Article 16.
351
The term of the Loan, as stated in Article 1, shall be fifty years. Repayment of principal shall commence after the expiry of 12 years from the date of the Loan and shall be completed in 37½ years by payments to the Hongkong Shanghai Banking Corporation as agents for the service of the Loan, acting for the Corporation under the terms of this agreement, in accordance with the amortisation schedule of amounts and dates hereto attached.
If, at any time after the expiry of 12 years from the date of the Loan, the Imperial Chinese Government should wish to redeem the outstanding amount of the Loan or any portion of it, not yet due under the provisions of the amortisation schedule hereto attached, not less than six months' notice shall be given in writing by the Viceroy or the representative of the Corporation, declaring the number of additional Bonds so required to be redeemed, whereupon the representative of the Corporation shall immediately proceed to make such arrangements as may be necessary and usual for the redemption of the number of Bonds specified, which when duly redeemed after payment by the Imperial Chinese Government of the proper amount due thereon, shall be cancelled and delivered to the Viceroy.
All Bonds thus redeemed in excess of the amount specified in the amortisation schedule hereto attached before the expiry of 25 years from the date of the Loan shall be paid for with a premium of 2½% over their face value (i.e. £102. 10s. will be required to pay for £100) but after 25 years Bonds may be redeemed over and above the amounts specified in the schedule without premium upon notice being given in the manner above specified.