9

B.—ll

17. The Bank, on being provided with the requisite funds, shall, at any of its branches, pay coupons for interest or the principal of debentures payable by the Government within the colony, without charge othor than for romittanoo. 18. The Bank, on being provided with the requisite funds at its London office, shall at that office make payment to and take receipts from the ordinary creditors of the colony in London without charge. 19. The Bank shall, at any of its branches, receive deposits for credit of the Imprestees of the Government, or for credit of special deposit accounts of officers of the Government, and shall honour the cheques of such Imprestees or officers, as the case may be, and furnish such periodical statements of account as the Treasury Regulations may require or the Treasury or Controller and Auditor-General may direct. 20. The Bank shall furnish to the Paymaster-General, and the Government Insurance Commissioner, and tho Public Truotoo such periodical statements of the transfers to and the operations on the Public Account Disbursement Account at its several branches, and the Government Insurance Disbursement Account and Public Truatoo'n Diobursemont Account at Wellington as these officers may require. The Bank shall also furnish to the Treasury, the Controller and AuditorGeneral, or such other person as may be authorised by either of them to demand the same, such statements of any official account opened by or for or on account of any officer of the Government as may at any time be required. As to Chaeges and Interest. On Deposits. 21. The Bank will allow interest on deposits at the rates following, that is to say,— (1.) On the daily balances of the Public Account, the Receiver-General's Deposit Account, the Post Office Account, the Government Insurance Account, the Public Trustee's Account, and the account of the Commissioners of the Public Debts Sinking Funds at Wellington, when the balances of those accounts as a whole are under eighty thousand pounds, four per cent. (2.) When the balances of those accounts as a whole exceed that amount, three per cent. (3.) Provided that whenever the balances of the accounts mentioned in subsection (1) of this clause, exclusive of all sums deposited for fixed periods, shall exceed four hundred thousand pounds, the Treasury or the Bank may require a reconsideration of the rate of interest to be paid thereon. In the event of the Treasury and the Bank failing to agree thereon, the Bank may refuse to pay interest on any sum so in excess, and the Treasury may thereupon deal with such excess in the manner provided in clause 3 two of this agreement. (4.) On the daily balances of the New Zealand Public Account and the Foreign Imprest Account of the New Zealand Government in London, one and a feaH quarter per cent, less than the Bank of England rate. Interest on sums deposited to be reckoned from the day subsequent to each deposit: Provided that no interest shall be paid under this provision exceeding the rate of five per cent., and that the Bank shall have the option of declining to pay interest on balances in excess of four hundred thousand pounds. (5.) On fixed deposits made — At the Bank at Wellington, or at any of the branches of the Bank in the colony,— At such rates as may be mutually agreed upon from time to time. At the London branch of the Bank, up to three hundred thousand pounds,— For six months, three per cent.; For twelve months, four per cent. On Advances. 22. The Bank will be prepared to advance to the Government in amounts not exceeding two hundred thousand pounds per month — (1.) On the security of Treasury or Dofioioncy Bills at par to any amount not exceeding one hundred thousand pounds. Such advance to be made at the option of the Government either in the colony or in London, but not in both. (2.) On New Zealand securities quoted on the London Stock Exchange, or on debentures for any loan authorised to be issued and which will be so quotable, with power to remit and hypothecate the same, any amounts, either in the colony or in London, which together shall not, in the whole, exceed three hundred thousand pounds. But the Bank shall not be required to advance any amount exceeding ninety per cent, of the nominal value of a frFe/owr-pet-cent. loan, and in the like proportion for a loan bearing a rate of interest other than ft*e four per cent. 23. The Bank will make advances as above referred to at the rate of interest following; that is to say,— In the colony, at si* four and one-half per cent. In London, at £w/owr per cent.; or, in case the Bank of England rate is in excess of lew three per cent., then at the rate of one per cent, above the said Bank of England rate. 24. Whenever the Government has obtained advances from the Bank under this agreement, the Government shall not be at liberty to place any sums of money on deposit with other banks so