"Art, 2: 'The amount of the loan shall be Axed at $120 million Chinese currency and shall be issued in three instalments, namely on March 1, 1938; March 1, 1937; March 1, 1998, and the amount for each instalment' shall be.
$40. million, Art 3: The loan shall be Issued at 98 percent of Its face value.
Art. 4: The loam shall be at the interest of 6 per cent per annum, starting from the date of issuance fof each instalment, Interest shall be. Bayable on every Feb, 28 and August Art. 5: Principal of Joan shall_be redeemed in 20. instalments. The amount of each redemption shall be Spor cent of the total loan, namely $2-million, Repayment of principal shall be made after one year of the ate of its issuance.
The bonds issued in the fast period shall be redeemed at the end of Feb.,. 1986, and In the second period at the fend of Feb, 1957. Principal of loan shall be totally amortized at the end of Feb, 1958, Aforementioned repayment of prin" cipal shall remade In accordance with amortization table for each period by Public drawings 20 days before the expiration of the redemption period.
Art 6: The sinking fund for the payment in interests and repayment of principal for the loan shall be secured from the surplus revenue of the above-mentioned projected railways and extension ines stipulated in Art 1, and existing, state-owned railways.
Alter providing for the service of foreign loans, the remainder surplus railway revenue shall serve as sinking fund and shall be handed over to the Third-Term Railway Construction Bonds Sinking Fund Administrative Commission in a special account with the Central Bank.
Prior to the new railways realizing any surplus revenue, the Ministry of Finance shall in the first year allot 'a subsidy of $2,400,000 from tt " Na. tional 'Treasury as sinking fund: '$3600,000 for the second year, and '$4,900,000 for the third and fourth year respectively, The money' shall Ge turned over to the Sinking Fund Commission in special account with the Central Bank.
Art, 7:—The Sinking Fund Commission for the bonds shall be jointly organized by two representatives each from the Ministries of Finance and Railways, one representative from the Board of Audit, and three representa~ tives from the banks which act as agents, Regulations governing the organ-lation of the Commission shall be jointly drafted by the Ministries of Finance and Railways, subject to the approval of the Executive Yuan.
Art, 8: For payment of interest and repayment of principal for the loan, the Ministries of Finance and Railways shall entrust the Commission 2s designated agent. The Central Bank shall be the seal agent.
rl, 9: Funds raised from the loan shall be used exclusively for the purposes as outlined in Art. 1, and shall Rot be diverted to other uses. "Funds thus raised shall be in the custody of special commission to be jointly. organized by two representatives ach from the Ministries of Finance and Railways, one representative from the Board of Audit.
Art 10: Denominations of the loan shall be of three kinds, namely $1,000, $500 and $100, Art. I: Bonds shall be endorsed and issued by the Minister of Finance and the Minister of Railways. The bond shall be nom-purchased and mortgaged, They may. also be accepted as substitute for [case or securities or serve as reserve for banks.
Art. 13: Other than the privileges: as outlined in. these regulations, bondholders shall enjoy no rights with regard to the railways as stipu-Tated in Art. 1.
Art. 14: Any action calculated at! counterfeiting or impairing the credit
Text read from the printed page and cleaned; old type leaves the occasional error.