ARTICLE III
The payment of the interest and the redemption of the Capital of the Loan are guaranteed by the Government of the Republic of China and by a special lien upon the Canton Chungking Railway.
This special lien constitutes a first mortgage in favour of the Contractors, acting on behalf of the Bondholders, upon the Railway itself, as and when constructed, and on the revenue of all descriptions derivable therefrom, and upon all materials, rolling stock and buildings of every description purchased or to be purchased for the Railway.
Should there be default in payments on the dates fixed of all or part of the half yearly interest or amortization payments, the Contractors shall have the right to exercise on behalf of the Bondholders all the rights of action which accrue to them from the special mortgage.