SUBSECTION F. FINANCIAL ARRANGEMENTS OF THE AUTHORITY
Article 172 Funds of the Authority
The funds of the Authority shall include:
(a) assessed contributions made by members of the Authority in accordance with article 159.2(f);
(b) funds transferred from the Enterprise System;
(c) funds received pursuant to article 82;
(d) funds borrowed pursuant to article 175;
(e) voluntary contributions made by members or other entities.
Article 173 Annual budget of the Authority
The Secretary-General shall draft the proposed annual budget of the Authority and submit it to the Council. The Council shall consider the proposed annual budget, request the comments of the Finance Commission, and submit the budget, together with the comments and any recommendations thereon, to the Assembly, in accordance with article 159.2.(g).
Article 174 Expenses of the Authority
1. The contributions referred to in article 172, subparagraph (a), shall be paid into a special account to meet the administrative expenses of the Authority until the Authority has sufficient funds from other sources to meet these expenses.
2. The administrative expenses of the Authority shall be a first call upon the funds of the Authority. Except for the assessed contributions referred to in article 172, subparagraph (a), the funds which remain after payment of administrative expenses may, inter alia:
(a) be shared in accordance with article 138 and article 159.2(f);
(b) be used to invest in the Enterprise System in accordance with article 170 paragraph 6.
Article 175 Borrowing power of the Authority
1. The Authority shall have the power to borrow funds.
2. The Assembly, on the advice of the Finance Commission, shall prescribe the limits on the borrowing power of the Authority in the financial regulations adopted pursuant to article 159.2(g).
3. The Council shall exercise the borrowing power of the Authority.
4. States Parties shall not be liable for the debts of the Authority.
Article 176 Annual audit
The records, books and accounts of the Authority, including its annual financial statements, shall be audited by an independent auditor appointed by the Assembly.
SUBSECTION G. LEGAL STATUS, PRIVILEGES AND IMMUNITIES
Article 177 Legal status
The Authority shall have international legal personality and such legal capacity as may be necessary for the exercise of its functions and the fulfilment of its purposes.
Article 178 Privileges and immunities
To enable the Authority to exercise its functions, it shall enjoy in the territory of each State party the privileges and immunities set forth in this subsection. The privileges and immunities relating to the Enterprise System shall be determined in each joint-venture agreement.
Article 179 Immunity from legal process
The Authority, its property and assets, shall enjoy immunity from legal process except to the extent that the Authority expressly waives this immunity in a particular case.
Article 180 Immunity from search and any form of seizure
The property and assets of the Authority, wherever located and by whomsoever held, shall be immune from search, requisition, confiscation, expropriation or any other form of seizure by executive or legislative action.
Article 181 Exemption from restrictions, regulations, controls and moratoria
The property and assets of the Authority shall be exempt from restrictions, regulations, controls and moratoria of any nature.
Article 182 Archives and official communications of the Authority
1. The archives of the Authority, wherever located, shall be inviolable.
2. Proprietary data, industrial secrets or similar information and personnel records shall not be placed in archives which are open to public inspection.
3. With regard to its official communications, the Authority shall be accorded by each State Party treatment no less favourable than that accorded by the State to other international organizations.
Article 183 Privileges and immunities of certain persons connected with the Authority
Representatives of States Parties attending meetings of the Assembly, the Council or organs of the Assembly or the Council, and the Secretary-General and staff of the Authority, shall enjoy in the territory of each State Party:
(a) immunity from legal process with respect to acts performed by them in the exercise of their functions, except to the extent that the State which they represent or the Authority, as appropriate, expressly waives this immunity in a particular case;
(b) if they are not nationals of that State Party, the same exemptions from immigration restrictions, alien registration requirements and national service obligations, the same facilities as regards exchange restrictions and the same treatment in respect of travelling facilities as are accorded by that State to the representatives, officials and employees of comparable rank of other States Parties.
Article 184 Exemptions from taxes and customs duties
1. Within the scope of its official activities, the Authority, its assets and property, its income, and its operations and transactions, authorized by this Convention, shall be exempt from all direct taxation and goods imported or exported for its official use shall be exempt from all customs duties. The Authority shall not claim exemption from taxes which are no more than charges for services rendered.
2. When purchases of goods or services of substantial value necessary for the official activities of the Authority are made by or on behalf of the Authority, and when the price of such goods or services includes taxes or duties, appropriate measures shall, to the extent practicable, be taken by States Parties to grant exemption from such taxes or duties or provide for their reimbursement. Goods imported or purchased under an exemption provided for in this article shall not be sold or otherwise disposed of in the territory of the State party which granted the exemption, except under conditions agreed with that State Party.
3. No tax shall be levied by States Parties on or in respect of salaries and emoluments paid or any other form of payment made by the Authority to the Secretary-General and staff of the Authority, as well as experts performing missions for the Authority, who are not their nationals.
SUBSECTION H. SUSPENSION OF THE EXERCISE OF RIGHTS AND PRIVILEGES OF MEMBERS
Article 185 Suspension of the exercise of voting rights
A State Party which is in arrears in the payment of its financial contributions to the Authority shall have no vote if the amount of its arrears equals or exceeds the amount of the contributions due from it for the preceding two full years. The Assembly may, nevertheless, permit such a member to vote if it is satisfied that the failure to pay is due to conditions beyond the control of the member.
Article 186 Suspension of exercise of rights and privileges of membership
1. A State party which has grossly and persistently violated the provisions of this Part may be suspended from the exercise of the rights and privileges of membership by the Assembly upon recommendation of the Council.
2. No action may be taken under paragraph 1 until the Sea-Bed Disputes Chamber has found that a State Party has grossly and persistently violated the provisions of this Part.
