Page:British and Foreign State Papers, vol. 144 (1952).djvu/387

Rh In every cumulative loan the principal shall be considered to be the amount actually received by the debtor at the time of execution of the document covering the obligation, and it shall be considered reduced by the amount of the payments made, after deductions have been made therefrom of the amount of the interest accumulated on each one.

This principal thus reduced shall be amortized in the instalments specified by rule 1, or in a single amount at any time, at the will of the debtor.

All interest that has been accumulated on mortgage loans shall be eliminated and shall be null and uncollectible, so that in this manner interest shall be earned and be collectible only on the unpaid part of the principal.

This provision shall also be applicable to the principal of “censos” and other perpetual liens specified in Moratorium Decree-Laws 412, 423 and 594 of 1934, as modified by the Law of September 3, 1937.

(3) The obligations to which the initial paragraph of this transitory provision refers, so far as they affect natural or juridical persons who are owners of sugar mills, as debtors or guarantors, shall also be subject to what is established in Rules 1 and 2, provided that such obligations secure debts specifically contracted with direct or indirect guarantee of sugar mills or cane plantations or result from supplies, financing, rentals or services owed by said mills; but the amount of the annual payments that can be exacted of them as a credit, first, to the interest, and thereafter to the amortization of the principal, shall be limited according to the following bases:

(a) When a pound of centrifugal raw sugar in warehouse at port is quoted at less than 1.40c per Cuban pound on an average during the crop, no payment can be exacted of them on account of the annual instalment to become due on the following June 30th, and the amounts representing. amortization and interest of said annual instalment shall be covered by the payments that are found to be exactable in future.

(b) If the average price of sugar exceeds the limit specified, there must be destined to the said payments, whether they represent the current annual instalment or any that have been left unpaid in accordance with the preceding base, 3 per cent. of the gross value of the raw sugar manufactured in the crop in which this occurs, so long as the price does not exceed 1.50c