LAND SETTLEMENT.

Taranaki Daily News, Volume LI, Issue 227, 18 September 1908, Page 2

LAND SETTLEMENT.

FINANCE BILL INTRODUCED. The Land Settlement Finance Bill yiM introduced in the House of ltepresenUtives on Tuesday by Governor's Message This is the measure foreshadowed in the Financial Statement. The purpose of the Bill is to promote' the closer settlement of laud by enabling groups .of purchasers to buy an estate for subdivision among them, and to raiso the purchase-money by means of a loan guaranteed liy the Government. • For this purpose ten or more persons may by agreement form an incorporated land settlement association, and may purchase in the name of that association any estate consisting of more than «ft hundred and forty acres. The agreement of purchase must comprise a scheme for the subdivision of the estate into allotments not less than fifty acres in extent, and lor the allocation of each' of those allotments to one of the purchasers at a fixed price. The agreement becomes operative only if it is confirmed by Order-in-Council in pursuance of a recommendation of tlic Board of Land Purchase Commissioners.

On tho confirmation of the agreement the incorporated association, acting through the Public Trustee as its agent, is empoivored to raise the total pur-elmse-inoncy of the estate by the issue of debentures under the guarantee of the (iovernmont. On the completion of tho purchase the estate is transferred to the association, and the several allotments are then transferred by the association to the individual purchaser!. Each purchaser gives a mortgage to the association to secure the purcdiase-money of his allotment, together with interest at such rate as is sullicicnt to meet the interest on tlie debentures and the incidental expenses of the association. The 'purchase-money of each allotment so secured by mortgage is payable' by such instalments as the mortgagor chooses, not less than a specified amount in each year, and the balance must be paid in twenty years. All capital and: interest moneys so paid to the asso-' ciation by the purchasers arc expended in meeting the interest accruing duo on tlie di'ibmttures, and the balance is accumulated in tho Jiands of tho Public Trustee as a sinking fund for the redemption of the debentures. Tho title to any allotment is suJjjeot to the following restrictive provision!: (1) Every purchaser must possess the" qualifications required by intending' lessees under Part 111. of the Land Act, 1008. (2) Until at least one-third of tlie purchase-money lms been paid off, a purchaser must reside on liis allotment, and lias no power to alienate or charge it* (3) Transfers of any allotment are sub--1 jeet to the provisions of Part XIII. uf the L«nd Act, 1008, in the same manner as in the case of land alienated in feesimple by tho Crown since the passing of the Land Laws Ainondmcnt Act, 190?!