LOANS TO LOCAL BODIES.

Temuka Leader, Issue 1500, 16 October 1886, Page 1

LOANS TO LOCAL BODIES.

The Treasury has issued the following circulars to local bodies, covering a precis of the Loans Act. passed last session : ' “The Local Bodies Loans Apt. provides machinery by which a local body may obtain authority to borrow money for public works of any. nature, and any undertaking or purpose which a local body is authorised to erect, construct, or engage in/ or provide tor by mearis of borrowed money. The Act may be adopted by the local body in part or in wholei^Where thh lochl brtdy does not adopt the Act, the statutory provisions set out at the foot of this .letter remain in force, and regulate'the mode of raising loans. Where the local body does adopt the Act the mode of exercising, the power, mus.t b,e,that provided 'by the ‘Local : Bodies'Loans -AW, 1886.’ The “Government. Loans to Local Bodies Act’ empowers the Government,'yyhen power to borrow has been properly obtained, to lend the money to the Leal body.on favourable terms. Applications for loans will be received on the Ist of December nex', and-notice thereof appears in the Gazette of October 14. As this is the first, occasion; uf calling for appl cations, and as there is reason to., suppose the loans ..dually authorised by the raT payers are not large in amount, X'have determined also to receive applications.from local bodies which have proceeded no further than,Jo res Ive to recommend.borrowing to Ihe raTepayers. It is obvious, however,: that this course must not be taken as a precedent, since if the anmuut of loans authorised by the ratepayers were large, it would hot .be right defer such loans by placing on an equal jfojtting applications which the ratepayers might not approve. Although.on thisi occasion I propose ■■cot sidering and , approving, applications us just stated, it' must be clearly uudetstood that the loan cannot) be made, dor anymore paid, until the statutory formalities are complied with.” 'Jhe 1 ’statutory-' proviifiens allAdrd (o are certain sections in the Municipal Corporations, Counties, Town Districts, and Kiver BJards Acts. • 1 .