Page:British and Foreign State Papers, vol. 144 (1952).djvu/389

Rh The exception to which the second paragraph of this rule refers shall not govern with respect to the obligations to which it refers, provided that the lot thus acquired is situated in places of not less than 20,000 inhabitants.

(5) As a supplement to what is established in the foregoing four rules, the provisions of Decree-Laws 412 and 594 of 1934, as modified by the Sugar Co-ordination Law of September 3, 1937, shall be applied, but without altering what is established in said rules and without prejudice to the provisions of the Law of July 10, 1939.

(6) With reference to the obligations granted a moratorium by Decree-Law 423 of 1934, as modified by the Law of September 3, 1937, and also with respect to the debts for the deferred price of cane plantations, subsequent to August 14, 1934, and prior to September 4, 1937, the provisions of said legal texts shall be observed instead of applying the foregoing rules; but the moratorium which the said texts established shall be understood as extended until June 30, 1960, on the same terms as at present in force. Like treatment shall be applied to the mortgages on rural properties devoted to the cultivation of sugar cane, comprised in the initial paragraph of this transitory provision, to the extent that the natural or juridical person who was the owner, lessee or usufructuary of the sugar mill, to which the cane plantation or plantations established on the land in question is or are bound, was on September 3, 1937, a creditor by reason of said mortgages, but the provisions of the preceding rule 2 shall also be observed with respect to said mortgages.

(7) In the case of pignorative claims comprised in this transitory provision, when the pledgee has reserved to himself. or limited with respect to the owner of the shares, the right to vote the shares pignorated, these rules shall be observed:

(a) The creditor cannot vote said shares in any manner that will produce, directly or indirectly, to the detriment of the company or of the owner of the shares, the loss or diminution of any of the benefits which this transitory provision grants them, nor compel the owners thereof to vote in a manner that would produce those results.

(b) The shareholder can vote in the manner directed by the statutes of the Company, to make contracts of sale, lease or any other operations relative to its properties, as well as to borrow money on the security of said properties, provided