CANTON-KOWLOON RAILWAY.
# DRAFT FINAL LOAN AGREEMENT,
Article 1.
The Corporation agrees to issue on behalf of the Imperial Chinese Government a sterling Loan (hereinafter referred to as "the Loan") for the amount of £1,500,000 Imperial on the terms and conditions hereinafter contained. Chinese Government Bonds are to be issued for the entire amount, similar to the bonds of the Shanghai Nanking Railway, with the Railway as first mortgage security therefor. The Loan shall be issued at 95 per cent of its nominal value in one issue, and the price agreed upon shall be the nominal value, and any loss or profit in disposing of the Bonds shall be borne by, or go to, the Corporation. The interest on the Bonds shall be at the rate of 5% per annum on their nominal value, payable half-yearly, and shall be calculated from the date of their sale to the public.
Subject to Article 16, the duration of the Loan is fixed at fifty years commencing from the date of the ratification of this agreement, but no interest shall be paid on any bonds which may be redeemed or cancelled under the terms hereinafter mentioned after the redemption or cancellation thereof.
On the face of each of these Bonds shall be expressed the value thereof in the sum of £100, or in such different amounts as the Chinese Minister in London, in consultation with the Corporation, may sanction.
Article 2.
The proceeds of the Loan are to be used in the construction and equipment of the Railway and in paying interest on the Loan during the course of construction.