INTEREST REDUCTION

Dominion, Volume 26, Issue 301, 15 September 1933, Page 11

INTEREST REDUCTION

Wanganui-Rangitikei Power Board’s Claim CASE BEFORE N.S.W. COURT 9 Sydney, September 14. The hearing has begun in the Equity Court in Sydney before Acting Chief Justice Harvey of a suit on behalf of the Wanganui-Rangitikei Power Board for a ruling as to whether the New South Wales Interest Reduction Act of 1931 applies to financial obligations by that board with the Australian Mutual Provident Society On or after October 1, 1931; and secondly, whether plaintiff is entitled to redeem debentures due since that date upon payment to the A.M.P. of the total capital included in such debentures, together with interest reduced in accordance with the Act. Plaintiffs contracted loans of £149,999, £lOO,OOO, and £60,000 at various periods between 1924 and 1926. The interest was 5} per cent., and all debentures were payable in Sydney. Plaintiff claims to be entitled to the reduced rate of interest of 3 per cent., prescribed in the New South Wales Interest Reduction Act, on all interest obligations after the date of the passing of the Act, This contention the defendant society disputes. The case was adjourned.