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Article Comparison - International Natural Rubber Agreement

Article 38
Adjustment of contributions to the Buffer Stock Account

1. When the votes are redistributed at the first regular session in each financial year or whenever the membership of the Organization changes, the Council shall make the necessary adjustment of each member's contribution to the Buffer Stock Account in accordance with the provisions of this Article. For this purpose, the Executive Director shall determine:

(a) the net cash contribution of each member, by subtracting refunds of contributions to that member in accordance with paragraph 2 of this Article from the sum of all contributions paid by that member since the entry into force of this Agreement;

(b) the total net call ups, by summing the consecutive call ups and subtracting the total of refunds made in accordance with paragraph 2 of this Article;

(c) the revised net contribution for each member, by apportioning the total net call ups among members on the basis of each member's revised voting share in the Council pursuant to Article 14, subject to paragraph 3 of Article 27, provided that the voting share of each member shall, for the purpose of this Article, be calculated without regard to the suspension of any member's voting rights or any redistribution of votes resulting therefrom. Where a member's net cash contribution exceeds its revised net contribution, a refund of the difference minus any outstanding penalty interest on arrears shall be made to that member from the Buffer Stock Account. Where a member's revised net contribution exceeds its net cash contribution, a payment of the difference plus any outstanding penalty interest on arrears shall be made by that member to the Buffer Stock Account.

2. If the Council, having regard to paragraphs 2 and 3 of Article 28, decides that there are net cash contributions in excess of funds required to support Buffer Stock operations within the next four months, the Council shall refund such excess net cash contributions less initial contributions unless it decides, by special vote, either to make no such refund or to refund a smaller amount. Members' shares of the amount to be refunded shall be in proportion to their net cash contributions, minus any outstanding penalty interest on arrears. The contribution liability of members in arrears shall be reduced in the same proportion as the refund bears to the total net cash contributions.

3. At the request of a member, the refund to which it is entitled may be retained in the Buffer Stock Account. If a member requests that its refund be retained in the Buffer Stock Account, this amount shall be credited against any additional contribution requested in accordance with Article 28. The credit retained in the Buffer Stock Account at the request of a member shall bear interest at the average rate of interest earned on funds in the Buffer Stock Account, beginning the last day when the amount should normally be reimbursed to that member until the day preceding the actual reimbursement.

4. The Executive Director shall immediately notify members of any required payments or refunds resulting from adjustments made in accordance with paragraphs 1 and 2 of this Article. Such payments by members or refunds to members shall be made within 60 days from the date the Executive Director issues such notification.

5. In the event that the amount of cash in the Buffer Stock Account exceeds the value of total net cash contributions of members, such surplus funds shall be distributed upon termination of this Agreement.