LOCAL BODY LOANS

Evening Post, Volume CXVI, Issue 105, 31 October 1933, Page 12

LOCAL BODY LOANS

INSCRIPTION OF STOCK

(By Telegraph.) (Special to the "Evening Post.") ' AUCKLAND, October 30. • The first decision by a local body in . New Zealand to inscribe certain of its debentures was made at a meeting of the Auckland Electric Power Board. In a report the general manager (Mr. R. H. Bartley) said that although provision was made in the Local Bodies Loans Act, 1926, for the inscription of local body conversion debentures, the provision had never been put into practice, and it was understood that the arrangements made by the board were the first of their- kind carried out by1 any local body in the Dominion. An offer was received through the Bank of New Zealand in London for the taking up of the balance of the board's 1933 re- ' demption loan of £224,500 at 4% per cent., amounting to £104,000. The offer was at £97, with interest at 3% per cent., maturing on March 1, 1938. The interest cost to the board was £3 12b 5d per cent., and, including redemption, £4 6s lOd per cent. The board accepted the offer and authorised the Bank of New Zealand to issue scrip certificates. Meanwhile, it was explained that on March 1 this year one of the board's loans of £224,500 at 4% per cent., originally issued by the Auckland City Council, matured in London. • Although the board had funds available m Auckland to meet the loan, to avoid exchange on remittance the existing deben-ture-holders were approached with a view to renewing their holdings for a further five years at the same rate of interest. Debenture-holders with interests amounting to £120,000 agreed to this course, the balance of £104,000 being paid in cash by the Bank of New Zealand in London. In order to secure this advance ■ the board lodged debentures with the Bank of New Zealand in Auckland by way of hypothecation. It has now been decided to convert these debentures into inscribed stock, and for this purpose the Bank of New Zealand has been appointed registrar.