THE FINANCE BILL

Dominion, Volume 10, Issue 3178, 31 August 1917, Page 6

THE FINANCE BILL

NEW PROVISIONS INVEST MENTS AUTHORISED COMPANIES AND LOCAL BODIES .Now clauses authorising companies and local bodies to invest money in War Loan securities wero addeel to tho 1' inance Bill in tho House of Representatives yesterday. Companies. The_ memorandum and articles of association of every company are to be deemed to authorise and empower tho company and its directors:— (a) To invest any moneys of the company and any reserve funds and any other funds established by the compajiy for any special purposes upon_ inscribed, stock or other securities issued in respect of tho War -Loan. (b) To borrow moneys for the purposes of any such investment upon the security of the whole or any part of (he property of tho company (including its uncalled capital), and upon such terms and subject to such conditions as tho directors of tho company think fit. Tho memorandum ard articles of association of every company shall be read and interpreted as if 6uch investment in the War Loan had been one of the principal objects of the company, and nothing in any snoh memorandum or articles shall be construed to apply in such manner as to prohibit the exercise of, or in any manner limit, the powers conferred by the Bill. Local Bodies. It is to be lawful for any local authority or public body to invest any moneys belonging to that local authority or public body upon inscribed stock of the War Loan. Any local authority or public body may, with tho approval of the Governor-General-in-Council, borrow moneys lor investment in the War Loan upon the security of any property vested in that local authority or public body, and upon such terms and subject to such conditions as, in its discretion, it dooms necessary or expedient, and may borrow such moneys from any bank upon terms requiring such moneys to be repayable on demand. Any local authority possessing ratingpowers may make ana levy a special rate, not exceeding in any year one halfpenny in tho pound of tho capjtal value of the rateable property within its diatriot, as security for any loan raised by it for this purpose. The definition of "local authority" and "public body" is very wide. It includes any borougn council, county council, road board, town board, harbour board, river board, water supply board, drainago board, education board, agricultural and pastoral society, acclimatisation society, building society, fire board, friendly society, industrial and provident society, any society incorporated under the Incorporated Societies Act, 190S, the New Zealand Society of Accountants e.stablislied under the New Zealand Society of Accountants Act, 1908, any super-annuation-board constituted under any -<et making -provision for the payment of superannuation attowattces to officers employed in the service of tho Crown or of any local authority, any Maori land board, commissioners of sinking funds, and any jjerson or association of persons, whether incorporated or not, to whom the provisions of this section may bo extended by the Governor-General by Order-in-G'ouncil gazetted.