LegalizeInternational Common Fund for Commodities Act , 1982
1 Interpretation.
1.—In this Act—
“the Agreement” means the international agreement done at Geneva on the 27th day of June, 1980, for the establishment of a fund to be known as the Common Fund for Commodities and signed on behalf of the State on the 24th day of February, 1981, of which the text is set out in the Schedule to this Act;
“the Fund” means the Fund to be established by the Agreement;
“the Minister” means the Minister for Finance.
2 Approval of terms of Agreement.
2.—The terms of the Agreement are hereby approved.
3 Financial and other provisions.
3.—(1) The subsequent subsections of this section shall come into operation on the day on which the Agreement, pursuant to Article 57 thereof, enters into force.
(2) There shall be paid by the Minister out of the Central Fund, or the growing produce thereof, as subscription for shares in the Fund issued under Article 10, 11 or 12 of the Agreement, an amount not exceeding, or amounts not exceeding in the aggregate, £1,000,000.
(3) The Minister may out of moneys provided by the Oireachtas—
(a) make under Article 13 of the Agreement an initial contribution, of such amount as he shall think fit, to, and for use in, the account referred to in the Agreement as the “Second Account”,
(b) having had regard to the review last made pursuant to and in accordance with the said Article 13, from time to time make contributions, of such amounts as he shall think fit, to, and for use in, the said account.
(4) (a) The Minister may by order provide guarantees required to be provided by Article 14 of the Agreement by reason of the State's being a member of an international commodity organisation which is associated with the Fund.
(b) Moneys required to be paid by the Minister to meet sums which may become payable by him on foot of a guarantee provided by an order under this subsection shall be advanced out of the Central Fund or the growing produce thereof.
(c) Where the whole or any part of moneys advanced under this subsection has not been repaid to the Minister within a period of five years from the date of advance, the amount so remaining outstanding shall be repaid to the Central Fund out of moneys provided by the Oireachtas.
(5) For the purposes of payments under subsection (2) of this section, the Minister may, in accordance with Article 11 (3) of the Agreement, create and issue to the Fund non-interest-bearing promissory notes of the State and any payments on behalf of the State in respect of such notes shall be made out of the Central Fund or the growing produce thereof.
(6) Where an order under this section is proposed to be made, a draft of the order shall be laid before each House of the Oireachtas and the order shall not be made until a resolution approving of the draft has been passed by each such House.
4 Disposal of moneys received by State under Agreement.
4.—Any moneys received by the State from the Fund in accordance with the arrangements set out in the Agreement shall be paid to the Minister and be disposed of for the benefit of the Exchequer as the the Minister may direct.
5 Expenses.
5.—The expenses incurred in the administration of this Act shall, subject to the approval of the Minister, be paid out of moneys provided by the Oireachtas.
6 Short title.
6.—This Act may be cited as the International Common Fund for Commodities Act, 1982.
SCHEDULE AGREEMENT ESTABLISHING THE COMMON FUND FOR COMMODITIES
The Parties,
Determined to promote economic co-operation and understanding among all States, particularly between developed and developing countries, based on the principles of equity and sovereign equality and thereby to contribute to the establishment of a New International Economic Order,
Recognizing the need for improved forms of international co-operation in the field of commodities as an essential condition for the establishment of a New International Economic Order, aimed at promoting economic and social development, particularly of developing countries,
Desirous of promoting global action to improve market structures in international trade in commodities of interest to developing countries,
Recalling resolution 93 (IV) on the Integrated Programme for Commodities adopted at the fourth session of the United Nations Conference on Trade and Development (hereinafter referred to as UNCTAD),
Have agreed to establish hereby the Common Fund for Commodities, which shall operate in accordance with the following provisions:
CHAPTER I
DEFINITIONS
For the purposes of this Agreement:
“Fund” means the Common Fund for Commodities established by this Agreement.
“International Commodity Agreement or Arrangement” (hereinafter referred to as ICA) means any intergovernmental agreement or arrangement to promote international co-operation in a commodity, the parties to which include producers and consumers covering the bulk of world trade in the commodity concerned.
“International Commodity Organization” (hereinafter referred to as ICO) means the organization established by an ICA to implement the provisions of the ICA.
“Associated ICO” means an ICO which is associated with the Fund pursuant to article 7.
“Association Agreement” means the agreement entered into between an ICO and the Fund pursuant to article 7.
“Maximum Financial Requirements” (hereinafter referred to as MFR) means the maximum amount of funds that may be drawn and borrowed by an Associated ICO from the Fund, to be determined in accordance with article 17, paragraph 8.
“International Commodity Body” (hereinafter referred to as ICB) means a body designated in accordance with article 7, paragraph 9.
“Unit of Account” means the unit of account of the Fund as defined in accordance with article 8, paragraph 1.
“Usable Currencies” means (a) the deutsche mark, the French franc, the Japanese yen, the pound sterling, the United States dollar and any other currency which has been designated from time to time by a competent international monetary organization as being in fact widely used to make payments for international transactions and widely traded in the principal exchange markets, and (b) any other freely available and effectively usable currency which the Executive Board may designate by a Qualified Majority after the approval of the country whose currency the Fund proposes to designate as such. The Governing Council shall designate a competent international monetary organization under (a) above and shall adopt by a Qualified Majority rules and regulations regarding the designation of currencies under (b) above, in accordance with prevailing international monetary practice. Currencies may be removed from the list of Usable Currencies by the Executive Board by a Qualified Majority.
“Directly Contributed Capital” means capital specified in article 9, paragraph 1 (a) and paragraph 4.
“Paid-in Shares” means the shares of Directly Contributed Capital specified in article 9, paragraph 2 (a), and article 10, paragraph 2.
“Payable Shares” means the shares of Directly Contributed Capital specified in article 9, paragraph 2 (b), and article 10, paragraph 2 (b).
“Guarantee Capital” means capital provided to the Fund, pursuant to article 14, paragraph 4, by Members of the Fund participating in an Associated ICO.
“Guarantees” means guarantees provided to the Fund, pursuant to article 14, paragraph 5, by participants in an Associated ICO which are not Members of the Fund.
“Stock Warrants” means stock warrants, warehouse receipts or other documents of title evidencing ownership of commodity stocks.
“Total voting power” means the sum of the votes held by all the Members of the Fund.
“Simple Majority” means more than half of all votes cast.
“Qualified Majority” means at least two thirds of all votes cast.
“Highly Qualified Majority” means at least three fourths of all votes cast.
“Votes cast” means affirmative and negative votes.
CHAPTER II
OBJECTIVES AND FUNCTIONS
The objectives of the Fund shall be:
(a) To serve as a key instrument in attaining the agreed objectives of the Integrated Programme for Commodities as embodied in resolution 93 (IV) of UNCTAD;
(b) To facilitate the conclusion and functioning of ICAs, particularly concerning commodities of special interest to developing countries.
In fulfilment of its objectives, the Fund shall exercise the following functions:
(a) To contribute, through its First Account as hereinafter provided, to the financing of international buffer stocks and internationally co-ordinated national stocks, all within the framework of ICAs;
(b) To finance, through its Second Account, measures in the field of commodities other than stocking, as hereinafter provided;
(c) To promote co-ordination and consultation through its Second Account with regard to measures in the field of commodities other than stocking, and their financing, with a view to providing a commodity focus.
CHAPTER III
MEMBERSHIP
Membership in the Fund shall be open to:
(a) All States Members of the United Nations or of any of its specialized agencies or of the International Atomic Energy Agency; and
(b) Any intergovernmental organization of regional economic integration which exercises competence in fields of activity of the Fund. Such intergovernmental organizations shall not be required to undertake any financial obligations to the Fund; nor shall they hold any votes.
The Members of the Fund (hereinafter referred to as Members) shall be:
(a) Those States which have ratified, accepted or approved this Agreement in accordance with article 54;
(b) Those States which have acceded to this Agreement in accordance with article 56;
(c) Those intergovernmental organizations referred to in article 4 (b) which have ratified, accepted or approved this Agreement in accordance with article 54;
(d) Those intergovernmental organizations referred to in article 4 (b) which have acceded to this Agreement in accordance with article 56.
No Member shall be liable, by reason only of its membership, for acts or obligations of the Fund.
CHAPTER IV
RELATIONSHIP OF ICOs AND ICBs WITH THE FUND
The facilities of the Fund's First Account shall be used only by ICOs established to implement the provisions of ICAs providing for either international buffer stocks or internationally co-ordinated national stocks, and which have concluded an Association Agreement. The Association Agreement shall comply with the terms of this Agreement and of any rules and regulations consistent therewith to be adopted by the Governing Council.
An ICO established to implement the provisions of an ICA which provides for international buffer stocks may become associated with the Fund for the purposes of the First Account, provided that the ICA is negotiated or renegotiated on, and conforms to, the principle of joint buffer stock financing by producers and consumers participating therein. For the purposes of this Agreement, levy-financed ICAs shall be eligible for association with the Fund.
A proposed Association Agreement shall be presented by the Managing Director to the Executive Board and, with the recommendation of the Board, to the Governing Council for approval by a Qualified Majority.
In carrying out the provisions of the Association Agreement between the Fund and an Associated ICO each institution shall respect the autonomy of the other. The Association Agreement shall specify the mutual rights and obligations of the Fund and the Associated ICO, in terms consistent with the relevant provisions of this Agreement.
An Associated ICO shall be entitled to borrow from the Fund through its First Account without prejudice to its eligibility to obtain financing from the Second Account, provided that the Associated ICO and its participants have performed and are duly performing their obligations to the Fund.
An Association Agreement shall provide for a settlement of accounts between the Associated ICO and the Fund before any renewal of the Association Agreement.
An Associated ICO may, if the Association Agreement so provides and with the consent of the preceding Associated ICO covering the same commodity, succeed to the rights and obligations of the preceding Associated ICO.
The Fund shall not intervene directly in commodity markets. However, the Fund may dispose of commodity stocks only pursuant to article 17, paragraphs 15 to 17.
For the purpose of the Second Account, the Executive Board shall from time to time designate appropriate commodity bodies, including ICOs, whether or not they are Associated ICOs, as ICBs, provided that they meet the criteria set out in schedule C.
CHAPTER V
CAPITAL AND OTHER RESOURCES
The Unit of Account of the Fund shall be as defined in schedule F.
The Fund shall hold, and conduct its financial transactions in, Usable Currencies. Except as provided in article 16, paragraph 5 (b), no Member shall maintain or impose restrictions on the holding, use or exchange by the Fund of Usable Currencies deriving from:
(a) Payment of subscriptions of Shares of Directly Contributed Capital;
(b) Payment of Guarantee Capital, cash in lieu of Guarantee Capital, Guarantees or cash deposits resulting from the association of ICOs with the Fund;
(c) Payment of voluntary contributions;
(d) Borrowing;
(e) Disposal of forfeited stocks, pursuant to article 17, paragraphs 15 to 17;
(f) Payment on account of principal, income, interest or other charges in respect of loans or investments made out of any of the funds referred to in this paragraph.
The Executive Board shall determine the method of valuation of Usable Currencies, in terms of the Unit of Account, in accordance with prevailing international monetary practice.
The capital of the Fund shall consist of:
(a) Directly Contributed Capital to be divided into 47,000 Shares to be issued by the Fund, having a par value of 7,566,47145 Units of Account each and a total value of 355,624,158 Units of Account; and
(b) Guarantee Capital provided directly to the Fund in accordance with article 14, paragraph 4.
The Shares to be issued by the Fund shall be divided into:
(a) 37,000 Paid-in Shares; and
(b) 10,000 Payable Shares.
Shares of Directly Contributed Capital shall be available for subscription only by Members in accordance with the provisions of article 10.
The Shares of Directly Contributed Capital:
(a) Shall, if necessary, be increased by the Governing Council upon the accession of any State under article 56;
(b) May be increased by the Governing Council in accordance with article 12;
(c) Shall be increased by the amount needed pursuant to article 17, paragraph 14.
If the Governing Council makes available for subscription the unsubscribed Shares of Directly Contributed Capital pursuant to article 12, paragraph 3, or increases the Shares of Directly Contributed Capital pursuant to paragraph 4 (b) or 4 (c) of this article, each Member shall have the right, but shall not be required, to subscribe such Shares.
This document does not substitute the official text published in the Irish Statute Book. We accept no responsibility for any inaccuracies arising from the transcription of the original into this format.