LOANS AND OVERDRAFTS
BANK GETS IT ALL COUNTIES URGE A SET-OFF. A remit of considerable interest to nil public bodies was brought before the New Zealand Counties’ Association conference yesterday, which seeks to get the Counties Act amended in order to allow the interest charged on overdrafts to be set off against the interest which it is claimed should be given on loan moneys on deposit pending the carrying out of the work. Sir W. W. Scarf (Heathcotc) moved to amend the Act to provide for the temporary transfer of a sum of money from a loan account to the District Fund Accoant; or as an alternative making it compulsory on the banks, when calculating interest on an overdraft. to allow as an offset against tlio overdraft any sum that may be lying to the credit of a local body on loan account.
Mr Scarf said he ' new one authority which had £14,000 standing to its ctedit on loan account and had an overdraft of £II,OOO on the general account, on Which they had to pay interest.
The chairman fMr A. E. .Tull) agreed that there should be a set-off between the loan account and an overdraft in comnuting the bank interest. The remit was carried unanimously.
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Bibliographic details
New Zealand Times, Volume LIII, Issue 12504, 21 July 1926, Page 7
Word Count
207LOANS AND OVERDRAFTS New Zealand Times, Volume LIII, Issue 12504, 21 July 1926, Page 7
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