Claim Settled Out Of Court

Press, Volume CVI, Issue 31098, 29 June 1966, Page 3

Claim Settled Out Of Court

(New Zealand Press Association) HAMILTON, June 28. A claim by the Bank of New Zealand against a farmer who had guaranteed a loan made by the bank was settled out of court today after counsel, Mr M. E. Casey, had outlined the bank’s case before Mr Justice Hardie Boys.

The bank claimed £6500 from Rudolph Stucki, of Morrinsville, plus a year’s interest, £455, and interest at 9 per cent from November 18, 1964, when demand for payment was made. Mr Casey told the Court that Stucki guaranteed a loan made to Clarence Roy Dally, formerly of Auckland, now of Dunedin. Dally wanted the loan to complete a drive-in restaurant motel at Fitzgerald Glade, on the Hamilton-Rotorua highway. The loan was approved by the bank on a temporary finance basis in April, 1960, and part was mortgaged back to the bank. At this time Dally had a block of shops at Remuera valued at £22,000, but encumbered to £13,000. When the loan was

approved, Dally expected to have the project completed by September, 1960, Mr Casey said. But before the project was completed Dally indicated he was buying the Okoroire Springs Hotel for £40,000. He later signed an unconditional contract to buy the hotel, but still intended completing the Fitzgerald Glade project. Later, when Dally was in hospital, the bank exercised its rights and sold the property. The bank then made a demand payment for £6500, plus interest, on Stucki. Mr N. Smith appeared for Stucki.