INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT BOARD OF GOVERNORS Resolution No. 475 Membership of the Federated States of Micronesia WHEREAS the Government of the Federated States of Micronesia (hereinafter called Micronesia) has applied for admission to membership in the International Bank for Reconstruction and Development in accordance with Section 1(b) of Article II of the Articles of Agreement of the Bank; WHEREAS, by Resolution No. 448, adopted on June 10, 1991, the Board of Governors has increased the authorized capital of the Bank by 28,000 additional shares to provide for the admission of new members; and WHEREAS, pursuant to Section 19 of the By-Laws of the Bank, the Executive Directors, after consultation with representatives of the Government of Micronesia, have made recommendations to the Board of Governors regarding this application; NOW, THEREFORE, the Board of Governors hereby RESOLVES: THAT the terms and conditions upon which Micronesia shall be admitted to membership in the Bank shall be as follows: 1. Definitions: As used in this resolution: (a) “Bank� means International Bank for Reconstruction and Development. (b) “Articles of Agreement� means the Articles of Agreement of the Bank. (c) “Subscription� means the capital stock of the Bank subscribed to by a member. (d) “Member� means member of the Bank. (e) “1988 General Capital Increase Resolution� means Board of Governors’ Resolution No. 425 entitled “1988 General Capital Increase� adopted on April 27, 1988. (f) “1991 Increase in Authorized Capital Resolution� means Board of Governors’ Resolution No. 448 entitled “1991 Increase in Authorized Capital� adopted on June 10, 1991. (g) “1979 Additional Capital Increase Resolution� means Board of Governors’ Resolution No. 347 entitled “1979 Additional Increase in Authorized Capital Stock and Subscriptions Thereto� adopted on January 4, 1980, as amended by Resolution No. 419, adopted on August 17, 1987. 2. Membership in the Fund: Before accepting membership in the Bank, Micronesia shall accept membership in and become a member of the International Monetary Fund. IBRD Resolution No. 475 Page 2 of 3 3. Subscription: By accepting membership in the Bank, Micronesia shall subscribe to 19 shares of the capital stock of the Bank at par on the terms and conditions set forth or referred to in paragraph 4 hereof. 4. Payments on Subscription: (a) Upon accepting membership in the Bank, Micronesia shall pay to the Bank under Article II, Section 7(i) of the Articles of Agreement on account of the subscription price of each of the shares subscribed pursuant to paragraph 3 of this resolution: (i) Gold or United States dollars equal to 0.875% of the said subscription price; and (ii) An amount in its own currency which, at the appropriate prevailing exchange rate, shall be equal to 7.875% thereof. (b) The Bank shall call the amounts of subscription under paragraph 3 of this resolution payable under the said Article II, Section 7(i) which are not required to be paid under paragraph 4(a) above only when required to meet obligations of the Bank for funds borrowed or on loans guaranteed by it and not for use by the Bank in its lending activities or for administrative expenses. 5. Acceptance of Subscription: Before the Bank shall accept Micronesia’s subscription to the shares set out in paragraph 3 of this resolution, the following action shall have been taken: (a) Micronesia shall have taken all action necessary to authorize such subscription and shall furnish to the Bank all such information thereon as the Bank may request; and (b) With respect to and on account of the subscription price of the said shares, Micronesia shall pay to the Bank the amounts set forth in paragraph 4(a) above. 6. Representation and Information: Before accepting membership in the Bank, Micronesia shall represent to the Bank that it has taken all action necessary to sign and deposit the instrument of acceptance and sign the Articles as contemplated by paragraphs 7(d) and (e) of this resolution and Micronesia shall furnish to the Bank such information in respect of such action as the Bank may request. 7. Effective Date of Membership: Micronesia shall become a member of the Bank with a subscription as set forth in paragraph 3 of this resolution as of the date when the Federated States of Micronesia shall have complied with the following requirements: (a) become a member of the International Monetary Fund; (b) made the payments called for by paragraph 4 of this resolution; (c) furnished the representation, and such information as may have been requested, pursuant to paragraph 6 of this resolution; (d) deposited with the Government of the United States of America an instrument stating that it has accepted in accordance with its law the Articles and all the terms and conditions prescribed in this resolution, and that it has taken all steps necessary to enable it to carry out all its obligations under the Articles and this resolution; and (e) signed the original Articles held in the archives of the Government of the United States of America. IBRD Resolution No. 475 Page 3 of 3 8. Limitation on Period for Fulfillment of Requirements of Membership: Micronesia may fulfill the requirements for membership in the Bank pursuant to this resolution until June 30, 1993, or such later date as the Executive Directors may determine. 9. Additional Subscription on Terms and Conditions of the 1979 Additional Capital Increase Resolution: Micronesia may subscribe 250 shares of the capital stock of the Bank on the terms and conditions specified in paragraphs 2 and 3 of the 1979 Additional Capital Increase Resolution, provided, however, that notwithstanding the provision of paragraph 2(b) of the said Resolution, the Federated States of Micronesia may subscribe up to such shares up to the date on which Micronesia may subscribe additional shares under paragraph 10 below. 10. Additional Subscription on Terms and Conditions of the 1988 General Capital Increase Resolution: Micronesia may subscribe up to 210 shares of the capital stock of the Bank on the terms and conditions specified in paragraph 3(a) through 3(e) and 5 of the 1988 General Capital Increase Resolution, provided, however, that Micronesia may subscribe 195 of the said shares only after the Federated States of Micronesia shall have subscribed the shares referred to in paragraph 9 above. 11. Shares from Additional Shares Authorized under Resolution No. 448: The shares to be subscribed by Micronesia pursuant to paragraphs 3, 9 and 10 of this resolution shall be taken from the pool of shares not yet allocated, except that the first 95 shares to be subscribed shall be taken from the shares authorized under the 1991 Increase in Authorized Capital Resolution and available to provide for the admission of further new members, and, to the extent any such shares are not subscribed by Micronesia by the dates set forth or referred to in this resolution, they shall be added back to the said number of shares. (Adopted on August 10, 1992)