LONDON INTEREST.
SOUTHLAND BOARD'S DECISION. NEW ZEALAND CURRENCY. (Per Press Association). INVERCARGILL, September 12. By eleven votes to one the Southland Electric Power Board, at a meeting to-day, decided to rescind its former resolution to pay interest on its London loans in sterling, and later carried a resolution to the effect that it would pay in New Zealand currency, but would facilitate a test case regarding the matter, if the bondholders desired a ruling.
The question of interest payments was tho main topic for discussion at the meeting, which was a protracted one, and several of tho issues were considered in committee. The majority of members agreed that the board was under no legal obligation to pay in sterling, and that if there had been a moral obligation to pay this had been nullified by the action of the bondholders in England in refusing to accept a lower interest rate, as practically all other bondholders had done.
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Bibliographic details
Ashburton Guardian, Volume 53, Issue 285, 13 September 1933, Page 7
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157LONDON INTEREST. Ashburton Guardian, Volume 53, Issue 285, 13 September 1933, Page 7
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