LOCAL BODIES’ LOANS.
SOME AMENDING PROVISIONS. MORTGAGING OF DEBENTURES. (From Our Parliamentary Reporter.) September 27. The Local Bodies’ Loans Act Amendment Bill, which was introduced in the House of Representatives to-day, contains dome provisions of importance. It extend® the time within which loans authorised by the ratepayers may be raised and extends the provisions of tha principal Art for the hypotheeatnon oi debentures.
The Bill repeals the old definition of ratepayer and substitutes the following: “Ratepayer means every person whose name appears for the time being in the occupiers’ column of the rate-book of a local authority, and includes the husband or wife, as the case inay be (if any) of such person. 1 The principal Act provides that in. cases where authority is given by the ratepayers for the raising of money for any particular purpose, the authority shall lapse if the money is not raised within two years. The Bill extends the term to five years, and provide® that the extension shall apply to loans that have been already authorised by ratepayers if the authority has not yet lapsed. The limit of £lOOO on the lace value of debentures issued by local bodies iff removed.
It is provided in the principal Act that pending the raising of any special loan, the local authority may borrow any sum of money not exceeding the total sum authorised by hypothecating or mortgaging of the debentures authorised to be issued. The Bill provide® that the person lending money on such hypothecation or mortgage shall be entitled to. possession of the debentures until his advances, interest and charges have been repaid, and that the debentures may exceed in face value the sum borrowed. It further provide® that the local authority by agreement may confer upon the lender a power of sale of all or any of the debentures. The rate of interest that may be paid to a lender under this heading is increased from 6 per cent, to 7 per cent. This increase is made retrospective to March 31, 1921.
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https://paperspast.natlib.govt.nz/newspapers/TDN19210929.2.24
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Taranaki Daily News, 29 September 1921, Page 4
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338LOCAL BODIES’ LOANS. Taranaki Daily News, 29 September 1921, Page 4
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