set forth in, and shall be executed in accordance with the provision of, tl trust agreement. Pending the preparation of definitive engraved bonds of 192 temporary typewritten, lithographed, or printed bonds of 1927 of a simila form, with such omissions, additions and variations as may be appropriate, any denomination or denominations, with or without coupons, as the banke may request, may be issued, and shall be exchangeable for definitive engrave bonds of 1927 when engraved and prepared and ready for delivery, at the offic of the trustee in the city of New York all as more fully set forth in the trus agreement. 7. The bonds of 1927 shall be manually signed on behalf of the Republic b his excellency, the Hon. Hernán Velarde, its ambassador to the United State of America, or other representative thereunto duly authorized. The coupon appurtenant to each of the bonds of 1927 shall bear the facsimile signature o Manuel G. Masías, the Minister of Finance of the Republic, or other representa tive thereunto duly authorized. The bonds, both temporary and definitive, shall be authenticated by the cer tificate endorsed thereon of the trustee. 8. The bonds of 1927 shall be subject to redemption on any interest date, a the option of the Republic, in whole or in part, at 105 per cent of the principa amount thereof with accrued interest to the redemption date upon notice giver by publication once a week for six successive weeks, the first publication to be not more than 90 days and not less than 60 days prior to the redemption date, in a daily newspaper of general circulation published in English in the borough of Manhattan, in the city of New York, all as more fully set forth in the trust agreement. 9. Until all the bonds of 1927 shall have been retired or redeemed, the Re public shall pay semiannually to the fiscal agents for the semiannual service of interest and amortization of the bonds of 1927, the sum of $600,000 in gold coin of the United States of America of the standard aforesaid, which semiannual sum will pay all interest charges and will retire the entire issue by maturity as shown by the table of amortization of the bonds of 1927, which is hereto annexed and marked Exhibit B. Such sum shall be paid in monthly installments as hereinafter in section 10 of this article 1 provided and as more fully set forth in the trust agreement. 10. The Republic shall pay, so long as any of the bonds of 1927 shall be outstanding, to the fiscal agents at their office in the city of New York, in gold coin of the United States of America of the standard aforesaid, the following amounts: (a) The sum of $100,000 in March, 1927, and monthly in each calendar month thereafter. Said sum is one-sixth of the amount necessary for each semiannual installment for the service of interest and amortization of the bonds of 1927 as hereinbefore in section 9 of this article 1 provided. Such monthly payments shall be made by paying weekly to a representative of the fiscal agents in Peru all the gross tobacco revenues collected by the Republic, by the Caja or otherwise for account of the Republic during the preceding week until the current monthly installment has been paid in full, all as more fully set forth in the trust agreement. (b) Such sum on or before the first day of each calendar month, commencing with April, 1927, as may be necessary to make up any deficiency by which the gross tobacco revenues, paid over during the preceding calendar month for the service of the bonds of 1927 as in paragraph (a) above provided, shall not be sufficient for the full payments therein specified to be made. 11. The fiscal agents shall apportion and apply the moneys received by them pursuant to the provisions of section 10 of this article 1 as follows: (a) The fiscal agents shall set aside out of such moneys received by them in each six months' period the amount necessary to pay the interest maturing on the next succeeding interest date on the bonds of 1927 then outstanding and shall apply the same to the payment of such interest on such next succeeding interest date. (b) The fiscal agents shall set aside the balance of such moneys received by them in each six months' period as a sinking fund for the redemption of bonds of 1927 on behalf of the Republic on the next succeeding interest date and shall apply the same to such redemption on such interest date in the manner hereinafter in section 12 of this article 1 provided. 12. The sum set aside by the fiscal agents in each six months' period pursuant to paragraph (b) of section 11 of this article 1, shall be applied by the of, the of 1927, similar iate, of Dankers ngraved e office he trust ublic by 1 States coupons ature of -resenta the cer date, at principal ce given cation to demption h in the forth in the Rel service 0 in gold ich semiissue by 27, which ■ monthly as more shall be York, in 1, the foldar month emiannual of 1927 as payments agents in e Caja or until the y set forth ommencing which the month for ided, shall ed by them ed by them st maturing Canding and I succeeding eys received demption of nterest date in the man period purplied by the fiscal agents to the redemption of bonds of 1927 on the next succeeding interest date at 105 per cent of their principal amount and accrued interest to the date of redemption, on notice given by publication, once a week for three successive weeks, the first publication to be not more than 40 days nor less than 30 days prior to the redemption date, in a daily newspaper of general circulation published in English in the Borough of Manhattan in the city of New York, all as more fully set forth in the trust agreement. All bonds of 1927 redeemed through the sinking fund and all coupons thereto appertaining shall be canceled and no bonds shall be issued in lieu thereof. 13. The Republic covenants that as long as any of the bonds shall be outstanding it will at all times maintain in the Borough of Manhattan, city of New York, a fiscal agency for the service of the bonds. The Republic hereby appoints J. & W. Seligman & Co. to be the fiscal agents for the bonds, which appointment J. & W. Seligman & Co. hereby accept. The Republic will pay the fiscal agents as compensation for their services onequarter of 1 per cent of all amounts paid to the fiscal agents for the payment of interest on the bonds, and one-quarter of 1 per cent of all amounts paid to the fiscal agents for the sinking fund or for the payment of the principal and premium of the bonds at maturity, or by call for redemption, or otherwise, all as more fully set forth in the trust agreement. The Republic will also reimburse the fiscal agents, on demand, for all expenses incurred in connection with the service of the bonds, all as more fully set forth in the trust agreement. The fiscal agents shall not be required to segregate any moneys paid or deposited with them as herein or in the trust agreement provided. 14. The trust agreement shall provide that the Republic may, from time to time create and issue additional series of the bonds under the trust agreement subject to the following restrictions, all of which are more fully set forth in the trust agreement: The bonds of each series shall be distinctly designated by the number of the year in which issued or by letter or in any other manner desired by the Republic and satisfactory to the trustee. All bonds of the same series shall be identical in form and substance except that they may be of different denominations and may be in coupon or registered form and except that as between bonds of different denominations and as between coupon bonds and registered bonds there may be such appropriate differences as may be determined by the Republic at or before the creation of the series and approved by the trustee. The several series may consist of different aggregate principal amounts and the maximum principal amount of bonds issuable of any series shall be limited and such limitation shall be expressed in the bonds of such series. The bonds of each series shall bear interest from such date at such rate and be payable on such dates and shall mature at such date not earlier than January 1, 1960, as at the time of the creation of such series shall be fixed by the Republic and stated in the bonds of such series. A cumulative sinking fund of not more than 1 per cent per annum shall be created for each series of the bonds to be applied to purchases of bonds at such prices or to the redemption of bonds at their principal amount or at such premium or in such other manner as the Republic may provide in the creation thereof. The principal and inter-. est of each series of the bonds are to be payable in gold coin of the United States of America or, in British gold coin, or, at the option of the holders in either United States gold coin or British gold coin, as the Republic may provide in the creation thereof, at the rate of exchange as hereinbefore provided. The Republic may provide in the creation thereof that the bonds of any series may be redeemed at its option in whole or in part before maturity at their principal amount or at a premium plus accrued interest and such provisions shall be expressed in the bonds of said series. Except as aforesaid, the terms and provisions of all additional series of the bonds shall be substantially identical with the terms and provisions of the bonds of 1927. All bonds of any series shall be entitled to share in the security of the pledged revenues equally and ratably with the outstanding bonds of all other series. No bonds of any series in addition to the $15,000,000, principal amount, of the bonds of 1927 shall be issued by the Republic or authenticated by the trustee unless and until the gross tobacco revenues of the Republic, calculated on a gold basis, shall have averaged for the three years ending on the last day of the calendar month next preceding the date of issue of such additional bonds, and shall have equaled for the last of such three years, at least one and one-half times the amount necessary to meet the maximum charges in any year for t service of interest and amortization of the bonds of all series outstanding at t time of such additional issue and on the additional bonds to be issued. The trust agreement shall contain the usual provisions regarding the remedi of the trustee and the bondholders in case of default and, among other prov sions, shall contain the following provisions, all of which are more fully s forth in the trust agreement: If one or more of the following events, thereinafter called events of defau shall happen (a) Default in the prompt payment of the principal of or the premium any of the bonds, when and as the same shall become due and payable, whethe at maturity, by call for redemption, or otherwise as therein provided; or (b) Default in the payment of any installment of interest on any of the bond when and as the same shall become due and payable as therein expressed, an such default shall continue for a period of 30 days; or (c) Default in any payment to the fiscal agents for the service of the bond as herein provided, as and when the same shall become due and payable an such default shall continue for a period of 30 days; or (d) Default in the performance of any other covenant in the bonds or in th trust agreement contained, and such default shall continue for a period of 3 days after written or cabled notice to the Republic from the trustee specifyin the nature of such default, Then, and in any such event, during the continuance of such event of defaul the trustee may, and upon the written request of the holders of one-fourth i principal amount of the bonds then outstanding shall, by written or cabled notic to the Republic, declare all the bonds then outstanding (if not already due an payable) to be due and payable immediately at the sinking fund redemption price thereof, and upon any such declaration the principal and premium of al the bonds then outstanding shall become and be due and payable immediately anything in the trust agreement or in the bonds to the contrary notwithstanding In case an event of default shall have happened and be continuing, the truste shall have the right to appoint, and the Republic shall be obligated to consen to the appointment of, a special collections agency, which shall be a company bank, firm, or responsible individual designated by the trustee, to take over the collection of the gross tobacco revenues all as more fully set forth in the trust agreement. In the event of the appointment of such special collections agency the Republic shall immediately transfer to such agency, and will cause the Caja and any other collecting agency for the collection of the gross tobacco revenues to transfer to such agency all facilities for the collection and control of the gross tobacco revenues. From the sums collected, the special collection agency shall, after deducting all its reasonable expenses, including an allowance for its own reasonable compensation, retain and remit to the trustee in New York the net proceeds thereof until the full amount then due on the bonds and coupons for principal, premium, and interest and otherwise under the trust agreement, including the expenses and compensation of the trustee, the fiscal agents, and their representatives, shall have been fully paid and discharged, and shall then retain and remit to the fiscal agents in New York from time to time as required the amounts required for the service of interest and amortization of the bonds and all other amounts payable under the trust agreement as aforesaid when and as the same shall become due and payable. The Republic shall pay from other revenues of the Republic all the administrative and operating expenses of the monouoly. Any balance of the collected revenues not required by the special collections agency for the purpose above specified shall be paid over to the Republic. ARTICLE II 1. Subject to all the terms and conditions of this agreement, the Republic agrees to sell and deliver to the bankers, and the bankers agree to purchase from the Republic and pay for, all said $15,000,000, principal amount of the bonds of 1927 at the price of 90 per cent of the principal amount thereof and accrued interest to the date of delivery or to the date of the issue of interim certificates, whichever shall be earlier. Delivery of and payment for said bonds of 1927 shall be made at the office of J. and W. Seligman & Co. in the borough of Manhattan, city of New York; 15 days after the public offering in New York of such bonds of 1927, provided that by mutual agreement between the Republic 1: nkers the time for the delivery of and payment for said bonds of ublic covenants that prior to the date for the delivery of and pay- any of the bonds of 1927 shall be outstanding, such persons as may be de by the fiscal agents shall be a member and an alternate member of the directors, respectively, of the Caja and that such member, or, in case member's death, resignation, or inability to act, such alternate mem have the same rights and powers in so far as are concerned all matters to the manufacture and sale of tobacco and its products and the collect gross tobacco revenues from the manufacture and sale of tobacco and ucts and from the taxes and duties on the manufacture and sale o and its products, and shall be entitled to the same compensation, as members of said board. The fiscal agents agree to designate to the in writing or by cable within 30 days after the date of the executio agreement two persons to be such member and alternate member, res of the board of directors. In case of the death, resignation, or in act for any reason of such member so designated, the alternate mem act in such member's place and stead until the fiscal agents shall designate the successor of such member and the Republic covenants or appoint, or to cause to be elected or appointed, as soon as practica after, such successor a member of the board of directors. In case the so designated shall be the person previously designated as alternate m in case of the death, resignation, or inability to assume the duties of of the board of directors for any reason, of the alternate member, a of such alternate member shall be similarly designated by the fiscal a the Republic covenants to elect or appoint, or to cause to be elected or a as soon as practicable thereafter, such successor an alternate memb board of directors. In case the Republic shall with the consent of agents, transfer the collection of the tobacco revenues or any part t any other collection agency, the Republic will cause a member of the directors of such agency and an alternate member to be similarly appointed. If at any time, so long as any of the bonds of 1927 shall be outstar Republic shall withdraw from the Caja the collection of the gross to enues, or the Caja or any successor, either by virtue of the operation graph G, Article 11, of law of the Republic No. 4500, enacted Marc (law creating the Banco de Reserva del Peru), or, for any other reaso ever, shall cease to collect the gross tobacco revenues, the fiscal ag have the right to appoint in agreement with the Republic a compar existence or to be organized, firm or responsible individual to take entire collection of the gross tobacco revenues. In the event of the ap of such company, firm, or individual, the Republic shall immediatel to such company, firm, or individual and will cause the Caja and collecting agency for the collecting of the gross tobacco revenues, t to such company, firm, or individual all the facilities for the colle control of the gross tobacco revenues. From the sums collected, said firm, or individual shall, after deducting all its or his reasonable including an allowance for its or his own reasonable compensation expenses and compensation of the trustee and the fiscal agents, re fiscal agents in New York the amount of the service of interest and tion of the bonds of 1927 as more fully set forth in sections 9 and 10 1 of this agreement, and remit the balance, if any, to the Republi event that the fiscal agents shall apoint a company for the purposes a tioned, the Republic shall have the right to name one of the memb board of directors of such company and, in the event of his death, r or inability to act for any reason, a successor. 5. The obligation of the bankers to purchase the bonds of 1927 he subject to the condition that on or before the date for the delivery of ment for the bonds: (a) All acts, events, and proceedings required by sections 3 and Article II shall have been performed, shall have happened and shall taken and the Republic shall have delivered or caused to be delivered ignated representative of the bankers in Peru duly authenticated co laws and decrees or other instruments authorizing the execution of ment and the trust agreement and the creation, issue, and sale of th 1927 by the Republic; (b) The bankers shall have received an opinion in form and subst factory to them of Peruvian counsel designated by them, approvin |