BOND INTEREST.

Auckland Star, Volume LXVII, Issue 136, 10 June 1936, Page 8

BOND INTEREST.

EXCHANGE EFFECT,

AUCKLAND PAYMENTS APPEAL COURT DECISION. JUDGMENT FOR COMPANY (By Telegraph.—Press Association.) WELLINGTON, this day. The Court of Appeal this mornh , pronounced judgment in the case of ft Alliance Assurance Company versus tli Auckland City Corporation and tht Auckland Transport Board. The q Ues tion for determination arose out of ti" provisions of debentures originally h! by the Auckland Electric Company, but now payable by the Au<* land Transport Board. .

Plaintiff submitted that tlie monev. were payable at the holder's optionT Auckland or London, and that if m , sented in' London, the debentures were to be paid in ."English currency. The Corporation and- the Tranenort Board contended that the sums yZ payable in New Zealand currency C(m verted at whatever rate of exchange was current between London and New Zea land on the particular date of payment' in effect, that the debenture holder Lad to bear the cost of exchange between New Zealand and London.

A majority of the Court, Judm, O&tler, Blair and Kennedy, gave m|, ment in favour of the plaintiff company while acting-Chief Justice Reed delir! ered a dissenting judgment in which fe decided that at all material times the New Zealand pound and the pound were* different, although tier expressed the units of account in tlj eame name.

Provisional leave to appeal to tls Privy Council was granted the Corporation and the Transport Board.