The Scheme for Cheap Money.

Feilding Star, Volume XVI, Issue 65, 11 September 1894, Page 2

The Scheme for Cheap Money.

Wm* (ITS/ DETAILS ARE. The Government Advances to Settlers Bill contains the details of the new scheme for lending cheap money for farmers. THE HEAD OFEICE. For the purposes of the Act there shall be established an office to be called the Government Advances to Settlers Office, administered and managed by a superintendent, who shall be appointed by the Governor, and shall hold office daring pleasure! In case of illness, suspension, or absence from duty of the superintendent, a deputy may be appointed The superintendent is constituted a corporation sole, with perpetual succession. / • The Colonial Treasurer may from time to time appoint, such foificers, agents, and clerks, as may be necessary for the business of the office, f The superintendent and staff shall be paid such salaries: as may be fixed by the General Assembly, and shall be subject to the laws regulating thqpj^ Civil Service. . The superintendent and every member of the staff whose fidelity is not guaranteed under the Civil Service Officers Guarantee Act shall give security, for the faithful ; discharge of their duties... •, ■■' . ;: < ■/'■■„,.: .:''■'': :■ : THE LENDING BOARD. Under the Bill there shall be constituted a Board, consisting of six persons, in addition to the superintendent, three to be a quohlia. The superintendent shall .be chairman of this Board, and the other six members will be the Colonial Treas urer, the Public Trustee, the Government Insurance Commissioner, the Surveyor-General, the Solicitor-General and the Commissioner of Taxes. In the event of the superintendent holding any of these^ffices, some other public officer shall be , appointed a member of the Board. ' '■■'■ The chairman shall have a deliberative and also a casting vote. DISTRICT BOARDS. The Governor-in-Council may con- , stitute districts throughout the Colony, and appoint in each a District Board, consisting of not less than three such Government officers as may be appointed. j ■_ The duties of the District Boards shall be to receive and consider all applications for advances on land within their respective districts, and report thereon to the General Board, and generally to assist in carrying out the Act. . 4 . :\'zy yy-:'^ -.-•;;-;' The District Boards, shall be under the control of the General Board. THE liAND ON WHICH MONEY SHALL BE ''■ ■■■- ADVANCED. ':H : ■:: './': The business of the Advances to Settlers Office shall be to advance money on first mortgages of the fol« lowing classes of land in 'Ketr Zealand, free from all encumbrances, liens, and interests other: than lease* hold interests :—'.-: »--'v-i-.•.•',;.:.-:.---1. Freehold land held in fee simple under the Land Transfer Act, 1885, or 2. Crown land held on perpetual lease under the Land Act 1885, or 3. Crown land beldbn^ease In per* petuity under the Land Act, 1892, or 4. Native land held on lease in perpetuity under the West Coast Settlement Ketervee Act, 1892. V; BAISDiG U>ANS. The Governor-in-Council may' appoint any two or more agents, who shall bare* full power to raise from time to time in Great Britain and elsewhere, by bonds, debentures, or scrip, or by the issue of inscribed stock, under the New Zealand Consolidated Stock Act, 1887, ox* otherwise, sums not exceeding the aggregate £1,600,---000 in any one year, to I>e advanoed on mortgage under the provisions of the Bill. But whenever the total amount of _ bonds or ether securities authorised to be created in any one year is not issued in that year, the balance may be issued at any subsequent period, in addition to the amount authorised for that period. r The agents shall have authority to prescribe the conditions <>f repayment of the loans, the rates of interest, 4c. The debentures may be converted into stock. . Nona of the bonds,' debentures, or other securities shall be sold at a higher rate of interest than 4 per cent. i> . . The Colonial Treararer may raise money in New Zealand or elsewhere from time to time by land bonds," also for advances on mortgage. - ? HOW ADNANCES ME TO BE HADE AND XKPAID. . -.-.. ■.-■;-• No advance shall be granted of less than £50 or more than £6000. i No advance shall be granted on freehold land for more than two-thirds of the value of the security, or on leasehold land for more than one-half of the lessee's interest. ! There shall be no advance! on leasehold > land until air the conditions of the lease have been complied with, and until the lessee is entitled to compensation for im* provements. ' •-. • v> ' The term of each loan shall be thirtysix and a half years, and the loan, with interest at the rate of 5 per cent, shall be repaid by 78 half-yearly instalments, the first of which shall be due six months after the date of the loan. Every such instalment, except the last, shall be at the rate of £3 for every. £100 of tl}e loan. The borrower may, however, pay at any time not less than £5 or more in reduction of the debt. ! r ' Every land bond for an advance out of the land bond fund shall be for not lets than £10, with interest of 34d per oent, payable half-yearly.' A land bond shall have the same currency as the mortgage for which it was issued, shall be payable to bearer, and shall pass by delivery, without assignment or indorsement. For the purposes of the investment of trust funds and otherwise, land bonds are declared to be Government securities, All moneys received shall be kept in a separate account, and payments for loans may be made through postmasters. ASSOBANCE AND SINKING FUND. One-tenth of moneys received in - respect of interest on investments shall be paid over to the Public Trustee as an assurance fund, to be invested in the securities sanctioned by section 10 of the Public Trust Office Act Amendment Act, 1891. Into the same assurance fund shall be paid the balance standing to the credit of the management account at the close of each finanoial yerr. , Repayments of principal moneys shall be paid to the Public Trustee for investment as a sinking fund. LEGAL BUSINESS OP THE SCHEME. A barrister and solicitor shall be appointed in each district who shall derote himself exclusively to. the ' legal business of this and ptbgr Government lepartruen^s. *' : ■ ; .< V _/ . THE V^yiKCr O* liANIW District valuers shall be appointed fvfco abjiU:grve Ithew exclusive attention » the business o| valuing and inspecting properties.-. ; ; -'vV. v?y,7";\ FEES *O BE PAip B? BOEEOWERS. Every apßjication 1 for* loMftaJl be

made in writing, and shall be accompanied by a valuation fee, as follows :— On application for loan not exceeding JE9OO, 6s ; for loan exceeding £200 and not exceeding £500, 10s 6d ; for loan exceeding £500 and not exceeding .£IOOO, £1 Is ; and for every additional £1000, 10s 6d. The costs and fees for preparing mortgage shall be as follow (to be deducted from the advance) : Law costs — If advance be not exceeding £1000, 10s ; if advance be over £1000, £1 Is ; with cash disbursements, which are the same in every case, namely— search fee, 2s ; mortgage form, 2s; registration, 10s, with an additional 2s for every certificate of title after the first. Costs and fees for discharge of mortgage, if discharged j by the Aid to Settlers Office Law costs, 6s; registration fee, ss, with an additional 2s for every certificate of title after the first. N.Z. Times.