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Article 14.
It is agreed that during the time of the construction of the Hallway, the interest on the Bonds and on any advance made by the Corporation is to be paid from the proceeds of the Loan. The accruing interest from any proceeds of the Loan not used during the period of construction, and the earnings derived by the Chinese Government from the working of any sections of the Railway as they are built, are to be used to make up the amount required for the payment of the said interest, and if any deficiency remains it is to be met from the proceeds of the Loan.
When the construction of the Railway is wholly completed the interest on the Bonds is to be paid, from the income or earnings of the Railway received by the Chinese Government, every half-year on the first day of June and first day of December.
It is hereby agreed that the amount required for the payment of interest and the repayment of principal together with a sum of one-quarter of one per cent on such amounts to cover commission to the Hongkong and Shanghai Banking Corporation who are hereby appointed Agents for the entire service of repaying the Loan shall be paid to them fourteen (14) days before the due dates in Hongkong or in Canton (at the option of the Viceroy when settling exchange) in local currency sufficient to meet such payments in sterling in London, exchange for which shall be settled with the Hongkong and Shanghai Banking Corporation, the Viceroy having the option of settling exchange at any date or dates within six (6) months previous to any due date for the repayment of interest and principal.
The Chinese Government unconditionally undertakes and hereby promises to pay the principal of the Loan and the interest on the Loan on the due dates fixed therefor. If, at any time, the earnings of the Railway, together with funds available from the proceeds of the Loan, are not sufficient to meet the interest on the Bonds and the repayment of capital in accordance with the amortisation schedule hereto attached, the Viceroy shall devise means for supplying the deficiency.