BETTER GUARANTEE PROVISIONS

Northern Advocate, 8 January 1938, Page 4

BETTER GUARANTEE PROVISIONS

In an effort to seek better conditions, the North Auckland Power Board recently contacted the Local Government Loans Board. At the board’s meeting yesterday, a letter was received stating that guarantee requirements had now beeri amended as follows: (a) In the case of small extensions, the capital cost of which does not exceed £l5O, the necessity of obtaining guarantees may be dispensed with. (b) Where the revenue from an existing line is sufficient to cover 15 per cent, of the capital cost, guarantees may be dispensed with in respect of new consumers connected, or to be connected to the line, and so .long as such revenue continues to cover 15 per cent, of such capital cost, the operation of existing guarantees may be suspended. (c) In all cases not covered by paragraphs (a) and (b), the guarantees required in terms of the voting paper and the Orders-in-Council consenting to the borrowing of the loan moneys may be modified to the extent of such guarantees being for a period of five years in lieu of ten years as specified therein. M ' _ “Very satisfactory,” was the general comment, and the letter was approved.