MONEY AT CALL.

Taranaki Daily News, 30 July 1921, Page 5

MONEY AT CALL.

PROCEEDINGS TO RECOVER. VERDICT FOR THE LENDER. By Telegraph.—Press Association. Timaru, Last Night. A case under the Moratorium Amendment Act of 1920, probably the first of its kind in New Zealand, was dealt with in Chambers by Mr. Justice Herdman to-day. The Timaru Borough Council has received considerable sums of money on deposit at. call and in November last received £4OOO from Evans and Co., flour millers, at 3| per cent. at. call, the lenders wishing to keep that sum liquid for bu.siness purposes. The amending Act of last year gave the borrowers the right, by giving notice to the lender, to extend ‘■>.t call’’ to any date not later than .December 31, 1921, on paying an additional 1 per cent, interest. The Borough Council gave that notice and when asked for the principal said they could not get the money. Clause Bof the Act- gives the lender the right of appeal to the Supreme Court for relief in a ease of hardship. The judge held that a lender u r ho wanted money for business purposes was in a different position from an investor of spare funds and it wotild be hardship if he had (as in this ease) to pay seven per cent, while tho Borough Council used his money at 45. Mr. Justice Herdman gave the council a week to deride whether it would pay extra interest from March 23; if not he would make an order to repay the principal. This ease was not to be taken as a general precedent; every case must be treated, on its merits.