INTEREST PAYMENTS

New Zealand Herald, Volume LXXIII, Issue 22349, 21 February 1936, Page 12

INTEREST PAYMENTS

LOCAL BODY DEBENTURES APPEAL TO PRIVY COUNCIL A decision to make a contribution toward the cost of an appeal to the Privy Council against the decision of the Court of Appeal in the case between the Temyjerance and General Mutual Assurance Society, Limited, and the Mount Albert Borough Council was reached at a meeting of the City Council last night. The case concerns the payment of interest in Victoria on debentures of the Mount Albert Borough Council held by the company and the decision of the Court of Appeal in December was against the Borough Council.

The secretary of the Municipal Association wroie stating that the borough council was prepared to appeal to the Privy Council, providing the local bodies participating in the defence of the action were willing to share in the costs, which, in an unsuccessful action, might amount to £IOOO. Xhn debentures affected by the decision of the Court ran into over £1,000,000 and the saving of interest over the period in question -would be £25,000. On the recommendation of the Finance Cotnrnittee, the council decided to contribute toward the cost of further legal proceedings, provided that the cost on a pro rata basis did not exceed £l5O.