XIV. Profits

The net profits of the Bank, at the end of each financial period, shall be employed as follows:

a) Twenty (20) °/o shall be transferred to surplus or reserve until the Bank's actual net paidup capital and surplus shall amount to twelve (12)°/o of its average liabilities on circulating notes, on the fifteenth day of the six preceding months. If the ratio shall again fall below this twelve (12)°;o, the above-mentioned allotment of twenty (20) °/o of the net profits to surplus or reserve shall continue. When and so long as the ratio of the Bank's net capital and surplus or reserve to its average liabilities on circulating notes, as above computed, shall exceed twelve (12)°/o, the Bank raay use its discrétion as to the percentage of its net profits it will transfer to surplus or reserve provided that the percentage thus transferred shall never exceed twenty (20) °/o.

b) A sum shall be assigned to the payment of divïdends sufficient to pay eight (8) °/o per annum on the Bank's shares.

c) The balance of the net profits shall be divided as follows:

1. One-half (1/2) to the shareholders. in dividends or to a spécial fund to be used for the maintenance of a uniform dividend policy.

2. One-half (Va) to the Government, as a franchise tax for the Bank's exclusive privilège of issuing circulating bank-notes.

d) The dividends of the Bank and other income derived from its capital shares owned by foreigners residing abroad, shall be exempt from ail German income taxes, présent and .future; provided that this exemption shall not apply to gênerai taxes imposed in Germany upon the real property of the Banks in gênerai. The Bank, however. in considération of the percentage of profits accruing to the GoTernment under paragraph c 2, shall not be subject to any corporation tax or business tax levied in Germany by the Reich, the States or any other Governmental unit.

e) Such privilèges not inconsistent with this plan, now enjoyed by the Reichsbank, as may be specified by the Organisation Committee as désirable and advantageous to the new Bank shall be given to it.

794 Commission des Réparations