RURAL CREDITS.

Taranaki Daily News, 28 October 1922, Page 5

RURAL CREDITS.

SCHEME TO HELP FARMERS DETAILS OF THE BILL. (By Wire.—Parliamentary Reporter.) Wellington, Last Night. The Rural Credits Associations Bill gives statutory recognition to certain classes of societies established for the mutual benefit of their members, their primary object being the making of advances to their members, secured principally on chattel securities. The Bill relates only to societies that register under the Incorporated Societies Act, 1908.

An explanatory memorandum says it is at least doubtful if the Bill confers on any association of persons any powers which the association could not acquire by incorporation under the Companies Act. It is recognised, however, that the law appropriate to companies is somewhat too complex for the class of association which the present Bill has in contemplation. Clause 4 enumerates the special functions of an incorporated society applying for registration as a rural credit association. The essential purpose is the advancing of moneys to members of the association out of capital moneys, acquired either by way of deposits or otherwise by way of loan. Advances to the members of the society may be either by way of cash or by the issue of bonds payable to bearer or to order, which the members may negotiate for cash. By Clause 6 the members of the association are made jointly and severally liable for the liabilities of the association. It is recognised that comparatvely few of the members will be the owners of unencumbered land, and it is therefore provided that the liabilities constitute an equitable charge on the assets of the members, subject, however, to the encumberances existing at the time of the incorporation of the society. Loans to any one member are limited to £5OO, Administration expenses are kept within bounds by provision for the payment of one member only (a secretary and treasurer), together with an annual allowance to the chairman of the management committee.

The purposes for which loans may be made are: (a) The clearing, fencing, draining and genei. 1 improvement of land in the occupation of a member; (b) the erection of buildings on such, land; (c) the purchase of implements, stock, seeds, plants and other things required in respect of the occupation and use of any land; (d) the purchase of tools of trade; (e) the payment of any mortgage debt or other liability of the member; (f) any other purpose ;hat may be declared by the GovernorGeneral to be an approved purpose.