50 INFORMATION RELATING TO CREDIT 



to liquidate the debt at a fixed date, or immediately exact full repayment 

 of the loan even if the term for whith it was made have not expired. The 

 bank may similarly exact repayment at a date fixed by itself if the bor- 

 rower do not assign the loan to the object for which it was made, or if 

 circumstances have caused a modification of its employment. 



The agricultural and industrial banks may apply to the Ministry of 

 Finances for authority to issue bonds. The total sum of their issues 

 ma}^ not exceed the total sum of their loans nor be more than twice the sum 

 of their paid-up capital. Bonds are normally payable to bearer but may 

 be nominative, and the minimum value of one is fixed at five 3^uan. They 

 bear interest and may be repaid with an additional premium. The 

 amount of the bonds repaid each year must not be less than the total sum 

 of the loans repaid to the bank in the same year. 



In drawing up their annual balance-sheet the agricultural and indus- 

 trial banks must deduct from the amount of the net profits a sum equi- 

 valent to not less than a tenth of such amount, in ^rder to constitute a 

 reserve fund with which to cover eventual losses and ensure an average 

 dividend on shares. The reserve fund may not be used without the pre- 

 liminan,^ authority of the Ministry of Finances, applications to draw on 

 it backed by a statement of reasons being transmitted to this ministry' 

 by the medium of the competent authorities. 



These banks are placed under the control of the ]\Iinistry of Finances 

 and the authorities with in whose jurisdiction they find themselves. The 

 local representative of the central government in the various provinces 

 may also make enquiries as to their situation. 



The authorities exercising control maj' order an agricultural and in- 

 dustrial bank to present a written report on the situation of its affairs. 

 They may also verify the information in the bank's books or any other 

 document as to the sums and the bonds which the bank has in hand. 

 Subsequently the}' must draw up a confidential report to the competent 

 autorities which these will transmit to the Ministry of Finances. The 

 controlling authorities may attend meetings and express opinions at them, 

 without however having the right to vote. 



The Ministry of Finances or the competent authorities may, when 

 they think necessary, limit the concession of loans as well as any other 

 business undertaken by the agricultural and industrial banks. 



The agricultural and industrial banks fix the maximum rate of in- 

 terest on their operations. 



