PURE INVESTMENTS NOT WITHIN SCOPE OF REHABILITATION

Bay of Plenty Beacon, Volume 12, Issue 53, 9 June 1948, Page 6

PURE INVESTMENTS NOT WITHIN SCOPE OF REHABILITATION

The principle that ex-servicemen should not be granted rehabilitation loans to purchase shares in businesses where such shareholdings were intended for purely investment purposes, was re-affirmed at the last meeting of the Rehabilitation Board. The Board was considering a case referred to it of an exserviceman, eligible on service grounds for a rehabilitation loan, who had applied for finance to purchase shares in a company with which he had accepted employment. The policy which the Board has followed in the past, and which' it reaffirmed, was that loans to acquire shares, where the security would be a mortgage on the shares,' should be subject to certain qualifications. These are: First that ths applicant had satisfactory service and qualifications; second, that the acquisition of the shares is necessary for or allied to the applicant’s successful rehabilitation; and third, that there is adequate security for the loan sought. A clarification of the second point is that the applicant’s position is dependent on his acquiring the shares, or that the majority of the shares in the company are held by ex-service-men and it is desired that the applicant should be placed on a similar footing to the other ex-service-men shareholders.