Provisions of the agreement which shall have force of law
ARTICLE VIII
STATUS, IMMUNITIES AND PRIVILEGES
Section 1.—Purposes of Article.
To enable the Association to fulfil the functions with which it is entrusted, the status, immunities
and privileges provided in this Article shall be accorded to the Association in the territories of each
member.
Section 2.—Status of the Association.
The Association shall possess full juridical personality and, in particular, the capacity:—
(i) to contract;
(ii) to acquire and dispose of immovable and movable property;
(iii) to institute legal proceedings.
Section 3.—Position of the Association with regard to Judicial Process.
Actions may be brought against the Association only in a court of competent jurisdiction in the
territories of a member in which the Association has an office, has appointed an agent for the purpose
of accepting service or notice of process, or has issued or guaranteed securities. No actions shall,
however, be brought by members or persons acting for or deriving claims from members. The
property and assets of the Association shall, wheresoever located and by whomsoever held, be
immune from all forms of seizure, attachment or execution before the delivery of final judgment
against the Association.
Section 4.—Immunity of Assets from Seizure.
Property and assets of the Association, wherever located and by whomsoever held, shall be
immune from search, requisition, confiscation, expropriation or any other form of seizure by
executive or legislative action.
Section 5.—Immunity of Archives.
The archives of the Association shall be inviolable.
Section 6.—Freedom of Assets from Restrictions.
To the extent necessary to carry out the operations provided for in this Agreement and subject to
the provisions of this Agreement, all property and assets of the Association shall be free from
restrictions, regulations, controls and moratoria of any nature.
Section 7.—Privilege for Communications.
The official communications of the Association shall be accorded by each member the same
treatment that it accords to the official communications of other members.
Section 8.—Immunities and Privileges of Officers and Employees.
All Governors, Executive Directors, Alternates, Officers and employees of the Association,
(i) shall be immune from legal process with respect to acts performed by them in their official
capacity except when the Association waives this immunity;
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(ii) not being local nationals, shall be accorded the same immunities from immigration
restrictions, alien registration requirements and national service obligations and the same facilities
as regard exchange restrictions as are accorded by members to the representatives, officials, and
employees of comparable rank of other members;
(iii) shall be granted the same treatment in respect of travelling facilities as is accorded by
members to representatives, officials and employees of comparable rank of other members.
Section 9.—Immunities from Taxation.
(a) The Association, its assets, property, income and transactions authorized by this Agreement,
shall be immune from all taxation and from all customs duties. The Association shall also be immune
from liability for the collection or payment of any tax or duty.
(b) No tax shall be levied on or in respect of salaries and emoluments paid by the Association to
Executive Directors, Alternates, officials or employees of the Association who are not local citizens,
local subjects, or other local nationals.
(c) No taxation of any kind shall be levied on any obligation or security issued by the Association
(including any dividend or interest thereon) by whomsoever held,
(i) which discriminates against such obligation or security solely because it is issued by the
Association; or
(ii) if the sole jurisdictional basis for such taxation is the place or currency in which it is
issued, made payable or paid, or the location of any office or place of business maintained by the
Association.
(d) No taxation of any kind shall be levied on any obligation or security guaranteed by the
Association (including any dividend or interest thereon) by whomsoever held,
(i) which discriminates against such obligation or security solely because it is guaranteed by
the Association; or
(ii) if the sole jurisdictional basis for such taxation is the location of any office or place of
business maintained by the Association.