STATE GUARANTEED LOANS.

Manawatu Herald, Volume XXXII, Issue 818, 24 March 1910, Page 3

STATE GUARANTEED LOANS.

Regulations under the State Guaranteed Advances Act are gazetted. The term of loans is to he 36d years at 3% per cent, interest. The principal and interest of every loan are to be payable by half-yearly instalments. Any local authority before making application for a loan, and although it has not yet taken the necessary steps under “The Local Bodies Loans Act, 1908,” or otherwise for obtaining sufficient authority to raise a loan, may make a preliminary application for provisional approval of the proposed loan by the Board. When the Board has provisionally approved of any loan, the local authority may make application to the Board for the grant of the loan in accordance with the terms and conditions set out in the notice of provisional approval. No such application for a loan shall be made until the local authority has taken all necessary steps under “ The Local Bodies Loans Act, 1908,’’ or otherwise for obtaining sufficient authority to raise the loan and has duly made the special rate required as security for the loan. The Board may, if it thinks tit, in special cases accept an application for a loan, although no preliminary application or approval has been made or obtained in accordance with the foregoing regulations, or although the application docs not conform to the terms and conditions provisionally approved by the Board. Kvery application for a loan shall be taken into consideration by the Board, which shall by resolution either grant or refuse the application, and notice ot the acceptance or refusal of the application shall thereupon be given to the local authority. Kvery such notice of acceptance shall constitute a contract between the superintendent and the corporation of the local authority to grant aud accept the loan in accordance with the terms of the applicatiou. The term ot I the loan shall commence on the day agreed upon between the superintendent and the local authority in manner aforesaid, notwithstanding any default by the local authority iu accepting the amount of the loan or in fulfilling the conditions of the receipt thereof, and the dales of the payment of principal and interest by the local authority shall be computed and determinated accordingly. Any loan may, if so agreed upon, be made payable to the local authority by instalments, and in any such case each instalment shall for the purpose of calculating the term of the loan and the payments of principal and interest iu respect thereof, be deemed to constitute a separate loan made on the day on which that instalment is made receivable by the local authority. No loan, and no instalment of a loan, shall be made receivable by a local authority at auy date later than two years alter the date of the application for the loan. Kvery debenture shall be executed in pursuance of a resolution of the local authority, aud shall be signed by the mayor or chairman of the local authority and countersigned by an officer appointed by the local authority for that purpose. A commission fee of l /> per cent, on the amount of the loan shall be payable to the superintendent by the local authority to whom the loan is granted. The said fee shall be paid at the time when the amount of the loan is paid to the local authority, but where the loan is paid to the local authority by instalments, the commission fee shall be apportioned between those instalments, aud a proportionate part thereof shall be paid by the local authority at the lime when each instalment is received by it.