60 STAT.] MULTILATERAL-INTERNATIONAL BANK-DEC. 27, 1945 account only to meet expenses in connection with the project as they are actually incurred. ARTICLE IV OPERATIONS Section 1. Methods of making or facilitatingloans (a) The Bank may make or facilitate loans which satisfy the gen- eral conditions of Article III in any of the following ways: (i) By making or participating in direct loans out of its own funds corresponding to its unimpaired paid-up capital and surplus and, subject to Section 6 of this Article, to its reserves. (ii) By making or participating in direct loans out of funds raised in the market of a member, or otherwise borrowed by the Bank. (iii) By guaranteeing in whole or in part loans made by private investors through the usual investment channels. (b) The Bank may borrow funds under (a) (ii) above or guar- antee loans under (a) (iii) above only with the approval of the mem- ber in whose markets the funds are raised and the member in whose currency the loan is denominated, and only if those members agree that the proceeds may be exchanged for the currency of any other member without restriction. Section 2. Availability and transferability of currencies (a) Currencies paid into the Bank under Article II, Section 7 (i), shall be loaned only with the approval in each case of the member whose currency is involved; provided, however, that if necessary, after the Bank's subscribed capital has been entirely called, such cur- rencies shall, without restriction by the members whose currencies are offered, be used or exchanged for the currencies required to meet con- tractual payments of interest, other charges or amortization on the Bank's own borrowings, or to meet the Bank's liabilities with respect to such contractual payments on loans guaranteed by the Bank. (b) Currencies received by the Bank from borrowers or guarantors in payment on account of principal of direct loans made with cur- 1 rencies referred to in (a) above shall be exchanged for the currencies of other members or reloaned only with the approval in each case of the members whose currencies are involved; provided, however, that if necessary, after the Bank's subscribed capital has been entirely called, such currencies shall, without restriction by the members whose currencies are offered, be used or exchanged for the currencies required to meet contractual payments of interest, other charges or amortiza- tion on the Bank's own borrowings, or to meet the Bank's liabilities with respect to such contractual payments on loans guaranteed by the Bank. (c) Currencies received by the Bank from borrowers or guarantors in payment on account of principal of direct loans made by the Bank under Section 1 (a) (ii) of this Article, shall be held and used, with- out restriction by the members, to make amortization payments, or to 1445 Ante, p. 144 . Pos, p. 1448 . Ante, p. 1442 . Omrrences received from borrowers or guarantors.
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