Advances to Settlers.

Feilding Star, Volume XVI, Issue 151, 22 December 1894, Page 2

Advances to Settlers.

THE METHOD OF REPAYMENT. For the information of those settlers who are enquiring what provision there is in the Advances to Settlers Act, 1894, to enable those who obtain advances under the Act to pay off the loans, we havo ascertained that a borrower may at any time pay to the superintendant, iv addition to the half yearly instalments sums of £5, or of a multiple of £5, in reduction of tho mortgage debt, or the borrower may repay the whole amount of the balance of principal owing, and that the paymeut of the instalments will cease, and the borrower become entitled to a discharge of the mortgage as soon as the sums paid in reduction of the mortgage debt amount, with interest at 4 per cent per annum compounded yearly to the whole balance of principal money owing. To giro a few exauiples-If an advance on mortgage should be granted of LIOO for 36£ years under the Act, the borrower would both pay the interest and repay the priucipal by the instalments of L 3 every half-year ov 0 per cent per annum throughout the period. If the borrower of LIOO should, at the close of the first year of the mortgage pay, in addition to the second instalment, a sum of L 97 19s 9d in reduction of the mortgage debt, the whole balance of principal owing would bo paid off, and tho borrower would thus be entitled, one year after the loan was obtained, to a discharge of tho mortgage on payment of tho cost and fees prescribed for the discharge. If the borrower of LIOO should, at tho end of the second year of the mortgage, pay, in additidn to the fourth half-yearly instalment of L 3, a sum of LSO in reduction of the mortgage debt, the instalments! would continue to be payable until the balance of the principal owing should not exceed the amount of Lf>o with interest compounded annually at 4 per cent ; that is to say, the instalments would be payable for 14 years, or until the 28th instalment had been paid, when the balance of principal owing would be LBO Is 4d, and the sum of LoO would, with the accumulation of interest at 4 ser cent per annum, amounting to LBO Is. A payment of 4d would consequently then repay the whole balance of principal owing, and entitle the borrower to discharge of the mortgage on payment of the costs and foes for the discharge. —Times.