LOCAL BODIES LOANS.

Press, Volume LXIX, Issue 20878, 10 June 1933, Page 10

LOCAL BODIES LOANS.

PAYMENT OP ' OVERSEAS. —— i ( INVESTORS ENTITLED <kj. RECEIVE STERLING,/'! (»EESS ASSOCUTIOH IEtWWtA-' WELLINGTON, Jmi'i, • Since the recent advance in'jL rate of exchange on londovfe! has been much speculation as ft JJ , position in regard to the ' of interest on local body ?E raised overseas. During the W week the impression ground that this interest is jKI : in terms of New Zealand currency As a general statement this does "not ' correctly define the position. \SI \ determining factor in fixing mtytM currency interest and principalßhab be paid is that of domicile. "" v It was ascertained in quarters to-day that where ' was raised in London, prospibtuiej were issued there, subscription* i invited there, and people' boW there before the high would be entitled to expect S ' interest and principal to -Ife ifeSj in pounds sterling. Were the/aS paid in sterling it would with the credit of the country w the prospects of the local body'££ cerned being again able to rake,* loan would be remote. Where <a loan was raised in New Zealand': and prospectuses and subscriptions ttea invited here, - debenture hdldea would naturally expect to beTpyj in New Zealand currency. If by the terms of the contract 'they hU. HSi ' right to ask for payment in !&&& ' the local body would pay ' but in New Zealand currency..- " With Government loans the Mtion is different, for it is specfficflh stated in the contract in WlSpoS rency interest and principal sbaß.be paid.