Having considered the recommendation of the Ethics and Finance Committee, the Board decided:

(a) To take note of the fact that United Nations Development Programme has stated that it cannot enter into the memorandum of understanding (MOU) until the Board is granted legal capacity, and of the amendments proposed to the approved MOU; 

(b) To request the secretariat to hire an independent legal counsel to draft the standard legal contract that the Board and the implementing entities would enter into once the Board acquired legal capacity; and to submit it for consideration and approval by the Board at its twelfth meeting. In order to inform the process, the secretariat would circulate the approved MOU among the accredited implementing entities and request comments on the text by October 16, 2010. The independent legal counsel hired by the secretariat could seek further clarifications from the implementing entities, if need be. The standard legal contract should include a provision that guaranteed that the Operational Policies and Guidelines, and other rules and procedures approved by the Board, prevailed in case of any conflict with the implementing entities rules and procedures. If the conflict cannot be resolved, any disbursement made shall be refunded to the Adaptation Fund Trust Fund; and 

(c) That, if an implementing entity does not sign an MOU, or eventually the standard legal contract once the Board acquired the legal capacity to enter into contracts, within four months from the date of notification of the approval of the project or program proposal, the funds committed for that project or program approved will be added to funds available for new commitments.