ADVANCES TO SETTLERS

Taranaki Daily News, 28 October 1922, Page 4

ADVANCES TO SETTLERS

ON CHATTEL SECURITY. EXTENSION UP TO £5OO. (By Wire—Parliamentary Reporter.) Wellington, Last Night. A clause added to the State Advances Bill to-day contains the promised extension in the powers of the State Advances’Office to make advances to settlers on chattel security. It provides that every advance under the special authority shall be secured by a mortgage of land or chattels, either with or without any collateral security to be approved by the board. The maximum amount that may bo advanced to any one borrower under this section shall be £5OO, and no such advance ehall he made for a longer term than five years in any case. The interest on the amount of the loan for the time being outstanding shall be payable at the rate of 7 per centum per annum, reducible by one-half per centum per annum on payment, in accordance with the conditions prescribed in respect of the rebate of interest by section 41 of the principal Act. The principal moneys comprised in any advance under this section shall be repayable by instalments, save that in each year of the term of the loan the principal moneys shall be reduced so that; (a) At the end of the first year not more than 90 per centum thereof shall remain unpaid; (b) at the end of the second year not more than 75 per centum thereof shall remain unpaid; (c) at the end of the third year not more than 55 per centum thereof shall remain unpaid; and (d) at the end of the fourth year not more than 30 per centum thereof shall remain unpaid.