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HAURAKI DRAINAGE LOAN

• DIFFICULTIES EXPERIENCED. MONEY HELD UP. Great trouble is being experienced by the Hauraki United Drainage Board in raising the £lOOO loan which the Hauraki Drainage Board was authorised to raise by the settlers of a special rating area. Thq following Betters, read at Friday’s meeting, explain the position to date :—

The Rank of New Zealand forwarded a copy of a letter from its solicitors; pointing out that the special rate securing the £lOOO loan was to be 13-32n<ls of a penny in the £ on the unimproved value, £58,25'5, of the special! rating area. The rate struck by the board was 13-32 d in the £ on the unimproved value of lands classified as class A, 9-32 d on class B land, and 4-32 d on cjlass C 'lands. These.rates were embodied in the, special order, the resolutions striking the rates and the special legislation of last year authorising the raising of the loan, and the solicitors were doubtful whether the rate as struck would be sufficient security for the bank.

The clerk in. his reply pointed out that since the rate was struck the classifications of A, B, and C had been abolished in favour of a uniform A classification. An A rate of 13-32 d would produce £9B 12s, while interest and sinking fund would only amount to £75.

A few days later the bank’s Thames manager advised that his head had telegraphed : “Regret cannot make loan available as requested.” In confirmation a letter was received pointing out that the ratepayers had consented to be rated on the classification of A, B, and C then in force. Subsequently the authority of the United Board to proceed with the extinct Hauraki Board’s loan was questioned, but the difficulty was overcome by special legislation which included details of the proportion, of the rates to be struck as security on the various classifications. The enabling Act authorised the United Boa rc] to raise t'he loan pursuant to the terms of the Special Order. Since the passing of. this special order and the levying of the rate the land had been reclassified and the board had offered the A rate which had been struck under the old classification as security. The solicitors 'had carefully considered the position, and in view of the special legislation were of opinion, that the boaird onjy had authority to give as security a rate on the , A. B, and C classification basis in force when thei negotiations were, commenced. The solicitors were of opinion that the board had no authority to offer a security of a rate of 13-32nds of a penny in the pound on the special rating area, and that the only security that it should offer was the rate of the various amounts according to the classification as set out in the special legislation. The board was therefore asked to advise the area and value of each dlass in order that the bank could see if the special rates would! be sufficient to cover the charges on the loan. In his reply the clerk gave the information requested and showed that the amount to be received under the old classification would be £B5 Ils 6d, which would be sufficient to cover all charges. The clerk pointed out that the board had authority to amend the rate.

Permanent link to this item
Hononga pūmau ki tēnei tūemi

https://paperspast.natlib.govt.nz/newspapers/HPGAZ19280423.2.14

Bibliographic details
Ngā taipitopito pukapuka

Hauraki Plains Gazette, Volume XXXIX, Issue 5266, 23 April 1928, Page 2

Word count
Tapeke kupu
553

HAURAKI DRAINAGE LOAN Hauraki Plains Gazette, Volume XXXIX, Issue 5266, 23 April 1928, Page 2

HAURAKI DRAINAGE LOAN Hauraki Plains Gazette, Volume XXXIX, Issue 5266, 23 April 1928, Page 2

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