OPTION PROVISION
LOCAL BODY DEBENTURES
"DISTINCT INJUSTICE"
(By Telegraph—Press Association)
DUNEDIN, This Day
The opinion that the Stock Exchanges shcmld enter a strong protest was -ex : pressed by Mr. Reeves, chairman of the . Dunediu Stock Exchange, in discussing somo features of the conversion Of local body debentures. He referred particularly to tho option given to local bodies, where a debenture became .payable- after 1940, to make the now debenture payable at any date thereafter by giving the holder six months' notice. lie stated that, this involved a distinct injustice to Ilie holders of long-dated debentures, for if any local body availed itself of this option and included the option as a provision iv the new debenture, devaluation as a Stock Exchange security would immediately follow, to the detriment, of the holder.
Mr. Roovps stated, that the Dunedin City Council, when ■the injustice was pointed out, had immediately eliminated tbo optional clause and fixed a maturity ditto-for all loans, but. there were other public bnrliox who we-ro not meeting lenders in the same fair way.
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https://paperspast.natlib.govt.nz/newspapers/EP19341015.2.118
Bibliographic details
Evening Post, Volume CXVIII, Issue 91, 15 October 1934, Page 11
Word Count
174OPTION PROVISION Evening Post, Volume CXVIII, Issue 91, 15 October 1934, Page 11
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