English
1/ Debentures issued by a company may not exceed the
amount of paid up capital shown in the last adopted
balance sheet.
2/ Notwithstanding the provision of Sub-Article
(1) of
this Article, a company may issue debentures that
exceed the amount of paid up capital shown in the last
adopted balance sheet where:
a) the company`s immovable property is mortgaged
and the debentures issued do not exceed two
thirds of the value of the mortgage; or
b) the excess over the paid-up capital is guaranteed
by registered securities or securities issued or
guaranteed by the State and the date of
redemption is not earlier than that of the
debentures; or by government or public
authorities annuities.
3/ The securities given pursuant to Sub-Article (2)(b) of
this Article shall be deposited in a bank until full
repayment of the value of the debentures; Such part of
the annuities shall be blocked in a bank unto the time
of repayment as is necessary to meet payments of
interest and amortization.
4/ The limits imposed by the provisions of Sub-Article
(1) of this Article shall not apply to real estate loan or
agricultural mortgage companies.
