LOANS FOR IMPROVEMENT OP LANDS.

Ashburton Guardian, Volume V, Issue 1494, 21 March 1885, Page 2

LOANS FOR IMPROVEMENT OP LANDS.

Sir Julius Vogel hag handed to the ' press the following sketch of a measure which would i»ive effect to his remarks on Wednesday evening concerning the obtaining money cheaply for loans in small amounts for improving lands. He wishes it to be understood that the Government have not decided on introducing the measure. It i 8 one to which there may b;> great opposition, and it remains to be seen if there is, on the other hand, a stronger desire to support it. The lish Government have for a long period lent money for land improvements, b'jt under conditions applicable principally to Urge estates, whilst the proposed measure deals only with small ones : A Company authorised by Parliament may apply to the Governor from time to time to guarantee debentures to an amount not exceeding the amount authorised by Parliament to be borrowed by

iuch Company. . 1 The debentures shall have a currency ' of not exceeding forty years. ' 2 The rate guaranteed shall not exceed ' 4| per cent, and shall be such rate as will 1 return clear of expenses about par. 3 The proceeds of such debentures ' shall be paid to the account of the Government, who shall be responsible to the : iompany for interest up to the date of ' the money being employed, at the rate paid to the Government for interest od its balances in London by the Government bankers, and also for the cost, if any, of placing the money at command in New Zealand. 4 The Company may lend any part of the money, in sums not exceeding L3O 0, on the security of freehold land, at a rate I Dot exceeding 5| per cent, subject to the following conditions. (a) The money may be lent on land already improved or occupied, or it may be lent for the purpose of improving land, and for the erection of farmers' dwellings. (b) If the money is lent upon land already improved, the amount lent must not exceed two-thirds of the value, certified by two valuators, from time to time appointed and approved by the Colonial Treasurer and Public Trustee - (c) If the money js lent for projected improvem nts, the amount must not exceed two-thirds of the value which the said land will have, with the im provements when completed, certified by two valuators as before. (d) When money is lea: for projected improvements, it must be paid from time to time, as the improvements are effected, as certified by the two valuators. (e) Before paying the moneys aforesaid, a solicitor, approved by the Colonial Treasurer and Public Trustee, shall certify that a first mortgage ia satisfactorily executed in favor of the Public Tiustee, as joint trustee for the Government and the Company, but with the p wer to the Company to.collect and enforce the payment of interest. (/) When any loan on mortgage is paid off, the money to be deposited, as in the case of when first borrowed., and to be available for fresh isßue. (</) If the Governor is called on to pay any sum of the amount guaranteed, and the Company fail to repay it within six months, the Governor to appoint directors, who may, as they think fit, either wind up the Company or carry it on if they are able to discharge the liabilities due to the Government. (h) The Company borrowing shall leave an amount of uncalled capital sufficient to cover the amount of the debentures guaranteed by the Government. If the Company also borrow on debentures unguaranteed by the I Government, the amount of such dedebentures, together with those guaranteed by the Government, shall not exceed the unc tiled capital. (i) If, under the above clauses, the Governor has to appoint Directors, one half of such Directors shall be shareholders, but the Chairman shall be appelated by the Governor, and he need not be a shareholder, and shall have a casting besides a deliberative vote. (7c) The Company may make a condition of its loans the payment -of a sinking fund,, in which case the said sinking fund shall be payable to the Public Trustee, and be invested by him in securities approved by the Coljnial Treasurer. 5. The Company also lend by way of . terminable annuity any of the money obtained from the guaranteed debentures to holders of land purchased from the Crown on deferred payments, and lands takea up under the conditions of special settlements, provided such loans are only for projected improvements ; and the provisions of sub-sections C and D shall apply thereto, provided that the two-thirds mentioned in sub-section C shall read as one half ; and provided farther that the amount lent shall not exceed four-fifths of the cost of such improvements. Loans under this clause shall be subject to so much of the other conditions contained in the subsections of the last preceding clause as, mutatis mubxndis, are applicable thereto, and shall be further subject to the following conditions: (a) The improvements must be for dwelling houses or for substantial agricultural improvements, the nature of which shall be defined in the Bill. (b) Liability created shall be a first charge on the land. (c) In case of default in the payment of interest or sinking fund (if a»y) the Company shall give notice of such default to the Land Board for the district within which the land Is situated. The Xiwd Board shall take such steps as it would in the case of failure to pay the instalments on deferred payments. (d) If the Land Board requires that the Crown resume possession the land shall remain charged with the liability, and steps shall be taken to recover the same ; «r if the arrears with interest are discharged the loan may continue on the original conditions.