PROVISIONS OF THE AGREEMENT WHICH SHALL HAVE FORCE OF LAW
CHAPTER VIII
STATUS, IMMUNITIES, EXEMPTIONSAND PRIVILEGES
ARTICLE 41
PURPOSE OF CHAPTER
To enable the Fund effectively to fulfil its purpose and carry out the functions entrusted to it, the
status, immunities, exemptions and privileges set forth in this Chapter shall be accorded to the Fund in the
territory of each State participant, and each State participant shall inform the Fund of the specific action
which it has taken for such purpose.
ARTICLE 42
STATUS
The Fund shall possess full judicial personality and, in particular, full capacity:
(i) to contract;
(ii) to acquire, and dispose of, immovable and movable property; and
(iii) to institute legal proceedings.
ARTICLE 43
LEGAL PROCESS
1. The Fund shall enjoy immunity from every form of legal process, except in cases arising out of or
in connection with the exercise of its power to receive loans in accordance with Article 8, in which case
actions may be brought against the Fund in a court of competent jurisdiction in the territory of a country
in which the Fund has its office, or has appointed an agent for the purpose of accepting service or notice
of process, or has otherwise agreed to be sued.
2. Notwithstanding the provisions of paragraph 1, no action shall be brought against the Fund by any
participant, or by any agency or instrumentality of a participant, or by any entity or person directly or
indirectly acting for or deriving claims from a participant or from any agency or instrumentality of a
participant. Participants shall have recourse to such special procedures for the settlement of disputes
between the Fund and its participants as may be prescribed in this Agreement, in the bye-laws and
regulations of the Fund, or in contracts entered into with the Fund.
3. The Fund shall also make provision for appropriate modes of settlement of disputes in cases which
do not come within the provisions of paragraph 2 and of Articles 52 and 53 and which are subject to the
immunity of the Fund by virtue of paragraph 1 of this Article.
4. Where by virtue of any of the provisions of this Agreement the Fund does not enjoy immunity
from legal process, the Fund, and its property and assets wherever located and by whomsoever held, shall
nevertheless be immune from all forms of seizure, attachment or execution before the delivery of final
judgment against the Fund.
ARTICLE 44
IMMUNITY OF ASSETS
Property and assets of the Fund, wherever located and by whomsoever held, shall be immune from
search, requisition, confiscation, expropriation or any other form of taking or foreclosure by executive or
legislative action.
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ARTICLE 45
IMMUNITY OF ARCHIVES
The archives of the Fund, and, in general, all documents belonging to it or held by it, shall be
inviolable, wherever located.
ARTICLE 46
FREEDOM OF ASSETS FROM RESTRICTION
To the extent necessary to carry out the purpose and function of the Fund, and subject to the
provisions of this Agreement, all property and other assets of the Fund shall be free from restriction by
financial controls, regulations, or moratoria of any kind.
ARTICLE 47
PRIVILEGE FOR COMMUNICATIONS
Official communications of the Fund shall be accorded by each State participant the same treatment
as it accords to the official communications of other international financial institutions of which it is a
member.
ARTICLE 48
IMMUNITIES AND PRIVILEGES OF OFFICIALS AND PERSONNEL
All governors and directors, and their alternates, the President and personnel, including experts
performing missions for the Fund:
(i) shall be immune from legal process with respect to acts performed by them in their official
capacity;
(ii) when they are not local nationals, shall be accorded no less favourable immunities from
immigration restrictions, alien registration requirements and national service obligations, and no less
favourable facilities as regards exchange regulations, than are accorded by the State participant
concerned to the representatives, officials and employees of comparable rank of any other
international financial institution of which it is a member; and
(iii) shall be granted no less favourable treatment in respect of travelling facilities than is
accorded by the State participant concerned to representatives, officials and employees of comparable
rank of any other international financial institution of which it is a member.
ARTICLE 49
EXEMPTION FROM TAXATION
1. The Fund, its assets, property, income, operations and transactions, shall be exempt from all direct
taxation, and from all customs duties, or taxes having equivalent effect, on goods imported or exported
for its official use. The Fund shall also be exempt from any obligation for the payment, withholding or
collection of any tax or duty.
2. Notwithstanding the provisions of paragraph 1, the Fund shall not claim exemption from taxes
which are no more than charges for services rendered.
3. Articles imported under an exemption provided for by paragraph 1 shall not be sold in the territory
of the State participant which granted the exemption except under conditions agreed with that participant.
4. No tax shall be levied on or in respect of salaries and emoluments paid by the Fund to the President
and personnel including experts performing missions for it.
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ARTICLE 50
WAIVER BY THE FUND
1. The immunities, exemptions and privileges provided in this Chapter are granted in the interests of
the Fund. The Board of Directors may waive, to such extent and upon such conditions as it may
determine, the immunities, exemptions and privileges provided in this Chapter in cases where its action
would in its opinion further the interests of the Fund.
2. Regardless of the provisions of paragraph 1, the President shall have the right and the duty to waive
the immunity of any of the personnel, including experts performing missions for the Fund, in cases where,
in his opinion, the immunity would impede the course of justice and can be waived without prejudice to
the interests of the Fund.