56 RUMANIA - CREDIT 



they may be divided into larger lots having a maximum area of fifty hec- 

 tares. In accordance with the size of the purchasing family, and the cir- 

 cumstance that the agriculturist purchaser is or is not already in possession 

 of a small landed property, the number of lots which he may buy is deter- 

 mined, the maximum being five. 



The price of each lot is calculated on the basis that it may not exceed 

 by more than lo per cent, that paid by the bank. 



Purchasers are bound to pay in cash a part of the price, namely : 



10 to 15 per cent, thereof if they buy i parcel, 



25 " " " " " " 2 or 3 parcels 



30 " " " " " " ^ to 5 



The remainder of the price is debited to the purchaser by the Rural 

 Bank and secured by a mortgage on the parcels bought. These debts are 

 for long terms, amortizable in 50 years and paying interest at the rate of 

 5 per cent., plus 2 per cent, for unpunctual debtors. 



Purchasers of the parcels become owners thereof but do not enjoy them 

 quite freely. Certain restrictions are imposed by the contract of purchase 

 and sale, for example : 



a) the proprietor may rot resell his property nor let it on lease ; 



h) division by inheritance may take place only if the area of the pro- 

 perty surpass five hectares, and may in this case only afi'ect the area in 

 excess of five hectares ; 



c) the Rural Bank may inspect the farming of the parcels and does 

 so by means of agricultural experts. 



If the land intended to be sold in parcels is six kilometres (i) or more 

 distant from a village, a new village is formed ; and then before the division 

 takes place land is set aside as the site of private dwellings and also of the 

 church, the school, the mayoralty, etc. 



We have already said that the Rural Bank may sell land exceptionally 

 to the communes and the State. To the communes the land needed to 

 form communal pastures is sold ; to the State woodland. 



In the interval between the purchase of lands and their sale to small 

 farmers the Rural Banks may grant them on lease or cultivate them directly. 

 Beases are given by preference to co-operative letting societies. The bank's 

 direct cultivation and the leases it grants are considered provisional and have 

 force only pending the division into parcels or the execution of works of 

 improvement, the ultimate object of the bank's purchase of lands being 

 always to resell them in parcels. 



3) The Rural Bank also intervenes between large and small proprie- 

 tors in negotiations for the purchase and sale of lands. It is even authoriz- 

 ed by law to fix the price of land, either by whole properties or by hectare. 

 This right is incontestably a serious restriction of individual liberty ; but 

 it is considered necessary because the agriculturist is alwa^^s very anxious 

 to acquire land and therefore might easily consent to pay an exorbitant 

 price for it. 



(i) I Kilometre = 1093.633 yards. 



