455

be deducted from such surplus funds, if any, and shall be deposited

with the Hongkong and Shanghai Banking Corporation six months before

the date at which such payments fall due.

In the event of their being no surplus funds available

as aforesaid from the earnings of the Railway, the amount required

for payments of interest and repayments of principal, shall be

provided in accordance with the conditions of Article 14 hereinafter.

Article 12.

The Corporation are hereby appointed Trustees for the

Bondholders and in any future negotiations respecting these Loans,

or matters arising in connection therewith, which may take place

between the Viceroy and the Corporation the Corporation shall be

taken as representing the Bondholders and as such, empowered to act

on their behalf. In view of the fact that the Corporation's responsibility

to the Bondholders continues after construction, whereas,

as stated in Article 9, its commuted commission for services rendered

is limited to the period of construction, and the Corporation is not

thereunder entitled to any further remuneration during the period

of the Loan, the Corporation shall receive as remuneration for its

services and responsibility in acting as Trustees for the Bondholders

the sum of £1,000 per annum, such remuneration to commence from the

date of issue of this Loan and to terminate upon its complete redemption.

Article 13.

All materials of any kind that are required for the construction

and working of the Railway, whether imported from abroad

or from the provinces to the scene of the work, shall be exempted

from likin so long as such exemption remains in force in respect of

other Chinese Railways. The bonds of this Loan together with their

coupons and the income of the Railway, shall be free from imposts

of any kind by the Government of China.

Article 14

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