CHAPTER IV

MISCELLANEOUS PROVISIONS

ARTICLE XIII-WITHDRAWAL FROM PARTICIPATION



SECTION 1- Voluntary withdrawal 

    Any participant may withdraw from this Agreement at any time by transmitting a notice in writing to the Secretary General. Withdrawal shall become effective three business days from the date such written notice is received by the Secretary General unless a later date is indicated by the participant in the notice. The Secretary General shall notify all other participants as promptly as possible.


SECTION 2- Compulsory withdrawal

    If a participant fails to fulfill any of its obligations under this Agreement, and if, after consultation between the Board of Directors and the participant concerned, the participant fails to correct the situation, the Board may require such participant to withdraw from participation. The participant shall be deemed to have withdrawn on the date of the decision of the Board or such later date as the Board may specify.


SECTION 3- Settlement of accounts

     (a) A participant shall remain liable for and shall meet all its obligations to other participants arising from its participation under the Agreement until the final settlement of accounts with it has taken place.

     (b) Only instruments of payments for the settlement of transactions involving residents in the territory of the withdrawing participant issued on or before the date of its withdrawal shall be settled thereafter through the clearing facility. Settlements shall normally be made at the regular settlement dates until all outstanding instruments of payments have been cleared. The Board of Directors shall determine any further procedures needed to effect the final settlement of accounts with the withdrawing participant. 
 

ARTICLE XIV-AMENDMENT


     (a) This Agreement may be amended by a decision of the Board of Directors taken by a vote of two-thirds of all the Directors.

     (b) Notwithstanding the provisions of the preceding paragraph, the affirmative vote of each Director on the Board shall be required to approve an amendment to modify the provisions of: 

          (i) Article III on participation;

          (ii) Article IV(c) on the modification of the denomination and/or the value of the Asian Monetary Units;

          (iii) Article V, Section 2(b) on specified ineligible payments;

          (iv) Article VI, Section 1(b) on the change of the settlement period;

          (v) Article VII, Section 1 on the value of payments and transfers;

          (vi) Article XII, Section 2(a) on the formula under which expenses shall be apportioned among participants;

          (vii) Article XIII, Section 1 on the right of a member to withdraw voluntarily from this Agreement at any time; and

          (viii) Article XIV on the amendment of this agreement.
The absence or abstention of a Director shall be considered to be a negative vote.

     (c) Any proposal to amend this Agreement shall be communicated to the Chairman of the Board of Directors who shall place the proposal before the Board for discussion. When an amendment has been adopted by the Board, the Chairman shall so certify in an official notice addressed to all participants and to the Executive Secretary of ESCAP. Amendments shall enter into force one month after the date of dispatch of the official communication unless the Board specifies a different date.

ARTICLE XV-SUSPENSION AND LIQUIDATION


     (a) The Board of Directors may suspend operations by a decision of the Board taken by a vote of two-thirds of the Directors. All participants shall be notified immediately and no instrument of payment issued after the date of notice shall be settled through the clearing facility.

     (b) After a decision under sub-section (a), if the Board of Directors does not decide to resume operations within six months, all operations and other activities shall be suspended, except those necessary for the orderly liquidation and the final settlement of accounts among participants as determined by the Board.

 

 

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