THE PROSPECTUS OF THE LOAN.

Press, Volume LXVI, Issue 13926, 28 December 1910, Page 11

THE PROSPECTUS OF THE LOAN.

The prospectus of this New Zealand five million loan was advertised in 'some of the London papers which , reached us by this week's English mail. It states that under the New Zealand Public Debt Extinction Act, 1910, it in provided that n sinking fund shall be created in respect of this and any iuturo loan, and of the whole of the existing New Zealand public loans that have not already got a sinking fund Of the proceeds of this issue the cum of £920,000 will be utilised for the repayment of debentures previously issued under the above-mentioned Acts, end £1,250.000 under the ]Jfaval Defence Act. 1900, to meet the payments in respect of the New Zealand Dreaduought cruiser now under construction. The debentures, which will be in denominations of £1000, £500 and £100, will be payable to bearer, and will bo redeemable at par, at the Bank of England, on the 31st December, 1914: but holders will have the option tof converting their debentures into New Zealand Government 3i per cent, inscribed stock. The iuterest will be paid by coupon half-yearly, at the Bank of England, on the Ist January and the Ist July, the first coupon, representing six months' interest, being due on the Ist July., 1911. Holders of scrip or debentures may, at their option, convert their holdings into New Zealand Government 34 per cent, inscribed stock at the rate of £102 of stock for every £100 of scrip or debentures, at any time prior to the 31st December, 191 a, on surrender of the scrip certificates or debentures. _• Stock created in exchange for scrip and debentures will be in addition to, and will rank pari passu with, the New Zealand Government 3j t>er cent, etock, 1940. already existing. The stock will be redeemed at par on the Ist January, 1940. Interest, thereon at the rate of 3J per cent., is payable half-yearly at the Bank of England on the Ist January and the Ist July, dividend warrants being transmitted by post unless otherwise desired. Tho Government of New Zealand, having observed the conditions prescribed under tho Colonial Stock Act, 1900, as uotified in the "London Gazette" of tho 21st December, 1900, trustees may invest in this stock under the powers of the Trustee Act. 1893, unless expressly forbidden in. the iattrument creating the trust,