THE CUBA REVIEW 



33 



The second reason consists in the fact that the debtor, in sending a check out of Cuba, 

 knew that because of the distance and the eventual mediums of communication it could 

 not be collected within the period estabhshed by law; and this constitutes a fault, or at 

 least negligence, on his part. (Art. 1104, Civil Code.) 



The third reason is that the effects of commerce, such as is the check, are acceptable 

 under the impHcit conditions only that they can be paid. (Art. 1170, Code of Commerce.) 



Naturally we assume that in the case under consideration there was no fault or 

 negligence on the part of the creditor, either to return the check or to present it for payment. 



Responsibility Under Certification — Stopping Payment. 



Second Question. — Does it make any difference whether the certification was made 

 voluntarily by the debtor or at the request of the creditor? 



The two cases involved are completely different. The first, namely, that of the 

 drawer who has his own check certified, is the case above stated, in which we beheve that 

 the obligation of the debtor is not extinguished. But when the creditor, who accepts the 

 check, has it certified, it is evident that he had the opportunity to receive his money and 

 refused it, thus the obligation of the debtor is extinguished. If it was the debtor who had 

 the check certified at the request of the creditor, the conclusion is the same. 



Third Question. — Can, under Cuban laws, a certified check be recalled for fraud? 



While the responsibility of the debtor exists, as stated above — that is to say, while 

 his obligation is not extinguished — we believe that he has no right to stop payment, but that 

 he is under the obligation to notify the bank of the fraud which may have never been 

 discovered. The funds for the payment of the respective check are no longer under his 

 control, but his subsidiary responsibility still exists. When the obhgation of the debtor is 

 extinguished he has neither the right nor the duty to intervene. 



To the Holders of Havana Electric Railway, Light and Power Company Five-Year 

 Seven Per Cent. Secured Convertible Gold Notes — Due September 1 , 1926. 



NOTICE IS HEREBY GIVEN pur- 

 suant to the provisions of Article Four of 

 the Trust Agreement between Havana 

 Electrical Railway, Light & Power Com- 

 pany and Guaranty Trust Company of 

 New York, Trustee, dated September 1st, 

 1921, securing an issue of $1,500,000 Five- 

 Year Seven Per Cent. Secured Convert- 

 ible Gold Notes, that the Havana Electric 

 Railway, Light & Power Company elects 

 to and will redeem, on September 1, 1922, 

 at 102^ per cent, of their face value and 

 accrued interest, all its said Notes then 

 outstanding. 



On or after September 1, 1922, the 

 Notes should be presented for redemption 

 and payment at the Trust Department of 

 the Guaranty Trust Company of New 

 York, No. 140 Broadway, New York, N. 

 Y., with coupons due March 1, 1923, and 

 subsequent attached. Coupons due Sep- 

 tember 1, 1922 should be detached and 

 presented for payment at the Coupon 

 Department of the Guaranty Trust Com- 

 pany of New York. Interest on all of the 

 said Notes will cease on September 1, 1922, 

 and the coupons maturing after said date 

 shall be null and void. 



NOTICE IS FURTHER HEREBY 

 GIVEN that in accordance with the con- 

 version provisions of Article Five of said 

 Trust Agreement, the Noteholders' right of 

 exchange of these Notes into General 

 Mortgage Sinking Fund 5 Per Cent. Gold 

 Bonds of this Company due September 

 1, 1954, expires on the 22nd day of August 

 1922. Noteholders desiring to exercise said 

 right should present and surrender their 

 Notes on or before said date to the Trust 

 Department of the Guaranty Trust Com- 

 pany of New York, with all unmatured 

 coupons (including coupon due September 

 1, 1922) attached. For each Si. 000 Note 

 so surrendered for exchange, the Note- 

 holder is entitled to receive one SI, 000 

 General Mortgage Sinking Fund 5 Per Cent 

 Gold Bond of this Company and, in addi- 

 tion, a cash payment of Si 75, to which 

 will be added the amount by which the 

 accrued interest on the Note exceeds the 

 accrued interest on the Bond. 

 HAVANA ELECTRIC RAILWAY, 

 LIGHT & POWER COMPANY 

 Bv Herman Kr.\emer, Treasurer 



