LOANS TO FARMERS

Evening Post, Volume CXIV, Issue 16, 19 July 1932, Page 13

LOANS TO FARMERS

EXTENDED POWERS

GRANTING OF CONCESSIONS

The Eural Intermediate Credit Board has found it necessary to grant concessions to a number of its borrowors by reason of the reduced returns which are being received from the salo of primary produce.

A statement issued at the conclusion of the monthly meeting of the board states that so far the board has retained the right to grant or decline concessions, but now that associations are familiar with the board's policy in this matter it is considered that the power to grant concessions may be delegated to associations to a limited extent, and the details are now being considered. District supervisors in the various districts are directors of the associations in their districts, and it will be neceßsary for all concessions granted by associations to have the concurrence of the district supervisors and for statomentsrjpi, the financial position p£ borrowers to be Supplied in order that it m'Sy" tie ascertained wiethef the corieessibfts.are justified;

.The_ board wishes to delegate, to associations as wide powers as are cbhsiStSiit with' ttie Safeguarding of the interests p£. debenture-holders, : but it will be realised thai the board must, in view of its responsibilities to thoso who have entrusted moneys to it for investment, proceed with caution in delegating its powers. The board has decided that it may safely give to directors of associations the power to grant further advances not exceeding •£SO subject to certain conditions laid down, of which the associations will be advised. The granting of this power to associations is by way of trial, and the continuance or extension of the power now granted will depend on the result of the exercise of the power by the directors.