RURAL ADVANCES

Evening Post, Volume CXII, Issue 58, 6 September 1926, Page 8

RURAL ADVANCES

LIMITED TO £5500

PROVISIONS OF THE BILL.

Tho Bill to establish a separate branch of the State . Advances Office, with extended authority to grant loans secured on mortgages of rural lands, bonds to be issued secured on such mortgages, was introduced into the House of Representatives on Saturday afternoon. Power is given in the Bill to establish a Rural Advances Branch of the State . Advances Office. For the purposes of the business of this branch the Governor-General may from time to time appoint an additional member of the State Advances Board'to represent the interests of persons engaged in the production of primary products. Every person so appointed shall hold office during pleasure, and shall be entitled to act as a member of the board only in relation to applications for advances from tho Rural Advances Branch. The Bill provides that a separate account is to be kept in respect to rural advances, which are to be made on the security of first mortgages of land, exclusive of urban. and suburban lands. Advances are limited to, £5500, exclusive of moneys advanced on chattel or other securities under the State Advances Amendment Act, 1922. An advance made on the security of freehold lands shall not exceed two-thirds of the value of the security, or in the case of leasehold lands, two-thirds of the value of' the lessee's interest. In order to provide additional funds for the business of the Rural Advances Branch, the Stote Advances Superintendent may, with the approval of the Minister of Finance, issue bonds, or stock, or other securities, which are to be a floating charge on the assets of the branch, including all mortgages securing loans granted by the Superintendent. These bonds,, stock, or other securities are to bear interest at a rate fixed by the Minister of Finance, but the aggregate amount issued is not to exceed the capital value of the mortgages held as assets of the branch. Bonds and other securities may be issued in London. Securities issued in terms of the Bill are not to form paTt of the Public Debt, and trust funds may be invested in them.