LOCAL BODY LOANS.

Auckland Star, Volume LXVI, Issue 121, 24 May 1935, Page 9

LOCAL BODY LOANS.

C ON VERSION DIFFICULT JT. (By Telegraph. —Press Association.) CHRISTCHURCH, Thursday. An unusual position has arisen between some Christchurch local bodies and certain big insurance companies over the conversion of local body loans to a lower rate of interest. These companies have so far failed to forward to the local authorities affected large parcols of debentures for conversion, which must be in the hands of the converting authorities before new' debentures can be issued. At least two of the biggest life insurance concerns in New Zealand have taken this stand, claiming that the local authority should forward the new debentures for checking before the old ones are sent in. This procedure, the local authorities claim, would be contravening the conversion reflations. In the meantime all interest payments due on debentures not converted are withheld. The position created has not delayed the piicess of conversion, nor do holders of the debentures risk loss of interest. This will doubtless bp pi id to tli''in when they present the debentures for conversion, but in the meantime it cannot be paid over.