The Cavalry Loan to be made up to the same period, with the current interest at twelve per cent.
The debt consolidated in 1777 to be made up to the same period, with the current interest at twelve per cent, to November, 1781, and from thence with the current interest at six per cent.
The twelve lacs annually to be received are then to be applied,—
1. To the growing interest on the Cavalry Loan, at twelve per cent.
2. To the growing interest on the debt of 1777, at six per cent.
The remainder to be equally divided: one half to be applied to the extinction of the Company's debt; the other half to be applied to the payment of growing interest at 10l. per cent, and towards the discharge of the principal of the debt of 1767.
This arrangement to continue till the principal of the debt 1767 is discharged.
The application of the twelve lacs is, then, to be,—
1. To the interest of the debt of 1777, as above. The remainder to be then equally divided,—one half towards the discharge of the current interest and principal of the Cavalry Loan, and the other half towards the discharge of the Company's debt.
When the Cavalry Loan shall be thus discharged, there shall then be paid towards the discharge of the Company's debt seven lacs.