RATE OF INTEREST.

Waikato Times, Volume 121, Issue 20257, 28 July 1937, Page 7

RATE OF INTEREST.

JUDGMENT RESERVED. MOUNT ALBERT BOROUGH COUNCIL CASE BEFORE PRIVY COUNCIL. United Press Assn.—Elec. Tel Copyright. (Received July 27, il a.m.) LONDON, July 26. The Privy Council reserved judgment In the case of the Mount Albert Borough Council v. the Australasian Temperance and General Society of New Zealand. Between 1926 and 1928 the Temperance and General Society, which Is incorporated in Victoria, advanced to the Mount Albert Borough Council £130,000 upon Ihe security of certain debentures bearing interest at £0 13s 9d per cent, per annum. Interest at that rate was paid on tlie debentures to September 1. 1934, but on March t, 1935, the half-yearly Interest day, the council paid only £3250. leaving a balance of £446 17s Gd and alleging that It was not bound to pay this balance in view of certain financial emergency legislation passed in Victoria between 1928 and 1934. and particularly In view of the Financial Emergency Act, 1931 (Victoria) which reduced the rate of Interest to 5 per cent. 'File society denied that the debentures were affected by this legislation and Issued a writ for £446 17s fid. The corporation counterclaimed for £2fi 10 4s iOd, which it alleged it had overpaid in ignorance of the legislation and its effect. The Court of Appeal in Wellington gave judgment against the corporation, holding that the proper law of the contract was tlie la\v of New Zealand.