflow of capital from a member country is taking place: - (a) that member or any other member may notify the Fund, present information it deems necessary, and request the Fund’s views with respect to such capital movement; and - (b) the Fund may present to the member(s) a report setting forth its views, and may request the member(s) to report on the situation within a suitable time. - Adopted September 25, 1946. - L-2: Whenever the Fund has requested a member to exercise controls to prevent use of the general resources to meet a large or sustained outflow of capital, the Fund "shall request the member to notify it promptly and in detail of the measures taken." Adopted September 25, 1946; amended April 1, 1978. - L-3: "Each member shall inform the Fund in detail of any measures it is taking to regulate international capital movements and of changes made in such measures." Adopted September 25, 1946; amended April 1, 1978. - L-4: If the Fund is of the opinion that controls exercised by a member to regulate international capital movements are restrictive of payments for current international transactions, or unduly delay transfers of funds in settlement of commitments, the Fund shall, subject to the provisions of Article VII, Section 3(b) and Article XIV, ... *bylaea2019001 - Section 2(b) shall be kept in a manner that will show* ### Section 2, consult with the member on the manner in which the ### bylaea2019001 - Section 2, consult with the member on the manner in which the ### M — Relations with Non-Members - M-1: The Fund may request the cooperation of any member with a view to the application of appropriate measures to prevent transactions with non-members or with persons in their territories, contrary to the provisions of the Articles or the purposes of the Fund. - Adopted September 25, 1946, amended April 1, 1978 - M-2: When the Fund finds that a member or any of its fiscal agencies referred to in Article V, Section 1, engages in any transaction with or cooperates in practices with a non-member or with persons in a non-members’ territory contrary to the provisions of the Articles or the purposes of the Fund, it shall present to the member a report setting forth its views and may request the cessation or modification of the transactions or practices. - Adopted September 25, 1946, amended April 1, 1978 - M-3: A member shall inform the Fund promptly and in detail of any restrictions which it imposes on exchange transactions with non-members or with persons in their territories. - Adopted September 25, 1946 - M-4: Any member may notify the Fund of restrictions imposed by a member on exchange transactions with non-members or with persons in their territories which are deemed to prejudice the interests of members and to be contrary to the purposes of the Fund. - Adopted September 25, 1946 - M-5: When the Fund finds that the restrictions imposed by a member on exchange transactions with non-members or with persons in their territories are prejudicial to the interests of members and contrary to the purposes of the Fund, it shall present to the member a report setting forth its views and may request the abolition or modification of the restrictions. - Adopted September 25, 1946 - M-6: The Fund deems that it would be prejudicial to the interests of members and contrary to the purposes of the Fund for a member to impose restrictions on exchange transactions with those non-members having entered into special exchange agreements under the General Agreement on Tariffs and Trade, or with persons in their territories, which the member would not in similar circumstances be authorized to impose on exchange transactions with other members or persons in their territories. - Pursuant to Article XI, Section 2, members should not institute such restrictions unless: - (a) if instituted on transactions with other members, or persons in their territories, would be authorized under the Articles, or - (b) have been approved in advance by the Fund. - Requests for prior approval shall be submitted in writing with a statement of reasons. - Adopted June 7, 1950, amended April 1, 1978 ### N — Staff Regulations - N-1: Staff shall be nationals of members of the Fund unless the Executive Board authorizes exceptions in particular cases; Managing Director shall, subject to the paramount importance of securing the highest standards of efficiency and of technical competence, pay due regard to the importance of recruiting personnel on as wide a geographical basis as possible. - Adopted as N-2 September 25, 1946, amended June 22, 1979 - N-2: Employment, classification, promotion and assignment shall be made without discriminating against any person because of sex, race, creed, or nationality. - Adopted as N-1 September 25, 1946, amended June 22, 1979 - N-3: Staff owe their duty entirely to the Fund and to no other authority, and shall neither seek nor accept instructions from any government or any authority external to the Fund. - Adopted September 25, 1946, amended June 22, 1979 - N-4: Staff shall maintain standards of conduct compatible with their position as international civil servants; avoid actions or pronouncements not in keeping with such position; exercise reserve, tact, and utmost discretion in matters of official business. - Adopted September 25, 1946, amended June 22, 1979 - N-5: Except with express authorization of the Managing Director, staff may not during their term of service: - (i) publish, cause to be published, or assist in the publication of any book, pamphlet, article, letter, or other document relating to the policies or activities of the Fund or to any national political questions; or - (ii) deliver any speech, lecture, or broadcast, or grant any press interview on such policies, activities, or questions. - Adopted September 25, 1946, amended June 22, 1979 - N-6: Staff and former staff shall not, at any time, without the express authorization of the Managing Director: - (i) reveal any unpublished information known to them by reason of their service with the Fund to a person not authorized by the Fund to receive the information; or - (ii) use, or allow the use of, unpublished information known to them by reason of their service with the Fund for private advantage, directly or indirectly, or for any interest contrary to that of the Fund as determined by the Managing Director. - Adopted as part of N-5 September 25, 1946, amended June 22, 1979 - N-7: During service, including periods of leave with or without pay, staff shall not hold other public or private employment, engage in any occupation, business activity, or profession that, in the opinion of the Managing Director, is incompatible with these Rules or the proper performance of their official duties or inconsistent with their position as international civil servants. - Adopted as N-6 September 25, 1946, amended June 22, 1979 - N-8: Staff shall not engage in political activity that, in the opinion of the Managing Director, is inconsistent with, or reflects adversely upon, the independence and impartiality required by their position; any person who accepts an office of a political character shall immediately offer to resign. - Adopted September 25, 1946, amended June 22, 1979 - N-9: Staff may retain re-employment rights or pension rights acquired in the service of another public or a private organization. - Adopted as N-7 September 25, 1946, amended June 22, 1979 - N-10: No staff may accept any honor, decoration, favor, gift, or bonus from any government, or from any other authority or person external to the Fund, for services rendered during the period of his appointment or service with the Fund. - Adopted as N-9 September 25, 1946 - N-11: Upon appointment, each person on the staff will subscribe in writing to the following affirmation: - —That, to the best of my ability, I will carry out my responsibilities in a manner that will further the purposes of the International Monetary Fund; - —That, I will refrain from communicating confidential information to persons outside the Fund; - —That, I will not use to private advantage information known to me by reason of my official position; and - —That I will accept no instruction in regard to the performance of my duties from any government or authority external to the Fund. - Adopted as N-10 September 25, 1946 - N-12: The Managing Director shall inform the Executive Board at least two weeks in advance of any action to appoint or dismiss any person to or from a position graded equal to or above that of a division chief. - Adopted as N-13 September 25, 1946, amended July 1, 1959, June 22, 1979, and December 27, 1989 - N-13: The Managing Director is authorized to issue General Administrative Orders concerning general personnel policies that have been approved by the Executive Board. - Adopted as N-14 September 25, 1946, amended June 22, 1979 - N-14: Staff shall have the right to associate to present their views to the Managing Director and the Executive Board, through representatives, on matters pertaining to personnel policies and their conditions of service. - Adopted June 22, 1979 - N-15: Appropriate procedures shall be established for the consideration of complaints and grievances of individual staff on matters involving the consistency of actions taken in their individual cases with the regulations governing personnel and their conditions of service. - Adopted June 22, 1979 - N-16: Official travel shall be undertaken only with the approval of the Managing Director; the Managing Director shall inform the Executive Board of all such travel at least once a month indicating purpose; official travel to a member’s territory shall be undertaken only after consultation with the Executive Director elected or designated by the member; meetings to discuss official business normally only after such consultation; advance approval of the Executive Board necessary for technical services to non-members or international agencies and for participation where the Board's views are to be presented. - Paragraph (a) adopted as N-15(a) September 25, 1946, amended February 11, 1948, and June 22, 1979; paragraphs (b), (c), and (d) adopted as N-15(b), (c), and (d) February 11, 1948, amended June 22, 1979; paragraph (c) amended February 26, 2013, effective January 26, 2016; paragraph (d) amended September 4, 1991; paragraph (e) adopted June 22, 1979 ### O — Valuation of the SDR, Valuation of Currencies in Terms of the SDR, Freely Usable Currency, Procedures for Exchange of Currency, and Operational Budget - Valuation of the SDR (O-1): The value of the SDR shall be the sum of the values of the following amounts of the following currencies: - U.S. dollar 0.58252 - Euro 0.38671 - Chinese yuan 1.0174 - Japanese yen 11.900 - Pound sterling 0.085946 - Adopted September 18, 1969; amended June 13, 1974, effective July 1, 1974; July 1, 1974; April 1, 1978; June 30, 1978, effective July 1, 1978; September 17, 1980, effective January 1, 1981; July 26, 1983; December 31, 1985, effective January 1, 1986; December 31, 1990, effective January 1, 1991; December 29, 1995, effective January 1, 1996; September 21, 1998, effective January 1, 1999; December 29, 2000, effective January 1, 2001; December 30, 2005, effective January 1, 2006; December 30, 2010, effective January 1, 2011; and September 30, 2016, effective October 1, 2016 - Valuation of Currencies in Terms of the SDR (O-2): - (a) The value of the United States dollar in terms of the SDR shall be equal to the reciprocal of the sum of the equivalents in United States dollars of the amounts of the currencies specified in Rule O-1, calculated on the basis of exchange rates established in accordance with procedures decided from time to time by the Fund. - (b) The value of a currency other than the United States dollar in terms of the SDR shall be determined on the basis of the value of the United States dollar in terms of the SDR in accordance with (a) above and an exchange rate for that other currency determined as follows: - (i) for the currency of a member having an exchange market in which the Fund finds that a representative spot rate for the United States dollar can be readily ascertained, that representative rate; - (ii) for the currency of a member having an exchange market in which the Fund finds that a representative spot rate for the United States dollar cannot be readily ascertained but in which a representative spot rate can be readily ascertained for a currency as described in (i), the rate calculated by reference to the representative spot rate for that currency and the rate ascertained pursuant to (i) above for the United States dollar in terms of that currency; - (iii) for the currency of any other member, a rate determined by the Fund. - (c) Procedures to establish exchange rates under (b) above shall be determined by the Fund in consultation with members. - Adopted September 18, 1969; amended June 13, 1974, effective July 1, 1974; July 1, 1974; April 1, 1978; and July 26, 1983 - Freely Usable Currency (O-3): - (a) The Fund shall determine the currencies that are freely usable in accordance with Article XXX(f ). - (b) The Fund shall consult a member before placing its currency on, or removing it from, the list of freely usable currencies. - Adopted April 1, 1978 - Procedures for Exchange of Currency (O-4 to O-9): - O-4(a): The Fund shall consult all members with respect to procedures for the prompt exchange of currency, or to facilitate such exchange, in connection with: - (i) the operations and transactions of the Fund conducted through the General Resources Account, and - (ii) transactions with designation conducted through the Special Drawing Rights Department. - O-4(b): On request of any member, an Executive Director, or the Managing Director, the Executive Board shall decide whether procedures under (a) are in accordance with the obligations of members. - O-4(c): The Fund shall inform all members of the procedures for the exchange of each freely usable currency. - O-5: A member requesting an exchange of currency in accordance with procedures under Rule O-4(a) shall make its request to the Fund not later than the date on which the Fund issues instructions for the execution of the operation or transaction that gives rise to the request. - Adopted April 1, 1978 - O-6(a): An exchange of currency in accordance with Rule O-4(a) shall be made at an exchange rate between the two currencies corresponding to their exchange rates in terms of the SDR as determined under Rule O-2, if: - (i) the exchange is requested under Article V, Section 3(e)(i) or (iv) or under Article V, Section 7( j)(i) or (iv), or - (ii) the procedures for the exchange of currency under Rule O-4(a) so provide. - O-6(b): The exchange rate for each currency for the purposes of (a) shall be determined as of the date of dispatch of the Fund’s instruction for the execution of the transaction or operation under (a), and if this rate cannot be used, the rate of the preceding day closest thereto that is practicable. - O-6(c): The value date for an exchange of currency under (a) shall be the second business day after the date of dispatch of the Fund’s instruction under (b), or as early thereto as is practicable. - Adopted April 1, 1978, amended July 26, 1983, and April 25, 2003. - O-7: No member shall levy any charge or commission in respect of an exchange of currency to which Rule O-6 applies. - Adopted April 1, 1978 - O-8(a): Such exchange shall be made by an official agency of the member issuing the currency, unless the members exchanging currency agree otherwise. - O-8(b): Instruction for an exchange by an official agency under (a) shall be given by the Fund. - Adopted April 1, 1978 - O-9(a): In an exchange pursuant to Article V, Section 7(j)(iv), the freely usable currency to be provided by the repurchasing member shall be the freely usable currency agreed between the members exchanging currency. - O-9(b): In the absence of agreement under (a), the Fund shall specify the freely usable currency to be provided by the repurchasing member, taking into account the circumstances of the members exchanging currency. - Adopted April 1, 1978 - Operational Budget (O-10): - (a) At least semi-annually, the Executive Board shall decide on the transactions plan (which may have a duration of up to six months), including amounts, for the use of currencies and SDRs in the operations and transactions of the Fund conducted through the General Resources Account until the next decision takes effect. - (b) The Executive Board may decide at any time to adopt a special transactions plan. - (c) On the request of any member, an Executive Director, or the Managing Director, the Executive Board shall review, and if necessary amend, any transactions plan adopted pursuant to (a) or (b). - Adopted April 1, 1978, amended July 26, 1983, and February 25, 2000; paragraph (a) amended May 1, 2018, effective January 30, 2018 ### P — Procedures for Operations and Transactions Involving SDRs - Transactions with Designation (P-1 to P-4): - P-1(a): A participant shall inform the Fund of its intention to use SDRs in a transaction with designation; if it desires a particular freely usable currency the participant shall indicate this not later than the date on which the Fund issues instructions for the execution of the transaction. - P-1(b): Instructions for a transaction pursuant to (a) shall be given by the Fund in accordance with Rule P-2 and the procedures under Rule O-4(a), and shall be carried out promptly. - Adopted September 18, 1969, amended April 1, 1978, and July 26, 1983 - P-2: In a transaction with designation the freely usable currency shall be provided at an exchange rate determined under Rule O-2, and at an official agency of the participant issuing the currency. - Adopted April 1, 1978 - P-3: No participant shall levy any charge or commission in respect of the provision of currency in a transaction with designation. - Adopted September 18, 1969, amended April 1, 1978 - P-4: A participant using SDRs in a transaction with designation shall declare that the use is in accordance with Article XIX, Section 3(a), or a waiver under Article XIX, Section 3(c). - Adopted September 18, 1969, amended April 1, 1978, and July 26, 1983 - Designation of Participants to Provide Currency (P-5): - P-5: At annual intervals the Executive Board shall decide, in accordance with Article XIX, Section 5, and Decision No. 11976-(99/59) S, on the plan, including amounts, by which designations will be made until the next decision takes effect. - On the request of any participant, an Executive Director, or the Managing Director, the Executive Board shall review, and if necessary amend, any plan adopted pursuant to this Rule. - Adopted September 18, 1969, amended April 1, 1978, and October 1, 2015 - Transactions by Agreement Between Participants (P-6): - P-6(a): The exchange rate in a transaction by agreement between participants shall be determined under Rule O-2 as of the date of the agreement, unless the transaction is carried out at another exchange rate pursuant to authorization by the Fund under Article XIX, Section 7(b). - Settlement shall take place on the date of the agreement or any business day within two business days from that date, as agreed between the participants. - P-6(b): No participant shall levy any charge or commission in respect of a transaction under Article XIX. *bylaea2019001 - Section 2, consult with the member on the manner in which the* ### Section 2(b). ### Section 2(b) ### Prescribed Operations - P-7: Parties to an operation pursuant to a prescription under Article XIX, Section 2(c) shall declare that the operation is in accordance with the prescription. - Adopted September 18, 1969, amended April 1, 1978. ### Recording - P-8: A participant using SDRs in a transaction shall inform the Fund immediately of the receipt of currency in accordance with the Articles of Agreement and these Rules and Regulations. - Adopted September 18, 1969, amended April 1, 1978, and July 26, 1983. - P-9: The Fund shall record a transaction or an operation in the Special Drawing Rights Department when it is satisfied that the transaction or the operation is in conformity with the obligations of participants under the Articles of Agreement and with the Rules and Regulations and any applicable decisions of the Fund. - A transaction shall be recorded as of the date on which currency is provided. - An operation shall be recorded as of the date on which it is carried out. - Adopted September 18, 1969, amended April 1, 1978. ### Other Holders - Q-1: An application for prescription by the Fund as a holder of SDRs, and of the terms and conditions for holding, accepting, and using SDRs in operations and transactions, shall be filed with the Fund with all relevant facts. - Terms and conditions shall be prescribed by the Executive Board after consultation with the applicant. - Adopted April 1, 1978, amended July 26, 1983. ### Abrogated - Executive Board decision on April 22, 1981, with effect from April 30, 1981: - Abrogated the rules for reconstitution under Schedule G, paragraph 1(a), and Rules R-1 through R-6, which implemented those rules. ### Suspension of Use of SDRs - S-1: The Managing Director shall report to the Executive Board any facts on the basis of which it appears to him that a participant is not fulfilling obligations under the Articles that could lead to suspension under Article XXIII, Section 2, and may include a complaint in his report. - Adopted September 18, 1969, amended April 1, 1978. - S-2: A participant may complain that another participant is not fulfilling obligations under the Articles that could lead to suspension under Article XXIII, Section 2; the Managing Director shall transmit the complaint to the Executive Board with his comments. - Any complaint shall be made in writing or by any rapid means of communication, and it shall be accompanied by a statement of the facts on which the participant bases its complaint. - Adopted September 18, 1969, amended April 1, 1978. - S-3: The Managing Director shall immediately inform a participant of any complaint against it and the statement of the facts on which the complaint is based. - Adopted September 18, 1969. - S-4: If the complaint is that the participant has failed to fulfill its obligations under Article XIX, Section 4, the participant shall not use SDRs and this limitation shall continue pending the disposition of the complaint. - Adopted September 18, 1969, amended April 1, 1978, and July 26, 1983. - S-5: A participant against which a complaint has been made under Rule S-1 or Rule S-2, the Managing Director, or an Executive Director may request the Executive Board to dismiss the complaint; the Executive Board shall consider the request forthwith. - Adopted September 18, 1969, amended April 1, 1978. - S-6: If the right of a participant to use SDRs has been limited under Rule S-4, and a request under Rule S-5 has been made by a participant, the complaint shall be deemed to have been dismissed at the end of ten business days after the request, or at the end of such longer period as the participant states in the request, unless within this time the Executive Board has taken a decision disposing of the complaint. - Adopted September 18, 1969, amended April 1, 1978, and July 26, 1983. - S-7: If the right of a participant to use its SDRs has been suspended under Article XXIII, Section 2, the participant may request the Executive Board to terminate the suspension. - If the Executive Board decides not to terminate the suspension, a written report shall be made to the participant stating the circumstances under which the suspension would be terminated. - Adopted September 18, 1969, amended April 1, 1978, and July 26, 1983. - S-8: All procedures under Rules S-1 through S-7 shall be conducted as expeditiously as possible, and shall allow the participant an adequate opportunity to state its case both orally and in writing. - Adopted September 18, 1969, amended April 1, 1978. ### Interest, Charges, and Assessments in Respect of SDRs - T-1(a): Interest and charges in respect of SDRs shall accrue daily at the rate referred to in (b) below. - The amount that has accrued during each quarter of the financial year of the Fund shall be paid promptly as of the beginning of the following quarter. - The accounts of participants shall be credited with the excess of interest due over charges or debited with the excess of charges over the interest due. - The accounts of holders that are not participants shall be credited with the interest due. - T-1(b): The rate of interest on holdings of SDRs for each weekly period commencing each Monday shall be equal to the combined market interest rate as determined by the Fund at the beginning of the period in the manner described in (c) below, provided that, if the combined market rate is below 0.050 percent, the rate shall be established at 0.050 percent. - T-1(c): The combined market interest rate shall be the sum, rounded to the three nearest decimal places, of the products that result from multiplying each yield or rate listed below, expressed as an equivalent annual bond yield, for the preceding Friday by the value in terms of the SDR on that Friday of the amount of the corresponding currency specified in Rule O-1, as determined pursuant to Rule O-2(b). - If a yield or rate is not available for a particular Friday, the calculation shall be made on the basis of the latest available yield or rate. - Components listed for the combined market interest rate calculation: - U.S. dollar: Market yield for three-month U.S. Treasury bills. - Euro: Three-month spot rate for euro area central government bonds with a rating of AA and above published by the European Central Bank. - Chinese renminbi: Three-month benchmark yield for China Treasury bonds as published daily by the China Central Depository and Clearing Co., Ltd. - Japanese yen: Three-month Japanese Treasury Discount Bills. - Pound sterling: Market yield for three-month U.K. Treasury bills. - T-1(d): Deleted. - T-1 amendments and effective dates: - Adopted September 18, 1969; amended June 13, 1974; June 30, 1976; April 1, 1978; June 15, 1978, effective July 1, 1978; September 17, 1980, effective January 1, 1981; and July 26, 1983, effective August 1, 1983; paragraph (b) amended October 25, 1978, effective January 1, 1979; April 22, 1981, effective May 1, 1981; October 24, 2014; and January 1, 2015; paragraph (c) amended April 22, 1981, effective May 1, 1981; October 5, 1990, effective January 1, 1991; September 21, 1998, effective January 1, 1999; October 11, 2000, effective January 1, 2001; November 23, 2005, effective January 1, 2006; February 5, 2009; October 24, 2014; January 1, 2015; and November 30, 2015, effective October 1, 2016; paragraph (d) deleted January 7, 1994. - T-2: Assessments shall be levied promptly, as of the end of each financial year of the Fund, on the basis of a reasonable estimate of the expenses of conducting the business of the Special Drawing Rights Department for the financial year, and the accounts of participants shall be debited with the amounts of the assessments. - Adopted September 18, 1969, amended April 1, 1978. *Source: bylaea2019001 - Section 2(b).* --- _Source: https://www.imf.org/-/media/files/publications/by-laws/2019/english/bylaea2019001.pdf_