RURAL ADVANCES.

North Otago Times, Volume CVII, Issue 17748, 21 March 1927, Page 4

RURAL ADVANCES.

Piu.-at, V T'RODrCEn'V - *' "UISENTATiYE. MR W. .T. FOLSDI. A. . In accordar.ee 'v'"> ] provls.'on". of las; sessi'1". :: uaticn, Mr M • ,T. Polson, of 'Svumanui, as represenling ihe iniereds of thc persous engaged in ?ne production of primary products in New Zealand. has been appouiied an additionai member of ihe mate Advances Board, for thc purposes of the r.ev.' iV.:ral Advances Branch busines-. ■ The appointment was uirounced by the Minister of Finance (llon. Y V. D. Siewart). The Rural Advances A c'. which will comc into operafcion on April 1 next, provides for ihe cstablishment of a se-parate branch of the State Advances Office — -the Rural Advances Branch — witn extended authority to grant loans secured on mortgages or rural lands, and liaving power also to issue bonds secured on thosc mortgages. The maximum advance is to he £5500, exclusive of any chattel mortgage granted by the Department, and the advances are to be limited to two-thirds of the value of the security where freehold land is concerned or two-thirds of a lessee's interest in leasehold land. The conditions of advances are to he the sanie as those ordinarily applying in connection with thc office. Provision of Funds. A separate account is'to be kept and the provisions of the State Ad-, vances Act, relating to the temporary transfer of funds froin one branch of the office to the other, are to apply to the Rural Advances Branch. The superintendent is authorised to provide additionai funds by the issue of bonds of an amount approved by the Minister of Finance, these to constitute a floating charge on all the assets of the branch, including all the advances granted under the new Act. The rate of interest is to be prescribed by the Minister of Finance. The aggregate amount of the bonds is not to exceed the capital value of the mortgages for the_ time being held by the branch. Bonds may be issued in London as well as in New Zealand, Trustees ai\e permitted to invest in the bonds, and the superintendent is empowered toi accept the bonds in repayment of loans granted under the terms of the Act. Is it. also provided that the principal moneys secured by th« bonds, etc., together with the interest, are to be payahle out of the Consolidated !Fund, and will be recoverahle from "the Rural Advances • Branch. Mr Polson, who is president of . the New Zealand Farmers' IJnidn, Vvas a member of the commission which investigated the operation of ; rural credit systems abroad.