BOROUGH LOANS.
LIMITS OF INTEREST. GOVERNOR-GENERAL’S POWERS. The acting-Chief Justice (Mr. Justice Sim) was engaged on Saturday morning in hearing argument on the question whether the Wanganui Borough Council had power, under the Local Bodies’ Loans Act, 1913, and its amendments, and the Finance Act, 192', to raise a loan of £120,000 from the Australian Mutual Provident Society for ten years at seven per cent., the council having previously executed debentures in respect of the loans for a period of ten years, bearing interest at six per cent, and hypothecated the same, pending the raising of the loans, to the Ban# of New Zealand, to secure advances. After hearing argument, His Honor held that, as the council had hypothecated the debentures, the Governor-General could not exercise the powers conferred by section 11 of the Finance Act, 1921, but could prescribe both rate of interest and the term of the loan by separate Orders-in-Council. and may. after having prescribed them, alter the rate of interest and the term of the loan.
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Taranaki Daily News, 4 October 1921, Page 5
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170BOROUGH LOANS. Taranaki Daily News, 4 October 1921, Page 5
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