milliard gold marks (_a_) Two annuities of 2 (May 1, 1921–May 1, 1923) (_b_) Three ” 3 (May 1, 1923–May 1, 1926) (_c_) Three ” 4 (May 1, 1926–May 1, 1929) (_d_) Three ” 5 (May 1, 1929–May 1, 1932) (_e_) Thirty–one ” 6 (May 1, 1932–May 1, 1963) (2) Forty–two annuities, reckoning from May 1, 1921, equivalent to 12 per cent of the value of Germany’s exports, levied on the receipts from them and payable in gold two months after the conclusion of each six–monthly period. To ensure that (2) above shall be completely carried out, Germany will accord to the Reparation Commission every facility for verifying the amount of the exports and for establishing the necessary supervision. 2. The German Government shall deliver forthwith to the Reparation Commission Bearer Bonds payable at the due dates laid down in Article 1 (1) of the present scheme, and of an amount equal to each of the six–monthly instalments payable thereunder. Instructions will be given with the object of facilitating, on the part of such Powers as may require it, the mobilisation of the portion accruing to them under the Agreements which they have established amongst themselves. 3. Germany shall be entitled at any time to anticipate the fixed portion of her obligation. Payments made by her in anticipation shall be applied in reduction of the fixed annuities prescribed in Article 1 (1), discounted at a rate of 8 per cent up to May 1, 1923, 6 per cent from May 1, 1923, to May 1, 1925, and 5 per cent after May 1, 1925. 4. Germany shall not embark on any credit operation abroad, directly or indirectly, without the approval of the Reparation Commission. This restriction applies to the Government of the German Empire, the Government of the German States, German provincial and municipal authorities, and also to companies and enterprises controlled by these Governments and authorities. 5. In pursuance of Article 248 of the Treaty of Versailles all the assets and revenues of the German Empire and its constituent States are held in guarantee of the complete execution by Germany of the provisions of this scheme. The receipts of the German Customs, by land and sea, in particular the receipts of all import and export duties and all supplementary taxes, constitute a special pledge for the execution of the present Agreement. No modification shall be introduced, liable to diminish the yield of the Customs, without the Reparation Commission approving the Customs Legislation and Regulations of Germany. The whole of the receipts of the German Customs shall be credited to the account of the German Government, by a Receiver–General of the German Customs, nominated by the German Government with the assent of the Reparation Commission. In the event of Germany failing to meet one of the payments laid down in the present scheme: