SINKING FUND

Auckland Star, Volume LXXIII, Issue 134, 9 June 1942, Page 6

SINKING FUND

LOANS FALLING DUE On January 1 of next year £90,000 of the Auckland City Consolidated Loan falls due and two years later £35,000 falls due. This information was contained in a report presented to the Auckland Transport Board by the secretary, Mr. C. R. Gribble. The sinking fund in respect to both portions was held as one fund by the Auckland City Sinking Fund Commissioners, and amounted to £56,392, he said. The whole of the sinking fund was available for the redemption of debentures as they became payable and the board was entitled to require the commissioners to apply the full amount of £56,392 towards the repayment of £90,000 falling due next January. "The board has, however, established a sinking fund deficiency reserve for the purpose of meeting deficiencies in sinking funds," continued the report. "In these circumstances I recommend that the Auckland City Sinking Fund Commissioners be requested to apportion the sinking fund between the two portions of the loan and that the balance necessary to fully repay the portion of £90,000 falling due in January next be paid from the sinking fund deficiency reserve." The report was adopted.