"XXII\٨ سكة حديد بغداد" [و‎‎٤‎٤] (١٩٤/٨٦)

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The aforesaid share of the receipts, after deduction of working expenses—both the
said share and the amount of working expenses to be determined by the company’s
books—shall be remitted, if need be, by the latter annually to the Administration of
the Ottoman Public Debt for the service of the loan, after the balance-sheet of each
financial year has been approved by a general meeting. If the Administration of the
Ottoman Public Debt has failed to notify to the Imperial Ottoman Bagdad Railway
Company at the latest by the day each year preceding the ordinary general meeting of
the said company, the necessity of applying this appropriation to the service of the loan,
the company is authorised to dispose freely of the share of the receipts in question.
The Imperial Ottoman Government shall be bound to refund to the company
any sums which the latter may have supplied on this head for the service of the
State loan.
Art. 11 . The Deutsche Bank shall be entrusted with the service of the interest
and sinking fund of the second or third series of the Imperial Ottoman Bagdad
Railway 4 per Cent. Loan irrevocably and throughout its duration.
The Imperial Ottoman Government allocate to the Deutsche Bank ^ per cent, on
the sums paid either through it or through the banking houses which it shall name for
the service of the interest and sinking fund of both series of the present loan. For the
service of the loan in Paris, the Imperial Ottoman Bank is already hereby designated,
the designation of other financial houses besides the latter being reserved.
Art. 12 . The Administration of the Ottoman Public Debt shall deduct from the
Government’s share in the surplus specified in article 9 of the present contract:—•
1 . The sums required for the service of the interest and sinking fund of the second
and third series of the Imperial Ottoman Bagdad Railway 4 per Cent. Loan, including
the differences of exchange which may arise from the payment of coupons and redeemed
bonds effected abroad in francs, marks, pounds sterling, and Dutch florins, which
shall be transmitted by the Administration of the Ottoman Public Debt to the Deutsche
Bank on a simple notification from the latter.
2 . The charges for advertisement (article 2 ), commission (article 11 ), together with
the lesser expenses connected with the forwarding of coupons, drawn bonds, &c.
On the other hand, it is expressly agreed that the Administration of the Ottoman
Public Debt shall not be entitled to any commission on the sums which it shall receive
for the service of the loan from the Imperial Ottoman Bagdad Railway Company in
accordance with the terms of articles 9 and 10 of the present contract.
Art. 13. The funds required for the service of the interest and sinking fund in
respect of the bonds of the present loan shall be deposited by the Administration of the
Ottoman Public Debt at the Deutsche Bank, in such a way that the whole amount of
the aforesaid sums shall be in the hands of the Deutsche Bank not later than four weeks
at least before the payment of the coupons and the repayment of the redeemed bonds
fall due respectively.
The Deutsche Bank shall convert each remittance into marks within three days to
the best interests of the Imperial Ottoman Exchequer, and shall place the amount in a
special account to the credit of the Imperial Ottoman Government with interest at
1 per cent, below the official rate of discount of the Imperial German Bank.
This interest shall accrue to the profit of the Imperial Ottoman Government from
the date of each payment made to the Deutsche Bank till two weeks before the half-
yearly maturity to which these payments are to be applied.
The account mentioned above shall be settled between the Deutsche Bank and the
Administration of the Ottoman Public Debt on the 2 nd January and the 1 st July of
each year.
Art. 14. Both series of the present loan and all the deeds relating to the present
contract and its execution, together with the bonds and coupons of both series of this
loan, are exempt from all stamp duties, rates, or dues in Turkey both now and in
the future.
The Imperial Ottoman Government pledge themselves not to make any deduction
or reduction in the payment of the coupons and the redemption of the bonds.
The charges for stamps abroad on the bonds of the present loan shall be borne by
the Imperial Ottoman Bagdad Railway Company.
Art. 15. The Imperial Ottoman Bagdad Railway Company shall be responsible for
the quotation of the shares of both series of the present loan on the European exchanges
which the Deutsche Bank shall indicate, and shall defray the incidental expenses,
and the Imperial Ottoman Government shall lend its good offices for this purpose
through its embassies.
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