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entitled to any further remuneration during the period of the Loan, the Corporation shall receive as remuneration for its services and responsiblity in acting as Trustees for the Bond-holders, 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 lekin 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.
The
It is agreed that during the time of the construction of the Railway, the interest on the Bonds and on any advances made by the Corporation is to be paid from the proceeds of the Loan. 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 the 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, and should his inability to do so appear probable, he shall memorialise the Government to take measures to make from other sources, and thus be ready to pay off the indebtedness, so that the required amount may be up the deficiency placed in each case at least fourteen days previous to the due dates of such payments, in the hands of the Hongkong and Shanghai Banking Corporation.
Article 15.
The Corporation may, subject to all its obligations, transfer or delegate all or any of its rights, powers, and discretions, to its successors or assigns, but the Corporation, which is a Corporation formed under English law, shall not transfer its rights under this Agreement to any other nation, or people of any other nationality, except British or Chinese. Similarly, the Chinese Government's rights and. authority under this Agreement shall not be transferred to persons of other nationality.
It is further understood that the Chinese Government will not build another line competing with this Railway to its detriment.
Article 16,
The term of the Loan, as stated in Article 1, shall be thirty years. Repayment of principal shall commence after the expiry of 12 years from the date of the Loan and shall be completed in 17 years by yearly payments to the Elongkong and Shanghai Banking Corporation as Agents for the ervice of the Loan, acting for the Corporation under the terms of this Agreement, in accordance with the amortisation schedule hereto attached.
If, at any time after the expiry of 123 years from the date of the Loan, the Imperial Chinese overnment should wish to redeem the outstanding amount of the Loan, or any portion of it, not yet e under the provisions of the amortisation schedule hereto attached, not less than six months' notice
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