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or cancelled, a like proportion of these Certificates shall likewise
be subject to retirement.
Before the expiration of the term of fifty years the Railway
Administration shall have the right at any time to redeem these
After the expiration of fifty years the
Certificates at their face value.
Certificates shall be null and void and need not be redeemed, but
if any net profits shall have accrued on such Certificates prior to
their redemption or maturity, such accrued net profits must be paid
before the same are cancelled.
The Railway Administration is entitled to issue and receive like
net profit Certificates (to be in form appropriate for use in China and
unlimited in their term, as also without redemption features) to an
amount equal to the remaining four-fifths of the net income or profits.
These Chinese Certificates may be issued in whole or in part whenever
desired by the Director General, and the proceeds of such issue or
the net profits not exhausted thereby will be retained and used by
the Railway Administration for the purpose of accumulating a fund
wherewith to pay off any Loan Bonds which may from time to time
be redeemed under the provisions of this Agreement, or for generally
reducing or ultimately discharging Railway Loan obligations whenever
or wherever desirable by means of the portion of the profits of the
Railway represented by such Certificates. Such Chinese Certificates
may, however, be used in part by the Railway Administration, if