BANK OF NEW ZEALAND.

New Zealand Herald, Volume XLII, Issue 12833, 5 April 1905, Page 5

BANK OF NEW ZEALAND.

A QUESTION OF REDEMPTION.

[BY TELEGRAPH. — PRESS ASSOCIATION.]

Wellington, Tuesday.

At the Supreme Court to-day a case was heard by the Chief Justice and Mr. Justice Cooper, in which the Bank of New Zealand proceeded against the. Assets Realisation Board for the performance of an agreement. The matter that gave rise to the difference was that the Hoard came into possession of £127,500 worth of New Zealand Government's 4 per cent, debentures in part payment of the Matamata Estate ami other properties resumed by the Crown. The Bank asked the Board, under sect-ion 27 of the Bank of New Zealand Act, 1903, to hand over these 4 per cent, debentures in redemption of an equivalent amount of the Board's own 3j per cent, debentures (new issue under section 24). The Board's answer as, a.s indicated, that the section no longer operated in this way ; that the debentures were not. within its scope; that the £127,500 worth of 4 per cent, debentures were worth in actual value £130,125 12s 9d of its own 3i per cents. ; that if it was compelled to redeem, it should receive in return the actual value in its own debenture:-:, not the face value. This difference between the actual and the face value, £2625 12s 9d, brought the parties to Court. The questions for the Court to decide were: 1. Is the plaintiff entitled to require the defendant to surrender the Government debentures in exchange fur £127.500 worth of defendant's new issue of debentures'.'" 2. "If the plaintiff is so entitled, is the defendant entitled to receive on the transfer defendant's debentures to the actual value of the Government debentures, or is it entitled only to receive its own debentures to the. face value of the Government debentures:" Judgment was for the plaintiff bank, with £30 costs of the special case.