## _090209

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**Canonical URL:** [_090209](https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2009/_090209.pdf)

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---

### Purposes and Aggregate Amounts
- Purpose:
  - Support the Fund’s ability to provide timely and effective balance of payments assistance, particularly to developing and emerging market countries affected by the global financial crisis.
  - The People’s Bank of China (PBC) agrees to purchase from the Fund promissory notes issued under this Agreement and the General Terms and Conditions for International Monetary Fund Series A and Series B Notes (Annex I) (the “Notes”).
- Aggregate amounts and series:
  - Total principal amount of Notes to be issued under this Agreement: up to the equivalent of SDR 32 billion (equivalent to RMB 341.2 billion as of August 25, 2009).
  - Series composition:
    - Series A Notes: first SDR 15 billion in total principal amount.
    - Series B Notes: the remainder of the SDR 32 billion commitment.
  - Series A and Series B Notes are identical except that only Series A Notes are eligible for early payment on demand under certain circumstances (see paragraph 7 of the General Terms and Conditions).

### Term of the Agreement and Availability
- Availability Period:
  - Initial Availability Period: one year commencing on the date the first Note is issued or September 30, 2009, whichever is earlier.
- Notice and payment instructions:
  - Fund shall give PBC at least five business days’ (Beijing) notice of its intention to issue Notes for purchase under this Agreement, including the amount.
  - Fund shall provide payment instructions to the PBC at least two business days (Beijing) prior to the value date of the purchase by SWIFT.
- Extensions and termination option:
  - The Fund may extend the Availability Period by an additional one-year period after consultation with the PBC, and thereafter with the agreement of the PBC by a further one-year period.
  - The PBC may terminate the term of this Agreement at its option if China, the PBC, or another official institution of China is a participant in an enlarged and amended New Arrangements to Borrow (“NAB”) that becomes effective after the date of this Agreement.

### Authorized Uses, Issuance Limits and Scheduling
- Authorized uses (after consultation with the PBC):
  - (i) any use of Fund resources in the General Resources Account, or
  - (ii) the payment of the Fund’s outstanding indebtedness under other official sector borrowing effected pursuant to Article VII, Section 1(i) of the Fund’s Articles of Agreement, where terms permit drawings for payment of the Fund’s outstanding indebtedness under this Agreement.
- Issuance limits and scheduling (unless otherwise agreed):
  - Weekly limit: Not to exceed the equivalent of SDR 4 billion during any calendar week.
  - Monthly limit: Not to exceed the equivalent of SDR 15 billion during any calendar month.
  - Quarterly estimates: Prior to each quarter of the Fund’s financial year, the Fund shall provide the PBC with its best estimates of the amount of Notes it expects to issue for purchase under this Agreement during the forthcoming quarter, and shall provide revised estimates during each quarter where warranted.
  - Cumulative cap: The Fund shall not issue Notes for purchase under this Agreement if such issuance would result in the cumulative amount of Notes issued for purchase under this Agreement exceeding the equivalent of SDR 32 billion.
  - Payment of principal does not restore pro tanto the amount of Notes that may be issued under this Agreement.

### Denomination, Issuance Multiples and Price
- Denomination: Notes shall be denominated in the special drawing right (SDR).
- Issuance multiple: Notes shall be issued in multiples of SDR 10 million.
- Purchase price: 100 percent of the principal amount of each Note.

### Payments for Purchases, Exchange Rates and SDR Valuation
- Payment for purchase:
  - Unless otherwise agreed, the purchase price of each Note shall be paid by the PBC on the value date specified in the Fund’s notice, by transfer of the SDR equivalent amount of Chinese Renminbi to the account of the Fund with the designated depository of China.
- Exchange rate for purchases and exchanges:
  - Unless otherwise agreed, all purchases of Notes and exchanges of currency pursuant to this Agreement shall be made at the exchange rate for the relevant currency in terms of the SDR established pursuant to Article XIX, Section 7(a) and the rules and regulations of the Fund thereunder for the second business day of the Fund before the value date of the purchase or exchange.
  - If this exchange rate determination date is not a business day in Beijing, then such date shall be the last preceding business day of the Fund that is also a business day in Beijing.
- Change in SDR valuation method:
  - If the Fund changes the method of valuing the SDR, all purchases and exchanges of currency made two or more business days of the Fund after the effective date of the change shall be made on the basis of the new method of valuation.

### Termination of Purchases at Request of the PBC
- The PBC’s commitment to purchase Notes under this Agreement shall be terminated if:
  - (i) the PBC represents that China’s balance of payments and reserve position does not justify further purchases, and
  - (ii) the Fund, having given this representation the overwhelming benefit of any doubt, determines that no further purchases should be made in light of China’s balance of payments and reserve position.

### Transferability, Settlement and Final Provisions
- Transferability:
  - The PBC may not transfer any of its rights or obligations under this Agreement except with the prior written consent of the Fund.
  - Transfers of Notes may be effected pursuant to, and subject to, the transfer restrictions and other limitations on transfers of the Notes set forth in the General Terms and Conditions (Annex I).
- Settlement of questions:
  - Any question arising under this Agreement shall be settled by mutual agreement between the PBC and the Fund.
- Final provisions:
  - Execution: This Agreement may be executed in duplicate counterparts, each of which shall be deemed an original.
  - Effectiveness: This Agreement shall become effective on the date last signed below or the date on which China provides the concurrence required under Article VII, Section 1(i) of the Fund’s Articles of Agreement for Fund borrowing of Chinese Renminbi from the PBC, whichever is later.

### Annex I — General Terms and Conditions (selected provisions)
- Definitions (selected):
  - “Applicable Note Purchase Agreement”: the Note Purchase Agreement between the Fund and the original Eligible Purchaser.
  - “Eligible Purchaser”: (i) a member of the Fund, and (ii) the central bank of a member of the Fund.
  - “Eligible Holder”: (i) an Eligible Purchaser, (ii) a fiscal agency designated by a member for Article V, Section 1 purposes, and (iii) a prescribed SDR holder pursuant to Article XVII, Section 3.
  - “Permitted Holder”: (i) an Eligible Holder, and (ii) any other official entity for which the Fund has consented in writing to a transfer of Notes pursuant to subparagraph 6(b).
  - “Series”: Series A Note or Series B Note.
- Eligible purchasers and holders:
  - Fund will issue Notes solely to Eligible Purchasers.
  - Permitted Holders shall be the only authorized holders of the Notes.
- Form, delivery and custody:
  - Notes issued as Series A or Series B.
  - Notes issued only in book entry form; Fund will maintain book entry accounts recording number, issue date, principal amount, Series and maturity date.
  - Upon request, Fund will issue a registered Note in the form in Annex II (Series A) or Annex III (Series B) and keep registered Notes in custody for the Permitted Holder unless otherwise agreed.
- Maturity, extensions, payment and cancellation:
  - Standard maturity: three months from issue date.
  - Fund may extend maturity by additional periods of three months; no maturity extension later than the fifth anniversary of the issue date.
  - Fund will pay principal on applicable maturity date; if not a business day where payment is made, payment on next business day in that place.
  - Fund may make early payment in part or in full after consultation with the Permitted Holder.
  - Fund will cancel a Note upon payment of principal and all accrued interest; if partial early payment or partial extension, Fund cancels and issues new Notes for remainder.
- Interest:
  - Each Note bears interest at the SDR interest rate established by the Fund pursuant to Article XX, Section 3; however if the Fund pays an interest rate higher than the SDR interest rate on outstanding balances from any other comparable borrowing effected pursuant to Article VII, Section 1(i), and while that higher rate remains in effect, the interest on each Note will be equivalent to the interest rate paid by the Fund on such other comparable borrowing.
  - Interest is calculated on the principal amount (including substituted notes), accrues daily, and is to be paid promptly after each July 31, October 31, January 31 and April 30.
- Transferability of Notes (key restrictions and procedures):
  - A Permitted Holder may transfer all or part of any Note at any time to any Eligible Holder; the Fund will use best efforts to arrange transfers if requested.
  - Transfers to an official entity other than an Eligible Holder require prior written consent of the Fund and may be subject to additional terms.
  - No transfer or disposition to any entity that is not (i) an Eligible Holder or (ii) an official entity for which the Fund has consented in writing.
  - Derivative transactions and transfers of participation interests in any Note are prohibited.
  - Transfer price: agreed between transferor and transferee.
  - Transfers effected by authenticated notice to the Fund; Fund cancels transferred Note and issues new Notes to transferee and, if applicable, transferor for retained amount. Issue date of new Notes equals issue date of cancelled Note; maturity date preserved.
  - If transfer occurs during a quarterly period as described in paragraph 5(b), Fund will pay interest to the transferee for the whole of that period.
- Early payment at request of certain Permitted Holders (Series A):
  - Rights apply only to Permitted Holders who are either (i) Eligible Purchasers in respect of such Notes, or (ii) transferees under subparagraphs 6(a) or 6(b) that meet conditions:
    - (A) transferee is a member of the Fund or the central bank or fiscal agency of a member, and
    - (B) at time of transfer, the balance of payments and reserve position of the member or Relevant Member was considered sufficiently strong in the opinion of the Fund that its currency was being used in transfers under the Financial Transactions Plan.
  - If such a Permitted Holder represents that its balance of payments and reserve position justifies early payment and the Fund (having given the representation the overwhelming benefit of any doubt) determines there is a need for early payment:
    - (i) Fund shall pay the principal amount of the Permitted Holder’s Series A Notes then outstanding up to the amount requested for early payment; and
    - (ii) the maturity date for that portion of the Permitted Holder’s remaining Notes (if any) for which early repayment has been requested shall be changed to the date that is 12 months after the date of the Fund’s determination.
  - Fund shall pay the principal amount of the Permitted Holder’s Notes covered by subparagraph (b)(ii) as soon as practicable after the Fund’s determination and, in any event, make full payment of all such Notes within the 12-month maturity period specified.

### Section 8 — Media and Modalities of Payments on the Notes (selected provisions)
- Payments of Principal:
  - Principal payments by the Fund to a Permitted Holder shall be made:
    - in the currency of the Permitted Holder, if the Permitted Holder is a member of the Fund;
    - in the currency of the Relevant Member, if the Permitted Holder is the central bank or fiscal agency of a member of the Fund, or is a prescribed SDR holder that is an official institution of a member;
    - in any freely usable currency determined by the Fund, in the case of all other Permitted Holders.
  - Exceptions:
    - After consultation with a Permitted Holder covered by clauses (i) or (ii) above, the Fund may make payments of principal to such Permitted Holder in SDRs or in any freely usable currency as determined by the Fund.
    - After consultation with a Permitted Holder covered by clause (iii) above that is a prescribed SDR holder, the Fund may make payments of principal to such Permitted Holder in SDRs.
- Payments of Interest:
  - Interest payments by the Fund on the Notes will normally be made in SDRs if the Permitted Holder is a member of the Fund or a central bank or fiscal agency of such a member or a prescribed SDR holder; otherwise in any freely usable currency as determined by the Fund.
  - For registered Series A and Series B Notes (Annex II and Annex III):
    - Interest accrues daily on the principal amount at the SDR interest rate established by the Fund pursuant to Article XX, Section 3.
    - If the Fund pays an interest rate higher than the SDR interest rate on outstanding balances from any other borrowing on comparable terms effected pursuant to Article VII, Section 1(i) of the Fund’s Articles of Agreement, and for as long as such higher rate remains in effect, then the interest rate payable on the Note shall be equivalent to that higher interest rate.
    - Interest shall be paid promptly after each July 31, October 31, January 31 and April 30.
    - Payments in SDRs shall be made by crediting the SDR Department account of the registered holder, or of the member for which the registered holder serves as central bank or fiscal agency in the case of registered holders that are the central bank or fiscal agency of a member of the Fund.
- Accounts and currency credits:
  - All payments made by the Fund to a Permitted Holder in currency will be made by crediting the amount due to an account specified in advance by the Permitted Holder for purposes of receiving such payments.
  - Payments in SDRs will be made by crediting the SDR Department account of the Permitted Holder or of the Relevant Member, as the case may be.
- Effective exchange rate for payments:
  - Unless otherwise agreed between a Permitted Holder and the Fund, all payments in currency of principal and interest will be made at the exchange rates for the relevant currencies in terms of the SDR established pursuant to Article XIX, Section 7(a) and the rules and regulations of the Fund thereunder for the second business day of the Fund before the value date of the payment.
  - If this exchange rate determination date is not a business day in the Permitted Holder’s principal location, then such date will be the last preceding business day of the Fund that is also a business day in the Permitted Holder’s principal location.
- Changes in method of valuation of SDR:
  - If the Fund changes the method of valuing the SDR, all payments of principal and interest on the Notes made two or more business days of the Fund after the effective date of the change will be made on the basis of the new method of valuation.
- Non-subordination of claims:
  - The Fund will not take any action that would have the effect of making a Permitted Holder’s claim on the Fund resulting from any Note subordinate in any way to claims on the Fund resulting from any other borrowing effected pursuant to Article VII, Section 1(i) of the Fund’s Articles of Agreement.
- Forms of Registered Notes (Annex II and Annex III) — key provisions:
  - Each Series A Note and Series B Note:
    - Promises payment of an amount equivalent to a specified number of Special Drawing Rights (SDR).
    - Is issued in accordance with the General Terms and Conditions for International Monetary Fund Series A and Series B Notes and the Applicable Note Purchase Agreement.
    - Is subject to transfer restrictions and prohibits derivative transactions and transfers of participation interests in the Note.
    - Interest mechanics mirror the general provisions on interest accrual, adjustment to higher comparable borrowing rates, payment dates (payments promptly after each July 31, October 31, January 31 and April 30), and currency/SDR payment modalities described above.

*Source: _090209 - 1.      Purposes and Amounts*

### 1.      Purposes and Amounts

### 1.      Purposes and Amounts

### Purposes
- The People’s Bank of China (PBC) agrees to purchase from the Fund promissory notes issued under this Agreement and the General Terms and Conditions for International Monetary Fund Series A and Series B Notes (Annex I) (the “Notes”).
- Purpose: support the Fund’s ability to provide timely and effective balance of payments assistance, particularly to developing and emerging market countries affected by the global financial crisis.

### Aggregate amounts and series
- Total principal amount of Notes to be issued under this Agreement: up to the equivalent of SDR 32 billion (equivalent to RMB 341.2 billion as of August 25, 2009).
- Series composition:
  - Series A Notes: first SDR 15 billion in total principal amount.
  - Series B Notes: the remainder of the SDR 32 billion commitment.
- Series A and Series B Notes are identical except that only Series A Notes are eligible for early payment on demand under certain circumstances (see paragraph 7 of the General Terms and Conditions).

---

### 2.      Term of the Agreement

### Availability Period
- Initial Availability Period: one year commencing on the date the first Note is issued or September 30, 2009, whichever is earlier.
- Notice and payment instructions:
  - Fund shall give PBC at least five business days’ (Beijing) notice of its intention to issue Notes for purchase under this Agreement, including the amount.
  - Fund shall provide payment instructions to the PBC at least two business days (Beijing) prior to the value date of the purchase by SWIFT.

### Extensions and termination option
- The Fund may extend the Availability Period by an additional one-year period after consultation with the PBC, and thereafter with the agreement of the PBC by a further one-year period.
- The PBC may terminate the term of this Agreement at its option if China, the PBC, or another official institution of China is a participant in an enlarged and amended New Arrangements to Borrow (“NAB”) that becomes effective after the date of this Agreement.

---

### 3.      Use, Estimates and Limits on Issuance of Notes

### Authorized uses
- After consultation with the PBC, the Fund may issue Notes for purchase under this Agreement in connection with:
  - (i) any use of Fund resources in the General Resources Account, or
  - (ii) the payment of the Fund’s outstanding indebtedness under other official sector borrowing effected pursuant to Article VII, Section 1(i) of the Fund’s Articles of Agreement, where terms permit drawings for payment of the Fund’s outstanding indebtedness under this Agreement.

### Issuance limits and scheduling
- Weekly and monthly limits (unless otherwise agreed between the PBC and the Fund):
  - Not to exceed the equivalent of SDR 4 billion during any calendar week.
  - Not to exceed the equivalent of SDR 15 billion during any calendar month.
- Quarterly estimates:
  - Prior to each quarter of the Fund’s financial year, the Fund shall provide the PBC with its best estimates of the amount of Notes it expects to issue for purchase under this Agreement during the forthcoming quarter, and shall provide revised estimates during each quarter where warranted.
- Cumulative cap:
  - The Fund shall not issue Notes for purchase under this Agreement if such issuance would result in the cumulative amount of Notes issued for purchase under this Agreement exceeding the equivalent of SDR 32 billion.
- Payment of principal does not restore pro tanto the amount of Notes that may be issued under this Agreement.

---

### 4.      Denomination and Price

- Denomination: Notes shall be denominated in the special drawing right (SDR).
- Issuance multiple: Notes shall be issued in multiples of SDR 10 million.
- Purchase price: 100 percent of the principal amount of each Note.

---

### 5.      Payments for Purchases, Exchanges of Currencies and SDR Valuation

- Payment for purchase:
  - Unless otherwise agreed, the purchase price of each Note shall be paid by the PBC on the value date specified in the Fund’s notice, by transfer of the SDR equivalent amount of Chinese Renminbi to the account of the Fund with the designated depository of China.
- Exchange rate for purchases and exchanges:
  - Unless otherwise agreed, all purchases of Notes and exchanges of currency pursuant to this Agreement shall be made at the exchange rate for the relevant currency in terms of the SDR established pursuant to Article XIX, Section 7(a) and the rules and regulations of the Fund thereunder for the second business day of the Fund before the value date of the purchase or exchange.
  - If this exchange rate determination date is not a business day in Beijing, then such date shall be the last preceding business day of the Fund that is also a business day in Beijing.
- Change in SDR valuation method:
  - If the Fund changes the method of valuing the SDR, all purchases and exchanges of currency made two or more business days of the Fund after the effective date of the change shall be made on the basis of the new method of valuation.

---

### 6.      Termination of Purchases at Request of the PBC

- The PBC’s commitment to purchase Notes under this Agreement shall be terminated if:
  - (i) the PBC represents that China’s balance of payments and reserve position does not justify further purchases, and
  - (ii) the Fund, having given this representation the overwhelming benefit of any doubt, determines that no further purchases should be made in light of China’s balance of payments and reserve position.

---

### 7.      Transferability

- The PBC may not transfer any of its rights or obligations under this Agreement except with the prior written consent of the Fund.
- Transfers of Notes may be effected pursuant to, and subject to, the transfer restrictions and other limitations on transfers of the Notes set forth in the General Terms and Conditions (Annex I).

---

### 8.      Settlement of Questions

- Any question arising under this Agreement shall be settled by mutual agreement between the PBC and the Fund.

---

### 9.      Final Provisions

- Execution:
  - This Agreement may be executed in duplicate counterparts, each of which shall be deemed an original.
- Effectiveness:
  - This Agreement shall become effective on the date last signed below or the date on which China provides the concurrence required under Article VII, Section 1(i) of the Fund’s Articles of Agreement for Fund borrowing of Chinese Renminbi from the PBC, whichever is later.

---

### Annex I. General Terms and Conditions for International Monetary Fund Series A and Series B Notes

### Definitions (selected)
- “Applicable Note Purchase Agreement”: the Note Purchase Agreement between the Fund and the original Eligible Purchaser.
- “Eligible Purchaser”: (i) a member of the Fund, and (ii) the central bank of a member of the Fund.
- “Eligible Holder”: (i) an Eligible Purchaser, (ii) a fiscal agency designated by a member for Article V, Section 1 purposes, and (iii) a prescribed SDR holder pursuant to Article XVII, Section 3.
- “Permitted Holder”: (i) an Eligible Holder, and (ii) any other official entity for which the Fund has consented in writing to a transfer of Notes pursuant to subparagraph 6(b).
- “Series”: Series A Note or Series B Note.

### Eligible purchasers and holders
- Fund will issue Notes solely to Eligible Purchasers.
- Permitted Holders shall be the only authorized holders of the Notes.

### Form, delivery and custody
- Notes issued as Series A or Series B.
- Notes issued only in book entry form; the Fund will maintain book entry accounts recording number, issue date, principal amount, Series and maturity date.
- Upon request, Fund will issue a registered Note in the form in Annex II (Series A) or Annex III (Series B) and keep registered Notes in custody for the Permitted Holder unless otherwise agreed.

### Maturity, extensions, payment and cancellation
- Standard maturity: three months from issue date.
- Fund may extend maturity by additional periods of three months; no maturity extension later than the fifth anniversary of the issue date.
- Fund will pay principal on applicable maturity date; if not a business day where payment is made, payment on next business day in that place.
- Fund may make early payment in part or in full after consultation with the Permitted Holder.
- Fund will cancel a Note upon payment of principal and all accrued interest; if partial early payment or partial extension, Fund cancels and issues new Notes for remainder.

### Interest
- Each Note bears interest at the SDR interest rate established by the Fund pursuant to Article XX, Section 3; however if the Fund pays an interest rate higher than the SDR interest rate on outstanding balances from any other comparable borrowing effected pursuant to Article VII, Section 1(i), and while that higher rate remains in effect, the interest on each Note will be equivalent to the interest rate paid by the Fund on such other comparable borrowing.
- Interest is calculated on the principal amount (including substituted notes), accrues daily, and is to be paid promptly after each July 31, October 31, January 31 and April 30.

### Transferability of Notes (key restrictions and procedures)
- A Permitted Holder may transfer all or part of any Note at any time to any Eligible Holder; the Fund will use best efforts to arrange transfers if requested.
- Transfers to an official entity other than an Eligible Holder require prior written consent of the Fund and may be subject to additional terms.
- No transfer or disposition to any entity that is not (i) an Eligible Holder or (ii) an official entity for which the Fund has consented in writing.
- Derivative transactions and transfers of participation interests in any Note are prohibited.
- Transferee assumes obligations with respect to extensions of maturity under paragraph 4(a).
- Transfer price: agreed between transferor and transferee.
- Transfers effected by authenticated notice to the Fund; Fund cancels transferred Note and issues new Notes to transferee and, if applicable, transferor for retained amount. Issue date of new Notes equals issue date of cancelled Note; maturity date preserved.
- If transfer occurs during a quarterly period as described in paragraph 5(b), Fund will pay interest to the transferee for the whole of that period.

### Early payment at request of certain Permitted Holders (Series A)
- Rights apply only to Permitted Holders who are either (i) Eligible Purchasers in respect of such Notes, or (ii) transferees under subparagraphs 6(a) or 6(b) that meet conditions:
  - (A) transferee is a member of the Fund or the central bank or fiscal agency of a member, and
  - (B) at time of transfer, the balance of payments and reserve position of the member or Relevant Member was considered sufficiently strong in the opinion of the Fund that its currency was being used in transfers under the Financial Transactions Plan.
- If such a Permitted Holder represents that its balance of payments and reserve position justifies early payment and the Fund (having given the representation the overwhelming benefit of any doubt) determines there is a need for early payment:
  - (i) Fund shall pay the principal amount of the Permitted Holder’s Series A Notes then outstanding up to the amount requested for early payment; and
  - (ii) the maturity date for that portion of the Permitted Holder’s remaining Notes (if any) for which early repayment has been requested shall be changed to the date that is 12 months after the date of the Fund’s determination.
- Fund shall pay the principal amount of the Permitted Holder’s Notes covered by subparagraph (b)(ii) as soon as practicable after the Fund’s determination and, in any event, make full payment of all such Notes within the 12-month maturity period specified.

*Source: _090209 - 1.      Purposes and Amounts*

### 8. Media and Modalities of Payments on the Notes

### 8. Media and Modalities of Payments on the Notes

### Payments of Principal
- Principal payments by the Fund to a Permitted Holder shall be made:
  - in the currency of the Permitted Holder, if the Permitted Holder is a member of the Fund;
  - in the currency of the Relevant Member, if the Permitted Holder is the central bank or fiscal agency of a member of the Fund, or is a prescribed SDR holder that is an official institution of a member;
  - in any freely usable currency determined by the Fund, in the case of all other Permitted Holders.
- Provided exceptions:
  - After consultation with a Permitted Holder covered by clauses (i) or (ii) above, the Fund may make payments of principal to such Permitted Holder in SDRs or in any freely usable currency as determined by the Fund.
  - After consultation with a Permitted Holder covered by clause (iii) above that is a prescribed SDR holder, the Fund may make payments of principal to such Permitted Holder in SDRs.

### Payments of Interest
- Interest payments by the Fund on the Notes:
  - will normally be made in SDRs if the Permitted Holder is a member of the Fund or a central bank or fiscal agency of such a member or a prescribed SDR holder;
  - will be made in any freely usable currency as determined by the Fund in the case of other Permitted Holders.
- For registered Series A and Series B Notes (Annex II and Annex III):
  - Interest shall accrue daily on the principal amount at the SDR interest rate established by the Fund pursuant to Article XX, Section 3 of the Fund’s Articles of Agreement;
  - If the Fund pays an interest rate higher than the SDR interest rate on outstanding balances from any other borrowing on comparable terms effected pursuant to Article VII, Section 1(i) of the Fund’s Articles of Agreement, and for as long as such higher rate remains in effect, then the interest rate payable on the Note shall be equivalent to that higher interest rate.
  - Interest shall be paid promptly after each July 31, October 31, January 31 and April 30.
  - Payments in SDRs shall be made by crediting the SDR Department account of the registered holder, or of the member for which the registered holder serves as central bank or fiscal agency in the case of registered holders that are the central bank or fiscal agency of a member of the Fund.
  - Payments of interest shall normally be made in SDRs if the registered holder is a member of the Fund or a central bank or fiscal agency of a member of the Fund or a prescribed holder of SDRs, or in a freely usable currency as determined by the Fund in the case of other registered holders.

### Accounts and Currency Credits
- All payments made by the Fund to a Permitted Holder in currency will be made by crediting the amount due to an account specified in advance by the Permitted Holder for purposes of receiving such payments.
- Payments in SDRs will be made by crediting the SDR Department account of the Permitted Holder or of the Relevant Member, as the case may be.

### Effective Exchange Rate for Payments
- Unless otherwise agreed between a Permitted Holder and the Fund, all payments in currency of principal and interest will be made at the exchange rates for the relevant currencies in terms of the SDR established pursuant to Article XIX, Section 7(a) and the rules and regulations of the Fund thereunder for the second business day of the Fund before the value date of the payment.
- If this exchange rate determination date is not a business day in the Permitted Holder’s principal location, then such date will be the last preceding business day of the Fund that is also a business day in the Permitted Holder’s principal location.

### Changes in Method of Valuation of SDR
- If the Fund changes the method of valuing the SDR, all payments of principal and interest on the Notes made two or more business days of the Fund after the effective date of the change will be made on the basis of the new method of valuation.

### Non-Subordination of Claims
- The Fund will not take any action that would have the effect of making a Permitted Holder’s claim on the Fund resulting from any Note subordinate in any way to claims on the Fund resulting from any other borrowing effected pursuant to Article VII, Section 1(i) of the Fund’s Articles of Agreement.

### Settlement of Questions
- Any question arising under any Note shall be settled by mutual agreement between the relevant Permitted Holder and the Fund.

### Forms of Registered Notes (Annex II and Annex III) — key provisions
- Each Series A Note and Series B Note:
  - Promises payment of an amount equivalent to a specified number of Special Drawing Rights (SDR).
  - Is issued in accordance with the General Terms and Conditions for International Monetary Fund Series A and Series B Notes and the Applicable Note Purchase Agreement.
  - Is subject to transfer restrictions: may not be sold, assigned, disposed of or otherwise transferred to any entity that is not:
    - (I) a MEMBER OF THE FUND OR THE CENTRAL BANK OF A MEMBER OF THE FUND,
    - (II) A FISCAL AGENCY DESIGNATED BY A MEMBER OF THE FUND FOR PURPOSES OF ARTICLE V, SECTION 1 OF THE FUND’S ARTICLES OF AGREEMENT,
    - (III) AN OFFICIAL ENTITY THAT HAS BEEN PRESCRIBED AS A HOLDER OF SPECIAL DRAWING RIGHTS PURSUANT TO ARTICLE XVII, SECTION 3 OF THE FUND’S ARTICLES OF AGREEMENT, OR
    - (IV) ANY OTHER OFFICIAL ENTITY IN RESPECT OF WHICH THE FUND HAS CONSENTED IN WRITING TO A TRANSFER PURSUANT TO PARAGRAPH 6(B) OF THE GENERAL TERMS AND CONDITIONS.
  - Prohibit any derivative transactions in respect of the Note, and transfers of participation interests in the Note.
- Interest mechanics for Series A and Series B Notes mirror the general provisions on interest accrual, adjustment to higher comparable borrowing rates, payment dates (payments promptly after each July 31, October 31, January 31 and April 30), and currency/SDR payment modalities described above.

*Source: 8. Media and Modalities of Payments on the Notes (excerpts).*

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_Source: https://www.imf.org/-/media/websites/imf/imported-full-text-pdf/external/np/pp/eng/2009/_090209.pdf_