8.—5,

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XX. lii the case of an association or agricultural institution of common interest which desires to obtain a subsidy advance, such institution must provide the means and measures necessary to guarantee repayment if such is not provided by its own regulations. Alterations must be submitted relative to regional banks which are responsible for repayment. Alterations must not diminish the guarantee. No alterations can become effective without the approval of the National Office. XXI. The institutions quoted in Article XXII (1920) obtaining advances for the acquisition, construction, or reconditioning of buildings must provide sufficient first-mortgage guarantee, or such mortgage guarantee as may be considered suitable. XXII. Amortization of loans granted under Article XXII (1920) and interest must be paid yearly. In exceptional cases in the first three years variation may be made if the results warrant such action. Co-operative societies for afforestation may be allowed to pay reduced amortization for twenty-five years (maximum). At the expiration of this period the full annual payment will be made. In no circumstances shall the duration of loans be extended beyond twenty-five years, except reafforestation loans, which are limited to fifty years. Annual payments yearly, half-yearly, or quarterly, as stipulated in the contract. Payments in advance will ensure an interest-reduction for the period covered by such advance payment. XXIII. In the case of institutions referred to in Article XXII which, having received a loan, fail to conform to the regulations after receipt of one month's notice, the loan shall be deemed immediately repayable. The Director-General will take all necessary steps to secure payment. The institution must pay the National Office the difference between 2 per cent, and 6 per cent, interest from the time the loan was paid over until the date of repayment. Advances. XXIV. Application for advances by regional banks, agricultural and mutual banks, mortgage credit banks, and institutions mentioned in Article XXII (1920) must be addressed to the DirectorGeneral, National Office. Documents supporting these applications will be specified by the Minister of the Department concerned on the advice of the Council of the National Office. XXV. Applications for advances to regional banks must be distinct for each of the following : Short-term loans ; medium-term loans ; ordinary long-term loans to individuals ; special long-term loans to war victims. XXVI. The Director-General is charged with the investigation of the advances applied for, and may demand the advice of the different Ministers or Departments on which these societies are dependent both from a technical and economical point of view, especially the advice of the Regional Directors of Agricultural Services. With regard to applications by building societies, the DirectorGeneral shall ask the opinion of the corresponding competent Minister. The institution desiring an advance must submit to the National Office and to all the persons entrusted with the investigation all necessary information. The National Administration Council will decide, and the Director-General will communicate the decision to the applicants. XXVII. For the distribution of advances the importance of the needs, the value of the security, and generally all the elements relating to the solvency of the applicants that ensure repayment of loan at its expiry will be taken into consideration. Granting advances may be made conditional upon the submission of such guarantees that the National Council considers necessary, especially as regards the use of the whole or part of the capital, also the constitution and use of the reserves. XXIX. Advances granted under Article XXII are transferred to the responsible regional banks, which, when loan contracts are decided, will remit to applicants progressively according to their needs and on presentation of justifying documents. XXX. Regional banks must repay advances granted for short-term loans at their expiration without special notification. Advances granted for medium-term loans must be repaid, each in February, the amortization payments received during the preceding year, based on repayment of the whole loan within a maximum period of ten years. XXXI. Payments made by regional banks and building credit societies must be for advances on long-term loans to individuals or societies : Article XIII (1920). They must comprise the total amortization payments received during the year, determined in such a way to ensure payment in twenty-five years' (in the case of reafforestation societies, fifty years). Advances become immediately payable in the case of the dissolution of the regional bank or beneficiary society, liquidation or bankruptcy, violation of regulations, and where advances are misapplied. Advances will always be repayable in any case of non-payment of amortization after three months beyond due date, except in extraordinary circumstances recognized by the National Council. During the period of default, interest at the rate of 6 per cent, per annum will be charged for the profit of the National Office. If the delay exceeds one year the interest may be capitalized as provided by Article 1154, Civil Code. National Office of Agricultural Credit. Objects and Allocation. XXXIV. To co-ordinate all the activities of organizations dealing with agricultural credit; to facilitate their development among the rural population ; to introduce a system of mutual credit and co-operation ; to centralize capital at its disposal, ensuring efficient administration of these moneys as well as of deposits ; to grant advances to regional banks, building credit societies, and to various institutions specified in Article XXII (1920); generally, to give effect to the law of 1920. XXXV. The allocation of agricultural credits provided by paragraph (1), Article XXXV, and paragraph (2), XXXVII (1920), comprising all the moneys given under the law —namely, those due to the State by the Bank of France under the law of 1896, 1911, 1917, approved by the law of 1897, 1911, and 1918, and any other agreement or convention that may be arrived at later.