DEFERRED SALE FINANCE: AN INSURANCE INDEMNITY.

Evening Post, Volume 137, Issue CXI, 10 June 1926, Page 11

DEFERRED SALE FINANCE: AN INSURANCE INDEMNITY.

Applications are being invited in Australia for subscription to 400,000 of Australian Securities, Ltd. The nominal capital is £000,000. Tho directors. express the opinion that it will not be necessary to call up more than 10s a share, and they say that the amount of the uncalled capital will be available as collateral security against bank advances as explained in the abridged prospectus published elsewhere. It is stated that the objects of the company, which are particularly to finance deferred payment sales of motor vehicles and other carefully-selected commodities usually sold on the hire purchase system, are not now, similar companies having been operating' in tho United States for a considerable time. Dealing witli the question of the security of the inevstment, the promoters say that arrangements have been completed with an Insurance office to indemnify the company against loss on accepted risks. An agreement between the company and Federal underwriters provides for the payment of brokerage to that concern in respect of applications for shares obtained by It, and as a further consideration for work done it has the right to subscribe within .three years for up to 100,000 unissued shares /at par.