A LOAN DIFFICULTY.
CBy Telesraph.—Press Association.)
NEW PLYMOUTH, this day.
The Borough Council discussed the financial difficulty raised against the borough borrowing money for works already done. The difficulty arose through the electric light system exceeding the estimate of the money for its completion being paid out of the general account, the Council trusting to be able to reimburse that account by the flotation of a new loan, a similar course having been followed in respect of two previous loans, to which no objection had been taken. The opinion was expressed by several legal firms that there was a doubt as to the legality of raising money for liabilities already incurred, the borough's powers being limited to the raising of funds for future expenditure; The Borough Council's solicitors advised that the only course open to the Council was to promote a local bill to validate all its proceedings in the matter, and the Council adopted their suggestion. The Council also decided to.borrow £15,000 from the Bank of New Zealand at a rate not exceeding 6 per cent.
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Bibliographic details
Auckland Star, Volume XXXVIII, Issue 126, 28 May 1907, Page 3
Word Count
177A LOAN DIFFICULTY. Auckland Star, Volume XXXVIII, Issue 126, 28 May 1907, Page 3
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