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Internal War Loans Belligerent Countries

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the proceeds were used to purchase bonds of this loan.<br />

Such loans were renewable at one-half per cent below the<br />

current official discount rate until December 31, 1917. Upon<br />

request loans were made during the subscription payment<br />

period at a fixed 5% discount rate until December 31, 1917.<br />

<strong>Loans</strong> made at other institutions for the purpose of subscribing<br />

to bonds of this issue could be refinanced by loans<br />

at the Austro-Hungarian Bank or <strong>War</strong> Loan Office at a<br />

fixed 5% discount rate until December 31, 1917. After December<br />

31, 1917 the Government undertook to extend the<br />

above favorable privilege until June 30, 1921 for the Bonds<br />

and until June 30, 1919 for the Treasury Notes of this loan.<br />

Fiscal Service—Principal and interest payable at the Imperial<br />

Royal Treasury at Vienna.<br />

Taxation—Principal and interest payable without deduction<br />

of taxes and duties.<br />

Collateral Privilege—The Austro-Hungarian Bank and <strong>War</strong><br />

Loan Offices granted loans secured by obligations of the<br />

present issue up to 75% of their par value at one-half per<br />

cent below the current official discount rate until December<br />

31, 1917. After this date the Government undertook<br />

to extend the above favorable privileges until June 30, 1921<br />

for the Bonds and until June 30, 1919 for the Treasury<br />

Notes.<br />

Note—Coupons void unless presented for payment<br />

within six years of maturity and bonds within thirty years<br />

of maturity.<br />

116

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