DEUDAS  DE LA REPUBLICA


December  31 of each year thereafter until and including June 30 1945, a sum sufficient to redeem on each of said dates, at the principal amount thereof and  accrued interest, 1/20th of all of the Bonds, issued and outstanding on December 31, 1935 before the redemption and retirement of the Bonds to be redeemed and retired on that date. All Sinking Fund payments so made, except the last, are to be applied by the Bank on each sinking fund payment date to the redemption and retirement, at the principal amount thereof and accrued interest, of bonds previously drawn by lot for retirement on said date. The last sinking fund payment ill be applied to the payment, at or after their maturity, of the Bonds then outstanding and not theretofore called for. redemption. The Republic will be entitled to a credit upon the Sinking Fund payment  next due in an amount equal to the aggregate of the principal amount of, and interest to the next interest payment date upon, all Bonds delivered to the  Bank  by the  Republic for cancellation after the last previous interest payment date and no less than thirty-five (35) days prior to  the next  succeeding interest payment date.
    The Bonds  are specially secured by a first preferential right and lien, to the extent required for the payment of principal and interest, upon Ninety per centum  (90%)  of the revenues collected from the taxes specified in Articles XII to XIX both inclusive, of the Public Works Law  of the Republic, as- amended, subject only to the rights of the holders of Twenty  Millions Dollars ($20.000.000) principal amount of  the outstanding Public Works  Five  and  One  half Per Centum (51/2%) Serial Certificates maturing serially on and prior to June 30, 1933, all as provided in said Agreement.
    This  Bond  is transferable by delivery unless registered as to principal in the name of the owner upon the books of the Republic at the principal office of The Chase National Bank of the City of New York, in the Borough of Manhattan, City and State of New York, United States of America, such registration being noted hereon, in which event no transfer shall be valid unless made on said books by the registered owner in person or by duly authorized attorney and similarly noted hereon; but this Bond may be again made transferable by delivery by being in like manner transferred on  said books to bearer; and thereafeter from time to time this Bond may be registered or made transferable by  delivery as before. Notwithstanding  the registration of this Bond as to principal, the coupons appurtenant thereto shall always be payable to bearer and transferable by delivery.
    This Bond  is not valid or  negotiable until countersigned for authentication by the Chase National Bank of the City of New York.
    This Bond  is executed in behalf of the Republic by the manual signature of its Secretary of the Treasury or by the facsimile of his signature and the manual signature of his authorized representative, and the coupons are executed in like behalf by imprinting thereon a facsimile of the manual signature of its Secretary of the Treasury.


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