INTERNATIONAL DEVELOPMENT ASSOCIATION

                                     BOARD OF GOVERNORS



                                         Resolution No. 171

                       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 Development
Association in accordance with Section 1(b) of Article II of the Articles of Agreement of the
Association;

    WHEREAS, pursuant to Section 9 of the By-Laws of the Association, 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
Association shall be as follows:

1. Definitions: As used in this resolution:
   (a) “Association� means International Development Association.
   (b) “Articles� means the Articles of Agreement of the Association.
   (c) “Dollars� or “$� means dollars in currency of the United States of America.

2. Initial Subscription:
   (a) The terms and conditions of the membership of Micronesia in the Association other than
        those specifically provided for in this resolution shall be those set forth in the Articles with
        respect to the membership of original members listed in Part II of Schedule A thereof
        (including, but not by way of limitation, the terms and conditions relating to subscriptions,
        payments on subscription, usability of currencies and voting rights).
   (b) Upon accepting membership in the Association, Micronesia shall subscribe funds in the
        amount of $20,000 expressed in terms of United States dollars of the weight and fineness
        in effect on January 1, 1960, that is to say, pursuant to the decision of the Executive
        Directors of the Association of June 30, 1986 on the valuation of initial subscriptions,
        $24,127, and shall pay the latter amount to the Association as follows; (a) ten percent
        either in gold or in freely convertible currency, and (b) ninety percent in the currency of
        Micronesia. As of the date Micronesia will become a member of the Association, 504 votes
        shall be allocated to Micronesia in respect to such subscription, consisting of 4 subscription
        votes and 500 membership votes.

3. Effective Date of Membership: Micronesia shall become a member of the Association with a
subscription as set forth in paragraph 2(b) of this resolution as of the date when Micronesia shall
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have complied with the following requirements:
   (a) become a member of the International Bank for Reconstruction and Development;
   (b) made the payments called for by paragraph 2 of this resolution;
   (c) deposited with the International Bank for Reconstruction and Development 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
   (d) signed the original Articles held in the archives of the International Bank for
       Reconstruction and Development.

4. Limitation on Period for Fulfillment of Requirements of Membership: Micronesia may fulfill
the requirements for membership in the Association pursuant to this resolution until June 30, 1993,
or such later date as the Executive Directors of the Association may determine.

5. Additional Subscription: Upon or after acceptance of membership, Micronesia shall also be
authorized at its option to make an additional subscription in the amount of $3,715 which shall
carry 17,920 votes, calculated on the basis of 120 subscription votes and 17,800 membership votes,
and which shall be subject to the following terms and conditions:
      (i) Payment of such additional subscription shall be made in the currency of the Federated
          States of Micronesia within 30 days after Micronesia notifies the Association of its
          intention to make such additional subscription.
     (ii) the rights and obligations of the Association and Micronesia with regard to such
          additional subscription shall be the same (except as otherwise provided in this resolution)
          as those which govern the 90% portion of the initial subscriptions of original members
          payable under Article II, Section 2(d) of the Articles by members listed in Part II of
          Schedule A of the Articles, provided, however, that the provisions of Article IV, Section
          2 of the Articles shall not be applicable to such subscription.



                                                                        (Adopted on August 10, 1992)