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Hiotographic
Sciences
Corporation
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23 WEST MAIN STREET
WEBSTER, N.Y. 14580
(716)872-4503
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SYNOPSIS-LAND GRANT MORTGAGE.
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Preamble.
MU*.
Form of Bond, Trustee's Certificate and Interest
Coupon.
Conveyance of Lands to Trustees.
Article 1. — Appraisal of lands ; approval of by Trus-
tees. May be amended with their consent. No contract
for sale of Lands for less than appraised value. When
paid for to be released from mortgage. Proce eds, less
expenses, to be paid to Trustees. Sale of lands before
a^raisement. "" " ^"^
Article 2. — Conveyance of lands and discharge of
mortgpage by Trustees on payment of price. No sale unde?
appraised value without cbnsenF of Trustees. Contract
may be given as evidence of purchase. Mortgage may be
taken for unpaid purchase money.
Article 3. — Land Grant Bonds to be taken at ten per
cent, premium, in payment for lands.
Article 4. — Appointment and removal of Agents and
Attorneys by Trustees. Their commissions to be filed
with Provincial Secretary.
Article 6. — Compensation of Agents.
Article 6. — Interest received from Government on
proceeds of Bondsapplied to jSond interest.~nProcee3s oT'
-J r
JIands pledged for intere8_tand^mc^^ ^^'^M"!
Fund created lor payment of overdue interest, and pur-
cEase'^noiids.'^Trustees may in their discretion give
"notfceby advertisement of their desire to purchase. Bonds
so to be purchased to be selected by lot under certain cir-
cumstances. Bonds selected to be advertised. To be pre-
sented for payment within sixty days, or interest to cease.
Trustees may purchase in open market. Bonds purchased
to be cancelled. "^
Article 7. — Registration of Bonds. Registration evi-
dence of right to vote. Copy of Register to be given
Trustees.
Article 8. — Registers of land^sales to be kept by Com-
pany. Trustees to deposit money received i n bank. _
Article 9. — In case of default in payment of interest
or jjrincipal of bonds, and such default continue for six
months, Trustees on request of one-fourth of bondholders
to take possession of lands and act as Receivers ; and may
sell lands by auction, if necessary, to satisfy such overdue
interest and principal.
Article 10. — Trustees may purchase lands at such sale
in the interest of bondholders.
Article 11. — If interest in default for six months,
Trustees have option of declaring principal due; but
majority of bondholders may control action of Trustees in
this respect. On default, interest payable by Grovernment
to be paid to Trustees. If default continue until principal
of bonds becomes due, proceeds of sale of bonds, in posses-
sion of the Government, to be paid to Trustees, and held
for the benefit of the bondholders.
Article 12. — Trustees may enforce their rights and
powers at law. Bondholders may not do so without
notice to Trustees.
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Article 13. — "Trustees," definition of; appointment of
successor in case of vacancy. Compensation.
Article 14. — Non-responsibility of Trustees for acts of
agents, &c.
Articles 15 & 16, — Trustees may resign ; may be re-
moved by bondholders for incapacity or negligence.
Appointment of successor in case of death or removal of
Trustee.
Article 17. — Meetings of bondholders, when neces-
sary, to be called by Trustees. Trustees failing to call
meeting, after receiving notice from a bondholder of the
necessity for such meeting, bondholders representing
#500,000 may do so ; a two-thirds vote at such meeting
to confer authority for exercise of powers vested in bond-
holders under the mortgage. A majority in interest of
the holders of the bonds to form a quorum.
Article 18. — Mode of calling meetings of bondholders
may be regulated by a two-thirds vote. Each $500 of
bonds to represent one vote.
Article 19. — The Company performing all obligations
of the mortgage^ trust to lapse ; and land, etc., to be recon- — P
veyed to them. \
Article 20. — Company to hold lands transferred to
them by the Government subject to the provisions of the
mortgage until conveyed to the Trustees.
Article 21. — Company to execute deeds, conveyances,
etc., to Trustees.
Article 22. — ^Trustees accept the trust and its ob-
ligations.
Note. — Interest on Bonds payable half-yearly, on the
1st of April and 1st October, at Montreal, New York, or
London.
6
Note.— Bonds held as security for any obligation of the
Company, do not carry voting powers vested in ordinary
bondholders, under the mortgage.
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tem-
W6S& ^Qd(ntUV(t made this First Day oi Septf
ber, one thousand eight hundred and eighty-one, between
the Canadian Pacific Railway Company, a body cor-
porate and politic, duly incorporated by Letters Patent,
under the G-reat Seal of the Dominion of Canada, issued
under and by virtue of the provisions of an Act of the
Parliament of Canada, passed during the session thereof,
held in the forty-fourth year of Her Majesty's reign, inti-
tuled " An Act respecting the Canadian Pacific Eailway,"
hereinafter called " The Company " ; herein acting and
represented by Georoe Stephen, ot Montreal, in Canada,
the President thereof, and Charles Drinkw* fer, the
Secretary thereof, duly authorized in that behalt, party
of the first part, and Charles Francis Smithers, Esquire,
of the City of Montreal, President of the Bank of Montreal,
the Honorable John Hamilton, of Hawkesbury in the
Province of Ontario, and of Tyrella House in the City
of Montreal, Senator, President of the Merchants Bank
of Canada, and Samuel Thorne, of the City of New York
in the United States of America, Esquire, hereinafter
called the Trustees, parties hereto of the second part,
WITNESSETH *.
Whereas by a Contract made, executed, and bearing
date, at Ottawa, in the Dominion of Canada, the twenty-
first day of October 1880, between Her Majesty the
Queen, acting in respect of the Dominion of Canada,
therein represented and acting by the Honorable Sir
Charles Tupper, K.C.M.G^., Minister of Eailways and
Canals, and George Stephen and others, on behalf of the
Company, the said Gt>vernment, in consideration of the
construction and operation of the Canadian Pacific Bail-
i.1.;
a
8
way as described in the said Contract, agreed to appro-
priate and grant to the said parties, amongst other things,
in aid of the construction and operation of the said Railway,
twenty-five million acres of land in the fertile belt of the
North-west territories of the Dominion; to be selected,
located, and conveyed to the Company thereafter to be
organized by said parties, as stated in the said Contract ;
And whereas by the said Act of the Parliament of the
Dominion the said Contract was approved and ratified ;
and the Government of the Dominion was authorized to
perform and carry out the conditions of the said Contract,
according to their purport, and, among other things, to
grant to the Company when organized, the said quantity
of twenty-five million acres of land, to be conveyed to the
Company in the manner and proportions, and upon the
terms and conditions, agreed upon in the said Contract ;
And whereas, by tke said Letters Patent, constituting
the charter of the Company, it was duly incorporated, and
it has since been organized ; and has performed all the
conditions required under the provisions of the said Act,
and of the said Contract, and of the said Letters Patent,
to enable it to become vested, and it has in iact become
vested, with all the rights of the said George Stephen and
others, the Contractors named in the said Contract, to the
same extent and in the same manner as if the said Con-
tract had been executed by the Company in its corporate
capacity ; and it is also authorized by the said Act and by
the said Letters Patent, to issue Mortgage Bonds, to be
known as Land Grant Bonds, to the extent of twenty-five
million dollars, upon the lands so granted in aid of the
said Railway and of the undertaking authorized by the
Charter of the Company, such Bonds to constitute a First
Mortgage upon such lands, and to attach upon them
when and as they shall be granted, if they should not
all be actually granted at the time of the issue of such
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9
Bonds ; and also to secure suc^h Bonds by a Deed of Mort-
gage, containing such conditions, and giving to or confer-
ring upon a Trustee or Trustees appointed for the purpose,
such remedies, authority, powerH, and privilegew, and pro-
viding for such forfeitures and penalties, as shall be deter-
mined by the Company ; the whole as in the said Act
and in the said Letters Patent fully described ;
And Whereas, at a meeting of the Shareholders of the
said Company, duly called and held at the Office of the
Company in Montreal, on the nineteenth day of July last
past, it was resolved, in effect, that an issue of Land
Grant Bonds to the extent of twenty-five million dollars
be forthwith made under the provisions of the said Act,
and of the said Letters Patent, secured as therein provided ;
which resolution, and the form of these presents, were duly
approved and confirmed by a resolution passed at an
adjourned special general meeting of the said shareholders,
duly held at Montreal aforesaid, on the thirtieth day of
August last past : such issue of Bonds to consist of twenty-
three thousand Bonds, of one thousand dollars each, and
four thousand Bonds, of five hundred dollars each, all of
like tenor in all respects, except as to the denomination
thereof, such Bonds for one thousand dollars each, to be
numbered separately and consecutively from one to twenty-
three thousand inclusive, and such Bonds for five hundred
dollars each, to be numbered from twenty-three thousand
and one, to twenty-seven thousand inclusive, duly executed
on behalf of the said Company, and certified by the Trus-
tees appointed by or under the authority of these presents ;
such Bonds to bear date the first day of October next, to be
payable at the Office of the said Company, in the City ot
Montreal, in Canada, on the First day of October, one
thousand nine hundred and thirty-one (except such Bonds
as shall be redeemed as hereinafter provided), and to bear
interest at the rate of five per centum per annum, payable
half yearly, at the option of the holder of the coupon
*V
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10
representing the same, at the Office of the Company in
Montreal, or in the city of New York, in dollars ; or at the
like option, at the Office of the Company in the City of
London, England, in pounds sterling, at the rate of four
shillings and one penny half-penny to the dollar. The
said Bonds to be issued, and after the deposit of five mil-
lion dollars thereof with the Government of the Dominion,
the remaining twenty million dollars thereof to be disposed
of; in parcels, from time to time, as may be necessary for
the construction and equipment of the said Railway and
branches ; or, if disposed of to a greater amount than in the
proportion of one dollar for every acre of land earned by
the Company from and out of the Land Grant stipulated
for by the said Contract ; the proceeds thereof in excess of
such proportion, to be deposited in the hands of the
Government of the Dominion, and to remain there, bearing
interest at the rate of four per cent, per annum, until the
Company shall become entitled to the said proceeds ; all
such Bonds to be equally and rateably secured hereby,
without discrimination or preference in respect of the time
or times of their issue ; and to be in the general form fol-.
lowing, that is to say :
Dominion of Canada.
CANADIAN PACIFIC RAILWAY COMPANY
No.
Five per cent. First Mortgage Land Grant Bond.
Total issue, #25,000,000. \
The Canadian Pacific Railway Company promises
to pay to the bearer, or registered holder hereof, for value
received, the sum of dollars, in gold coin of
the present standard of weight and fineness, on the First
day of October, one thousand nine hundred and thirty-one,
on presentation of this Bond at the Office of the Company,
in Montreal, Canada ; and until payment of the principal,
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11
to pay interest thereon half-yearly, at the rate of five per
centum per annum, in like gold coin, on the First day of
April and the First day of October in each year, on the
presentation of the proper coupon at the Office of the
Company, either in Montreal aforesaid, or in the City of
New York, at the option of the holder hereof; or at the
like option, at the Office of the Company in London,
England, at the rate of four shillings and one penny half-
penny sterling, for each dollar of the Coupons annexed
to this Bond.
•j
» %
This Bond is one of a series of twenty -seven thousand
Bonds, whereof twenty-three thousand are for one thou-
sand dollars each, and four thousand are for five hundred
dollars each, all of like tenor and date; those for one
thousand dollars each being numbered separately and
consecutively from one to twenty-three thousand inclu-
sive, and those for five hundred dollars each being num-
bered from twenty-three thousand and one totwenty-sev^en
thousand inclusive ; the said Bonds amounting in the
aggregate to twenty-five million dollars; which Bonds
are secured by a Deed of Mortgage bearing date the first
day of September, 1881, duly executed by the said Com-
pany to Charles Francis Smithers, Esquire, the Honorable
John Hamilton, Senator, and Samuel Thorne, Esquire, as
Trustees ; which deed grants and conveys to the Trustees
by way of mortgage, all the right, title, and interest, which
the Company now has, or shall hereafter acquire, in and
to twenty-five million acres of the public lands of the
Dominion of Canada, granted to the Company under the
contract entered into by George Stephen and others with
the G-overnment of Canada, on the Twenty-first day of
October, one thousand eight hundred and eighty (which
Contract, and all the rights and privileges therein stipu-
lated for, are now vested in the Company), but except-
ing the lands which are or shall be used, in and for the
construction of the Bailway,or any branches or extensk>n8
ty
H
12
thereof, or for the operation thereof, and of the Telegraph
Line or lines of the said Company, or for the roadway,
track, yards, depot grounds, buildings, wharves, docks,
or other erections, appertaining thereto ; the whole as
more particularly described in the said Deed of Mortgage,
which Deed of Mortgage further provides for the redemp-
tion of the said Bonds from and out of the proceeds of the
sales of the said lands, at a rate not exceeding ten per
centum premium upon the par value thereof, together
with the interest then accrued thereon.
This Bond will be received by the Company, at the
like rate of ten per centum premium on the par value
thereof, with accrued interest, in payment for lands pur-
chased from the Company by the holder hereof. '
The holder for the time being of this -Bond, shall not
be aflected by any right of set-off, or cross-claim, which
the Company may have against the original, or any inter-
mediate, holder hereof.
..
H.]-
^
This Bond shall pass by delivery, unless registered in the
name oi the owner in Montreal, New York, or London,
England, or wherever else the Company may keep a Bond
Register. After a registration of ownership, certified
hereon by the Transfer Agent or other proper officer of
the Company, no transfer, except on the books of the
Company, shall be valid, unless the last preceding transfer
shall have been to bearer, which shall restore transfer-
ability by delivery ; but this Bond shall continue subject
to successive registrations and transfers to bearer, as afore-
said, at the option of the holder.
This Bond shall not become valid and obligatory until
authenticated by a certificate endorsed hereon, and signed
by the Trustees.
In witness whereof the said Canadian Pacific Railway
• %
4
18
Company has caused these presents to be signed by its
President and Secretary, and attested by the Seal of the
Company, this First day of October, one thousand eight
hundred and eighty-one.
/'resident.
Secretary.
» TRUSTEES' CERTIFOATE.
" The undersigned certify that this Bond is one of a
series of twenty-seven thousand Bonds of like tenor and
date, whereof twenty-three thousand for one thousand
dollars each are numbered from one to twenty-three
thousand inclusive ; and four thousand for five hundred
dollars each, are numbered from twenty-three thousand
and one to twenty-seven thousand inclusive ; the whole
amounting in the aggregate to twenty-five million dol-
lars, and secured by the Deed hereinbefore described ;
and that no more than the said amount have been
countersigned by us."
- ■'■>/«
Trustees.
• \
And whebeas each of the said Bonds has annexed
thereto coupons, or interest warrants, representing the
half-yearly instalments of interest to fall due thereon, each
14
of which coupons bears on its face the engraved signature
of the Secretary of the Company, in the form following : —
" THE CANADIAN PACIFIC RAILWAY COMPANY,
"(FIRST MORTGAGE LAND GRANT BOND.)
" Will pay the bearer at the Office of the Company, in
London, England, in sterling money, at the rate of four
shillings and one penny half-penny per dollar: or at
the Office of the Company, in Montreal, Canada, or in
the City of New York, on the in gold
coin, ; being half-yearly interest on
Bond No.
" [Signed]
Secretary.''
Now THEREFORE THIS INDENTURE WITNESSETH, that
the said party of the first part, in consideration of the
premises, and of one dollar, to it in hand paid, the receipt
whereof is hereby acknowledged, and in order to secure the
payment ol the principal and interest of the Bonds afore-
said, issued or to be issued by the said party of the ferst
part, as herein recited and provided, and every part of
the said principal and interest, as the same shall become due
and payable according to the tenor of said Bonds and of
the coupons thereto annexed, has granted, bargained,
sold, conveyed, and transferred, and by these presents
does grant, bargain, sell, convey, and transfer, unto the
said parties of the second part, their heirs and assigns,
and to their successors in office, all and singular the said
twenty-five million acres of land in the North-west terri-
tories of the Dominion of Canada, so granted by the said
Government to the Company, and by the said Grovern-
ment conveyed or agreed to be conveyed to it ; as the said
lands shall be, from time to time, earned, acquired, and
received, from the Government by the Company, under
the provisions of the said Contract, of the said Act, and
a
By
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of the said Letters Patent ; together with all and singular
the tenements, hereditaments, and appurtenances, to the
said lands, or any part thereof, belonging or in any wise
appertaining ; and all the rents, issues, and profits, thereof ;
and also all the estate, right, title, interest, property, pos-
session, claim, and demand, whatever, as well in law as in
equity, which the Company now has or is entitled to, or
shall or may hereafter acquire, or become entitled to, in,
to, or concerning the said lands and land grant, and each
and every part and parcel thereof, with the appurtenances
thereof : with the exception, however, of the lands which
are or shall be used in the construction of the Railway
and any branches or extensions thereof, or for the opera-
tion thereof, and of the Telegraph Line or lines of the said
Company, or for roadway, track, yards, depot grounds,
buildings, wharves, docks, or other erections appertaining
thereto :
To HAVE AND TO HOLD the above described lands and
land grant, and their appurtenances, with the exception
aforesaid, to the said parties of the second part, their heirs
and assigns, and to their successor or successors in office
in the place and stead of such heirs and assigns, if such
successor or successors be appointed under the terms and
conditions hereof:
In trust nevertheless to and for the uses and purposes,
and with the power and authority, hereinafter mentioned
and set forth, namely : —
Article First. — The said party of the first part shall
and will, as soon as conveniently practicable after the
date hereof, and from time to time as the same shall be
conveyed by the Government of Canada to the Company,
carefully value and appraise, or cause to be carefully
valued and appraised, all and singular the lands so granted
as aforesaid, and to which the Company is now or shall
hereafter become entitled, with the exceptions aforesaid,
T'j
16
in convenient sections, divisions, or parcels, for the sale
thereof, and shall cause a full and accurate list and des-
cription of said lands and premises, containing, opposite
each appraised section, division, or parcel, the value put
upon the same, to be deposited with the Trustees, certi-
fied by said party of the first part ; which appraisement
shall be subject to the approval of the Trustees ; and such
statement and appraisment may, with their consent, be
from time to time revised, altered and corrected, a state-
ment being in each case filed as aforesaid ; and the said
party of the first part may, at any time in its discretion,
and not otherwise, contract for the sale of any section,
division, or parcel, of said lands so appraised, at a price not
less than the appraised value thereof, according to the
last preceding statement of such value filed with the
Trustees and approved by them, as aforesaid, and shall be
entitled to have such section, division, or parcel, of said
lands conveyed to the person, contracting for the purchase
thereof, and released from the lien hereof, upon the pay-
ment, to the Trustees, of the purchase money of the same,
not less than such appraised value thereof ; but subject to
deduction therefrom of the reasonable expenses of and
incidental to such sale. But until such appraisement has
been made and approved as aforesaid, the Company may
proceed with the sale of the lands hereby conveyed, or
intended so to be, at such prices as it shall deem reason-
able, and as shall be approved by the Trustees.
Article Second. — The Trustees are hereby authorised
and empowered, and it shall be their duty, upon any sale
as aforesaid of any parcel of said lands, and the payment
of the purchase money thereof as aforesaid, to release and
convey, or join in releasing and conveying, to the pur-
chaser or purchasers thereof, or to his or their heirs or
assigns, by proper deeds of conveyance, the premises so
sold, and to discharge the same from the lien and opera-
tion of these presents, and the trusts hereby created ; and
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such release and conveyance when executed, shall invest
the grantee or grantees therein named, with a fall and
complete title to the premises thereby granted, free and
clear of all incumbrances, which title shall include as
well the title of the said party of the first part, as of
the Trustees ; provided always^ that after the appiuisal of
the said lands hereinbelore provided for, shall have been
made, no section, division, piece, or parcel of said lands
shall at any time be sold, released, or conveyed as afore-
said, below the appraised value thereof, without the pre-
vious consent in writing of the Trustees, to such sale. And
it is hereby further declared and agreed, that any of the
lands aforesaid may be contracted to be sold, as above
provided, wholly or partly on credit; provided that in
any and every case o^ a contract of sale wholly or partly
on credit, and with whomsoever the contract may be
made, the purchaser or purchasers shall not receive a
conveyance of the premises agreed to be sold, or any part
thereof, until the purchase money has been paid in full ;
but may have delivered to l^im or them a contract in
evidence of his or their purchase ; unless for any special
reason it shall be expedient, in the judgment of the Trus-
tees, to accept from such purchaser or purchasers, a bond
and mortgage for the amount of the purchase money
remaining unpaid ; in which case the Trustees shall
release and convey, or join in releasing and conveying,
the said premises to such purchaser or purchasers, upon
raceiving the cash portion of such purchase money, and
his or their personal bond for the unpaid purchase money,
conditioned in double the amount of such unpaid purchase
money for the payment of the same, in instalments or
otherwise, within such period from the date of such
purchase as the Trustees shall determine, with interest
thereon payable kalf-yearly ; and a proper mortgage upon
the premises so released and conveyed, to secure the
payment of such Bond.
Article Third. — Any and all of the Bonds issued or
a
18
to be issued by the said party of the first part, as aforesaid,
the payment whereof is intended to be and is hereby
secured, shall be payable and receivable, at ten per
centum premium on the par value thereof, with the in-
terest then accrued thereon added thereto, on account and
in payment of the purchase money, or of any promissory
note or obligation given for or on account of the purchase
money, of any section, division, or parcel, of said lands,
which shall be sold as aforesaid.
;Vi
Article Fourth. — For the purpose of granting, and
releasing from the lien of these presents, such of the lands
and premises aforesaid as shall or may be sold in con-
formity with these presents, the Trustees may join in
appointing a suitable person as their agent and attorney :
the name of such agent and attorney to be, however, sub-
mitted to and approved by the company. And thereupon
they may act, and they are hereby authorized to act, by
such agent and attorney ; and all instruments executed
and acts done by such agent and attorney, in respect of the
conveyance or release of lands which shall be sold in
conformity herewith, shall be as valid and effectual, to all
intents and purposes, if the same be within the scope of
the authority so given to such agent and attorney, as if
the same were executed in person by the Trustee or
Trustees ; provided that every such power of attorney may
be revoked at the pleasure of the Trustees giving the same,
and that the Trustees may remove at pleasure any agent
or attorney by them appointed. And every deed or instru-
ment appointing any such agent and attorney, or remov- -
ing the same, shall be executed in duplicate, and one of
such duplicates shall be filed in the ofiiceof the Provincial
or territorial secretary of the Province or territory within
which such agent and attorney shall be authorized to act
as such.
Article Fifth.— The Trustees may allow reasonable
compensation to any agent appointed by them as aforesaid,
♦ •
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19
and to such persons, clerks, and assistants, if any, as they
may deem necessary to employ, or as they may deem it
necessary or proper for the Company to employ, in respect
of the sale of said lands as herein provided, and of the
preparation of contracts, and of releases and conveyances
thereof ; and they may from time to time allow to be de-
ducted out of the proceeds of lands so sold, an amount
sufficient to defray such expenses, if in their judgment
such expenses be reasonable and proper, and in just pro*
portion to the benefit derived by this trust from sales of
such land ; provided always, that the holders of the Bonds
hereby secured shall not, nor shall the Trustees, become
or be in any manner whatever personally liable or respon-
sible, for or in respect of, any such liabilities or expendi-
tures.
Article Sixth. — All interest paid to the Company by
the Government of Canada, upon the deposit of the proceeds
of the sale of any of the Bonds hereby secured, shall be
exclusively applied towards the payment of the interest
upon the Bonds hereby secured, and to no other purpose.
And the net proceeds of any and all sales which may be
contracted for by the said party of the first part, in con-
formity with' the provisions of this instrument, of the
lands granted as aforesaid, are hereby inviolably pledged
to the payment of the interest on the Bonds hereby secured,
and to the redemption of the principal thereof, in the
manner hereinafter mentioned; and the Trustees shall,
from time to time, apply the said net proceeds, and all
other moneys which shall come to their hands as Trustees
under this instrument, for the application of which no
other provision is herein made ; as a sinking fund, first, to
the payment, at maturity, or as soon thereafter as prac-
ticable, of any instalment of interest on said Bonds, for
the payment of which the said party of the first part shall
have failed to make due provision ; and secondly, to the
purchase of said Bonds at the lowest price or prices, not
t^jmf;.i^f»*mt^!M^
20
exceeding ten per centum premium upon the par value
thereof, and accrued interest, at which the said Bonds
may be offered for sale to the Trustees. Preparatory to
any such purchase of Bonds, if in the judgment of the
Trustees, the amount of Bonds which the funds then in
hand would purchase, shall make it expedient to incur
the expense, they may in their discretion, give public
notice by advertisement in two newspapers of good circu-
lation published in each of the Cities of Montreal, New
York, and London, in England, at least three times a week
for four successive weeks, of their desire to receive propo-
sals for the sale to them of the said Bonds, to such amount
as the said funds in their hands may suffice to purchase ;
and in such case, after the expiration of two weeks from
the last publication of such notice, they shall apply the
said funds to the purchase of said Bonds, at the lowest
price or prices at w^hi h they may be offered, not exceeding
that hereinabove limited, without discrimination or pre-
ference between the Bondholders offering the same for
sale, except in case of a larger amount of Bonds being
offered at the same price, than the said funds will suffice
to purchase ; in which case the Bonds to be purchased
with the said funds, shall be selected by the Trustees by
lot from among those so offered. — ^Provided, however, that
if the said Bonds shall at the time being be quoted and
have a known market value, and such market value shall
be lower than any price at which the said Bonds may be
offered pursuant to the notice aforesaid, the Trustees may
purchase the said Bonds in open market instead of from
parties sending proposals to sell pursuant to such adver-
tisement. — Or, in their discretion, the Trustees may at any
time before, aiid without, any such notice, proceed to
designate by lot, fairly and without preference or discrimi-
nation, so many of the said Bonds as they shall haVe money
to purchase as aforesaid, and to give notice of the Bonds so
designated, stating the number of each of them, by adver-
tisement in two daily newspapers published in each of the
» •
(.. - )
21
said Cities of Montreal, New York, and London, at least
twice a week, for four successive weeks ; and the Bonds
so designated and specified in the notice last mentioned
shall be presented to the Trustees for redemption at the
office of the Company in the City of Montreal, within sixty
days from the first publication of such notice, and when
so presented, shall be by the Trustees redeemed at the
rate of ten per centum premium upon the par value
thereof, with all interest accrued thereon to the date of
such presentation. And if any of the Bonds so designated
shall not be so presented within the time aforesaid, no
interest shall be allowed or paid, nor shall interest accrue
thereon, from and after the expiration of said sixty days ;
the right so to purchase or redeem the said Bonds being^
hereby expressly stipulated and reserved, as a conditiontp
upon which the same are issued or to be issued. And all
expenses attending such purchase of Bonds, and the publi-
cation and notification thereof, may be defrayed by the
Trustees from the said sinking fund. And the Trustees
shall, without unreasonable delay, cancel the Bonds so
redeemed by them, and surrender the same to the said
party of the first part, and they and the said party of the
first part shall keep separate registries of all Bonds so
redeemed ; and the registry of the Company, showing the
numbers and amounts of the Bonds so redeemed, shall be
at all reasonable hours and times open to the inspection of
the several holders of the Bonds hereby secured, as well
as of the Trustees. Any residue of the said fund which
shall remain in the hands of the Trustees, when the prin-
cipal of said Bonds shall become due and payable, shall
be by them applied towards the payment of such of said
Bonds as shall not have been purchased, or designated
and called for redemption, and paid, in accordance with
the foregoing provisions.
» •
Abtiole Seventh. — The Company shall hereafter keep
at its Transfer Offices in the said Cities of Montreal, New
York and London, an appropriate book for the enregister-
ing of First Mortgage Land Grant Ponds ; and every holder
of Bonds secured hereby shall be entitled to have his
name and address, and the numbers of any of the said
Bonds held by him, entered in such register, upon pre-
senting at any of the said offices a written statement of
the said particulars, signed by himself or by his duly
authorised agent, and producing the Bonds. The registra-
tion of the name and address of each Bondholder, and
the numbers of the Bonds by him held, upon any one of
such books, shall be evidence of the right of the person
so registered to vote as Bondholder, or do any other act
which by these presents a Bondholder is entitled to do,
in respect of the Bonds so registered ; and every registra-
tion of the ownership of any Bond shall be properly cer-
tified on such Bond. The Trustees shall have free access,
at all reasonable hours and times, to such Bond Registry,
and shall from time to time, not exceeding once in each
year, on request in writing, be furnished with a copy
thereof by the Company.
Article Eighth.— The said party of the first part shall,
at all times, keep at its principal office, a record of all the
sales of lands which shall be made as aforesaid, and of the
prices paid for the same, and the manner in which the
purchase money shall have been paid or secured, and of
the amount and numbers of the Bonds (if any) surrendered
on account thereof, which riecord shall, alt all reasonable
hours and times, be open to the inspection of the Trustees,
with the right to make a copy therefrom. It shall be the
duty of the Trustees to deposit all sums of money coming
into their hands, possession or control, under the provi-
sions herein contained, in some chartered Bank of the
Dominion of Canada, and to make such Bank the ordinary
depository for all such moneys.
Article Ninth. — If default shall be made in the pay-
» »
» *
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28
* »
» *
ment of any half-yearly instalment of interest to accrae
on any of the said Bonds, issued or to be insued as herein
provided, by the Company, and if such interest shall remain
unpaid and in arrear for the period of six months alter
it shall have become due and been demanded ; or in case
default shall be made in the payment of the principal of
any of the said Bonds ; or in case default shall be made in
the performance of any other material matter or thing in
these presents mentioned, and agreed or required to be
performed by the Company, and such default shall con-
tinue for the period of six months after performance of
such matter or thing shall have been properly demanded
of the Company, — then, and in any and every such case,
it shall be the duty of the Trustees under these presents,
upon a requisition to them in writing.signed by the holders
of not less than one-fourth of the whole amount of said
Bonds then outstanding, (exclusive of any Bonds held
as security for any obligation of the Company, the holders
of such Bonds not to be computed in ascertaining the
amount of Bonds represented by the signers of such requi-
sition) and upon adequate indemnity against all costs,
expenses and liabilities to be by the Trustees incurred, to
proceed to enforce the rights of the Bondholders under
these presents, and for that purpose it shall be lawful for
the Trustees personally, or by their attorney or agent duly
authorized, to enter into and upon all and singular the
lands and premises hereby conveyed or intended so to be,
or any part thereof, and from thenceforth to have, hold*
possess, and use the said lands and premises, and each and
every part and parcel thereof, then subject to the lien of
these prebents, or thereafter becoming subject thereto,
and to collect and receive all incomes, rents, issues, and
profits of the same^ and of every part thereof ; and after
deducting the expenses of managing and administering
the said lands and premises and making all payments
which may be required to be made or may be due, for
taxes, assessments, charges, or liens, prior to the lien of
24
these presents, upon the said premises, or any part thereof,
as well as just compensation for their own services, and
for the services of such agents, attorneys and counsel as
shall have been by them employed, to apply the moneys
arising as aforesaid, to the payment of interest on the said
Bonds, in the order in which such interest shall have
become and shall become due, rateably to the persons
holding the coupons evidencing the right to such interest,
together with interest at the rate of five per centum per
annum, upon the amount of all coupons in default, from
the date of such default. And if, after paying in full the
interest which shall have accrued on the said Bonds, and
the interest upon such coupons, a surplus of the moneys
arising as aforesaid shall remain, and the principal of said
Bonds shall not be due, such surplus shall be used for the
redemption of the Bonds as herein provided ; but in case
the principal of said Bonds, or of any of them, shall have
become due, the surplus arising as aforesaid shall be
reserved, to be applied to the payment of the said Bonds,
upon the sale of the said lands and premises as hereinafter
provided. But if the receipts from such lands shall be
insufficient to pay the interest then due upon such Bonds,
or to pay the principal of any of such Bonds as shall then
have become due, and if such default shall continue, it shall
be lawful for the Trustees to enter into and upon all and
singular the lands and premises aforesaid, and alter such
entry, or after other entry, or without entry, personally,
or by their attorneys or agents, to sell and dispose of the
said lands, and of all and singular the property and rights,
hereinbefore conveyed, or intended so to be, and which
shall be then subject to the lien of these presents, either
together or in parcels, according to their discretion, and
at public auction, and subject to such special or other con-
ditions of sale as they may deem judicious. — But such
public auction shall be held in the City of Montreal, or at
such place on the line of the said Railway as the Trustees
shall designate, and at such time as they shall appoint,
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having first given notice of the time and place of such sale,
by advertisement, published not less than three times a
week for six successive weeks in one or more newspapers
of good circulation in the said Cities of Montreal, New
York and London. And after such notice it shall be
lawful for the Trustees to make such sale, or to adjourn
such sale from time to time, in their discretion, and if so
a^ourned, to make the same, after similar notice, at the
time and place to which the same may be so adjourned,
and to make and deliver to the purchaser or purchasers
of the said lands and premises, or of any part thereof, and
of all other rights, interests and privileges, if any, affected
by this mortgage, good and sufficient deeds and convey-
ances for the same, in fee simple ; which sale or sales,
made as aforesaid, shall be a perpetual bar, both in law
and equity, against the said party of the first part, and all
other persons claiming or to claim the said premises or
any part or parcel thereof, by, from, through, or under the
said party of the first part, or its assigns. And after deduct-
ing from the proceeds of such sale, or sales, just allowances
for all expenses thereof, including attorneys' and counsels^
fees, and all other expenses, advances, or liabilities which
may have been made or incurred by the Trustees in respect
of the said lands and premises or in relation to their
, Trust, and all payments by them made for taxes or assess-
ments, and for charges and liens prior to the lien of these
presents on the said premises, or any part thereof, as well
as reasonable compensation for their own services, it shall
be lawful for the Trustees, and it shall be their duty, to
apply the residue of the moneys arising from such sale, or
sales, to the payment of the principal and accrued and
unpaid interest on all the said Bonds which shall then be
outstanding, without discrimination or preference as be-
tween principal and accrued and unpaid interest, or as
between the holders of said Bonds, or of any Coupons
issued therewith, but equally and rateably to all such Bond
and Coupon holders ; and if, after the payment and satis-
faction of said Bonds and Coupons, a surplus of the said
proceeds shall remain, to pay such surplus to the party
of the first part ; and also to reconvey and retransfer to
the said party of the first part all and every part and
portion of the property and rights hereby conveyed or
transferred, or intended so to be, which shall then remain
in their possession, or under their control, or vested in
them. And at such sale the purchaser may pay the pur-
chase money or any part thereof in the Bonds of the
Company, of which the accrued interest shall form part ;
but such Bonds and interest shall only be so received
as payment to the extent of the same proportion of their
nominal amount, as the holder thereof would be entitled
to receive upon such Bonds and interest, out of the pro-
ceeds of such sale, if he ranked thereon with other Bond-
holders. And the receipt of the Trustees shall be a
sufiicient discharge to the purchaser or purchasers at such
sale for his or their purchase money; and after payment of
such purchase money, and having such receipt, the said
purchaser or purchasers shall not be obliged to enquire
into the application of such purchase money upon or for
the trusts or purposes of these presents, or be in any manner
whatsoever answerable for any loss, misapplication, or non-
application of such purchase money, orof any part thereof,
or b« obliged to enquire into the necessity, expediency, or
authority of or for any such sale. Provided always that at
any such sale, or sales, the purchaser or purchasers shall
not claim or set off against the purchase money payable
by him or them, any greater amount in respect of Bonds
held by him or them, than he or they would be entitled
to receive out of the net proceeds of such sale or sales, if
the purchase-money in respect thereof had been payable
wholly in cash. Provided always, however, that nothing
herein contained shall authorise the pajrment to the
G-overnment of Canada of any interest Coupons or of the
principal of any Bond ; or be construed to place the said
Company in default in respect of any such Coupon or
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27
Bond, unless the Company shall then be bound to pay to
the said Government the amount of such Coupon, or of
such Bond, under the terms of the contract between the
government and the said George Stephen and others here-
inbefore referred to. And upon the surrender by the
Government to the Company of any Coupons nominally
overdue, or of the Bonds to be deposited with the Govern-
ment as security for the operation of the Canadian Pacific
Railway as provided by the said contract, with overdue
coupons attached thereto or accompanying them ; such
overdue coupons shall be forthwith cancelled by the Com-
pany, and shall not be allowed to rank upon or receive
any advantage from the property or funds held or
acquired by the Trustees by virtue of these presents.
Article Tenth. — At any public sale of the said lands
and property, or of any part thereof, whether made by
virtue of the power hereinbefore granted or by judicial
authority, the Trustees may bid for and purchase, or cause
to be bid for and purchased, the property so sold, or any
part thereof, on behalf of all the holders of Bonds secured
by this instrument and then outstanding, in the propor-
tion of the respective interests Of such Boldholders, at a
reasonable price, if but a portion of the said property shall
be sold ; and if the entire property shall be sold, then at
a price not exceeding the whole amount of said Bonds
then outstanding, with the interest accrued thereon and
the expenses of such sale.
-
♦ «
Article Eleventh. — In case default shall be made in
the payment of any half-yearly instalment of interest of
any of the said Bonds, when such interest shall become
payable according to the tenor of the said Bond, or of any
coupon thereto annexed (which coupon, it is hereby pro-
vided, shall be valid and binding if the signature of the
Secretary thereto appended be either signed, or engraved,
thereon), and such instalment oi interest shall remain
unpaid and in arrear for a period of six months after the
same shall have become payable as aforesaid, and been
demanded, then and from thenceforth the principal sum
of each of the bonds aforesaid shall, at the option of the
Trustees, become and be immediately due and payable,
notwithstanding the time limited in the said Bonds for
the payment thereof may not then have elapsed ; but a
majority in interest of the holders of all the Bonds afore-
said which shall be then outstanding (exclusive of any
Bonds held as security for any obligation of the Company)
and upon which default in the payment 9f interest shall
have been made and be continuing, shall have the power,
by an instrument in writing under their hands and seals,
or by a resolution passed at a meeting duly convened and
held as hereinafter provided, at any time before the actual
payment and acceptance of the interest in arrear, to in-
struct the Trustees to declare the said principal due, or to
waive the right so to declare, on such terms and conditions
as such majority in interest shall prescribe ; and such
majority in interest may, by such instrument in writing,
or such resolution, annul or reverse any declaration, act
or decision, of the Trustees in respect of said Bonds becom-
ing or not becoming immediately payable; provided
always, that no act or omission either of the Trustees
or the Bondholders in the premises shall extend
to or be taken in any manner whatsoever to affect
any subsequent default or the rights resulting there-
from. And in the event of such default and of the
continuance thereof for the said period of six months ;
all interest which shall, then and thereafter until the
termination of such default, be payable by the Govern-
mant of the Dominion to the Company, as interest upon
any deposit of money arising from the sale of any of the
bonds hereby secured ; shall be paid over to the Trustees
instead of to the Company, and the amount so paid over
shall be applied by the Trustees towards the payment of
the interest coupons in de&ult, and of the interest upon
29
the amount of snch conpons. And if after the occurrence
of any such default, and upon the continuance thereof
as aforesaid, the principal of the bonds hereby secured
shall become due and payable under the terms hereof ; and
if there shall then be in the hands of the Government any
moneys arising from the sale of the bonds hereby secured
which shall not then have been earned by the Company,
the Trustees shall be, and they are hereby authorised, to
demand and receive from the Government the amount of
money so remaining in its hands, with all accrued interest
thereon, and shall hold and apply the same for the benefit
of the bondholders rateably without discrimination or
preference.
* I
Article Twelfth. — The Trustees may exercise the
powers herein conferred upon them either in the manner
hereinbefore provided, or by a suit or suits in equity or at
law, in aid of the execution of such powers, or otherwise,
as they being advised by counsel learned in the law, shall
deem most effectual for that purpose ; it being understood,
and hereby expressly declared, that the rights of entry
and sale hereinbefore granted are intended as cumulative
remedies additional to all other remedies allowed by
law, and that the same shall not be deemed, in any manner
whatsoeA'^er, to deprive the Trustees, or the beneficiaries
under this trust, of any legal or equitable remedies by
judicial proceedings, consistent with the provisions of these
presents, according to the true intent and meaning
thereof ; Provided always, and it is hereby expressly
declared and agreed, that no holder of Bonds secured
hereby shall have the right to institute any suit or proceed-
ing, at law or in equity, for the foreclosure of this inden-
ture or the execution of the trusts thereof, without first
giving notice in writing to the Trustees, of default having
occurred, and requesting them, and affording them a
reasonable time, to institute such suit or proceeding, in
their own names, or to proceed to exercise the powers
80
hereinbefore granted, and offering to them adequate indem-
nity against the costs and expenses of such suit or pro-
ceeding ; and such notification, request, and offer of indem-
nity are hereby declared to be a condition precedent to
any cause of action for the foreclosure hereof by any
bondholder.
Article Thirteenth. — The word "Trustees," when-
ever used in this indenture so as to be applicable to the
parties of the second part, is intended to refer to and
describe, and the same shall in all cases be construed to
mean, the person or persons, who for the time being shall
be charged with the execution of the trusts of these pre-
sents, whether such persons be the said parties of the
second part, or any or either of them, or successors or a
successor of said parties of the second part, or of either
of them hereunder, or be composed partly of a person
or persons named herein, and partly of a successor or
successors of a person or persons named herein. And it
is hereby agreed that whenever by reason of the absence
or illness of any Trustee it shall be practically impossible
for him, in the opinion of the majority of the Trustees, to
join effectively in any act or thing required to be done
by the Trustees by virtue of these presents, then except
in respect of the signing of the Bonds hereby secured and
of the appointment or removal of an Agent for the release
and discharge of lands contracted to be sold by the Com"
pany from the mortgage hereby created (for both of which
purposes the acticn of the whole of the Trustees shall be
necessary) the majority of the Trustees may validly do
such act or thing on behalf of the three Trustees. And
in case of a vacancy or vacancies in the said trust, the
surviving or continuing Trustee or Trustees shall be com-
petent, until the appointment of a new Trustee to fill such
vacancy, to exercise any and all powers and authorities
hereunder, hereinbefore granted to the Trustees, or to the
said parties of the second part. And each of the Trustees
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shall be entitled to reasonable compensation for any and
all services which may hereafter be rendered by him in
said trust, which compensation the said party of the first
part hereby promises and agrees to pay ; but in case the
said party should make default in such payment, the same
may be retained by the Trustees and paid, out of any trust
moneys coming into their hands, and such reasonable sum
as shall be so retained and paid shall, unless the Trustee
be then in possession of said premises, become and be a
lien upon the said premises, and secured by the trusts of
this indenture, to be paid with interest by the said party
of the first part.
»
H
Article Fourteenth. — It is further agreed, that the
Trustees shall not be in any manner whatever responsible
for the default or mis-conduct of any agent or attorney
appointed pursuant to these presents, if such agent or
attorney be selected with reasonable care, or for anything
whatever in respect to the premises or of the trusts hereby
created, except personal misconduct or gross negligence
in the execution of said trusts.
Article Fifteenth — It is further agreed, that the
Trustees, or any of them, may resign the trust hereby
created, and be discharged from all further duty there-
under, upon giving three months' notice in writing to the
said party of the first part, or upon such shorter notice as
the said party of the first part may accept as sufficient ;
and also that the Trustees, or any one or more of them,
may be removed from office by a resolution of the holders
of the said Bonds, (exclusive of the holders of Bonds held
as security for any obligation of the Company), who shall
be present or represented at any meeting of the said Bond-
holders duly called and held, as herein provided, at which
a majority in interest of the said Bondholders, exclusive
of the Bonds held as security for any obligation of the Com-
pany, shall be present or represented, such removal being
!■■
82
attested by an instrument in writing, under the hands and
seals of the persons voting in favour of such removal ; and
in case, at any time hereafter, the Trustees, or any of them,
or any Trustee hereafter appointed, shall die, or resign,
or be removed as herein provided, or by a court of com-
petent jurisdiction, or shall become incapable or unfit to
act in the said trust, a successor to such Trustee may bo
appointed by the surviving or remaining Trustee or
Trustees, by an instrument duly executed in that behalf
under their hands and seals, respectively : such instru-
ment however to have no force or effect, before any default
in payment of coupons, until approved by the Board of
Directors of the Company. But if such appointment is
not made and in the contingency hereby provided approved
within three months from the occurence of such vacancy,
such appointment shall be made by the holders, for the
time being, of a majority in interest of the said Bonds
then outstanding, either by vote, at a meeting of said Bond;
holders, to be duly convened and held in conformity with
the provisions of these present, at which a majority in
interest of such Bondholders, exclusive of the holders of
Bonds as security for any of the obligations of the Com-
pany shall be present or represented, such resolution to
be attested as aforesaid ; or by an instrument in writing,
duly executed by a majority in interest of such Bond-
holders, also exclusive of the holders of Bonds as such
security.
Article Sixteenth. — And in case any Trustee here-
under shall die or resign, or be removed as herein provided,
or otherwise, or become non compos mentis^ or otherwise
legally incapable or unfit to act in said trust, all powers
and authorities hereby vested in him shall, upon the
appointment of a successor to such Trustee, be by force of
these presents, and without any further assurance or con-
veyance, become vested in such successor : and such
successor shall be entitled to exercise any and all powers
1) 'fi
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and authorities, which such Trustee so dying, resigning,
being removed or becoming non compos inentis,oT otherwise
legally incapable, or unfit to act in said trust, was vested
with or entitled to exercise at the time of his decease,
resignation or removal, or of his becoming non compos
mentis^ or legally incapable or unfit to act as such Trustee ;
but nevertheless, in case of such resignation or removal,
the Trustee so resigning or being removed, shall, if so
required by a majority in interest of said Bondholders, or
by the new Trustee who may be appointed, execute,
acknowledge, and deliver to him a good and sufficient
deed, or other instrument, vesting in him all the powers
and authorities which were possessed by his predecessor
in said trust as aforesaid, under or by virtue of these
presents ; provided, nevertheless, that if after reasonable
exertions, it shall prove to be impracticable to appoint
a Trustee in the manner aforesaid, or if the appointment of
such new Trustee shall be inconveniently or unreasonably
delayed, and if such vacancy in said trust shall continue
for the period of ninety days after the existence of the same
shall have been made known to the said party of the first
part, it shall be competent for any holder or holders of
said Bonds, to the amount of not less than one-fifth part
in interest of all of such Bonds, then outstanding, exclu-
sive of all Bonds held as security for any obligation of the
Company, to apply to the Chief Justice or any one of the
Judges of the Supreme Court oPCanada, for the appoint-
ment of a new Trustee to fill such vacancy, upon such
reasonable notice to the parties interested, as well ae to the
said party of the first part, as such Chief Justice or Judge,
shall prescribe ; and any Trustee lawfully appointed upon
such application, shall become vested with the same powers
and authorities, and shall be subject to the same responsi-
bilities, and to the performance of the same duties, as if
appointed by the said Bondholders, in the manner aforesaid.
• «•
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Article Seventeenth. — Whenever and as often as
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34
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any contingency shall arise in which the action of a
majority in interest of the holders of the Bonds secured
hereby shall be neqessary, or in which the said Bond-
holders are herein declared to have any discretionary
voice or power, it shall be the duty of the Trustees, and
they shall be, and hereby are authorized and required, to
call by advertisement a meeting of all the holders of
Bonds secured hereby, to be held in the City of Montreal,
(the expense whereof shall be a liability of said party
oi the first part hereunder, and may be defrayed if neces-
sary in the first instance from the trust funds), and such
advertisement shall contain a description of the purpose
for which such meeting is called, and shall be published
three times in each week for six weeks, in at least two
newspapers of good circulation in the said Cities of Mont-
real, New York and London ; or such meeting may be
called in such other manner as may be prescribed for the
convening' of meetings of said Bondholders, pursuant to
the provisions of this instrument ; and in default of such
meeting being called by the Trustees or a majority of
them within thirty days afternotification in writing to them
by any Bondholder of the necessity therefor, itshall be
competent for any holder or holders of said Bonds, to the
aggregate amount of five hundred thousand dollars, to call
said meeting in the manner aforesaid ; and at all such
meetings, the holders of said Bonds, (except Bonds held
as security for obligations of the Company), shall be com-
petent to exercise in person, or by proxy, by a resolution
duly passed by the vote of two-thirds in interest of the
Bondholders present or represented at such meeting, and
entitled to vote thereat under the provisions hereof, and
not otherwise, all the powers and authority conferred upon
them by these presents ; provided that, until otherwise
provided pursuant to the provisions of this instrument in
that behalf, a majority in interest of the holders of out-
standing Bonds for the time being^ (exclusive of those held
as security for any obligation of the Company), shall be
^
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35
^7
required to constitute a quorum at any such meeting.
Abtiole Eighteenth. — Meetings of the First Mort-
gage Land Grant Bondholders for any of the purposes
which they are authorized by these presents to regulate by
resolution, may be called in the manner herein provided, or
in such mode as may be fixed by regulations prescribed
or established by them ; and such Bondholders may vote
at such meetings, in person or by proxy, each five hun-
dred dollars in nominal value of such Bonds entitling the
holder thereof to one vote ; and the quorum may be defined,
and such other regulations or by-laws in respect of such
meetings may be from time to time established, altered,
or repealed by the Bondholders, acting by two-thirds in
interest, present, in person or by proxy, at any such meet-
ing, as to them shall seem expedient. But no subject,
matter or thing which is not mentioned in the notice calling
such meeting shall be dealt with or disposed of at such
meeting. And any act or resolution of the said Bond-
holders affecting the duties or position of the Trustees, or
of any of them shall be authenticated by an instrument
signed and sealed by all the persons assenting thereto, as
well as by a minute of the proceedings of the meeting
authenticated by the signatures of the Chairman and
Secretary thereof. But no Bonds of the Company held
merely as security for an obligation of the Company, shall
be voted upon at any such meeting.
*♦
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k.
Article Nineteenth. — If the said party of the first part
shall well and truly pay the principal of each and every of
said Bonds secured by this instrument when the same shall
become payable, and all interest thereon, as such interest
shall from time to time mature, according to the tenor of
such Bonds respectively and of the several coupons thereto
annexed, and all interest upon any coupons in default, as
hereinbefore provided ; and shall well and truly do and
observe every other matter and thing provided for or men-
T
86
tioned in these presents, to be by it done and observed,
then and in that case all the estate, right, title, and
interest of the said parties of the second part, and of any
successor or successors in the trust by these presents created,
shall cease, determine, and become void, otherwise the
same shall remain in full force and virtue ; and upon any
such determination of such interest, the said parties of the
second part or their successors and successor in the trust,
shall execute such re-conveyance and re-assignment of the
premises as may be necessary or expedient.
Article Twentieth. — And the said party of the first
part, in consideration of the premises, and of one dollar to
it duly paid by the said parties of the second part, the
receipt whereof is hereby acknowledged, hereby covenants
and agrees to and with the said parties of the second part,
and their successors in the trust created by these presents,
that whenever and as often as the said party of the first part,
its successors or assigns, shall hereafter acquire any lands
from the Government of Canada, forming a part of the said
land grant, the said party of the first part shall and will
acquire, possess, and hold the same, and every part and
parcel thereof, upon and subject to the trusts of this
indenture, until conveyance thereof, in pursuance of
the covenant next hereinafter contained, shall be
duly made and delivered to the said parties of
the second part, or their successors in the trust by
these presents created, and will duly pay all taxes
and assessments which shall become lawfully due and
payable thereon, while such land shall remain in its
possession, to the entire exoneration and discharge of the
Trustees holding by virtue of these presents.
Article Twenty-first.— And the said party of the
first part hereby covenants and agrees to and with the
said parties of the second part, and their successors in th«
trust created by these presents, that the said party of the
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87
first part shall and will, from time to time, and at all
times hereafter, and as often as thereunto requested by the
Trustees under this Indenture, execute, deliver, and
acknowledge all such further deeds, conveyances, and
assurances in the law. for the better assuring unto such
Trustees, upon the trusts herein expressed, the lands grant-
ed or conveyed, or agreed to be granted or conveyed, to
the said parties of the second part, or their successors and
successor in the trusts created by these presents, as by the
said parties of the second part, or their successors and suc-
cessor in the trust hereby created, or by his or their coun-
sel learned in the law, shall be reasonably advised, devised,
or required.
Article Twenty-second. — And the said parties of the
second part, do hereby accept the trust herein contained,
and do hereby undertake and agree to fulfil all the duties
and obligations hereby imposed upon them, in accordance
with the true intent and meaning of these presents.
In witness hereof, the said Canadian Pacific
Eailway Company has caused these pre-
sents to be signed by its President and
Seci'etary, and attested by the seal of the
Company; and the said parties of the
second part, have hereunto set their hands
and seals, the day and year first above
written.
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Witness to the signature q/
Messrs. Stephen, Drinkwater
and Smithers.
W. F. Salsbdry.
Witness :
Henrt Cutt.
Witness:
OUVBB H. NOBTHOOTK.
GrEOBGE STEPHEN,
President.
Charles Drinkwater,
Secretary.
Charles F. Smithers,
Ihistee.
John Hamilton,
Samuel Thorne,
TrusUe.
Trustee.