ANTECEDENT LIABILITY

Manawatu Herald, Volume XLIV, Issue 2441, 15 June 1922, Page 2

ANTECEDENT LIABILITY

At Monday niglu’> Borough Council meeting a letter was received from the Public Trustee re Council’s application for loan re antecedent liability stating that since communicating wit it the Council on the 19th April last, the position with regard to this matter has somewhat altered and ti.e office lias now a limited amount ~f money availaide.

Decided to make further inquiries re advancing monex by way of loan to pay off antecedent lnibility.

\ letter was received from the Ha tea Borough Council forwarding the following resolution:—“Thai all Borough Councils in N.Z. be approached with a view of ascertaining if they would he prepared to send representatives to a conference for the purpose of considering the matter of pooling all the antecedent liabilities, as defined by “The Local Bodies Finance Act 1921-22" of all Borough Councils coming into the scheme and floating one big loan for the total amount, on the London market if at a reasonable rate of interest, each Borough Council to he responsible for its own portion of interest and Sinking Fund on the loan, and. to pledge a speeial rate as security for same. Details of the scheme, regarding the administration and raising of the loan and alii cation of interest and sinking fund to each Borough Council to be gone into at the suggested conference.”

It has been suggested regarding the administration of the loan and the allocation and collection of interest and Sinking Fund, that possibly the Public Trustee might undertake the work, but of course this matter would be thoroughly gone into if the conference is actually brought about. —Received.