MAIN HIGHWAY LOAN.

Shannon News, 16 August 1927, Page 2

MAIN HIGHWAY LOAN.

A SATISFACTORY ARRANGEMENT. SAYING OF OVER £IOOO ON NEW INSTALMENT. The Horowhenua County Council this morning resolved that a further instalment of £25,000 be raised in connection with the Main Highway Loan authorisatioS of £90,000, to be lifted in the sum of £15,000 from the A.M.P. Society on a table mortgage basis for 36! years, and in the sum of £10,(P0 from the Public Trustee for 36! years. The chairman (Mr G. A. Monk), reported that the finance committee had gone into the matter and recommended his course. The money from the A.M.P. Society would be domiciled in New Zealand, and while the Council would be borrowing it at 6 per cent., as it was on the table mortgage basis, this would be better than borrowing the amount at 5J per cent, in Australia, with consequent brokerage and other charges. The saving effected, through the proposed arrangement, with a table mortgage instead of the usual sinking fund, would be £lOBl 19s 10d in the actual repayments over 36'| years. The chairman added that when the Council originally took authority for the highways loan, it was on the basis of 5! per cent., with 1 per cent, sinking fund. The Council had not been able to raise any of their money at 5! per cent,; and in some eases, particularly with the machinery loan, they had considerably increased the sinking fund so as to eliminate the liability in a short period. As a result, the rate of one-third of a penny struck over the whole district as security for the loan was not sufficient. They had not yet collected this rate, and it would now be necessary to increase it by resolution.

A resolution was accordingly passed, raising the rate from one-third to threeeighths of a penny.