And from and after 1860, inclusive, besides the above-mentioned sum of £60,000, it will also remit annually the sum of £5,000 as a redemption fund. This sum, together with the interest of the shares redeemed, or that may be redeemed, shall be employed, one half each six months, in the purchase or redemption of the new bonds of this class till the whole of them have been redeemed. The funds corresponding to the stipulated remittances shall be placed in London, one half before the 30th of June, and the other half before the 31st of December in each year.
Art. 2nd.—The sums appropriated to the redemption shall be employed by the agents of the London Loan in the purchase of bonds in the market at the current price so long as that is less than par; but should the price of the bonds exceed par, the funds to be redeemed by the redemption fund shall be determined by lot, in presence of the principal agent or representative of the State of Buenos Ayres existing in London.
The bonds drawn by lot shall be published in the Gazette, or two of the London journals, stating the day on which payment will be made at par, and from which date they will cease to bear interest.
The bonds purchased or redeemed by the redemption fund, with their corresponding future dividends of interest, shall be cancelled in presence of the principal agent or representative of the State of Buenos Ayres in London, and immediately deposited in the Bank of England, publishing their numbers in the Gazette, or in two of the principal London journals.
Art. 3rd.—The holders of the original bonds shall receive a new list of debentures for their future dividends, with a copy annexed to it of the two preceding articles, beginning with the debenture for the dividend that falls due on the 12th of January, 1861.
Art. 4th.—For the interest due upon the original bonds up to this date, and for those that fall due to the end of 1858, amounting to the sum of £1,641,000, the Government of Buenos Ayres shall emit new bonds to bear interest at the following rates, viz:—
Art. 5th.—From 1861 to 1865 inclusive, one per cent. per annum. From 1866 to 1870 inclusive, two per cent., and from and after 1871, three per cent. The first half-yearly dividend upon these new bonds shall fall due on the 12th July, 1871, and subsequently on the 12th January and 12th July of each year, on which days the half-yearly instalments or dividends due shall be paid in London. All the guarantees accorded to the original bonds shall be extensive to these new bonds.
Art. 6th.—The Government of Buenos Ayres engages to remit to the agents of the loan in London the funds necessary for meeting the payment of the interest assigned to these new bonds, and moreover, from and after 1871, the sum of £8,205, or, say the 200th part of the total amount of the said bonds, as a redemption fund for them. This sum together with the interest of the bonds that have been redeemed shall be employed in equal proportion every six months in the purchase or redemption of these new bonds, till the whole of them have been redeemed. Accordingly the sums that must be remitted to meet the interest and redemption fund shall be as follows, viz., from 1861 to 1865 inclusive, £24,615, annually; from 1866 to 1870 inclusive, £41,025; and from and after 1871, the sum of £47,435; the Government engaging to place these funds in London, one-half before the 30th June, and the other half before the 31st December of each year. The Government reserves to itself the right of employing in the redemption of these new bonds, over and above the sum stipulated, any further sums the Legislature may appropriate to this purpose.
Art. 7th.—The sums applicable to the redemption fund, as also the others that may be destined to this purpose, shall be employed by the agents of the loan in London, to the purchase of these new bonds in the market, at the current price, always that this is less than par; but in case the price of these bonds should come to exceed par, the bonds that are to be redeemed shall be determined by lot, and those that are drawn by lot, as also those purchased in the market shall be published in the journals, paid and cancelled on the respective debentures in the manner and form established in the second Article in respect to the six per cent. bonds.
Art. 8th.—The new bonds shall be denominated Three Per Cent. Buenos Ayrean Bonds, shall be signed in the name of the State, by the Minister of Finance in Buenos Ayres, and shall be emitted through the medium of Messrs. Baring Brothers and Co., of London, by whom they shall be countersigned.