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(a) First, to redeem any securities held by the Bank as a result of previous losses in accordance with paragraph (4) of this Article; (b) Second, to create or increase the credit balance in the Revaluation Reserve Account. (3) Any credit balance in the Revaluation Reserve Account at the end of each financial year of the Bank shall be held in reserve, and shall be used only for the purpose described in paragraph (4). (4) The losses arising from changes described in paragraph (1) of this Article shall be set off against any credit in the Revaluation Reserve Account and, notwithstanding any other provisions of this Agreement, if such balance is insufficient to cover such losses, the Participating Governments shall issue and cause to be transferred to the ownership of the Bank non-interest bearing, non-negotiable securities to the extent of the deficiency in the proportions according to which profits may be distributed to each Participating Government pursuant to Article 6 paragraph (4) of this Agreement. (5) No credits or debits shall be made to the Revaluation Reserve Account except in accordance with the provisions of this Article. The Bank may open accounts for, and accept deposits from financial institutions doing business in the territories of the Participating Governments under such terms and conditions, including the payment of interest and the establishment of charges thereon, as the Board may from time to time determine. The Bank may - (1) purchase from, sell to, discount and rediscount for financial institutions bills of exchange and promissory notes drawn or made for bona fide commercial, industrial or agricultural purposes, bearing two or more good signatures at least one of which shall be that of a bank and maturing within ninety-one days from the date of their acquisition by the Bank: Provided that bills of exchange and promissory notes drawn or made for the purposes of financing seasonal agricultural operations or marketing of crops shall mature within one hundred and eighty-two days from the date of their acquisition; (2) grant to financial institutions advances, whether by loans or overdrafts, for periods not exceeding ninety-one days secured by - (a) instruments specified in paragraph (1) of this Article; (b) warehouse warrants and documents of title issued in respect of staple commodities or other goods duly insured: Provided that the Bank shall determine from time to time the maximum percentage of advances in relation to the current value of such commodities or goods;

PART VII - RELATIONS WITH FINANCIAL INSTITUTIONS

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