Common use of Allocation of Net Income Clause in Contracts

Allocation of Net Income. 1. The Board of Governors shall determine at least annually the disposition of the net income of the Bank arising from its ordinary operations and what portion thereof, if any, shall be allocated, after making provision for reserves or other purposes, to surplus, and what portion, if any, shall, notwithstanding the provisions of Article 12, be allocated to any special fund, including the Special Development Fund, or distributed to the members. 2. The Board of Governors shall determine at least annually the disposition of the net income of the Bank arising from its special operations, subject to any rules or regulations governing each special fund and any agreement relating thereto. 3. Any distribution of net income under paragraph 1 of this Article shall be made: (a) in the case of a member who becomes a member in accordance with paragraph 2 of Article 3, in the proportion which the total subscriptions paid by that member under paragraph 2(a) of Article 7 and under corresponding conditions of subsequent subscriptions and the average amount of loans outstanding during the year made out of currency corresponding to its subscriptions under paragraph 2(b) of Article 7 and under corresponding conditions of subsequent subscriptions bear to the total of such amounts for all members; and (b) in the case of a member who becomes a member in accordance with paragraph 3 of Article 3, in the proportion which the total subscriptions paid by that member under conditions of such subscriptions corresponding to the provisions of paragraph 2(a) of Article 7 and the average amount of loans outstanding during the year made out of currency corresponding to it subscriptions paid under conditions of such subscriptions corresponding to the provisions of paragraph 2(b) of Article 7 bear to the total of such amounts for all members. 4. Payments shall be made in such manner and in such currency as the Board of Governors shall determine.