FARM TRANSFERS

Gisborne Herald, Volume LXXV, Issue 22623, 28 April 1948, Page 5

FARM TRANSFERS

REHAB. SETTLERS CONDITIONS IMPOSED OTHER VETERANS’ NEEDS (P.A.) WELLINGTON, April 27. The position arising where an exserviceman who has obtained a freehold farm with rehabilitation assistance wishes to transfer it to someone else is explained in a statement by the Minister of Rehabilitation, Mr. C. F. Skinner. The question, he says, was recently raised by a branch of the New Zealand Federated Farmers and it has been felt that some explanation of the Rehabilitation Board’s policy should be given. “It is a covenant in the mortgage when an ex-serviceman acquires a freehold farm with rehabilitation finance that the consent of the State Advances Corporation, as agent for the Rehabilitation Board, must be given to any transfer where the loan is not being repaid,” the Minister said. Must Finance Balance "Should an ex-serviceman be considering transferring to another exserviceman who is graded A for that particular type of farming, and who is eligible for rehabilitation assistance, consent would not be withheld provided he could finance the proposition for any sum in excess of any rehabilitation loan granted to him. On the other hand, the benefit of a rehabilitation loan would not be extended to anyone else. Even if the loan were repaid in full, the ex-serviceman could be prevented from selling to a civilian purchaser if the farm was still suitable for rehabilitation.

"In such a case the question of acquisition by the Crown for rehabilitation purposes would immediately arise in the same way as with the sale of ordinary farm properties. For this reason the board, in cases where an ex-serviceman whom it has settled on a farm applies for consent to settle to a civilian, makes it a practice to ensure that he is aware of the unsatisfied needs of other ex-servicemen, and to suggest to him that he arrange to sell to another approved ex-serviceman if the farm is still felt to be a suitable rehabilitation proposition. Previous Loan Must Be Repaid “Should the ex-serviceman, having sold his farm into which he was assisted wish to obtain fresfi assistance to buy another farm property, there are several conditions that must first be fulfilled. “The first is that the previous loan Is fully repaid- The second is that the board is satisfied with the applicant’s reasons for disposing of his farm. The third is that another suitable exserviceman has been given a chance to buy the previous farm. The fourth is that any equity derived from the sale of the first property is to be contributed towards the cost of the second. It must be remembered that rehabilitation farm loan assistance is provided for an ex-serviceman’s permanent establishment. The board, of course, realises that there are often good reasons why an ex-serviceman might wish to move to another locality, or to another type of farm, and thus applications for second loans are treated each on its merits.”