50 TIMBER BONDS 



feet, these lands and properties being particularly described 

 as follows: 



(Here insert legal description.) 



That the title to all of the above property is vested in 

 us. That we will proceed forthwith to make an issue 

 of dollars of bonds secured by first mort- 

 gage, which shall be a prior lien on all the property here- 

 tofore mentioned. Interest on the bonds to be at the face 

 rate of six (6%) per cent per annum, payable semi-annual- 

 ly. The principal of the bonds to be due and payable 

 serially, commencing one year from date of the bonds ac- 

 cording to the following schedule: 



(Here insert serial dates.) 



The bonds shall be dated 



The trust deed shall contain a sinking fund provision 

 for the deposit monthly of dollars per thou- 

 sand feet, board measure, lumber tally, on all timber cut 

 from the lands of the company during the preceding month, 

 and shall also provide that such deposit in the sinking fund 

 shall be made in accordance with a sworn statement of 

 the operations of the company covering the month for 

 which such deposit is made. The depositary for the sink- 

 ing fund moneys shall be selected by you and shall pay 

 over such sinking fund moneys at the direction of the 

 trustee under the trust deed. Such sinking funds shall be 

 used to retire the principal of the bonds as they mature and 

 any surplus remaining in the sinking fund at the end of 

 any six months' period may be used to retire the bonds at 

 par and accrued interest and a premium of five (5) per 

 cent. 



The trust deed or mortgage shall contain such other 

 legal provisions as may be required by you to make said 

 bonds marketable and a safe investment. 



The right to prepay the bonds at the end of the first 

 year and on any semi-annual interest payment day there- 

 after by the payment of principal, accrued Interest and a 

 premium of (5) per cent, upon sixty (60) days previous 

 written notice, shall be retained. 



There shall be furnished to you and the trustee a semi- 

 annual balance sheet and an annual audit of our books and 

 accounts, made by auditors approved by you, and also an 

 audit of our books and accounts by an auditor selected by 

 you, and at any time that you may demand it. All of such 

 audits and balance sheets to be furnished at the expense of 

 the mortgagor. 



Cut-over lands, timber land and timber may be sold for 

 cash upon your written approval provided such cash be 



