EXTENSION OF LOANS.

Taranaki Daily News, 2 April 1921, Page 7

EXTENSION OF LOANS.

POWERS OF SUPREME COURT. MINIMUM INCREASE OF INTEREST. Reviewing the recent legislation regarding money lent on deposit, an auth•ority has given a statement to the Wellington Press, in which he states: —“Critics of the recent legislation seem to ignore the fact that the actual extension of the due date of deposits is only till May 31 Any further extension can only be obtained by notice given to the depositor by the public body or company or firm holding the deposits It is very unlikely that public bodies or companies will give such notices to what are described as “small depositors,” though it is fairly certain that depositors of large sums will receive notices requiring extension. If notices are given to really small depositors who require the money, those giving such notices will simply invite appeals to tbe tribunal—that is, to the Judge —and may expect decisions adverse to themselves. The tribunal is directed by the Act to take every circumstance into consideration, and to determine according to justice and equity. In cases where the principal sum is less than £5OO, a magistrate has jurisdiction.

Again, the critics have assumed that the public bodies and companies are required to pay only an additional one per cent, for the extension they demand. They are required to offer at least one per cent., and if they offer no more than that minimum, the tribunal can be appealed to by the depositor for a higher rate. It may be assumed that if notices are given to small depositors, a higher rate than the minimum will be offered.

Referring to the withdrawal by the Christchurch Tramway Board of a deposit of £35.000, with the City Council, the Lyttelton Times says the money had been deposited with the council at call, and was urgently required for the payment of interest to debenture holders. The Bank of New Zealand refused the council’s first application for authority to draw a cheque for the amount. The chairman of the Tramway Board got into touch with the Minister for Finance, seeking his authority for the Bank to honor the council’s cheque. As an outcome of these negotiations the Bank agreed to allow the withdrawal, and the necessary authority for the payment was telegraphed from the head office, Wellington, to the local manager. Subsequently, the city treasurer stated that all small depositors who applied for their money got it. A few other applications for repayment of temporary loans have been declined by the bank, notably one for £2OOO deposited by a local shipping concern, but, even so, the refusals were based on facts ascertained that the owners were under no urgent necessity to have the money.