Article 116. The Federal Government or, in the case of a non-federated Province, the Provincial Government, shall complete the transaction within one year by paying fair compensation to the previous private owners, whether individual or corporate. The compensation shall be estimated at seven times the average yearly income.The compensation shall be paid in three per cent self-redeeming bonds of the State Bank, payable for forty years. Where, however, the private ownership was vested in religious or charitable institutions, the compensation shall correspond to the net average income received hitherto fore. Compensation bonds are not negotiable. They shall be deposited with the State Bank for its credit and serve as covering for its credit and/or the currency notes issued by it.
