HARANA mLEING HOUSE
Contracts of Crop Advancement,
Cane Planting and
(Gacer-a, M ,uh 6 1922)
Imp. La Moderna Poesia. Obispo 135
HABANA CLEARING HOUSE
DEPARTMENT OF JUSTICE
I, ALFRE[DO ZAYAS Y ALFONSO, President
of the Republic of Cuba,
DO HEREBY MAKE KNOWN: That the
Congress has passed and I have sanctioned
Contracts of Crop Advancement, Cane
Planting and Cane Grinding.
Contracts of Crop Advancement.
ARTICLE I.-A Contract of Crop Advance-
ment is one under which the owner, holder
usufructuary, lessee or planter of a rural estate
or portion thereof, encumbers the fruits or
products of the same, with reference to such
years or crops as may be specified, to secure
payment of the amounts which he may
receive by way of loan, interest thereon or
other liabilities, whether stipulated or legal, to
the end of applying the sums so advanced
towards the expense of administration, main-
tenance, cultivation, exploitation, improvement,
building, installation of machinery, or other
objects tending to the betterment of the
ARTICLE II.-Any lack of compliance by
the debtor in regard to the application which
is to be given to the proceeds of the loan, shall
in no wise prejudice the rights or preferences
given to creditors under this law.
ARTICLE III.-The term for which any
crop advancement contract may be made,
shall conform to the following rules:
(a) If the debtor for such advancements
shall be the owner, possessor or usufructuary
of the premises, he shall not encumber the
fruits or products for a longer term than three
years or three crops.
(b) If the debtor shall be the lessee or
planter (colono), he may only encumber the
same for the time of duration of the lease or
(c) In case of the extinguishment, without
consent of the lessee or planter, of the lease
or planter's contract, the encumbrance of the
fruits or products shall likewise become extin-
guished from the same date.
Cane Planting Contracts (Contrato de
ARTICLE IV,-A Cane Planting Contract is
one under which a given person, called the
planter (colono), acquires from the owner,
possessor, usufructuary or lessee of a rural
estate, or any part thereof, the right to plant
cane thereon, taking over to himself the stubs
or plants and fruits derived therefrom during
a stipulated period, for such consideration as
may in money or sugar be agreed.
ARTICLE V.-In case a cane planting con-
tract shall be effected in consequence of any
lease, such contract shall be null as to any and
all time that the same may exceed the leasehold
period, and it shall likewise cease upon the
determination'of such lease for any cause other
than the consent of the lessee.
ARTICLE VI.-By virtue of the cane plant-
ing contract, the stubs or plants and cane
become separate and independent from the
ownership and all other real rights in the estate,
for the time of duration thereof.
Contracts of Cane Grinding.
ARTICLE VII.-A Contract of Cane Grind-
ing is one by virtue of which the person or
party representing a mill (ingenio) for the
making of sugar, on the one hand, and the
owner, possessor, usufructuary, lessee or plant-
er (colono) of farms or lands on the other,
obligafe themselves mutually for delivery by
the latter of sugar cane belonging to him and
the grinding thereof by the former in his sugar
mill, during such term as may he stipulated,
against the payment in quarters arrobass) of
sugar at the rate of so many quarters of sugar
for each one hundred of cane, 6r the equivalent
of such sugar in money, at such quotations on
determined dates as may be stipulated, and
subject to such other lawful agreements as may
be set forth.
ARTICLE VTII.-Whenever the party obli-
gated to the delivery of cane shall hold the
land by virtue of any lease, the contract for
cane grinding shall be null as to all excess of
time over that allowed for the temporary use
of such land by the former under his contract
of rental, and the cane grinding contract shall
terminate upon the cessation of the lease
through any cause apart from the will of the
ARTICLE IX.-Should the debtor under any
contract of crop advancement fail to comply
with any obligation, the lack of performance
of which might deprive him of the enjoyment
of lands the fruits of whirnh are encumbered,
the crop advancement ereditor may fulfil such
obligation, the value of which, in addition to
such proper expense as may be shown to have
been incurred, shall be added to the amount of
his original credit, and the security of the
fruiits shall be likewise extended to such ad-
ARTICLE X.-The same right will corres-
pond to a planter by virtue of his contract for
cane planning, in the event that the possessor
under a temporary title to the lands winch are
the subject or his contract shall fail to perform
any obligations in consequence whereot he may
be deprived of the use and enjoyment of the
same. In such a case, whatever the planter
may pay out for account of such possessor, plus
the proper expenses which may be shown to
have been incurred, may be recovered by him
at the time of the next cane liquidation.
ARTICLE XI--The same right shall ap-
pertain to a sugar mill under a cane grinding
contract, in case of non-fulilment of obligations
which may deprive the party obligated to de-
liver cane of the use of the lands. In such
case the mill may, at the time of the next cane
liquidation, discount the amount so paid out,
plus proper expenses which may be shown to
have been incurred by it.
ARTICLE XII.-In case the debtor under a
crop advancement contract shall dispose of the
fruits given by 'ay of security, or there is rea-
sonable ground to believe that the same is being
done to defraud a crop advancement creditor, or
where there is neglect in the cane cultivation,
such creditor may apply to the proper Court of
First Instance, and on establishing the particu-
lars on the evidence of witnesses may obtain a
judicial intervention for the care, harvest and
sale of the fruits encumbered. The Court will
apply to such proceedings the provisions of
Section Second, Title XIV, Book Second, of
the Law of Civil Procedure.
ABTICLE XIII.-All claims which may be
established by a crop advancement creditor
shall be entered in the Registry of Property-
wherein the relative contract may have been
inscribed, in case he shall apply therefore at the
time of entering suit.
ARTICLE XIV.--In all dispossess proceed-
ings brought for non-fulfilment of any of the
obligations of a lease, a certificate of the
Registry of Property shall be produced in
which the existence or otherwise of bne of
the contracts established by this Law must be
shown, without which certification the suit shall
not be entertained. If any such contract. or
contracts appear in said certificate, the Judge,
without suspending such dispossess proceed-
ings, shall summons the parties appearing in the
contracts so recorded in order that they may
avail themselves of the rights afforded them
by Articles IX, X and XI of this Law, before
rendering judgment. A performance by the
crop advancement creditor of the obligations
to be fulfilled will prevent a dispossess judg-
ARTICLE XV.-Whenever the price in a
cane grinding contract shall be stipulated in
sugar, the mill shall mark once a week, with-
such signs as may have been agreed, the bags
of sugar corresponding to the party delivering
the cane, in proportion to the amount ground
during that time, and the mill shall not dispose
of the said sacks, of which it shall be deemed
depositary, without prejudice to its right to
retain them in case it should be a creditor of
thebwner of the said sugar for advancements
with reference to. the crop in question.
Forms of Agreement.
ARTICLE XVI.-Contracts of crop advance-
ment, cane planting and cane grinding, may
be mqde in any of the following forms:
(a) By document before a Notary Public.
( B) By document under intervention of
a Not rial-Commercial Broker, in contracts of
crop advancement only.
(c By private document, where the sig-
natur' are authenticated by a Notary Public
or a (C6nmercial Notary, the latter in contracts
of crop advancement only.
(d) The said contracts are transmissible
by endor-ement, with the simple formality of
authentic,~ion of the signatures.
In all �ases where Notaries Public or Com-
mercial N tries legalize such contracts or
authenticat the same with their signatures,
they shall h obliged to report them to the
General Dir action of Registries, pursuant to
the require nts of existing Notarial legis-
ARTILE VII.-Notaries will be entitled to
receive the f owing fees:
For contract of crop advancement, in
loans not exceedingg one thousand
dollars, for he original and one copy. $10.00
Un to ten thousand dollars .... .. . 25.00
Up to fifty thousand dollars . .. . 50.00
From fifty thousand dollar upwards . 75.00
For authentication of all signatures
in crop advancement loans not ex-
ceeding one thousand dollars . . . 5.00
In crop advancement loans- exceeding
one thousand dollars . . . . . . . . .50
In contracts of cane planting (col nato)
and cane grinding, for the original a d one
copy, five dollars for each year of dur ion of
For other copies or transfers such
contracts, they will receive twenty-five er cent
of such fees.
ARTICLE XVIII.-In the case of cp ies of
documents executed before- Notaries Public or
Commercial Notaries as well as 'f private
documents, the parties shall affix pe corres-
ponding National Revenue Stamps/
AARTICLE XIX.-Any Notary Registrar
respectively who shall collect fees/in excess of
those herein prescribed shall be uilty of the
crime of extortion.
ARTICLE XX.-Every contra t of crop ad-
vancement shall be subject to a tax of twenty
cents for each one hundred dol rs, the same
to be liquidated and satisfied in t-e correspond-
ing revenue office, and for ca cellations, ten
cents for each one hundred doll rs. Contracts
of cane planting and cane grin ing will pay a
tax of bne dollar per each yer of duration
Inscription of Contracts of Crop Advancement,
Cane Planting and Cane Grinding.
ARTICLE XXI.-All contracts of crop ad-
vancement, cane planting and cane grinding
shall be inscribable in the Registries of Prop-
erty, subject to the provisions of the Mortgage
Law' and its Regulations in so far as the same,
are not modified by this Law.
ARTICLE XXI.--In the Registries of Prop-
erty no classification shall be made with respect
to such contracts, other than the following:
In Crop Advancements.
.(1) Whether the debtor is owner, usu-
fructuary, possessor or lessee of the estate or
lands on which the encumbered fruits are to be
cultivated, according to the titles which he may
(2) Whether the term of the encum-
brance is within the period of provisional use by
the debtor of the estate or lands in question.
In Cane Planting.
'(1) Whether the party assigning the
land according to the title presented is the
owner, possessor, usufructuary or lessee of the
S (2) Whether the term of cane planting
(colonato) is within the time prescribed for
provisional use of the lands by the party.
In Cane Grinding.
(1) Whether the person or party in ques-
tion is the representative of the sugar mill.
(2) Whether the party obligating him-
self to deliver cane holds the use of the lands
for the term of duration of the contract.
On the concurrence of these two requisites
and without the establishment or examination
of any other fact or information, the inscription
shall be effected, without requiring the prior
inscription of the estate (finca) or title papers
of the party.
ARTICLE XXIII.-From the classification
made by the Registrar, and without prejudice
to judicial recourse, a governmental appeal will
lie, in single resort, to the Government Cham-
ber of the Supreme Court. This appeal will be
taken cognizance of by the Judge who is as-
signed to the respective registry, who shall limit
himself to furthering the proceeding and ad-
dressing an order to the Registrar on the same
day that the writ of appeal is presented, requir-
ing him to place a note at the margin of the
entry of presentation of the respective title
paper, if in force, as to taking of the appeal,
and requesting him at the same time to report
within five legal days, which the Registrar shall
do, subject to a fine of from five to twenty-five
dollars for each day which may elapse thereaf-
ter without rendering 'such report; without
prejudice to further correction whenever the
circumstances of the case or a repetition of the
offense may warrant.
The same day on which the Judge receive
the report of the Registrar he shall forward it
with a Statement of what has been done to the
President of the Supreme Court direct. The
Government Chamber will decide the "appeal
within tive legal days from that on which it is
received and will communicate the decision,
without delay, to the delegated Judge for
The effect of the entry of presentation will
be understood to be postponed by reason of
the marginal note referred to in the foregoing
paragraph, until perioimance of the deci-
sion rendered under the appeal.
Whenever the denial of a Registrar is
overruled, costs will be awarded against him
according to the judgment of the upper Court,
and a term not longer than eight days will be
granted in which for him to effect the oper-
ation refused by him, which he shall perform
without collecting any fees whatever therefore,
and immediately report such performance to
'the authority rendering the resolution.
ARTICLE XXIV.-Registrars will be enti-
tled to receive for the inscription of contracts
of crop advancement, cane planting and cane
giininng, the same fees as are prescribed for
Notaries for the execution of similar contracts.
For cancellations not proceeding from
authority, preventive annotations or certifi-
cations, they shall receive twenty-five per cent
of such fees.
ARTICLE XXV.-Claims for crop advance-
ments shall have preference of collection over
claims of every other nature whatsoever, not
previously inscribed, except the following:
(1) Those in favor of the State; Province
or Municipality for taxes of the previous year
which. may be due and unpaid, to which the
premises the fruits of which are encumbered
(2) The amount of rent for the previous
year which may be due and unpaid, with refer-
ence to the said premises.
(3) The amount of salaries or wages
earned by workmen during fifteen days pre-
ARTICLE XXVI.-Entries in the Registry
relating to contracts of crop advancement
shall be cancelled:
(1) At the instance of the parties pres-
cribed therein, with the same formalities as in
the case of their execution.
(2) .By judicial mandate.
(3) By the extinction of the rights of the
debtor with reference to the lands on which the
fruits are grown, provided such extinction is
not dependent on the will of the said debtor.
(4) By payment of the loan, duly estab-
(5) By reason of the lapse of sixty days
after maturity of the loan. This cancellation
shall be made without request, and will only
be cmitted where before the expiration of such
sixty days, an extension of the contract may
be presented for inscription, or a preventive
annotation entered of a suit brought by the
(6) Through application of the provisions
of the Mortgage Law. '
ARTICLE XXVII.-The inscription of con-
tracts of cane planting ard cane grinding shall
'produce the following effects:
(a)- To oblige the new owner, possessor,
holder or other party acquiring title under any
form to a sugar mill, plantation or lands
whatsoever, to respect such contracts in their
(b) To give the planters or owners of
cane a prior right over other claims not in-
scribed previously, except those which are priv-
ileged and set forth under Article XXV, for
the collection of the amount of sugar or money
which may have been stipulated in such con-
ARTICLE XXVIII.-Entries in the Registry
with reference to contracts of cane planting and
cane grinding shall be cancelled:
(1) At the instance of the parties therein
prescribed, under the same formalities as in
the case of their execution.
(2) By judicial mandate.
(3) By the extinction of a lease without
consent of the lessee, in case the existence of
cane planting (colonato) or cane grinding rela-
tions is dependent, on the duration of such
(4) - By lapsing of the term prescribed in
such contracts. This cancellation shall be made
without request, and shall only be omitted
where, before the expiration of the said term,
an extension of the" contract may be presented
for inscription or a judicial claim is noted
preventively with reference to the same.
Mortgage Law Amendments.
ARTICLE XXIX.-Subdivision One of Arti-
cle One Hundred and Eight of the Mortgage
Law shall be understood to read as follows:
It shall not be permitted to mortgage:
The fruits .or profits appendant to land
separately from the soil which produces them,
without prejudice to the right of encumbering
the said fruits as security for credit advance-
ments in accordance with the special law ap
plicable to such contracts.
ARTICLE XXX.-Article One Hundred and
Ten of the Mortgage Law shall have appended
thereto a paragraph reading as follows:
The-case is excepted where the mortgaged
property is already subject to a contract of
crop advancement, in which event the fruits
standing at the time of collecting the mortgage
shall not be liable for the same.
A RTCLE XXXI.-Subdivision Three of. Ar-
ticle One Hundred and Eleven of the Mortgage
Law shall be made to read as follows:
The fruits which at the time fixed for.
payment of the mortgage are still appended to
trees or plants or have been already gathered;
but not such as have been taken away or stored,
except where they stand subject to a crop
advancement contract in accordance with what
is provided in Article One Hundred and Ten.
ARTICLE XXXII.-Subdivision Five of Ar-
ticle Two of the M1ortgage Law shall be'under.
stood to read as follows:
Contracts of lease of real property for
a longer term than one year, or where, in
those not coming under this designation, the
parties may have expressely agreed to inscribe
them. . -
First.--Contracts of crop advancement,
cane planting or cane grinding, executed prior
to this present Law, may be inscribed in case
thay have satisfied or shall comply with the
formalties required hereunder as to execution,
provided such inscription is requested within
sixty days after this present law goes into
Second.-Contracts inscribed in accordance
with the foregoing provision shall not be enti-
tled to preference as between them by reason of
the dates of their presentation at the Registries,
but they will have preference over those which
are not inscribed in pursuance of the provision
W\herefore I order that the present Law
be executed and complied with in all its parts.
Issued at the Palace of the President, in
Havana, March second, one thousand nine
hundred and twenty-two.
(s.) Erasmo Regiieiferos,
Secretary of Justice.
(Gaceta, March 6, 1922).
A correct translation:
W. H. MORALS.5 Manager.
Habana Clearing House.