THE CUBA REVIEW 



Analysis of the New Law 



The following analysis of the new law has been prepared by the division's adviser 

 on Cuban laws. 

 Article 108 of the Mortgage Law of Cuba is as follows: 



Art. 108. The following cannot be mortgaged: 



First The growing crops and unpaid rents separated from the estate which produces them. 



which has been amended by the aforesaid law of March 2, 1922, so as to read as follows: 



The following cannot be mortgaged: Growing crops and unpaid rents separated from the 

 estate which produces them without prejudice to the possibility of encumbering the said crops as 

 a guaranty for financing credits pursuant to the special law by which the said contracts are governed. 



Article 110 of the Mortgage Law of Cuba is as follows: 



A mortgage extends to natural increase, improvements, growing crops, and rents not collected 

 when the obligation falls due, and the value of indemnities allowed or due the owner for insurance 

 on the property mortgaged, or by virtue of condemnation by right of eminent domain. 



which has been amended by the aforesaid law of March 2, 1922, adding the following: 



There shall be excepted the case when the mortgaged property is subject to some contract 

 of agricultural financing, in which the growing crops at the time when the mortgage is foreclosed, 

 shall not answer for the latter. 



Article HI of the Mortgage Law of Cuba is as follows: 



In accordance with the provisions of the preceding article the following shall be considered 

 mortgaged, together with the estate, provided they belong to the owner of the estate, although 



they are not mentioned in the contract. 



* * * ** * * « 



Third. Crops which at the time the obligation falls due are growing on the trees and plants 

 or have already been hars^ested but not yet removed or warehoused. 



which has been amended by the aforesaid law of March 2, 1922, so as to read as follows: 



Crops which at the time the obligation falls due are growing on the trees and plants or have 

 already been harvested but not yet removed or warehoused, except in case they are subject to some 

 contract of financing as pro\dded in Article 110. 



Paragraph 5 of Article 2 of the Mortgage Law of Cuba reads as follows: 



Art. 2. In the registers mentioned in the preceding article shall be recorded: 



Fifth. Contracts for the lease of real property for a period exceeding six years, or such con- 

 tracts on which rent has been paid in advance for three years or more, or if having neither of these 

 conditions they contain a special covenant by which record thereof is required. 



which has been amended by the law of March 2, 1922, as follows: 



Contracts for the lease of real property for a period exceeding one year; or, if not having this 

 condition, contains express agreement of the parties by which record thereof is required. 



Therefore, previous to the aforesaid amendment of the Mortgage Law of Cuba, 

 it would appear that the Cuban law expressly prohibited the mortgaging of growing 

 crops separate and apart from a mortgage covering the property from which the growing 

 crops were derived, but there would appear to be no prohibition against the sale or 

 assignment of growing crops. Any such sale or assignment made as security for cash 

 advanced would in effect be a mortgage which is expressly prohibited by law. 



This matter has been sharply called to the attention of the translator in connection 

 with his work as counsel for the Cuban Commercial Mission and the Cuban Government, 

 in connection with which work consideration has been given to the drafting of new 

 legislation to meet various conditions which have arisen out of the recent experience in 

 Cuba. A so-called crop lien law has been one of the principal considerations which 

 has resulted in the law of March 2, 1922, which law has been termed "The Law of 

 Contracts of Agricultural Financing, Colonizing, and Grinding of Cane." 



Article I of which law reads as follows: 



The contract of agricultural financing is one by virtue of which the owner, possessor, usufruc- 

 tuary, lessee, or " colono " of a rural estate, or a part thereof, encumbers the crops or proceeds thereof 



