RURAL CREDITS

Hokitika Guardian, 7 September 1926, Page 4

RURAL CREDITS

URBAN AX Si'DURBAN LAND EXCLUDED. WELI'dXGTOX, Sept. d. The Ad values Bi I is entitled “An Act Lo establish it separate brunch til the State Advances Office, with extended authority to {'rant loans secured oil nicrtgftejs cl' rural lauds, and having l>:nvcr U: i.-oue b;)iuls soured uu stuli mortgages.” A rural utlvaiic? branch is to be established to make ad viinecs on first niertgage.s of rural lands. Tpe Gov-ernor-General may from time to time

appoint an additional member of the State Advances Board, as a representative of tho interests of persons engaged in tho production of primary products in New Zealand. He shall act only in relation to app.notions tor advances from the rural advances branch.

There is provision for tiie keeping of a separate account, ealiod the rural advances launch account, showing the several mutters referred to in Section 27 of the principal Act. The funds of the tnnnch shall consist of moneys borrowed by the superintendent on the security of bonds issued pursuant to the authority of the Act, and secured on the assets of the branch. The branch is to make advances on the security of first mortgages of the general classes specified in the principal Act, exclusive of urban and suburban lauds. No application for an advance shall bo granted for more than £5500, and not more than £SSGO in the aggregate (exclusive of moneys advanced on chattel and other securities) shall be granted by the superintendent to any brorower.

The amount advanced is limited in two-thirds of the value ol a freehold,

or of the lessee's interest in. a leasehold. ISSUE OF BONDS . To provide additional funds for tho branch the superintendent may, with tho approval of tho Minister for Finance issue bonds or stock or other securities, which shall, constitute a floating charge on all the assets of the brlanch, including therein mortgages for the time being securing loans granted by the superintendent under tho Act. The Minister will prescribe the rate of interest. The bonds, etc., issued, and for the time being cutstanding, are not to exceed the capital value of the mortgages for the time being held by the branch. Bonds may be issued in London. Securities issued in terms of the Act arc not to form part of the Public Debt. Trust funds may be invested in securities issued under the Act, and securities issued under the Act may he accepted in repayment of loans granted under the Act.