GUARANTEED ADVANCES.

Taranaki Daily News, Volume LII, Issue 344, 21 March 1910, Page 5

GUARANTEED ADVANCES.

THE REGULATIONS. By Telegraph.—Press Association. Wellington, Saturday. Regulations under the State Guaranteed Advances Act are gazetted. The term of loans is to be 30% years at 3%, per cent; the principal and interest of every loan are to be payable by halfyearly instalments. Any local authority before making application for a loan, ana although it has not yet taken the necessary steps under the Ln?al Bodies Leans Act, 1908, or otherwise for obtaining sufficient authority to raise the loan, may make preliminary application tor provisional approval of the proposed loan by the Board. When the -tioai'd hus provisionally approved of any loan the local authority ma.V make application to the Board for the gjunt of the loan in accordance with the terms and conditions set out in the notice of provisional approval. No such application lor a loan shall be made until the local authority lias taken all necessary steps under the Locaf Bodies Loans Act, 1908, or otherwise for obtaining sufficient authority to raise the loan, and has duly made the special rate required as security for the loan. The Board may, if it thinks lit, in special cases accept an application for a loan, although no preliminary application or approval has been made or obtained in accordance with the foregoing regulations, or although the application does not conform to the terms and conditions provisionally approved by the Board. Every application for a loan shall be taken into consideration by tins Board, which shall by resolution either grant or refuse the application, and notice of the acceptance or refusal of the application shall thereupon be given to the local authority. Every such notice of acceptance shall constitute a contract between the superintendent and the corporation of the local authority to grant and accept the loan in accordance with the terms of the application.

The term of the loan shall commence on the day agreed upon by the superintendent and the local authority in the manner aforesaid, notwithstandig auv fault by the local authority in accepting the amount of the loan, or in fulfilling the conditions of the receipt thereof, and the dates of the payment of the principal and interest by the local authority shall be computed and determined accordingly. Any loan may if so agreed upon be made payable to the locpl authority by instalments, and in any such case each instalment shall for the purpose of calculating the term of the loan and the payments of the principal and interest in resnect thereof, be deemed to constitute a separate loan made on the day on whiea that instalment is made receivable by the local authority. No loan and no instalment of a loan shall be made receivable by a local authority at any date later than two years a iter Ihe date of {he application for the loan. Every debenture shall be executed in pursuance of a resolution of the local authority, and «>unter-signed by an officer appointed by the local authority for that purpose. A commission fee of one-half per cent, on the amount of the loan shall be payable to the superintendent by the local authority to whom the loan is granted. The said fee shall be paid at the time when tl'c amount of the loan is paid to the local* authority, but where the loan is paid to the local authority by instalments the commission fee shall be apportioned between those instalments, and a proportionate part thereof shall bo paid b.v thn local authority at the Time when each instalment is received by it. AN ADVANCE REFUSED. Napier, Last Night. The Mayor has received the following telegram from the Prime Minister with •regard to the Napier Borough Council's application under the State Guaranteed Advances Act: "Board provisionally approved £35,000 for drainage. Tie other applications from Napier cannot be entertained at present. With the numerous applications for roads, bridges, drainage, and water from various parts ,of the country, it is not possible to entertain electric tramways and such classes or loans just now.—J. G. Ward." The Hastings Borough Council have been aHvised by the Government that their loan for sewerage and watersupply has ""been granted, subject to the usual conditio?. u«i