REHABILITATION BUILDING LOANS

Chronicle (Levin), 13 September 1947, Page 2

REHABILITATION BUILDING LOANS

The svstem »of progress paymcnts operatii/g in the case of reliabilita.tion building loans has been descnbed m a statelneut by the Minister ot RehabiliLation, the Hon. C. F . Skinner. 4 4 A.cting rs agent of tlie Xtcliabilita tion Board, the btate Advances C_orporation nnfkes reguiar payments to builders who are ereeting homes toi ex-servicemeu usiug reliabilitation nnunce," said the Minister. "Tliese payments may be made as frequently us once a month during the buildmg period followiug inspections of work. This has been donc to assist ex-serviee-men and tlie builders they employ during present conditions. " Altliougii the corporation can make frequent and reguiar payments, it is nevertlieless bound by the Wages LT-o tcction and Uontractors' Liens Ael. Gection 32 of this Act proudos that one-fouftk of the monies wliich for the time being are payable to the eou--tractor" sliall be retained by the sqjiei tor who aets for the' borrower until 31 days after the comjdetion of the work specifiod in the contraet. The legislation has been in force for some time and applies to similar operations, aparl from rehabilit-ation loans, however linanced. The purpose of the Act when passed was to protect workmen and olliers who niight be eompelled to resort to the contraet monies in ordor to obtain remuneration for their services. "The IteJiabilitation Board and those departinents of btate which act as its ageuts in tlie various phases of reliabilitation wish to extend all possible aid to ex-servieenien towards aeliieviug their re-establishment. Tliey inust, however, comply with the regulations laid down by law." Tlie Minister also referrcd to what is known as the Certified Building bcheme, under which builders eould ereet liomes which eould be ailoeatod 011 eonipletion to ex-serviecmen aud paid for with reliabilitation loans. llere again progress payments eould be made as ofteu as monllily following inspections, while if tlie builder did not rcquire progress payments a reduced urspect ion fee could bc arrangod. The Liens Act would, of course, operate wliore reliabilitation or any otlier inortgage linanoe was invoived.