LOANS ON MORTGAGE

Hokitika Guardian, 7 January 1929, Page 1

LOANS ON MORTGAGE

ACSIiICULTdIAL CREDITS ACT. (British Official Wireless.)RUGBY, Jan. 3. Tlie’Agricultural Mortgage Corporation, which was formed as a result of the passing of the Agricultural Credits Act last year, will begin active operations in a few days’ time. The principal object of tht corporation, as defined by the Act, is the making oi loans on mortgages for agricultural purposes.

The corporation lias been formed with the co-operation of most of the large hanks, which have arranged to put up £650,009 of the paid-up capital. The return on capital is limited hv Parliament to 5 per cent, per annum, in order to secure that the loans should he made on terms most favourable to the borrowers. The Minister of Agriculture is empowered to make advances to the coiporation for the purpose of establishing a guarantee fund. These advances must not exceed £750.009 in the aggregate. They will he free of interest for sixty years. Further G->\-ernment assistance is provided in the shape of underwriting the first issue on debentures to a maximum of 4-5,-000.000 and the Treasury has power to invest £1.250.000 in debentures. For the present, however, it is proposed to advance the loans out of the available share of capital and to defer the issue of debentures to a later stage.