LOANS CONVERSION
UNUSUAL DEVELOPMENT OLD DEBENTURES STILL HELD [BY TELEGRAPH —PBESS ASSOCIATION] CHRISTCHURCH, Thursday An unusual position has arisen between some Christchurch local bodies and certain big insurance companies over the conversion of local body loans to a lower rate of interest. These companies have so far failed to forward to the local authorities affected large parcels of debentures for conversion, which must be in the hands of the converting authorities before new debentures can be issued.
At least two of the biggest life insurance concerns in New Zealand have taken this stand, claiming that the local authority should forward tho new debentures for checking before the old ones are sent in. This procedure, the local authorities claim, would bo contravening the conversion regulations. In the meantime all interest payments due on debentures not converted are withheld. Tho position created has not delayed tho process of conversion, nor do holders of the debentures risk loss of interest. This will doubtless be paid to them when they present the debentures for conversion, but in the meantime it cannot be paid over.
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Bibliographic details
New Zealand Herald, Volume LXXII, Issue 22117, 24 May 1935, Page 10
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180LOANS CONVERSION New Zealand Herald, Volume LXXII, Issue 22117, 24 May 1935, Page 10
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