colxxxix 



If an owner wishes to borrow, say, 100 francs or £40, and charge 

 his property mth that amount, he furnishes with his application to the 

 bank his title, consisting of an extract from the Cadastre, and certificate 

 endorsed thereon by the Registrar of Loans and Charges. .The expense 

 of obtaining this would not usually exceed 2s. The loan having been 

 agreed to, an acte would be drawn by a Notary for 5 francs to the effect 

 that the borrower admits his liability, and charges his land with the 

 amount in favour of the lender. This is represented to the Registrar, 

 and the charge recorded against for a fee of from Is'. to 2«. The charge 

 can be fully or partially erased when paid off in full or in part or can 

 be assigned to a person for similar trifling fees. 



Special laws, in addition to Vaudois Civil Code, have been recently 

 passed in order to facilitate the obtaining of loans on land, and in these 

 laws the interests of borrowers have been preferred to those of lenders. 



The preamble of a law {Loi concernante I'obligation hypothecaire d 

 terme) passed in 1874 recites that the wants of the country require that 

 greater facilities should be given for obtaining loans upon land, and this 

 law legalized a new and special form of hypotlieque for a term of years 

 not less than five. At the expiration of this term, or at any subsequent 

 period, the lender cannot require repayment, except after a year's 

 notice ; the borrower may pay off the loan or any part, being not less 

 than one-third of the original loan, on giving three- months' notice. 

 Instead of making repayment when legally demanded, the debtor may 

 require the creditor to assign his right of action to any other person 

 who may be willing to take it up. These loans may be paid ofi' by 

 a sii^king fund not exceeding 10 per cent, annually on the loan. 



The 16th section of this law promised the establishment of a Land 

 Credit Fund, and, in fulfilment of this promise, a special decree reorgan- 

 ized a previously existing loan fund and constituted the present Land 

 Credit Bank. 



The bank is restricted to make loans on real estate, preference is to 

 be given to, and the greater part of the bank's resources lent on, rural 

 and agricultural properties. Loans must not be made for more than 

 two-thirds of the capital value of vineyard land, where the growing 

 vines constitute a considerable portion of the value, and are capable of 

 removal or deterioration ; in other cases three-fourths value may be lent. 

 In case of unpunctual payment, interest at the rate of 6 per cent, is 

 charged on the overdue annuity. 



The general council of the bank, on which the executive govern- 

 ment has a preponderating influence, is charged with the duty of laying 

 down each year the general lines on which business is to be carried on, 

 fixing the rates of interest and providing that the greater part of the 

 loans shall be made on rural properties and repayable on the sinking 

 fund system. 



The land debenture {obligation fonciere) is one of the chief instru- 

 ments used by these land credit banks, and the Yaudois Bank derives 

 nearly half of its resources from the issue of these debentures in ex- 

 change for deposits. They are issued in amounts of £20, £40, and 

 £200, with' interest coupons attached, payable to particular persons and 

 transferable by endorsement or payable to bearer and transferable by 



og 



