BIG JOB FINISHED

Dominion, Volume 29, Issue 94, 15 January 1936, Page 10

BIG JOB FINISHED

Conversion of Masterton County Loans

SAVING IN INTEREST

Dominion Special Service.

Masterton, January 1-1. “Tlie conversion of the councils loans in terms of the Local Authorities’ Interest Reduction and Loans Conversion Act has now been completed and the audit inspector’s certificates as to tlie destruction of the old debentures are to hand,” stated Mr. J. C. D. Mackley, the county clerk, at today’s monthly meeting of the Masterton County Council. The amount involved in the conversion was £59,655. With the operation of the scheme tlie debt stands at £50,580, the reduction being accounted for by applying the accumulated sinking fund iu reduction of old loans. Loans were converted on the annual redemption principle. Under this system the liquidation of conversion loans takes place by the annual redemption of the debentures throughout the period of the loans. Now that work js completed it will be of interest to repeat savings made in the annual charge,* 1 *. Under the loans conversion scheme prior to the 20 per cent, interest reduction the annual charges on all loans, whether subject to conversion or liot had amounted to £5761/0/7, while' just before conversion the annual charge was £5373/12/4. With tlie scheme in operation the total annual charges oil all loans would amount to £4951/4/4. The scheme involved tlie issue of 73 debentures, the highest being of tlie denomination of £2BBO and the lowest of £lOO. The final cost of the conversion, including all charges, was £133/5/9. this figure being £66 •14/3 under the estimate. Now that the consolidated special rate has been made and levied on a differential basis over the several ridings iu accordance with the provisions of the Mastertoji County Loans Conversion Order, 1935, No. .1, as security for the conversion loan, continued Mr. Mackley, "it will be necessary to pass by way of a special order’ a resolution making and levying a consolidated special rate on the' differential basis over the several ridings under section 7 of the Local Authorities Interest Reduction ami Loans Conversion Amendment Act, 1934, as security for all original securities issued in respect of its loans which are not subject to part two of the Act.” It was resolved that a special meeting be held on February 11 for tlie purpose of passing tills special order. “That is a big job finished, gentlemen.” said tlie clerk when the final resolution was passed.