FINANCE FOR FARMERS

Taranaki Daily News, 20 September 1940, Page 2

FINANCE FOR FARMERS

MONEY FROM COMPANIES LOANS TO SUPPLIERS Authority for dairy companies to borrow money from the State Advances j Corporation and land it to any of their ! milk or cream suppliers is contained in the Dairy Companies Loans Emergency Regulations, copies of which are being circulated. They are regarded as supplementary to the recent Farmers Loans Emergency Regulations, which empower the State Advances Corporation to make j special advances to any farmer to ini crease or promote the production of any primary product. i ' The Dairy Companies Loans Emerj gency Regulations empower dairy com j panies to use the loans they receive from i the State Advances Corporation, or any other money belonging to them, to enable any of their suppliers to increase or promote their primary production. They therefore provide those farmers who supply dairy companies with an alternative means of financing production exi pansion by obtaining money from the dairy companies instead of directly from the State Advances Corporation. Low Rate of Interest. Interest on the loans made to com- | pany suppliers is not to exceed £4 2s 6d per cent. a year. a company is emi powered to take such security as it i thinks fit for any loan made. i The money borrowed by the companies i from the State Advances Corporation will be from funds made available for the purpose by the Minister of Finance upon such terms as may be agreed upon by the corporation and the company, including a term that the corporation will not be responsible for the application of the money borrowed. Repayment of any money borrowed and the interest on it will be secured by agreement between the corporation and company, in particular by the giving of debentures, mortgages or other charges over all or any of the company's present or future property, including uncalled capital.