Cuban Investments 16 



corporations of the State, legally authorized to 

 contract loans, and to the extent to which they 

 are so authorized, even without mortgage, pro- 

 vided the loans be always secured as to prin- 

 cipal and interest by the necessary permanent 

 revenues of such bodies. 



To acquire or discount government, provincial, 

 municipal and corporate evidences of indebted- 

 ness provided that they are secured as set forth 

 in the preceding paragraph. These transactions 

 and those set forth in the preceding paragraph 

 can only be made from the corporate capital, 

 or by means of a special series of obligations, 

 bonds or warrants. 



To issue, by virtue of the transactions already 

 enumerated, and up to the amounts which may 

 have been loaned, obligations, warrants or mort- 

 gage or other bonds, redeemable on fixed dates 

 or through drawings, at par or at a premium. 



To negotiate the said obligations, warrants or 

 mortgage bonds, and to loan or to open credit 

 accounts on them. 



Loans shall be made only when they are fully 

 secured by mortgage on real estate of a value 

 at least double the amount of the loan. 



Should there exist prior liens duly inscribed on 

 the property to be mortgaged, the loan shall only 

 be made subject to there being withheld there- 

 from an amount sufficient to pay the principal 

 and interest or charges of the said liens. 



Loans can also be made in spite of existing 

 prior liens, duly inscribed, provided the holders 

 of the said prior liens waive their priority rights 

 in legal form and due notation of such waiver is 

 made in the Registry of Property. 



