RECONSTRUCTION AFTER THE DESTRUCTION OP WAR 65 



mortgage equal in amount to that of the loan, and of a preference over all 

 other and private charges which may burden the real estate. These rules 

 do not however apply to buildings which in virtue of a right have been erec- 

 ted on another's soil (article 95, paragraph l, 2nd phrase, of the German civil 

 code). 



When the loan has been granted, the authority competent to allot the 

 war or the provisional indemnity should certify whether and in what measure 

 the granted loan has been iisefuUy employed, within the limits of the ap-- 

 proved plan for reconstruction. 



If the loan is certified to have been usefully employed the guarantee- 

 ing mortgage enjoys, while and in the measiire in which it does not become 

 united with the. mortgaged property in the tenure of one person, a pre- 

 ference over other chaiges arising out of private rights and burdening the 

 same property. 



As the debt is extinguished the guaranteeing mortgage loses its prefe- 

 rence over anterior charges. 



It should be noticed that these ndes are, by analogy, applicable to 

 buildings erected in virtue of a building right. 



Certain complementary conditions are contained in the iuterministerial 

 decree of g May 1916. Redemption will begin after an interval of five years, 

 calculated from a date to be subsequently fixed by the Minister of Finances. 

 The annual payment for redemption is fixed at 3 per cent, of the amount of 

 the loan and is payable half-yearly on i October and i April. The loan 

 may be called for at once if transference takes place except by siiccession or 

 by a legal act practically equivalent to succession, such as a reserving 

 contract. Exceptionally a transferee may still benefit by the loan if the alie- 

 nation has been justified by economic reasons. If the property remains in 

 the possession of the person who has suffered loss, or of his legal heirs who 

 are so in right of succession or a legal act practically equivalent thereto, 

 a quarter of the original sum of the loan is remitted at the end of five and 

 another at the end of ten years, beginning at a date to be generally fixed 

 by the Minister of Finance. 



