CONTRACT TO DELIVER BONDS 61 



paid into tlae sinding fund, but such payments not to ex- 

 ceed sinking fund stumpage rate. 



There shall be furnished to you at the expense of the 

 mortgagor a report and cruise upon the properties involved, 

 to be made by a cruiser satisfactory to you and there shall 

 also be furnished you without expense on your part, an 

 audit of all books and accounts of said companies made by 

 an auditor selected by you. 



The expense of all legal work by attorneys selected by 

 you, covering all legal procedure of any nature in connec- 

 tion with the issuance of the bonds, writing the mortgage, 

 examining title, etc., shall be paid by the mortgagor. 



The bonds shall be prepared, lithographed, printed and 

 certified at the expense of the mortgagor, and under the 

 supervision of your attorneys and shall be in amounts, form 

 and text satisfactory to you. 



The trustee under the trust deed shall be selected by 

 you and the principal and interest may be payable at any 

 place that you may name. 



is to personally guarantee 



the payment of each and all of the bonds issued, both the 

 principal and interest, in such form as shall be satisfactory 

 to your attorneys. 



That in case of default in the payment of either prin- 

 cipal or interest for a period of sixty days, the trustee may 

 and upon demand of the holders of 15% of the bonds then 

 outstanding shall declare all the bonds then outstanding 

 due and payable. 



The bonds are to be turned over to you at .... cents on 

 the dollar for each dollar of said bonds. 



Should this contract not be carried out through fault 

 of ours, we will reimburse you for all expenses of every 

 kind incurred by you in connection with this transaction. 



Yours very truly. 



An analysis of the foregoing forms will give 

 the student a sound understanding of what the 

 bond house demands from the timberman be- 

 fore purchasing his securities. There are deal- 

 ers who do not make such exacting requests, 

 but such dealers are responsible for practically 

 all the defaults in the timber bonds. 



