RURAL CREDITS.

Otago Daily Times, Issue 18947, 22 August 1923, Page 8

RURAL CREDITS.

“JOINT AND SEVERAL” AMENDED. (From Our Own Correspondent.) WELLINGTON, August 21. During the 1922 session there was passed the Rural Credits Association Act to afford statutory recognition to certain classes of societies established for the mutual benefits of their members, their primary object being to make advances to their members on chattel security. ’Such societies were empowered to carry out all the operations of what are commonly known as people’s banks or agricultural banks without, however, authority to carry on what is ordinarily meant by banking operations. A good deal of objection was subsequently taken to the sub-sections of what became known as the “joint and several” clause—namely, clause 6 It was recognised that comparatively few of the members would be owners of unencumbered land. It was therefore provided that the liabilities constituted an equitable charge on the assets of the members, subject, however, to encumbrances existing at the time of the incorporation of the society. These provisions, which are included in sub-sections 2,3, 4, and 5, are now repealed by the Finance Bill, which was circulated this morning.