THE AMALGAMATION OF THE BANKS. TO THE EDITOR.

North Otago Times, Volume XXXVII, Issue 8086, 26 September 1894, Page 3

THE AMALGAMATION OF THE BANKS. TO THE EDITOR.

Biu,—A lotbot: appaaring in your paper of thia morning signed " Financier ' r is misleading as regards the security of dopofjitore, and in or lor to roliove his anxiety I would refor him to clauso 9 of the Baiik of New Zealand Share Guaranteo Act, 1894, which roads as follows j If at any time or times any monoy shall bo payable under tho guarantee heroin before mentioned, then, and in that etiso, all tho assets and real and personal property of the ttank shall bo deemed to bo and «haU bo Beeurity for tho repayment of the moneys bo advanced ; and if Buch moneys, togother with interest thereon at tho rate of four per eentum per annum, shall not bo paid by tho Bank to tho Colonial Treasurer, then tho Colonial Treasurer may appoint ft receiver

who shall thereupon havo ami exorcise all the powers and authorities which might be exercised by a liquidator appointed by the Supremo Court under tho Companies Act 1882, without tho necessity of applying to tho said Court for such appointment or for any such powers. Provided always that tho proceeds of such liquidation shall bo applied by such receiver— First, in puyment of monoys duo to tho Crown, in respect of liabilities or payments othor than payments made undertho guarantee of this Act. Next, in payment or satisfaction of tho claims of all other creditors of tho Bank, and Ihereaftor in ropaymont of any moneys paid under tho guarantee of Una Act. — X am, etc. , Merchant.