Section 5. Use of loans guaranteed, participated in or made by the Bank
(a) The Bank shall impose no conditions that the proceeds of a loan shall be spent in the territories of any particular member or members.
(b) The Bank shall make arrangements to ensure that the proceeds of any loan are used only for the purposes for which the loan was granted, with due attention to considerations of economy and efficiency and without regard to political or other non-economic influences or considerations.
(c) In the case of loans made by the Bank, it shall open an account in the name of the borrower and the amount of the loan shall be credited to this account in the currency or currencies in which the loan is made. The borrower shall be permitted by the Bank to draw on this account only to meet expenses in connection with the project as they are actually incurred.
Article IV
Operations
Section 1. Methods of making or facilitating loans
(a) The Bank may make or facilitate loans which satisfy the general conditions of Article III in any of the following ways:
- (I) By making or participating in direct loans out of its own funds corresponding to its unimpaired paid-up capital and surplus and, subject to Section 6 of this Article, to its reserves.
- (II) By making or participating in direct loans out of funds raised in the market of a member, or otherwise borrowed by the Bank.
- (III) By guaranteeing in whole or in part loans made by private investors through the usual investment channels.
(b) The Bank may borrow funds under (a) (II) above or guarantee loans under (a) (III) above only with the approval of the member in whose markets the funds are raised and the member in whose currency the loan is denominated,
