Part 111: Credit 



CHILE. 



WORK DONE BY THE MORTGAGE CREDIT BAXK IX 191: 



SOTTRCE : 



Caja de CREDiTo HiPOTECARio : Lifonue correspoii'liente a las operacioiies del ano 1912. 

 {Mort^a?e Credit Bank. Report of Transactions for 1912). Valparaiso, .Sociedad Uni- 

 verso, 1913. 



§ I. Some particulars respecting the mortgage credit bank. 



In a previous number of our Bulletin (i) we spoke at some length 

 of this important land credit institution, describing its constitution and 

 working, and pointing out the great services rendered by it to agricultural 

 economics in Chile. Before giving an account of its working in 1912, it 

 may be desirable to enumerate its essential characteristics. 



The Mortgage Credit Bank was legally constituted in 1885 for purposes 

 of pubhc utiUt^'. As it had no share capital, it was not intended to make 

 any profit, except so much as might be necessary to cover the cost of 

 working and to form a reserve fund. Its object is to facihtate all long 

 term mortgage credit transactions and the repayment of loans by means 

 of annual instalments including interest and sinking fund. Eor this pur- 

 pose, the Bank issues mortgage bonds, personal or to bearer, for a value 

 of 1,000, 500, 200, and 100 pesos, redeemable b}^ drawings. 



The loans are made in bonds, and must be guaranteed on first mortgages: 

 they must not exceed 50 % of the value of the land mortgaged. In prac- 

 tice this hmit is reduced to 40 %, and even to 25 %, according to the charac- 

 ter and qualit}- of the land. Great administrative prudence has been shown 



(i) Bulletin of Economic and Social Intelligence, 1913, No. 3. 



