CO129-336 - Governor Nathan & Public Offices - 1906 [11-12] — Page 55

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be held by it as a first mortgage security for the Bonds under the provisions of this Agreement until such time as principal and interest of the Bonds together with all indebtedness shall have been paid off, when the same shall then be returned to the Viceroy except only in the case of the Imperial Chinese Govern- -ment's failure to pay the interest or principal of the Bonds and consequent realization under the powers of the mortgage

security.

For the proper protection of the first

mortgage security the Chinese Government undertakes that until the Bonds shall have been redeemed no part of the lands com- -prised in the mortgage security or the Railway with its ap- -purtenances shall be transferred or given to another party, shall be injured or that the rights of the first mortgage shall be in any way impaired, unless with the consent in writing of the Corporation which shall only be given if in the opinion

of the Corporation

or

the interests of the bondholders will not

be affected.

And further, that until the interest

and principal of the Loan and all indebtedness shall have been paid off, or unless with the express consent in writing of the Corporation, the Chinese Government or the Viceroy shall not again mortgage the above properties to another party whether

Chinese or foreign.

During the period of this arreement no

special taxes shall be levied by the Chinese Government on the Railway its appurtenances or earnings: but all taxes at present payable such as land tax as well as any taxes which the Chinese Government may hereafter institute, such as starp duty, etc., and which may be applicable generally to all commercial tran- -sactions in China, shall also apply in the case of the Railway

and its operations.

Article 8.

20

It is agreed that if the half-yearly

interest