LOAN CONVERSIONS

Manawatu Standard, Volume LVI, Issue 109, 8 April 1936, Page 16

LOAN CONVERSIONS

KAIRANGA COUNTY’S SAVING. ! TOTAL OF £770 A YEAR. The Kairanga County Council is making an annual saving of £770 8s 5d as the result of the conversion of loans originally aggregating £88,245. This fact was reported to the monthly meeting of the council 'yesterday by the treasurer (Mr "N. I. Nielsen). The report was presented as the final advice as to the conversion operations which have now been completed. The expenses of the conversion had amounted to £44 7s Bd, the report proceeded and then stated: “Under the conversion scheme which,operated from October 1, 1935, the loans aggregating £88,245 were reduced to £09,195 by reason of principal repayments on loans raised originally from the State Advances Office and the deduction from Public Trust Office loans of the amount of sinking funds held in respect of such loans. The whole of the county was pledged as security for an amount of £03,140 and the special rating district known as the Fitzherbert West water race special rating district as security for an amount of £BOOO. In the case of loans where the interest reduced by 20 per cent, under the Local Authorities Interest Reduction and Loans Conversion Act, 1932-33, was in excess of the rate of 4} per cent, at which rate the loans were converted, a premium was payable. The amount involved was £7Ol 0s 2d and this was paid out of the accumulated sinking fund held by the Public Trustee. At the date of conversion, after allowing for payment of' premium and part payment of loans to the Public* Trustee, there was transferred to the consolidated sinking fund £IOB9 13s Bd.” The annual charges prior to the conversion had been £5214 8s ITd, and after conversion £4444 0s Gd, thus resulting in an annual saving ot £770 8s sd, stated the report. “In respect to the loans which were non-convertible, , the council at the last monthly meeting decided that the annual charges thereon were to become a charge over the whole county, the statement proceeded. “In the majority of the loans, the security rate was pledged over a special rating area. However, as the conversion loan, with the exception of the loan over the water race district, was arranged over the whole of the county, it was considered only equitable _ that provision should be made in a similar manner for the non-convertible loans. In view thereof,' the present position is that there will be one consolidated special rate levied over tbe whole county as from April 1, 1930. The non-convertible loans aggregate £lO,141 4s, and the annual charges, thereon £3BB 12s Bd. In addition to the loans referred to, you will no doubt recollect that two loans were raised since the statutory provisions for conversion, of loans became effective. These loans were : —The new Fitzherbert bridge loan of £OOOO, and tbe Lower Aorangi Road redemption loan of £OOO. The total annual charges are £491 7s Od, and a special rate was stuck over the whole county as security for payment thereof.” On the motion of the chairman (Cr. D. Collie) a vote of thanks to Mr Nielsen for his able services in connection with the conversion was placed on the books. The chairman eulogised Mr Nielsen’s work and said it had been valuable.