Page 4 Advertisements Column 2

Auckland Star, Volume LX, Issue 138, 13 June 1929, Page 4

ABRIDGED PROSPECTUS OF THE FIRST NATIONAL MORTGAGE BOND CORPORATION LIMITED. To be Registered under The Companies Act, 1908. Dated 11th June, 1929. . . Filed 11th June, 1929. Adopting the Soundest and most Up-to-date Methods of Mortgage Finance. Capital - - - £250,000 Divided into 100,000 6 per cent. Cumulative Preference Shares of £1 each, and 150,000 Ordinary Shares of £ 1 each. 100 000 ORDINARY Shares, together with" 100,000 PREFERENCE Shares, are now ' offered to the Public for subscription, and 50,000 ORDINARY Shares are reserved for future issue. The terms of subscription are as follows: — PREFERENCE SHARES—2/- per share on application, and the balance on allotment; or alternatively, 2/- per share on application, 2/- on allotment, and the balance in calls not exceeding 2/- per share at intervals of not less than one month. ORDINARY SHARES —2/- per share on application, and 1/- per share on allotment; and the balance in calls not exceeding 1/- per share at intervals'of not less than one month. NO PROMOTERS* SHARES. No consideration of any kind has been given or promised to anyone in connection with the promotion of the Company. Brokerage only is payable for procuring subscriptions for shareS ' FIRST DIRECTORS: H. T. MERRITT, Esq,, T. U. WELLS, Esq., Merchant, Auckland Retired, Auckland. S. J. HARBUTT, Esq., F. RESTALL, Esq., Manufacturer, Auckland. Company Manager, Auckland. D. F. MacCORMICK, Esq., Retired Bank Manager, Auckland. Solicitor: Consulting Counsel: W. T. F. KELLS MASON, Esq., G. P. FINLAY, Esq., Solicitor, Auckland. Barrister, Auckland. Auditors: r. vta^JTt 11 oaw V-mt mpw HUTCHISON, ELLIFFE & CAMERON, THE NATIONAL BANK OF NEW Prem ier Buildings, Durham Street, Auckland. ZEALAND, LIMITED. Organising Underwriters: Interim Secretary: ASSOCIATED INVESTMENT UNDERG F PARKES, F.CI.&. F.A.1.5., WRITERS (N.Z.), LIMITED, Premier Buildings, Durham Street, Auckland. Premier Buildings, Durham Street, Auckland. GENERAL OBJECTS. Primarily this Corporation is being formed To transact business as capitalists, proto carry on the business of a Mortgage Bond moters and financial and monetary Company, adopting the most modern agents, both in New Zealand and methods of lending money on real estate, elsewhere. and splitting up these mortgages into Bonds To act as Trustee for Bond and Debenof convenient denominations, thus rendering - tu "~ s ', ~ ~ . c . the best class of mortgage security available To afford Shareholders a diversification to investors generally. f investment, a principle which has , ~ long been recognised as one or the hrst Briefly, the objects are:— requisites of a sound investment policy. To make advances on approved securities. Generally, to supplement the existing To accept from the borrower Mortgage facilities for mortgage finance, and to Bonds, and reissue same to the public further the economic progress of the with or without, the Corporation's Dominion by the judicious application guarantee. of organised capital. PURPOSES OF THE CORPORATION. The main purpose of the Corporation is to throw companies rather than that of the private individual, open to the general puhlic a fresh avenue of investment, in proof of this we have the State Advances Departnamely, real estate Mortgage Bonds. ment, the Fublic Trustee, Intermediate Credits AssociaIn the safeguarding and distribution of these Bonds tion, the Associated Banks, the various Building Societies, the Corporation intends to introduce the principles and and the Loan, Mortgage and Finance Companies. The system which form part of the standard practice to-day reason for this is that the company usually brings in Great Britain and America, and which have'contributed greater skill to bear on the scrutiny of investments than in no small measure to the widespread popularity of such can a private person, as generally it is a matter foreign Bonds in those countries. to his ordinary business. Hitherto, Mortgages of the best class on the highest The finding of fitting investments and securities is type of improved city properties and productive rural one of considerable difficulty to the average lender, and lands could be taken up only by the wealthy and the the use of the Corporation's organisation is sure to large Institutions because of their very size; but now, appeal to lender and borrower alike, with the advent of the "First National Mortgage Bond The funus of the organisation will be continually Corporation, Limited," the plan will be adopted of employed. By foresight and an energetic management splitting up these large mortgages into Bonds of con- no funds will ever be allowed to lie idle. venient denominations, thus rendering such classes of , The Corporation will offer to investors a continuity of mortgages available to investors generally. investment, lack of which has in the past been a serious „,,' ~ . , , ~ , . j.. «... ~ .„ Un drawback, and in many cases the cause of loss and hardThe policy to be adopted by the Corporation will be M t investors and those dependent on them, the most modern me hod of lending money on real £ ft investor's point of view the modern method estate. It represents the most up-to-date unproved form ~„„ „,..„,, „ rlvnrl( . n „ oa . of the old time-tested system; it combines the safety, , ui.iny aa\ untaxes . stabilitv and attractive interest rate of the old-fashioned C 1) The interest is paid to the investor promptly mortgage, with the convenience and availability of the a . n(l regularly, arid free from expense or deducbest class of Bonds. The Corporation will pay particular tion. attention to the adaptation of amortisation to lending (2) His capital is never lying idle awaiting reinveston mortgage, the underlying principle being that the ment and losing interest. He is not continually borrower shall pay off a portion of the principal of his - called on to consider rearrangement and revaluaBond.s 'each year. This amortisation is accomplished tion of securities. either by serial maturities part of the Bonds maturing (3) His investmen t, or any part of it, is readilV annually or-by sinking funds whereby he borrower negotiable at any time; with a minimum of must reduce the principa annually by purchasing Bonds ex ]le can ' w secnrlt A movtgage> in the open market or by calling Bonds by lot. The on the th han(] j t y , £ ■* ' ami of the Corporation will be to ensure regular pay- the Beller has t flnd who has preciselv merits sufficient to meet the due proportions of principal th amount requlred billing to invest in the and interest, and thus secure a constantly increasing particular class of security, and whose advisers margin ot sarety. approve of the particular form in which the Nearly all the real estate the Corporation will sponsor mortgage is drawn. All these factors militate will be covered by Bonds of its own origination; that against t'.ifi ready sale of a mortgage. Is the Corporation will purchase or underwrite an issue (4) with a mort g age he has to wateh rhc seC urity YV£lsJ^^l^ m ° W ? er itself and its maintenance, attend to the personal »,* i V ' B r s , issue,i ' ™ d T collection of interest (or pay someone else to do written or purchased will be protected by an adequate 8o) suffeP the i nvar V j. Ylclavs in payment, equity or margin of safety, based on conservative supervise the insurances and the innnent of nToa £L tl ZZ? e^JZ^l 8 lt 7t i n ™ s «gation pS/ms, and, TnThe event of the* jfflSfS the of each issue before underwriting or flotation will be mortaure be orenarprl to tin-ince the renow^on thorough and exhaustive. The Corporation will examine of the lecurifv llstlv a 1 these tW es moin *! n T UIU,,IeS I a, - Ul C^ S Hiat the 0 ne SIZ 1" power of each property. Particular emphasis will be nlwavs less than the nnnnrenr vilno nf Hip return tt t, „f°Vl h va\T rtaUCe ° f CarniDS PoWel '' Whkb iS lhG as in the morYgage. "' oasis oi .iu \auic. WJth a Mortgage Bon(1 tho face v . lluc of thft interest. Nowadays, the lending of moneys is tending more is net, subject to no deduction, and free from worry, and more to become the business of institutions and delay and idle capital. Applications will be received only in accordance with the terms of the full Prospectus, and on the Application Form issued therewith. Full Prospectus, Information, and Form of Application for Shares may be obtained from Associated Investment Underwriters (N.Z.) Ltd. PREMIER BUILDINGS, DURHAM STREET, AUCKLAND. ASSOCIATED INVESTMENT UNDERWRITERS (N.Z.), LTD., Premier Buildings, Durham Street, Auckland. Please send me, without obligation, Prospectus, Full Information, and Form of Application for Shares. Name , Address

FIRST MORTGAGE DEBENTURES. A GILT-EDGED INVESTMENT. Applications are invited for Subscriptions to an issue or First Mortgage Debentures bearing interest at the rate of 7$ per cent, per annum, payable half yearly. These Debentures are being issued by a Limited Company, and are secured upon Freehold valued at more than double the amount or this Debenture issue; the Debentures are further secured by a floating charge over all other assets of the Company. The net estimated annual income is sufficient to meet the interest on the Debentures many times over. The term of the Debentures Is for 5 years from the 30th day of June, 1929. Applications will be received only in accordance with the full Prospectus, and on the Application Form issued therewith. Prospectus, full information and form of application for Shares, may be obtained from ASSOCIATED INVESTMENT UNDERWRITERS (N.Z.), LTD., .PREMIER BUILDINGS. DURHAM ST. EAST, AUCKLAND. Telegraphic Address: Investment, . _ Auckland.