On the ratification of the Founding Agreement of the Islamic Development Bank, signed in Jeddah on August 12, 1974

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Law of the Republic of Kazakhstan dated May 15, 1996 No. 2-1

To ratify the Founding Agreement of the Islamic Development Bank, signed in Jeddah on August 12, 1974.

President

Republic of Kazakhstan

The Founding Agreement

The Islamic Development Bank

The Governments on whose behalf this Treaty is signed, realizing the need to promote the well-being of the peoples of Muslim countries and achieve a harmonious and balanced development of these countries based on Islamic principles and ideals; bearing in mind that such development can be achieved most quickly through mutual financial and economic cooperation between the Muslim countries that are members of the Islamic Conference; Noting that one of the goals of the Islamic Conference, as stated in its Charter, is to promote cooperation among its members in economic, social and other fields of activity; realizing the need to mobilize financial and other resources both within and outside the Member countries, increase domestic savings and investments and attract investment to member countriesmembers of the capital inflow; Convinced in this context of the need to establish an international financial institution focused on development, investment and well-being, based on the principles and ideals of Islam, and a practical expression of the unity and solidarity of the Muslim community; have concluded this agreement to establish a financial institution under the Arabic name, the English Islamic Development Bank and the French Name Islamigue de Dévément, which will act on the following principles:

Articles of the Treaty Section I Objectives, functions, powers and membership

Article 1 Purpose The purpose of the establishment of the Islamic Development Bank (hereinafter referred to as the Bank) is to promote the economic development and social progress of the Bank's member countries and Muslim communities both collectively and individually, in accordance with the principles of Sharia.

Article 2 Functions and powers

To fulfill its tasks, the Bank will have the following functions and powers::

(i) to participate with equity in promising projects and enterprises in the Bank's member countries;

(ii) to invest in economic and social infrastructure facilities in these countries through direct participation or other financial opportunities;

(iii) provide loans to the private and public sectors of the member countries' economies to finance production facilities, enterprises and programs;

(iv) establish and manage special funds for specific purposes, including a fund to help Muslim communities in non-member countries;

(v) manage trust (credit) funds;

(vi) accept deposits and increase funds by other means;

(vii) to promote the development of foreign trade among member countries, especially in the means of production;

(viii) it is profitable to invest temporarily available funds;

(ix) provide technical assistance to the Bank's member countries;

(x) expand opportunities for education and training of personnel involved in development programs in the Bank's member countries;

(xi) to carry out research to ensure that economic, financial and banking activities in Muslim countries conform to the principles of Sharia; (xii) to cooperate with all bodies, institutions and organizations with similar goals in conducting international economic cooperation in such forms as the Bank considers acceptable and arising from this Agreement; (xiii) to carry out any other activity meeting the objectives of the Bank.

Article 3 Membership 1. The founding members of the Bank will be those of the members of the Islamic Conference listed in Appendix "A" who, before the expiration of the date specified in Article 66, sign this Agreement and fulfill all other conditions of membership within six (6) months from that date. 2. Any other State that is a member of the Islamic Conference may declare its membership and be admitted to membership after the entry into force of this Agreement on the terms determined by a majority vote of the total number of the Board of Governors representing a majority of the total number of votes of the member countries of the Bank.  

Section II Financial resources  

Article 4 Authorized and subscribed capital 1. (a) The currency of the Bank's account is the Islamic Dinar, the value of the second one will be equal to one SDR (Special Drawing Rights) unit of the International Monetary Fund. (c) The authorized capital of the Bank is 2 billion rubles. (2,000,000,000) Islamic dinars divided into 200,000 (200,000) shares with a nominal value of 10,000 (10,000) Islamic dinars each, which will be announced for subscription among the Bank's members in accordance with the requirements of Article 5. The subscription capital of the Tank will initially amount to 750 million. (750,000,000) Islamic dinars. 2. The authorized capital of the Bank may be increased by a decision of the Board of Governors, if and on such conditions as may become necessary, by a two-thirds majority of the total number of members of the Board of Governors representing at least three-quarters of the total number of votes of the Bank's members.

Article 5 Subscription and distribution of shares 1. Each member of the Bank must subscribe to the shares of the Bank's Authorized Capital. The minimum number of shares per member should be two hundred (250) shares. 2. Each member of the Bank must declare the initial number of shares of the Authorized Capital to be acquired before the expiration of the date specified in paragraph 1 of Article 66.3. A State admitted to membership in the Bank in accordance with paragraph 2 of Article 3 must, in accordance with paragraph 1, subscribe to such number of outstanding shares of the Bank's Authorized Capital as will be determined by the Board of Governors. 4. If the Board of Governors determines that an increase in the Bank's share capital is justified, each member of the Bank has the opportunity to subscribe, on the terms determined by the Board of Governors, to that share of the increased share capital, which is equivalent to that member's share in the total number of shares before the increase in the Authorized Capital.; provided, however, that the above provision will not apply to any increase or any proportion of an increase in equity intended solely to give effect to a decision of the Board of Governors pursuant to paragraphs 3 and 5 of this Article. None of the members are required to subscribe to any part of the equity increase. 5. At the request of any member of the Bank, the Board of Governors may increase the number of shares distributed by subscription for that member by making a decision by a majority vote of the Board members representing a majority of the total number of votes of the Bank's members, on terms determined by the Board of Governors. 6. The initial subscription to shares by the founding members is made at their nominal value. Other shares are issued at par value, unless, in special cases, the Board of Governors decides to issue them on different terms by a two-thirds majority vote of the Board members representing at least three-quarters of the total number of votes of the Bank's members.  

Article 6 Subscription fees 1. Payment for shares originally signed by the founding members must be made in five (5) equal installments of twenty (20) percent each. 2. The first installment is paid by the member in freely convertible currency accepted by the Bank within thirty (30) days from the date of entry into force of this Agreement or from the date of delivery of the ratification documents by the member accepted later. 3. The remaining 80 percent of the initial subscription to shares must also be paid in a freely convertible currency accepted by the Bank in four (4) equal installments, each of which must be paid before the expiration of the anniversary of the first payment provided for in paragraph 2 of this Article, and at the request of a member of the Bank, he may pay the remaining subscription amount before the deadline. the deadline. 4. The Bank shall determine the place of any payment provided for in this Article. Prior to this, the initial contributions covered by paragraph 2 of this Article are made to the account of the Monetary Agency of Saudi Arabia, which is the depository of the Bank.  

Article 7 Conditions relating to equity 1. Shares of equity may not be pledged or pledged in any form and may not be transferred except to a Bank in accordance with Section VI.

2. The obligations of a Bank member on shares are limited to the unpaid share of the subscribed capital.

3. None of the members of the Bank is liable for the obligations of the Bank based solely on membership in the Bank.

Article 8

Deposits

The Bank can accept deposits, which are placed and managed in accordance with the rules developed by the Bank.

Article 9

Simple capital resources

In this Agreement, the term "Common Capital Resources" includes:

(i) Subscription capital in accordance with Article 5;

(ii) Bank deposits placed in accordance with Article 8;

(iii) amounts received in the form of payments for submitted loans from the sale of securities and income from ordinary operations;

(iv) any other funds received by the Bank or available to it, or income received by it that is not part of Special or Trust Funds in accordance with Articles 10 and 11, respectively.

Article 10

Special Fund resources

In this Agreement, the term "Special Fund Resources" includes:

(i) funds contributed by members of the Bank for inclusion in any

special fund;

(ii) funds designated by the Bank for inclusion in any

a special fund based on net income from ordinary operations;

(iii) funds received as a result of financing from special funds;

(iv) income received from operations from the special fund, and

(v) any other sources received or available from any special fund.

Article 11 Resources of the Trust Fund In this Agreement, the term "Trust Fund Resources" includes: (i) funds received by the Bank for management in accordance with the terms of the trust agreement; (ii) funds received or paid as a result of operations from Trust Funds, and (iii) income received from operations funded by Trust Funds.

Section III Operations  

Article 12 Use of funds The Bank's funds and capabilities should be used exclusively to perform the tasks and functions set out in Articles 1 and 2 on the basis of sound economic principles.

Article 13 Simple, special and trust operations 1. The Bank's operations include simple operations, special operations, and trust operations. 2. Simple operations are those operations that are funded by Simple Capital Resources. 3. Special operations are those operations that are funded from a Special Fund. 4. Trust operations are those operations that are financed from the funds of the Trust Fund.

Article 14 Separate conduct of operations 1. The Bank's Common Capital Resources, Special Fund Resources, and Trust Fund Resources are always and in all respects maintained, invested, or otherwise used separately from each other. The Bank's financial statements should show simple, special, and trust transactions separately. 2. Under no circumstances should the Bank's ordinary capital resources be used to compensate for losses, losses and obligations arising from conducting special operations or from other activities for which Special and Trust Funds are intended. 3. Expenses directly related to simple operations should be covered from the Bank's simple capital resources. Expenses directly related to the conduct of special and trust operations should be covered from the funds of the Special and Trust Funds, respectively. Any other expenses should be charged to an account that the Bank itself will determine.

Article 15 Methods of conducting operations In its activities to achieve the goals and objectives defined in Articles 1 and 2, the Bank is guided by its own procedures and rules.

Article 16 Financing 1. In carrying out its operations, the Bank should pay due attention to the following: (i) ensuring that its interests are protected in financing, including obtaining guarantees for its loans; (ii) the prospects that the recipient of the loan and its guarantor, if any, will be able to fulfill their obligations under the contract; (iii) needs regarding (iv) ensuring the comprehensive development of the economies of the Bank's member countries;; (v) to promote the well-being of the peoples of the Bank's member countries through economic and social development and the expansion of employment opportunities, and (vi) to ensure that there are no imbalances in the Bank's funds allocated to its members. 2. The applicant for financing must submit an appropriate proposal, after which the President of the Bank submits to the Board of Executive Directors a written report on this proposal, together with recommendations made on the basis of due study. 3. The Bank must take the necessary measures to ensure that the funds provided to it are used strictly for their intended purpose. 4. While emphasizing the importance of equity investments, the Bank must maintain a rational balance between investments made in a country and loans provided to that country. 5. The Bank should, as far as possible, give priority to those projects, including joint ventures, that ensure economic cooperation between the Bank's member countries. 6. Each financing contract must be effectively inspected and monitored by the Bank. 7. The Bank may not undertake any financing in the territory of the Bank's member country against the wishes of the country itself. 8. The Bank can provide financing in foreign currency for part of the total cost of the project, and in some cases, especially for less developed member countries, it can also provide financing in local currency, making sure that efforts to mobilize domestic resources of the countries justify such financing. 9. There are no restrictions on sources that are usually the subject of international competitive bidding. The Bank may provide, after due and careful consideration, a preferential margin for funds from the Bank's member countries.

Article 17 Participation in the share capital 1. With equity participation, the Bank must ensure that the proposed facility or enterprise has the potential to make a profit and that it is properly managed and will continue to be managed in the future. 2. The Bank must not acquire a controlling stake in those facilities and enterprises in which it participates, except in cases where it is necessary to protect the interests of the Bank or to ensure the success of such facility or enterprise. 3. The Bank must apply such conditions as it deems necessary, taking into account the requirements for this project, the degree of risk to which the Bank is exposed, and the conditions that investors in such projects usually have, including the right to vote and the right to appoint one or more directors to the governing board of the funded project. 4. The Bank reserves the right to sell its ownership interest on such terms as it considers acceptable. However, the Bank may not sell any number of its shares to non-residents of the Bank's member countries without the consent of such a member country. 5. The Bank is not responsible for the management of those projects or enterprises in which it has invested funds, except in cases where it is necessary to protect the interests of the Bank. 6. The Bank must not provide loans to those enterprises in which it participates, except in special cases approved by at least two thirds of the total number of votes of its members. 7. The Bank should strive to keep its funds in circulation by selling its investments when it deems it necessary. 8. The bank should strive to diversify the forms of corporatization of its investments.

Article 18 Credit projects When providing loans for specific infrastructure development projects and others, the Bank should take into account the potential for repayment of funds, as well as the importance and priority of such projects for the receiving country.

Article 19 Loan program When developing a loan program for the Bank's member countries, including their institutions and bodies, the Bank must ensure that the purpose of the loans is to improve the well-being of the people through economic and social development.

Article 20 Terms of loans for projects and programs 1. The Bank determines the payment scheme for loans granted in accordance with Articles 18 and 19, taking into account the general state of the resources of the Bank's member country and the state of its balance of payments. 2. In cases where a member country of the Bank is experiencing an acute shortage of foreign currency and cannot ensure the fulfillment of a loan concluded or guaranteed by that country or any of its bodies on previously agreed terms, the Bank may, at its discretion, change the terms of repayment of the loan or extend the term of the loan, or both, provided that such relief justified in the interests of a particular recipient and the Bank's operations. 3. The Bank charges a service fee to cover administrative expenses. The amount of the fee and the methods of its collection are determined by the Bank.

Article 21

Limitations of simple operations

The total amount of investments, overdue loans and other simple operations of the Bank must at no time exceed the total amount of unpaid subscribed capital, reserves, deposits and other funds and balances that are included in Simple Capital Resources.

Article 22

Special funds

Special funds can be created by the Bank for:

(i) providing assistance to Muslim communities in non-member countries;

(ii) providing technical assistance, or

(iii) other specific purposes.

These funds are managed in accordance with the rules established by the Bank.

Article 23

Trust funds The Bank may take under its management Trust Funds, the purposes of which are not incompatible with the goals and objectives of the Bank in accordance with the terms of the trust agreement and the rules developed by the Bank.

Section IV Currencies  

Article 24 Determining the exchange rate and convertibility 1. Determining the exchange rate to the Islamic dinar and resolving any issues related to the exchange rate are within the competence of the Bank. For these purposes, the Bank, if it deems it necessary, can use the information of the International Monetary Fund. 2. In all cases, when it becomes necessary to determine within the framework of this Agreement whether a particular currency is freely convertible or not, such a determination is made by the Bank. If necessary, the Bank may seek advice from the International Monetary Fund.

Article 25 Use and circulation of currencies 1. A member State of the Bank shall not impose restrictions on the receipt, storage and use of its currency or any other currency in the Bank's accounts. 2. At the request of the Bank, a member State of the Bank shall facilitate the rapid conversion of its currency in the Bank's accounts into freely convertible currency at the exchange rate established for that currency on the date of currency circulation in accordance with Article 24.3. The currencies of non-member countries held by the Bank may not be used to purchase the currencies of the Bank's member countries, except in cases of current banking transactions or with the consent of the Bank's member country concerned. 4. The Bank's member country should not impose any restrictions on the transfer of profits and the repatriation of the Bank's capital in freely convertible currency accepted by the Bank.  

Article 26 Expressing the value of transactions The Bank's loans must be denominated in US dollars, except in special cases where the Bank may determine otherwise. All obligations to the Bank under the loan agreements must be paid in freely convertible currency accepted by the Bank.

Section V Organization and management

Article 27 Structure The Bank shall have a Board of Governors, a Board of Executive Directors, a President, one or more Vice Presidents, other officers and such staff as it deems necessary.  

Article 28 Board of Governors: composition 1. Each member country of the Bank must be represented on the Board of Governors and appoints one Governor and one Alternate. Each Manager and each Alternate represents the interests of the country that appointed them. The Alternate has the right to vote only in the absence of its Manager. At its annual meeting, the Board appoints one of the Governors as Chairman of the Board, who holds this post until the election of the Chairman at the next annual meeting of the Board. 2. Managers and Alternates perform their duties without remuneration from the Bank, however, the Bank may reimburse them, within reasonable limits, for expenses related to annual meetings.

Article 29 Board of Governors: powers 1. The full authority of the Bank is vested in the Board of Governors. 2. The Board of Governors may delegate all or part of the powers to the Board of Executive Directors, with the exception of the powers to: (i) admit new members or determine the conditions for their admission; (ii) make decisions on increasing or decreasing the authorized capital of the Bank; (iii) expel members; (iv) make decisions arising from a different interpretation or application of this Agreement by the Board of Executive Directors; (v) approve the conclusion of general cooperation agreements with other international organizations; (vi) elect the Bank's President; (vii) elect the Bank's Executive Directors; (viii) set the amount of Executive Directors' salaries, salaries and other terms of the President's contract; (ix) approve, after review, the audit report, balance sheet and report statement of profit and loss of the Bank; (x) determine the amount of reserves and distribution of net profit and balances of the Bank; (xi) amend this Agreement; (xii) to make decisions on the termination of the Bank's operations and the distribution of its assets, as well as (xiii) to exercise other powers vested exclusively by the Board of Governors pursuant to this Agreement. 3. The Board of Governors and the Board of Executive Directors, authorized to do so, may adopt the rules and regulations necessary for the proper conduct of the Bank's affairs, including rules for staff, pensions and other benefits. 4. The Board of Governors reserves the right to control the powers delegated by it to the Board of Executive Directors in accordance with paragraphs 2 and 3 of this Article.

Article 30 Governing Council: procedures 1. The Board of Governors convenes an annual meeting and other meetings necessary for the work of the Board or convened by the Board of Executive Directors. A meeting of the Board of Governors may be convened by the Board of Executive Directors at the request of 1/3 of all members of the Bank. 2. The quorum for making a decision by a majority vote in the Board of Governors must be at least 2/3 of the total number of votes of the Bank's members. 3. The Board of Governors should establish procedures according to which the Board of Executive Directors, in cases where it deems it desirable, can receive the results of the Governors' voting on specific issues without convening the Board of Governors. 4. The Board of Governors and the Board of Executive Directors, within the scope of its powers, may establish subsidiary bodies that they deem necessary for the work of the Bank.  

Article 31 The Board of Executive Directors: composition 1. The Board of Executive Directors consists of ten (10) members who should not be members of the Board of Governors. The Executive Director should be a person with high competence in economic and financial matters, and who is elected according to the rules established by the Board of Governors. 2. The Board of Governors should review the size and composition of the Board of Executive Directors from time to time, and may increase their number on the Board if necessary, paying particular attention to increasing the representativeness of the Board of Executive Directors. Decisions, according to this paragraph, are made by a majority vote of the Governors representing at least two thirds of the total number of votes of the Bank's members. 3. The Executive Directors hold office for three years and may be re-elected. They hold office until their successor is elected or appointed. If the position of the Executive Director becomes vacant earlier than 90 days before the expiration of the term of office, a new Executive Director must be appointed for the remaining term by those Managers who elected the former Executive Director. Such an appointment requires a majority vote of the Governors.  

 Article 32 The Board of Executive Directors: powers The Board of Executive Directors is responsible for conducting the general operations of the Bank and for this purpose, in addition to the powers defined in this Agreement, perform the powers delegated to it by the Board of Governors, in particular: (i) prepare the work of the Board of Governors; (ii) make decisions concerning the conduct of the Bank's affairs and its operations in accordance with the general directives of the Board (iii) provide an annual financial report for approval by the Board of Governors;; (iv) approve the Bank's budget.

Article 33 The Board of Executive Directors: procedures 1. The Board of Executive Directors should carry out its activities at the Bank's headquarters and should meet as often as required by the Bank's business. 2. A majority in the Board of Executive Directors must constitute a quorum for any Board meeting, provided that such majority is at least two thirds of the total number of votes of the Bank's members. 3. The Board of Governors should adopt rules according to which, in the absence of an Executive Director, a member country of the Bank should send its representative to attend a meeting of the Board of Executive Directors without the right to vote when considering issues related to that country.

Article 34 Voting 1. Each member of the Bank has five hundred (500) basic votes plus one vote for each subscribed share. 2. When voting in the Board of Governors, each Governor is entitled to vote on behalf of the member countries he represents. All matters in the Board of Governors are resolved by a majority vote, except as specifically stipulated in this Agreement. 3. When voting in the Board of Executive Directors, each Executive Director is endowed with the number of votes that were counted at the time of his election. All issues in the Board of Executive Directors are resolved by a majority vote, unless specifically stipulated in this Agreement.

Article 35 President 1. The Board of Governors elects the President of the Bank by a majority vote of the total number of Governors representing at least two thirds of the total number of votes of the Bank's members. The President should not be a Managing Director or Executive Director during the performance of his duties. 2. The term for which the President is elected is five (5) years. The President may be re-elected. However, he/she shall cease to perform his/her duties by a decision of the Board of Governors by a majority vote of the Board members representing at least two thirds of the total number of votes of the Bank's members. 3. The President is the Chairman of the Board of Executive Directors, but does not have the right to vote, except in cases of equality of votes "for" and "against", when he has the casting vote. The President has the right to attend meetings of the Board of Governors, but without the right to vote. 4. The President is the legal representative of the Bank. 5. The President is the Chief Executive Officer of the Bank and must conduct the current affairs of the Bank in accordance with the directives of the Board of Governors. He is responsible for the organization of affairs, appointment and dismissal of officials and staff in accordance with the rules of the Bank. 6. When appointing officials and staff, the President should be guided by the importance of ensuring high standards of efficiency and technical competence, paying due attention to the selection of staff based on the greatest geographical representation.

Article 36 Vice President 1. One or more Vice Presidents are appointed by the Board of Executive Directors on the recommendation of the President. The Vice-President must be a citizen of the Bank's member country. He holds office for such term, has such powers and performs such functions as determined by the Board of Executive Directors. In the absence of the President or if he is unable to perform his duties, the Vice President, or if there are several of them, is the first in rank, has the authority and performs the functions of the Presidente 36 Vice President 1. One or more Vice Presidents are appointed by the Board of Executive Directors on the recommendation of the President. The Vice-President must be a citizen of the Bank's member country. He holds office for such term, has such powers and performs such functions as determined by the Board of Executive Directors. In the absence of the President or if he is unable to perform his duties, the Vice President, or if there are several of them, is the first in rank, has the authority and performs the functions of the President. While in office, a Vice President should not be a Managing Director or an Executive Director. 2. The Vice President may participate in meetings of the Board of Executive Directors, but does not have the right to vote, except in cases where the Vice President or the first-ranking Vice President have the casting vote, replacing the President.

Article 37 International character of the bank and prohibition of political activities 1. The Bank may not accept Article 37 International character of the bank and prohibition of political activities 1. The Bank may not accept loans or assistance that in any way limited, influenced or changed its goals and functions. 2. The Bank, its President, Vice-President, Executive Directors, officers and staff should not interfere in the political activities of any of the Bank's members, nor should their decisions be influenced by the political nature of the Bank's member country affected by these decisions. Only economic expediency should influence their decisions. Such considerations should be weighed impartialeconomic expediency should influence their decisions. Such considerations should be weighed impartially in order to achieve the goals and functions of the Bank. 3. The President, Vice-President, officials and staff of the Bank, in the performance of their official duties, are responsible exclusively to the Bank and not to any other body. Each member of the Bank must respect the international nature of their duties and must refrain from all attempts to influence them in the performance of their duties.

Article 38

Bank office

1. The main office of the Bank is located in Jeddah, Kingdom of Saudi Arabia Arabia.

2. The Bank may have an agency and representative office in other places.

Article 39

Fiscal year

The financial year of the Bank is the Hijri year.  

Article 40 Channels of communication, depositories 1. Each member State Article 40 Channels of communication, depositories 1. Each member State of the Bank appoints an official with whom the Bank may contact on any issue arising from this Agreement. 2. Each member country of the Bank must designate its central bank or other similar body, in agreement with the Bank, as a depositor in which the Bank can keep its funds in the currency of that country, as well as other assets of the Bank.

Article 41 Reporting 1. The Bank must provide its members with an Annual Report containing the audited data of its accounts, as well as publish such a report. It must provide its members with a quarterly report on the results of its operations. 2. The Bank may also publish other reports that it considers necessary in fulfilling its goals and functions. Such reports must be transmitted to the members of the Bank.

Article 42 Allocation of net profit 1. The Board of Governors annually determines which part of the Bank's net profit or income from simple operations to place in reserves, deposits, Special Funds or pay to its members, and the Bank's net profit or income cannot be paid to the Bank's members in the form of dividends until the Bank's reserve fund reaches the level of twenty-five (25) percent of the subscribed capital. 2. The net net profit from operations with the funds of the Special Fund is not distributed as dividends to the members of the Bank, but is credited to the accounts of the relevant Special Funds. 3. Unless otherwise stipulated by the terms of the trust agreement, the net profit from transactions with the funds of the Trust Funds cannot be distributed as dividends to its members, but is credited to the accounts of the Trust Fund. 4. The distribution of funds to the Bank's member countries in accordance with paragraph 1 of this article is carried out in proportion to the number of shares held by each member, in the manner and in the currency determined by the Board of Governors.  

Section VI Withdrawal and exclusion from the bank's membership, temporary suspension and termination of the bank's operations

Article 43 Withdrawal from the membership of the Bank 1. None of the members of the Bank has the right to withdraw from the membership of the Bank before the expiration of the five-year term of its membership. Article 43 Withdrawal from the membership of the Bank 1. None of the members of the Bank has the right to withdraw from the membership of the Bank before the expiration of the five-year term of its membership. 2. Based on paragraph 1 of this Article, any member of the Bank may terminate his membership in the Bank by notifying the Bank's head office in writing. 3. Based on paragraph 1 of this Article, a country's withdrawal from membership of the Bank shall take effect and membership shall be deemed terminated from the date of delivery of the notification, but in no case earlier than six (6) months from the date of receipt by the Bank of the notification. However, at any time before the expiration of this period, the country that has applied for withdrawal may notify the Bank of the cancellation of its intention to withdraw from the Bank. 4. A country withdrawing from the Bank's membership continues to be responsible for all direct and indirect obligations to the Bank that remained on the date of its withdrawal. A country withdrawing from the Bank's membership will also continue to be subject to those articles of this Agreement that, in the Bank's opinion, affect its investments in that country, until agreements acceptable to the Bank are concluded between the Bank and untry withdrawing from the Bank's membership will also continue to be subto those articles of this Agreement that, in the Bank's opinion, affect its investments in that country, until agreements acceptable to the Bank are concluded between the Bank and that country to regulate those investments. When a country's withdrawal from the Bank's membership takes effect, the country is not responsible for the Bank's obligations and operations after that date. 5. Any country that ceases to be a member of the Islamic Conference must submit an application for withdrawal from the Bank, observing the terms of this Article. The date of final termination of membership in the Bank is determined by the Board of Governors, based on paragraph 1 of this Article.

Article 44 Exclusion from membership 1. If a member of the Bank fails to fulfill any of its obligations to the Bank, the Board of Governors may exclude it by a vote representing at least three-quarters of the total number of votes of the Bank's members. 2. A country excluded from the membership of the Bank shall automatically terminate its membership in the Bank upon the expiration of one (1) year from the date of its exclusion, unless the Board of Governors decides by the same majority within that year to restore full rights to that member of the Bank. 3. During the entire period of exclusion from the Bank's membership, the country loses all its rights defined by this Agreement, while retaining all its obligations.

Article 45 Settlement of settlements upon termination of membership 1. After the date when the country ceases to be a member of the Bank, it retains its direct obligations to the Bank acquired by it before that date. She also remains liable for her indirect obligations to the Bank as long as any part of the loan or guarantees provided by her remains unpaid until the termination of membership, but does not bear any responsibility for obligations under loans and guarantees of the Bank, as well as for profits and losses of the Bank after that date. 2. Upon termination of membership in a Bank by a country, the Bank must buy back shares owned by that country as part of the settlement of settlements with that country in accordance with the terms of paragraphs 3 and 4 of this Article. For this purpose, the price of the shares to be repurchased is determined by the Bank's accounts on the date of the country's withdrawal from the Bank. 3. Payment for shares repurchased by the Bank shall be made under the following conditions: (i) any amounts owed to the country for the shares being repurchased shall be retained by the Bank as long as unpaid obligations to the Bank of that country, its central bank or any of its technical or political bodies remain. Any amount owed to that country may, at the discretion of the Bank, be offset against any debt obligations of that country.; (ii) the amount of net profit equal to the excess of the price of the shares to be redeemed (in accordance with paragraph 2 of this Article) over the amount of the country's total obligations to the Bank must be paid by the Bank within no more than five (5) years, when this can be determined by the Bank after the surrender of the relevant shares; (iii) payment is made in freely convertible currency. currency; (iv) if losses incurred by the Bank on any unpaid loan or guarantee remaining on the date of the withdrawal of the country from the Bank's membership, and the amount of these losses exceeds the amount of funds to cover such losses, the country withdrawing from the Bank must, at the request of the Bank, pay the difference in the price of the shares to be repurchased and the lower price of these shares. shares, which would be determined taking into account these losses. 4. Upon termination by the Bank of its operations in accordance with Article 47 of this Agreement, within six (6) months from the date of withdrawal of a country from the Bank's membership, all rights of that country shall be determined in accordance with Articles 47-49 of the Agreement. Such a country continues to be considered a member of the Bank in the part defined by these Articles, but does not have the right to vote.

Article 46 Temporary suspension of operations If necessary, the Board of Executive Directors may temporarily suspend operations with respect to new obligations, pending further review by the Board of Governors.  

Article 47 Temporary termination of operations 1. The Bank may terminate its operations by a decision of the Board of Governors approved by a two-thirds vote of the Bank's members. At the same time, the Bank must immediately cease all operations, except those aimed at preserving its assets and settling its obligations. 2. Until such obligations are fully settled and assets are distributed, the Bank remains in operation and all mutual rights and obligations of the Bank and its members remain in force.

Article 48 Obligations of members and payments for claims 1. In case of termination of operations by the Bank, the obligations of all its members in respect of the unpaid part of the Bank's subscribed capital continue to remain until the Bank satisfies all creditors' claims, including indirect obligations. 2. All creditors who have direct claims against the Bank are paid first of all from the Bank's assets, then from the unpaid part of the subscription capital. Before any payments are made to creditors with direct claims against the Bank, the Board of Executive Directors must take such measures as it deems necessary to ensure the proportional satisfaction of direct and indirect claims.  

Article 49 Asset allocation 1. Until the Bank satisfies its obligations to creditors, no asset allocation is made among the Bank's members in accordance with their share of the subscribed capital. Such allocation must be approved by the Board of Governors by a majority vote of the Board members representing at least three-fourths of the total number of votes of the Bank's members. 2. The distribution of the Bank's assets among its members is carried out in accordance with the share of each member in the authorized capital of the Bank at such times and on such terms as the Bank considers fair and impartial, respecting the priority of depositors. None of the Bank's members can receive their portion of the Bank's assets until their obligations to the Bank are fully settled. 3. Each member of the Bank receiving its share of the Bank's assets in accordance with this Article shall have the same rights in respect of these assets as the Bank had prior to such allocation.

Section VII

Status, immunity, exemption from taxes and privileges

Article 50

Purpose of the section

In order to ensure that the Bank effectively fulfills its objectives and performs the functions assigned to it, the Bank must have the legal status, immunity and privileges set out in this Section on the territory of all member countries of the Bank.

Article 51

Legal status

The Bank is an independent international body that has the full rights of a legal entity, in particular the full right to:

(i) conclude contracts;

(ii) acquire and own immovable and movable property, and

(iii) enjoy full jurisdiction.

Article 52 Immunity from judicial proceedings 1. The Bank must be exempt from any judicial proceedings, except in cases related to monetary transactions, purchase, sale or issue of securities, when proceedings may be initiated against the Bank in the territory of the country in which the Bank has its main or subsidiary representative office, or in which the Bank issued circulation of securities. 2. Despite the conditions of paragraph 1 of this Article, no legal action may be initiated against the Bank by its members and any of their bodies and persons in relation to its members. The members of the Bank must resort to such dispute resolution procedures with the Bank as are defined by this Agreement, the instructions and rules of the Bank or which are stipulated in contracts concluded with the Bank.

3. The property and deposits of the Bank, wherever they are located and by whomever they are kept, must be immune from all forms of seizure and seizure until the final court decision of the claim against the Bank.

Article 53

Inviolability of deposits

The property and deposits of the Bank, wherever they are located and by whomever they are stored, may not be subjected to search, requisition, confiscation, expropriation or any other form of deprivation of rights by administrative or legal means.

Article 54

Inviolability of archives

The archives of the Bank in general and all documentation belonging to or held by the Bank must be inviolable wherever it is located.

Article 55

The secret of deposits

The Bank maintains complete secrecy regarding depositors' accounts and all members of the Bank must respect the inviolability of information about deposits.

Article 56 Freedom of deposits from restrictions To the extent necessary for the effective performance of the Bank's objectives and functions, and in accordance with this Agreement, any property and deposits of the Bank must be free from restrictions, regulation, control and moratorium in any form.  

Article 57 Benefits in the field of communications The Bank's official communications facilities must enjoy conditions no less favorable than any other international organization.

Article 58 Immunity and privileges of the Bank's staff All Managers, Alternates, Executive Directors, President, officers and staff of the Bank: (i) may not be prosecuted in relation to the performance of their official duties; (ii) in cases where they are not citizens of a country, they must enjoy the same immigration restrictions, immunity, registration requirements and other facilities provided to that country, its representatives, officials and employees of similar rank by other member countries of the Bank, and (iii) they enjoy the same facilities with respect to the means of transportation provided by the members of the Bank to representatives, officials and employees of other member countries of the Bank.

Article 59 Tax exemption 1. Bank deposits, its property, income, operations and transactions must be exempt from all taxes and customs duties. The Bank should also be exempt from any form of fees, deductions and charges. 2. No taxes apply to salaries and remuneration paid by the Bank to the President, Executive Director, officers and staff of the Bank. 3. No taxes are levied on securities issued by the Bank, including any dividends, whoever owns them: (i) if these taxes discriminate against the securities solely because they are issued by the Bank; (ii) if the only legitimate basis for such taxation is the place or currency in which they are issued., or paid for, or the location of any office or place of business by the Bank. 4. No taxes are levied on securities guaranteed by the Bank, including dividends on them, no matter who owns them: (i) if these taxes discriminate against the securities only because they are guaranteed by the Bank; (ii) if the only legal basis for such taxation is the location of an office or location the Bank's business management.  

Article 60 Enforcement Each member of the Bank, in accordance with its system of rights, must take the necessary actions to comply with the requirements of this Section in its territory, as well as inform the Bank about the steps it has taken on this issue.  

Article 61 Waiver of exclusions and privileges The Bank, at its sole discretion, may waive any privileges, exemptions and exclusions set forth in this Section in those cases, in a manner and on such terms as are in its best interests.

Section VIII Amendments, interpretation, arbitration

Article 62 Amendments 1. This Agreement may be amended only by a decision of the Board of Governors approved by a two-three majority vote of the Board members representing at least three-fourths of the total number of votes of the Bank's members. 2. Notwithstanding the definition of paragraph 1 of this Article, a unanimous decision of the Board of Governors is required to amend the following provisions: (i) the right to withdraw from the membership of the Bank; (ii) limitation of liability as defined in paragraphs 2 and 3 of Article 7, and (iii) rights related to the purchase of shares of the authorized capital set forth in paragraph 4 of Article 5. 3. Any proposal to amend this Agreement from a member of the Bank or the Board of Executive Directors must be submitted to the Chairman of the Board of Governors, who submits it to the Council for consideration. If the change is accepted, the Bank must notify its members in an official form. The amendment shall enter into force for all members after three months from the date of the official notification, unless the Board of Governors determines another deadline.  

 Article 63 Languages, interpretation and application 1. The official language of the Bank is Arabic. In addition, English and French are the working languages. The Arabic text of this Treaty should be considered as an authentic text both for translation into other languages and for interpretation of its provisions and application. 2. Any disagreements that arise between the members of the Bank, the members and the Bank regarding the interpretation or application of the provisions of this Agreement must be submitted to the decision of the Board of Executive Directors. If a member country of the Bank is not represented on the Board by its representative, paragraph 3 of Article 33.3 applies. Any country may request, within six (6) months from the date of the decision pursuant to paragraph 2 of this Article, to refer the matter to the Board of Governors, whose decision is final. Pending such a decision, the Bank may be guided, if it deems it necessary, by the decision of the Board of Executive Directors.  

 Article 64 Arbitration In case of disagreements that have arisen between the Bank and the country that has withdrawn from the Bank's membership, or between the Bank and any of its members after the decision to terminate the Bank's operations, such disagreements must be submitted to an arbitration court consisting of three arbitrators: one arbitrator is appointed by the Bank, the other by the interested party, and the third, if the parties do not decide otherwise, by the President of the International Court of Justice or other authoritative person who may be defined in the rules approved by the Board of Governors of the Bank. The decision of the arbitrators, adopted by a majority vote, is final and binding on the parties. The third arbitrator should be authorized to resolve all procedural issues in all cases of disagreement between the parties.  

Article 65 Consent considered received In all cases where the consent of a Bank's member country is required before the Bank takes any action, the consent is considered received if the Bank does not submit its objections within a reasonable period that may be set by the Bank upon notification of the proposed action.

Section IX Final provisions

Article 66 Signing and custody 1. The original of this Agreement in a single copy in Arabic, English and French is considered open for signature until October 31, 1974 by the Governments of the countries listed in Annex A to this Agreement and will be located at the office of the Monetary Agency of Saudi Arabia. After it is signed by all members, the Agreement must be kept at the Bank's main office. 2. The Depository must send certified copies of the Agreement to all the members of the Bank who signed it.

Article 67 Ratification and approval

The Treaty is subject to ratification or approval by the signatory countries. The instruments of ratification must be deposited with the Depositary, who officially notifies the signatory indicating the date.

Article 68

Entry into force

The Treaty enters into force after the deposit of all instruments of ratification with the Depositary, provided that the total amount of the subscribed capital of the signatory countries is at least 500 million (500,000,000) Islamic dinars.

Article 69 Commencement of operations

1. After the Agreement enters into force, each member country of the Bank must appoint a Governor and an Alternate.

2. At its first meeting, the Board of Governors must: (i) to elect the President of the Bank;

(ii) prepare all necessary documents for the election of the Bank's Executive Directors, and (iii) determine the date of commencement of the Bank's operations.

3. The Bank must notify its members of the date of commencement of operations.

Performed in Jeddah, Kingdom of Saudi Arabia on August 12, 1974 in Arabic, English, French.

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President

Republic of Kazakhstan

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