£25,000 LOAN FOR BOROUGH FROM BoP SAVINGS BANK

Taupo Times, Volume XIV, Issue 58, 27 July 1965, Page 1

£25,000 LOAN FOR BOROUGH FROM BoP SAVINGS BANK

Taupo will receive a loan of £25,000 from the Bay of Plenty Savings Bank to go toward the Taupo Borough Council's £113,000 electricity reticulation loan. It will be the first loan made by the bank to the Taupo district. This information was given to the Taupo Borough Council last night by Cr D. D. Davis, who is a trustee of the bank. He said the bank was very pleased to be able to place the money at the disposal of the council, and thus help with progressive development in the district. "The Bay of Plenty Savings Bank is a community bank insofar as it does not pay profits to shareholders, but distributes them, after ereating norma! reserves, to local community activities," Mr Davis said. "Not only does the depositor get his normal interest return, but he has the added advantage of seeing the

residual profits being returned to the community. Mr Davis said he hoped the public would support the bank to the fullest extent, thereby being able to participate in the benefits which accrue. He explained that the Minister of Finance, Mr Lake, gave the bank authority to make loans, outside Government stock investments, in June. "This now means the trustees of the bank are able to lend part of the bank's deposits to local bodies, and part on mortgage advances to depositors of the bank," he said. He added that the bank was now accepting applications for mortgage finance for private dwellings and for farms. The mortgage interest rates were set at present at 54 per cent. "That is very reasonable considering that there is no collateral security required to be taken out by the borrower," Mr Davis said. j