LOCAL BODY LOANS
ONUS ON INVESTORS
• "Investors should take paiijo-.ilar care wVn cavine premiums for wovprnmenu and ocai y bodyP stock to see ih»t the issuinK authority has not an option to repay before the maturity date," said Mr. B. Kitson, chairman of the Chnstchurch Stock Exchange, when the above message from Dunedin was referred to him by the "Press" "If stocks are bought and the investors understand that there, is an option to repay before the maturity date then they buy with their eye's open, said Mr Kitson. "Probably it would _ have been fairer not to have given the issuing authority an option to repay by giving six months' notice, but to make them state at the earlier date whether they wished to exercise the option or not. It the option was not exercised, then the debenture holders would know that their securities were to carry the long maturity date. In equity, where the issuing authority has an option to repay on giving six months notice, the debenture holder should have the-right to demand'repayment on giving six months' notice."
Permanent link to this item
https://paperspast.natlib.govt.nz/newspapers/EP19341017.2.141.2
Bibliographic details
Evening Post, Volume CXVIII, Issue 93, 17 October 1934, Page 14
Word Count
180LOCAL BODY LOANS Evening Post, Volume CXVIII, Issue 93, 17 October 1934, Page 14
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