LOAN COMPANIES.

Evening Post, Volume CIII, Issue 14, 18 January 1922, Page 7

LOAN COMPANIES.

A new clause of importance was jyroposed' to be added to■ the Loan' Companies Bill when it was / before -the Legislative Council yesterday. Briefly, this waJj to' the effect that the :M6rtgages and Deposits Extension Act, ; 1921; should:not apply to mortgage companies if the directors so resolved. Sir Francis Bell explained that this would mean that depositors would be free to claim their money, while the companies would not be-bound by the restraint ;of "'the Mortgages' and Deposits Extension; Act. The' Government, he said, had reason.'to believe that certain, companies 'would have the full'confidence of the depositors if' it was made clear that they did ' not come under the Act. The depositors would not be injured, because they would be free to make their own arrangements or to sue to recover, their deposits if they so desired. It • was possible, however, that the new clause would need some alteration... toI'.",'mak« certain that depositors would not ;be deprived^ immediately of the-,, increased interest granted under the. 1921 .''.'Act. The Government, therefore, proposed; to add a.proviso that the depositors-should', receive the 5£ per cent, .interest/.until one month after the company concerned had given,; the necessary notice-that ,it had contracted itself out of the 1921 Aot. Progress was, reported and. leave, was asked to sit again when this Government. Amendment was brought forward, 'r