Article 30: Suspension and Termination
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(1)
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Not less
than one year after the Directorate has received written notice that a Party
appears to have failed to comply with any obligation under this Convention,
the Assembly, after considering any representations made by the Party, may
decide, if it finds that the failure to comply has in fact occurred and that
such failure impairs the effective operation of the Organization, that the
membership of the Party is terminated. This Convention shall cease to be in
force for the Party as from the date of the decision or at such later date as
the Assembly may determine. An extraordinary session of the Assembly may be
convened for this purpose. The termination shall entail the simultaneous
withdrawal of any Signatory designated by the Party or of the Party in its
capacity as Signatory, as the case may be. The Operating Agreement shall
cease to be in force for the Signatory on the date on which this Convention
ceases to be in force for the Party concerned, except with respect to capital
contributions necessary to meet contractual commitments specifically
authorized by the Organization before the termination and liabilities arising
from acts or omissions before the termination, and except with respect to
Article 31 of this Convention and Article XVI of the Operating Agreement.
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(2)
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If any
Signatory, in its capacity as such, fails to comply with any obligation under
this Convention or the Operating Agreement, other than obligations under
Article III(1) of the Operating Agreement and the failure has not been
remedied within three months after the Signatory has been notified in writing
of a resolution of the Council taking note of the failure to comply, the
Council, after considering any representations made by the Signatory and, if
applicable, the Party concerned may suspend the rights of the Signatory. If,
after an additional three months and after consideration of any
representations made by the Signatory and, if applicable, the Party, the
Council finds that the failure to comply has not been remedied, the Assembly
may decide on the recommendation of the Council that the membership of the
Signatory is terminated. Upon the date of such decision, the termination
shall become effective and the Operating Agreement shall cease to be in force
for that Signatory.
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(3)
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If any
Signatory fails to pay any amount due from it pursuant to Article III(1) of
the Operating Agreement within four months after the payment has become due,
the rights of the Signatory under this Convention and the Operating Agreement
shall be automatically suspended. If within three months after the suspension
the Signatory has not paid all sums due or the Party which has designated it
has not made a substitution pursuant to Article 29(4), the Council, after
considering any representations made by the Signatory or by the Party which
has designated it, may decide that the membership of the Signatory is
terminated. From the date of such decision, the Operating Agreement shall
cease to be in force for the Signatory.
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(4)
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During the
period of suspension of the rights of a Signatory pursuant to paragraph 2 or
(3), the Signatory shall continue to have all the obligations of a Signatory
under this Convention and the Operating Agreement.
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(5)
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A Signatory
shall incur no obligation after termination, except that it shall be
responsible for contributing its share of the capital contributions necessary
to meet contractual commitments specifically authorized before the
termination and liabilities arising from acts or omissions before the
termination, and except with respect to Article 31 of this Convention and
Article XVI of the Operating Agreement.
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(6)
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If the
membership of a Signatory is terminated, the Party which designated it shall,
within three months from the date of the termination and with effect from
that date, designate a new Signatory, assume the capacity of a Signatory in
accordance with Article 29(4), or withdraw. If the Party has not acted by the
end of that period, it shall be considered to have withdrawn as from the date
of termination, and this Convention shall cease to be in force for the Party
as from that date.
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(7)
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Whenever
this Convention has ceased to be in force for a Party, settlement between the
Organization and any Signatory designated by that Party or the Party in its
capacity as Signatory, shall be accomplished as provided in Article XIII of
the Operating Agreement.
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