MISCELLANEOUS NEWS 89 



For the carrying out of this programme by the Executive Authorities 

 a maximum expenditure of 8,000,000 pesos (17,600,000 frs.) is authorized, 

 which will be made good by means of the instalments paid by the pur- 

 chasers. This expenditure shall be met out of the ordinary ftmds for 

 which provision is made in the Budget. In case of their being insufficient, 

 recourse may be had to credit. 



Private Colonisation with Intervention of the National Mortgage Bank. — - 

 Individual landowners or colonisation societies that, in terms of the pre- 

 sent law. subdivide farms in order to sell them, in small holdings, may 

 request the Kational ]Mortgage Bank for a special loan for each lot, when 

 the3^ have presented their plan of subdivision. In case of good land, 

 supplied with water and not more than 20 km. from a railway station, 

 the Bank will grant loans up to 80 % of the estimated value of the 

 holdings which do not exceed 30 hectares in area, and up to 70 % when 

 the area is from 30 to 80 hectares, always provided the estimated value 

 of the lots is less than io,oco pesos. In case of lots of larger area, the 

 ordinary percentage will be given. The proprietor of the land cannot 

 receive the amount immediately the loan is granted, but the Bank is 

 boimd for one year to grant loans to possible purchasers, gradually as 

 the sales are arranged, always provided the purchasers have fulfilled the 

 following conditions, ist., they must not have purchased more than one 

 holding, nor owe the Bank for more thar one; 2nd., they must have 

 entered into possession of the holding for which the loan is made; 3rd., 

 they must have paid the seller the difference between the price of the 

 holding and the amount of the loan granted. At the moment of the 

 passing of the loan, the seUei shall receive the amount as part of the 

 price in the presence of the purchaser. 



Also in this case the obHgation is imposed on the latter 'of living 

 on the farm and cultivating it: severe penalties are imposed on anyone 

 simulating the sale of lots with the object of obtaining for himself 

 the loans to purchasers authorized by this law\ 



Colonisation Carried out by Railway Companies. — The Executive 

 Authorities are authorized to deal with the railw^ay companies formed or to 

 be formed in reference to the colonisation of land suited for agriculture along 

 the railway lines and within 10 kms from them. 



The Government may expropriate this land, provided always that 

 the area is not less than 5,000 hectares and at least ^i^ are under 

 cultivation. 



The rmdertaking, in accordance with Government Order, must de- 

 ]X)sit the amount for the expropriation to be made : after the expropri- 

 ation, the land shall be registered in the name of the contracting under- 

 taking on payment of the corresponding amount. The company shall be 

 bound immediately to divide the land into lots of not more than 100 

 hectares, which shall be offered for sale on the same conditions as estab- 

 lished by this law for State Colonisation. The undertaking, however, 

 when once the lard is subdivided, may ask the National IMort gage Bank 

 for a loan in bonds of not more than 60 % of the estimated value of each 



