The ASSAM MONEY LENDERS' ACT, 1934

TH.E ASS,\ .\f MONEY LENDERS' ACT, 
1934. 
lllubli!lherl in the 4.$/JtVI t Gazette of the 27th June 1984.] 
An Act ttl prrr<.•,:cle J'o" more a.lfe~tiUJ I contrflt 
of' uwneJ -ienit i.11f1 i11 Assam~ 
PnJambtu. WuEn.Eu it is expeuieut to make better 
provision fo .. the cont.,~•ol of money-lending and to 
give addic,ional powers flo Courts to deal with 
money-:unders in Assam ; 
And whereas the pJ:evious sanction of the 
Governor General has been obtained under 
suh-!;ection (:3) of section 8HA of the Government 
o.lf l11dia Act to the passing of this Act. 
lt is beroby enacted a.s follows :-
~~~t t~~~t l. (1) This Act may b~ called the Assam 
~IIIIIIOOcorn~>Dt, Money-Lenders Act, 1934. 
(2) It extends to the whole of Assam including AJwc Act n 
the territories mentioned in section 14 of the ot .1$10, 
Ass11.m General Clauses Act, 1915. 
(:3) It; shall come into foxcc on such date as 
the Local Governmen~ may by notification direct. 
D•JI'II.tlou. 2. In thi s :\ ct, unless there is anything 
~ • repugnant in tbe subject or context,-
,/-~ ~~ (1) ' '.Money~le nder" means a person ho 
)!'""'+ L grants a loan. 
(-, t r (2) "Interest" means rate of iotereat and 
inQlud ~ s tbe retum to be made over and above 
what w~ a.etua.lly lent wliethel' the same ill 
charged or sought to be ~·ecovered apeoi.fic~ly 
bl wa,y of btterest or otherwise ; 
~ (3) HLoa•1" means ~n advance {whether of 
money Ol' in kind) at intetest JDa.de by a m~ney• 
I 
lender and sha1t include any bona bearing interest 
executed in respect of pa-st liabiliti~ta.nd any 
i ·a.nt:actiou which in subsba.nce i> a. loan; [Expla· 
L 
nation. - A bond bearing interest executed in 
respect of good& taken on cxedit constitutes a 
loan.] and 
· {4) r. Prescribed'' UJEWH prescribed by rules 
made under this Act. 
"M .- ;t_ ,l....4._. 3 .,......,_ bJ.· ~V1111I";IrP. 
Prici-E9Jgl isk: 4d.l {lttdi.a.: ani.aB 8 • . 
2 
at~r::u' 1.,~:~ :J. I1 the loan actual ly made be less t han tho 
~.~un,th In lbo sum ente red in the bond or band note, the 
luahJ I~:~ ae room~y -l ender shall be guilty of a. oontran ntioo 
of tho proTisioos of this Act and shall, on con• 
viction, be punishable with fine not exceeding 
two hundred rupees. /..L.r-,.,. 
l'rohlblllon • f 4· An[ contract made'8l ter the commenae· eompound • t 
~~~~~~~"' a:"~ ment o1 dthis Actll for ~ 16 loa.1 n .of money by.'"" 
dof"••ttlu1. money- en er sba be tl1P.ga 111 ~ so far a.s tt 
pn>vid~ s directly or indirectly for th o payment 
of compound inte rest or for . the rat e or amonnt of 
interest being increased by reason of a.ny default 
in the payment of s•1ms due under the contract : 
Slmt•l~ Into. /: Provided that provision may be mado by any 
rut In case or h b t if d 1!... 1 · ad · h dotant•. ~uc contract t a OJ.a.U t ts m e 10 t o pa.y· 
ment upon tbc due date of any sum p~yable to 
the money-lende r under the contract, whethe r in 
respect of friocipa.l or interest, or both, the money 
lender sbal be entitled to charge simple interest 
on that sum from the date of the default unti l 
the sum is paid, at a. rat-e not exceeding the rate 
payable in respect of the principal apart from any 
default, and any interest so oha.rge\1 shall not be 
reckoned for the purposes o.f thi s Act as ~rt of 
tho intere st charged in respect of the loan.J 
Prohlbttloo 5. .t\ ny agreement betw een a money-lender 
of c•••r!Ct for • • f b n pmMt .. n t.nu a borrower or mtending borrower or t e 
~:d~:1. moo~, . payment by the borrower or intending borrower 
to the money-lender of any sum on acc ount of 
costa, charges or expenses incidental to or 
r ola~iug to the negotiations f,n· or th e granting 
of the loan or proposed loan shall be illegal, and 
if a'tlY. sum is pa.id to a money-lender by a 
borrower or intending borrowet· as for or on 
account of any suoh costs, charges or expenses, 
that sum shall be recoverab le as o. debt due to 
the borrower or intending borrower, or, in the 
event of t he loan being completed , eha.ll, if no~ 
so recovered b e s et off against the amount 
actually lent and that amount shall be deernod 
to be reduced accordingly. 
E:s::ception.-This will not debar money-lenders 
from recovering reaconable costs of inspectio n of 
Revenue or Registration records including exami­
nation of titles and also costs of inspection of pro­
perty. in cases where the contrac t includes a 
etipulation that property is giTen as secu rity ot· 
l>y way of mortg age and where both parties have 
agreed to £moh costs and l'eimbnrsement there of. 
• 
. . 
t 
I 
~11\m ~~~- ~ :P.R .. •~ 
•AN. ,...rlu""',._ 
3 
!:!~:f.. 01 6. Every money-lende r shall keep acconnts in 
t he form prescribed. 
Obligation °1 7 (1) In respect of everv contract for the re-mo~1;reoclt r ~ • -.1 
IIIJIPIJ' totnrma· pat"ment of a. loan made by a money-lender I IOn IS 10 III II .I , 
ot IOGn and wbetlter made before or a!ter the commencement 
· ~f~t: 
0
:01~~~ of thia Act, the money-lender shall on demand in 
~her~ to. writing being made by the borrow er at tlie 
time of executing the contract or at -any time 
dur in2 the continuance of the contr act , s upply 
to the bonower, or, i£ the borrower so requires, 
to any pcu-aon specifi ed in that behalf in the 
demand, a statement sig ned by the '1lonoy-lender 
or hia agent showing-
(") the date on wwch the loan was made, 
the amount of the principal of the loan, 
and the rate per cent. per annum of 
intere st charged ; and 
(b) lhe amount of any payment already 
receind by the money-lender in respect 
of t he loan and the date on which it 
was made : and 
{r) the amount of e\·ery sum due to the 
money -lender, but unpaid, and the 
date upon which it became due a.nd the 
amount of interes t accrued due and 
unpa id in respect of every aucb sum ; 
nnd 
(d) tho amount of every sum not yet due 
which renu.1.ins outstanding and tbe date 
upon which it will become due : 
Provided tha.t when a demand under this sub­
section has once been compli ed with, a second 
domn.nci ma.y not be made in respect of the samo 
loan wi thin six months. 
~~~ ,:,' f~;~: (2) A money-lender shall on demand in writing 
u,nr. by tho bonowcr , and on tender of the presol'ibod 
sum for expenses, supp ly a copy of any document 
relati ng to a loan made by him or any secu rity 
the refor, to tbe borrower, .or if the borro wer ~:o 
requires , to any person specified in that beha lf in 
tbe tlomand. 
~!~'~o'::i1':ae:~ (:3) If a ruoney-lhie.nder t? w~!Dl a. bdemand has 
been made under t s sect ion 1.a.1 wtt out re B~Son-
abl~ excuse to complv therewith within one 
month after the demand has been made, he shall 
not so long a.s the defanlt continues be entitled 
to sue for or recover any sum doe under the con­
tru.ct on account either of principal or interesr, 
and inter est shall not be chargeable in respeot of 
the period of the default. 
fh':-:.~'~fac •':. /J3. Where in nny suit iu rc~pcct of a.ny loan 
tala toane. made or any 11eC111 ity taken for :L loan mndt: by a 
money -lender a.(ter the commencement of the 
Usurious Loans Act, 1918 , it is tound t.La.t tho Act xotltlt8. 
interest charged exceeds tho l'ate of 12~ per cent. 
per a nnum in the case of a secured loan or 1!;~ 
~ ; -:; t:.., /..,., por cent. per annum in the cn."e of A.n un;.ecurcd 
~ I'""'\ Ll loan, the 1 ourt Rhall, until tho contrary is proved, 
~v- · · presume for tho purpos\.'S of scotian :~ of tho 
, i:}. '1 Usu r ious Loan s Act, 1918, thn.t tho int.eret-b A~t x ot touL 
L_ ~· . .._J. "' -; ,-v obargcd .is oxcessi,,o and thnt the trn.u:;actiou wsu• 
.'). /rl' ~ as between t ho parties thereto , snbHtn.llti~Nlly 
1 r, ¥~ · uofo.ir, but thi~ prov ision shall bo without pro· 
'Jl -t' judice to tho powers of the Court under the 13n.id 
section wilcre the Cou• t i!': sa.tisfiP•l that tlte ..:J 
interest charged though not. oxcecding 12~ per 
cent. per ann:un or 18!- per cent. pt!r a.nnnm, ;u; 
t he ease may be, is ex.cessi\·e.7 
Bu to rccomy [ 9. No Courts Rhall, in resper·t of MY lon.n rna.do 
of lnurm •·a· b £ 'f 1 · 
1. <) c.c~tn 1 lbe e ore or after the cumme nc mont o t n.- ·' ct, 
.Lov • prta~lpal. dec ree on account of arrear s of intere:;t a ,um 
· · C'\ U "'1./'frl' .- grea ter than th o principal of the loa.n."7 
~i:'A·.,_:, • ../ f.;;) ~ .f f If'" co~C:l~moa!~ 10. (1) Where a borrower has l"Cn' Lo a money-
· ... L' do• to moollf·londer by J>O»tn.l moMv-ordel' or hv l'Cgisien :d ,.,- ltodtr " • 
· post with acl.nowledg ment due any ~um of 
money due £rom him to the lliOlH'y-lr~oJer in r!.'~­
pect of a loan and the money-lon1ll'l' has t·ofn!'!'d 
to accept tho ~< arn e, the borrower may a.pply in 
the prescribed manner to the lowe L Gh il Com~ 
having juri diction o'•er the plnC'o where he 
resides fot· po.mist;ion to depo~it Lhe s.1 i1l "lllll i 1 
Court to tho rtccount of the money-lander, nnd 
the Court shall t,hercnpon k<:op lh11 s'um in dopoflit 
and shal l ~;end a notice of the , d1• posib in the 
prescribed manner to the money -louder . 
B.Mbldlona oa 
IZODt J·ItDd\DJ 
ldnrllttmtDIS. 
(2) If the money-lender accept !=! money sent in .--
the manner spe1•ified in snb-:;ection (1) by n. 
borrower or withdra ws money deposi ted 11nder 
the ea.id sub-section, he shall not be bound by 
any statement made by the borrower in remittiug 
or depos iting tho money . 
11.(1) No per!;on shsll kno,,ingly send or 
delh·er or cnu~e lo be sent or deli nm.:d to an\ 
person except. in response to his writh·n reqne;t 
any circnll\r or other document dverti:>'iog the 
name or address of a money- lender, or '·ontaining 
n.n invita t ion-
(a) to borro w money from a money-lender i ot 
J 
) 
c 
(6) to enter into any transaction involving 
the borrowing of money from a money­
lender; or 
(c) to apply to any place with a view to 
obtaining information or advice as to 
borrowing any money from a. money 
lenle r. 
A~ ~ • 
onnneebr~ lnvlt· (2) No money-lender O.l' any person on Ius be• 
lag horrowo··~ b } f J J 1 1 f h must not bo a a 1a amp oy any agent or canva sser or t e 
:~~~·~mlcr~! pmposo of inYi ting any person to borrow money 
or to enter into any transaction involving tbe 
bon.;> wing o£ money from a money-le nder, and no 
person shall act as l:lnCh agent or canve.sser or 
demand or receive directly or indirectly any sum 
or othe r valuable consideration by way of com­
mission Ol' otherwise for introducing or under­
taking to introduce to a money-lender any person 
desiring to borrow money. 
PollAIIY. (3) Any rerson acting in contravention of any 
of tho provisions of this section shall in respect of 
each offence be liable, on conviction to imprison­
mont for a term not exceeding three months or a 
line not exceeding thr ee hundred rupees or both . 
Ol•ll ofl'cch ol (4•) Whe re it is shown that a money-lending 
contr.vi'Dtlon. h · tra nsact ion was broug t abont by a contravenbton 
of any of the prov isions of this section, tb.e trans­
action shall be illegal, unless the money-lender 
proves that the contravention occurred without 
his conseut or connivance. 
Pennlhy In Qase 12. (1) Where in arty suit in t•espect 
• 
of fraud. of any money lent or in respect o£ any 
secud ty taken fot• money lent by a money-lender, 
tile trying Court is of opinion that the money· 
lender IHlS been gu ilty of fraud, Ol' of any contra­
vention of ths proyisions of this t\ ct, or is 
otherwise unfit to carry on the business of money­
lending, the Court may make a.u order debar ring 
him from carry ing on such business for such time 
1\8 may be specified in the orde'!' and an appeal 
shall lie fi'Om such a.ll order to the court to which 
au appeal ordinarily lies under the provisions of 
the Code of Civil Procedure, 1908, irre spective of Acto v l ltoS. 
tbe money value of bhe suit. 
P ~~ •Uy. (2) Any money-lender carrying on the business 
of mousy-lending in contravention of any order 
made undor sub-sect ion {l) shall, on conviction, 
be liable to a. fine wlllch may C!Xtend to five 
hundred rup ees. 
Aprfal. 13. Any order of conviction passed under this 
Act sl 11~l1 be appealable to the Court to which 
appeal ordinarily lies undet· the Code 'of Cri miua.l 
PTocedure, 1898, irrespective o£ the amount of Ao1 \'l)r 189'. 
• 6ne to wllich an accuse d may be sentenced. 
Po wer 01 Local 14. (1) Tbe Local Go\·ernm eot may make rules n onrnmea~ to . • 
malo rnlea. for ca.rrymg out the purposes of thiS Act. 
(2) In particular, and without prejudice to the 
generality of tbe foregoing power , such rules may 
provide fot· all or an,y of the following :. matters, 
namely:-
(i) the form in which money~l~nders shall 
keep accounts; 
(• i) th e inte rvals at wbioh borrowers 'may 
demand sta.temeuts of account s under 
sub-sec tion (l ) of section 7 and the fees 
to b ~· paid for copies of document s sup­
plied under sub-section (2) of the same 
section; 
(ii i) the manner in which an· appliC'a.biou for 
a depo sit is to be macle under aub-section 
{1) of section 10, and a notice of the 
deposit is to be sent to the money-lender 
under the said sub-secti on; and 
(iu) the enforcement of orders made under 
sub-section (1) of section I t. 
(13) The power to make rula .;-~unde r:'"tbi s Act 
shall be subj ect to ' the condition of previou s 
publication. 
~ ~ n..A.. )t.. :I.. I .X 1- l'h "!.) 
0 
( 
) 
Tile 12th Jlarch 1935. 
No. 1099G.J. - In exercise of tho powers oonforred by section H 
of the Assam Money Lenders Act, 1934. (Auam Act IV of 1934), the 
GoYernor in Couuoil is pleased to make the following rules for carrying 
out the purposes of the Act. 
RULES. 
1. Tho account prescribed by section 6 ehall be maintainedlin the 
Form I shown in tbe ~ohedu le attached to these rules. 
" Provided that in tbe case of a society registered under tho Co­
operative Societie s Act, 1912 {Act II of 1912), tho account shall be 
kept in tho form prescribed by that Act or rnles framed thereunder ". 
2, The fees to be paid for copies of documents to be supplied under 
suh· section (2) of section 7 of the Act shall be three annas for nery 800 
vernacular or 150 English wor-ds or part thereof: ProYided that 
wbere the borrower or his authorised agent is allowed to copy a doou• 
ment, no fe~ ehall be charged. 
8. Tho application under sub-section {1) of section 10 fot permis­
sion to deposit in the Court any sum of money due from a debtor to a 
mooey-lender in respect of any Joan or loans shall be in writing and 
t~hall contain the following particulars :-
(a) the name and full address of the money-lender in whose 
favour the deposit is made; 
(h) a recital that the debtor he.s sent the money to the money­
lender by post.al money order or by regi stered post with 
acknowle dgment due and that the money-lender has refused 
to accept it. ('rhe amounts sent on account of principal 
and intere st should be separately stated with the date of the 
remittance). The application shall be signed and verified 
in the manner provided in sub-rules 2 and 8 of rule 15 of 
Order I in Schedule I to the Code of Civil Prooedure, 
1908 , by the debtor, or by his autho.,ised agent . 
4, The application shall bear a court-fee stamp of eight armas as 
required by Articla 1 (b) of Schedule II of t he Court-fees Aot, 1870, 
and shall furt her be accompanied by pridted form& of notice in Form II 
annexed to these rules for service on the money-lender with P.rooess­
feos payable in court-fee stamps according to the scale presor1bed by 
the IIi~h Court for service of summons on defendants. The blank 
spaces 10 Form II shall be filled in by the debtor or by hie authorised 
agen~. If it appears to the Conrt, to whioh an application for permis­
sion to deposit under section 10 is made, that the applicant is entitled 
under that section to deposit the money, it shall receive the same and 
give the receipt in Form Til anne xed to these rules. 
6. The money-lender may apply for withdrawal of the money in 
Form IV annexed to these rules, and the prooedure in connection with 
such withdra walrhalt be the same as in the case of wi,bdrawal of other 
civil doposits. 
1. A copy of the order under sub-section {1) of section 12 of the 
Act shall be serve d on the money-lender in the manner laid down for 
eenioe of summons OD defendants. 
Loan Account of 
Openin~ balance (if any)­
Princlpal-
Intere st-
Dr. 
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Ado&Dee ir> ~l>utes. 
.. "' :s 
0 
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.<: " = "' :a; . ... ·r .s " . m .. .. ... 0 ~ .. .. " ' - "' .. 0 .c .. 
5 "' e " " -]] 
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g .... ]. .. ... C:o i< A t,) 1>-
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SCHEDU LE. 
FORM I. 
(8ec rule L) 
I 
- - -
1 "' Jlemar.h. .. .::! .. .. 
J .: li : .s 3 .:! 0 
0 § Jl ,; 
s ~ • .,; < Q 
--
) 
( 
residen ce.~----
Cr. 
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" ' :;; ReJXI)"mOnta Ia 6gu~. 
I 
ApprOpri&~loo. 
0 
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5 .. ~ 
""' ~ " ., z :;; I " .: [ 
~ . ; .. I J .. .. I 
.... .. c. 0 1'1 I .. .8 
,:. .. .. I ... • c. 0 
l 
e .. 
:!"' '0 ";i 1£ 
.; 
.e: ... -al ~ J! .. I ... " .. ih .<i .. -;; 
Q ., a 
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=-= 
·c ,e ~ ;.. II< 1'1- 0 
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9 
FORM Il. 
(St:e rule 4.) 
Form of notice of depo1it ulldet ucti·)n 10(1) 
Name of money-lend er... ... . ... ....... .... .. . . 
Address .. .. . ..... . 
You a.re hereby informed that _ _ _ _ _ ~ of_-:r---.,...,--
ba.e on deposited in this Court under section 
J O(l) of the Assam Money Lenders' Ant, 1984 a sum of Rs. 
(Rs. on account of principal and Rs. 
on account of inter est ) to your account in connection with the loan 
of Rs. which was made by you to him on . 
You are requested to withdraw thi11 amount a.t your earliest conve­
nience. Government accept no responsibility for any loss which you 
may ioour in conneclion with the aforesaid sum while it remains in 
depoeib with the Court. 
Signature of Munsif. 
Address 
Dated the 
10 
(&e rule 5.) 
Station . Court. 
Wherea s an application bas been filed by~-;-:-;--: 
.....,...,..,..,...,.~~under sub-section (1) of section 10 of the Assam Aot IV 
of 1984, for depositing a. sum of money oo account of his debt and 
wbereai 'the Court is of opinion that the said 
is entit led t.o depo 9it tbe amount under the s·-a-ria..--e-e-otion it is hereby 
~iveu in wri ting that the underme ntioned amount has been depositod 
1n this Court by 
----
NA!Dt of Won~· Dak leadtr, loa 
of Amoaat or Paym~l i.olward• Paymenl to,..r de Total. 
a. loao. Prin~ lpal. 10 ~11. 
--
I 
Date· Signature .... ... . . 
Seal of the Court. 0 
r 
11 
FORM IV. 
(&e rule 6.} 
F r. rm of wit~dratll .tl. 
PAYMENT ORDER. 
P .Al•T I . -Application for payment of Depoeits (to be filled in by 
the applicant J· 
Namo of applioaut . l'ate of dt>p<>sit. I Au1ouat to b. paid. 
1 2 I 3 
--------------.!- ----·----'---- -
Signature of applioant ...... .... .. .. . .. .. .. 
Dt~ t e .. ..... .. ...... ......... ... .. 
*Examined and found corre ot. 
Signat ure of Chief Minis teri<.~.l Officer .... .... . ..... . .. 
Signature of Preeid.i ng Officer ....... ... .. 
• The signatu re below the words •• Examined and found correo L '' mua~ of 
course be hPid to indieat• that the officer signing the certificate h• Aniia6ed himtelf 
•• t.bat t.lle applicant is t ho proper p3rty to reoein pa_yment of the amount daiaod" , 
&nd that tbe parlicv.Lm ttak!d are correct, while tht Judge in ehaPgtt will be Pel• 
poolible that the amonnt claimed h, iD deposit, that there is no bar to ~yment , uo 
that the name of the olaimaut oorrcspcnds with that of th o JMYM eatered in hi1 
Regieter. 
12 
PnT ll.- (To be filled in by the Court or under its order.) 
s,rtal oum~r aud 
roa n '• obalan numl~r 
and cb•la o date or the Court'• number a.nd AI "hOI 
date of orl~lna l dopo11U lroo1 <la.te or the origina l Amount In oredlt In 
Jl&1mPnt ordor: " loh the t•yment ·deposit. dapoeU•. dOPOJ!t.• 
Ia IIOUir ~. 
--
I a 
I ~ J ' I 
& 
I 
6 I ' I 
8 
I 
I - I 
,_ 
I 
I I I 
I 
I • 
I 
T Tl Officer in charge of the Treasury at o- to ---. C!'sh1er of the Court 
• Please pay as above to or order Rupeest 
Signature of Court' s Accountant -
Signature of Judg e in charge-
• At per Co:m•• R~-trlater of Deposit• Received. 
t w .. rd. ud e, .. ,.. •. 
Non 1,-Tbil Ol'dor I 1 uot payable mOre th•n o~ month alter dMe " II boa I a ••new• I t~nl~~et­
~~~tot b7 th~ Coon and It 1.1 ab.oluteiJ laP'JUIIDd tescea to bate etroct on the Slit ~areh o&rl. 
Non !,-Payt>e I, h~rtb7 co \Ike notice tbal alw tender and P"J"'•at o! thl• ord~r. tbt TroalllrJ • 
Olllct "lll 1\Jmlt Qcl rurtlwr roepoo~lbl!ltJ. lt ta tba daty ol the ,Jl"Jel t·• ett~ to tbt (!roper ouiOdJ or 
thll dotomout oa til II 1.1 caehAid. 
. . 
A 
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PuT 111.-[to bo fi])ed in at Treasury (or at Court if payable 
there)]. 
'l'he 
Beoeived oonteute, Rupees . ...... .. ...•• •.. . 
Signature of Disbursing Ca.~>h ier .... . •••·· ... . 
'11reasury No ... ... 
Pa.y Rupee s .. . ... .. ...... .. . 
19 . 
Examined ~~ond. entered. 
• t11mp of one 
aona 1f for more 
than R~. 20. 
Payee's signature. 
Accountant. .. . . .. . . . . . . . .. 
• 
Officer in oba.rgo of.;rreaeury. 
J. A. DAWSON, 
Chief 6ecrPtary to i!te Gouernm c ~e o( tiwwt. 
A '• · P. (v .~t.J.I ~o. 107-600 - :W-12·1936. 

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