Page:British and Foreign State Papers, vol. 144 (1952).djvu/391

Rh mills or cane plantations purchased between August 15, 1934, aad September 3, 1937, the period for amortization shall be reduced by one-fourth, but the reduction cannot exceed 5 years; but in all else the foregoing rules ‘shall also be applied to said debts.

(11) In the cases in which any creditor takes charge of a sugar mill in order to obtain reimbursement of any claim comprised in this moratorium, or of any other debt, it shall be an indispensable requisite therefor that he previously obligate himself to continue to operate it in each sugar crop, if said mill was operated in the two crops prior ‘to the date on which it was taken over. The Chief Executive shall issue the proper measures to insure compliance with this obligation.

(12) The provisions of this transitory provision shall also be applied to the obligations contracted prior to August 14, 1934, as debtors, by natural or juridical persons who on the promulgation hereof are at the same time creditors by reason of claims subjected to the foregoing rules, provided they are comprised in Title 4 of Decree-Law No. 412 of 1934, or guarantee the fulfilment of such obligations by encumbering as security therefor mortgages which are subject to liquidation in accordance with said rules, in an amount at least equal to that mecessary so that the security thus given will cover what is exactable from them for principal and interest, in accordance with this transitory provision and by virtue of the present rule.

(13) There are excluded from the benefits of these moratoria:

(a) The obligations excepted in Article 59 of Decree-Law No. 412, of August 14, 1934.

(b) Mortgages constituted to secure deposits, administrative or judicial bonds, executorships and usufructs.

(c) Obligations in which the Nation, the Provinces and the Municipalities are debtors.

(d) Those contracted by underwriters or employers by reason of pensions or indemnities arising from the Workmen’s Compensation Law.

(e) Obligations contracted by public service companies the functions of which are to furnish electricity, gas, water, or telephone service, even though as organisations affiliated with or dependent on them they have ownership rights over sugar mills or cane plantations.