RURAL ADVANCES SCHEME.

Auckland Star, Volume LVIII, Issue 78, 2 April 1927, Page 4

RURAL ADVANCES SCHEME.

NOW IN OPERATION. The new department of the State Advances Office which has been set up under the legislation passed last session for the purpose of making advances to primary producers functioned as from yesterday, when the Act came into operation. Application forms for loans are now available from the State Advances offices and from post offices throughout the Dominion. The information required to be given by applicants is in accordance with the provisions of the Act. Inter alia, the prospective borrower is asked to state if he or any member of his family has previously applied for a loan; whether he is already a mortgagor to the Department; the purpose for which the loan is required —if for improving the land, the nature of the proposed improvements; whether the security is leasehold or freehold; how the land was acquired, etc.

Under the provisions of the Rural Advances Act, 1926, the State Advances Office, practically without any additional machinery, was authorised to carry out a long-term mortgage business, the funds of the new rural ..dvances branc s to consist of moneys borrowed by the Superintendent on the security of bonds. The bonds are to be issued and sold by the State Advances Department, but without State guarantee, and are not to exceed the \ i e m °rt£aces held as security. Advances are not to exceed £5500, or tw-thirds of the value of the freehold security or of the lessees interest in the lease. Loans are to be granted only on the instalment system for periods not exr-eedmg 36V2 years

For the purposes of the administration of the Rural Advances Act. Mr W J \' '." ' ', recently appointed an addi- • : ... :.:.'iHber of the State Advances tonrd a< representative of the primarv producers, whom the new legislation *oel ; < to assist.