- International Monetary Fund
- Published Date:
- January 1966
A purpose of this paper is to see whether there are legal effects on non-members even though they have not accepted the Articles. However, there are some obligations that can be owed by the Fund to a non-member or by a non-member to the Fund because of the former acceptance of membership in the Fund by the non-member. These are obligations related to the settlement of accounts between a former member and the Fund.
It may be useful to explain these obligations of the Fund and the ex-member a little further because they are not all purely pecuniary and because there may even be obligations on other members of the Fund. On a withdrawal, whether compulsory or voluntary on the ex-member’s part, a settlement of all accounts between it and the Fund must be made by agreement with reasonable despatch.4 If agreement is not reached promptly, the provisions of Schedule D apply, and these constitute a comprehensive code of settlement. It follows that the settlement between the Fund and the ex-member may establish obligations that will endure for some time whether that settlement is made by agreement or is the settlement of Schedule D. For example, under Schedule D, the settlement may show that the Fund or the ex-member is a debtor to the other party, and in that event the balance must be paid in a certain form and in prescribed installments. Provision is also made for the case in which the obligor fails to pay an installment by the due date. Any member that wishes to obtain the currency of an ex-member must purchase it from the Fund to the extent that the member has access to the resources of the Fund and the currency of the ex-member is available.5 With respect to the ex-member’s currency disposed of by the Fund under Schedule D, the ex-member guarantees unrestricted use at all times for the purchase of goods or for payments due to the ex-member or persons within its territories. In addition, the ex-member is obliged to compensate the Fund for any loss resulting from the difference between the rate at which the Fund held the currency at the date of withdrawal and the rate realized on disposal of it.6