ADVANCES TO SETTLERS.

New Zealand Mail, Issue 1191, 28 December 1894, Page 6

ADVANCES TO SETTLERS.

THE METHOD OF REPAYMENT. For the information of the large number of our subscribers who are enquiring wbat provision there is in the Advances to Settlers Act, 1894, to enable those who obtain advances under the Act to pay off the loans, we have ascertained that a borrower may at any time pay to the superintendent, in addition to the half-yearly instalments, sums of «£5, or of a multiple of .£5, in reduction of the mortgage debt, or the borrower may repay the/whole amount of the balance of principal owing, and that the payment of the instalments will cease, and the borrower become entitled to a discharge of the mortgage as soon as the sums paid in reduction of the mortgage debt amount, with interest at 4 per cent, per annum compounded yearly, to the whole balance of principal money owing. To give a few examples —If an advance on mortgage should be granted of .£IOO for 36 J- years under the Act, the borrower would both pay the interest and repay the principal by the instalments of £3 every half-year or 6 per cent, per annum throughout the period. If the borrower of <£loo should, at the close of the first year of the mortgage pay, in addition to the second instalment, a sum of £9B 19s 9d in reduction of the mortgage debt, the whole balance of principal owing would be paid off, and the borrower would thus he entitled, one year after the loan was obtained, to a discharge of the mortgage on payment of the costs and fees prescribed for the discharge. If the borrower of .£IOO should, at the end of the second year of the mortgage, pay, in addition to the fourth half-yearly instalment of .£3, a sum of .£SO in reduction of the mortgage debt, the instalments would continue to be payable until the balance of the principal owing should not exceed the amount of ,£SO with interest compounded annually at 4 per cent. ; that is to say, the instalments would be payable for 14 years, or until the 28th instalment had been paid, when the balance of principal owing would be £BO Is 4d, and the sum of «£SO would, with the accumulation of interest at 4 per cent, per annum, amount to £BO Is. A payment of 4d would consequently then repay the whole balance of principal owing, and entitle the borrower to discharge of the mortgage on payment of the costs and fees °for the discharge. We have also ascertained that the strictest secrecy will be observed by the Advances to Settlers Office respecting the names of the applicants for advances ; and that the borrowers need not be under the slightest apprehension that the particulars of any loa,n will be disclosed either in statistical returns or otherwise.