ADVANCES TO SETTLERS.

Otago Witness, Issue 2207, 18 June 1896, Page 17

ADVANCES TO SETTLERS.

INIEBESTINO DETAILS OV THE MBASUttK.

AJthout h no doubt the provisions and working , of "The Government Advances to Settlers Aot - , 1891" and its amendment of 1895 are now be- j i coming pretty generally known, still there are < < plenty of settlers, especially in the interior, who 1 lure not hod the came facilities as those living in 1 the more thickly populated disfcriots of making 1 themsolves acquainted with the working of the ' act. ' It 'should, in the first place, be clearly under- < stood that the purpose of tht Government ad- i yances is not to encourage mere borrowing os to . tempfcpeople into debt, but to enable the settlers , who cannot help borrowing to do so at the lowest ■ cost and under the most favourable conditions. , We have from time to time explained through ' the columns of this paper the provisions of the i act, but for the benefit of those who may be interested we will now enter into somewhat minuter details. The act authorises the Board of - the Government Advances to Settlers to advancer .loans of not leas than £26. and not more than. £2500, and the term of the loan is 36& years. The interest at 6 per cent, is payablejn half-yearly instalments, and 1 per cent, is paid on account of principal. Thus, by the payment of £6 in, every £100 per- annum, the whole of the principal and interest would be paid off , at the end of the term, and the mortgagor would not, as in the case of ordinary mortgages (which, moreover, are only for comparatively short terms), have to face the payment •f a large sum of money or lose his property. The mortgagor may pay off the whole balance of principal owing and obtain a discharge of the mortgage at the time of any half-yearly instalment falling, due, ov he may also from time to time pay ■ to the superintendent in addition to the halfyearly instalments sums from £5 upwards in teduoMonof the mortgage debt ; and when the sums bo paid amount with the accumulated interest at an annual rate of £1 per centum, compounded yearly, to the b*lacce of principal owing at the time, the mortgagor can obtain a discharge. Where the security offered for the advance consists of freehold lands the board can advance up to three-fifths of the realisable value of the security (£6O in £100). Where the security consists of leasehold land the board can lend up to one-half of the value of the lessee's interest in the lease (£SO in £100). The value of the security is according to a valuation made by, or on behalf of, the superintendent to the satisfaction of the board on the ba-i? of the land being used only for farming-, dairy i- £ or market gardening purposes The following classes of land not being urban lands or suburban lands used for residential or manufacturing purposes are allowable by the act as security on first mortgages :— Freehold land held in fee simple under "The Land Transfer Act 1886," or freehold land held in fee simple under " Xhe Deeds Registration Act 1868 " ; Grown land held on perpetual lease under " The Land Act 1885"; Grown land held under patts 3 and 4 of " The Land Act 1892," including land belli under occupation with right of purchase tenure ; Crown land held on lease as a small grazing run under " The Land Aot 1835" or under " The l*nd Act 1892" ; Grown land held on< agricultural lease under "The Mining Aot 1891" ; Grown land held on lease (not being for mining purposes) under "The Westland and Nelaon Gold- i fields Ad ministration Aot 1877 " ; Native land held on lease under " The West i Coast Settlement Reserves Act 1892," or land held I on lease under " The Westland and Nelson Native ' Reserves Act 1887" ; Land held under "The Thermal Springs Dis- | triote Act 1881" ; Educational and other reserves, which are nubJect to the provisions of "Th« Land Act 1892," by virtue of proclamation made under section 243 thereof, and are held on perpetual lease or lease in perpetuity ; ' Crown lands held by license on the deferred payment system under part 3 of " The Land Act 1885" ;' Land held under lease from a leasing authority as defined by " The Public Bodies' Powers Act 1887," and providing "for the payment by the incoming tenant of valuation for improvements made upon the land, whether by the lessees named in such lease or any former lessee as ienaut. The clasp of land in each instance, and whether the land is or is not suburban land, shall be determined by the -beard.' The person desiring the , advance should make a written application to the I superintendent on the form, of which a copy can ' be obtained from any postmaster in the colony, and should also lodge to credit of the Government Advances to Settlers Act the amount of the valuation sfee in any money order office of the Postal department. The valuation fees prescribed by the act, and in no case exceeded, are: JFor loan not exceeding jfiMO, lo« 6d ; exceeding £100 but not exceeding £250, £1 1b ; exceeding £250 but not exceeding £500, £1 11s 6d ; exceeding £500 but not exceeding £2500, £2 2s. 'ike fees and costs payable for the mortgages under the act and prescribed by the act are as follow : — Mortgages under "The Land Transfer Act 1835." — LaW costs of preparing or. perusing and of registering mortgage (to be deducted from the advance) : If advance be not exceeding, £500, 105 3 d; exceeding £500 but not exceeding £1001), £Ll8; exceeding £1000 but not exceeding £2500, £1 11s Gd'with cash disbursements, which are the same in every case— namely, mortgage form 2s, search fee 2s, registration 10», with an Additional- 2s for every certificate of title after, the first. Costs and fees for discharge of mortgage : Law costs ss, registration fee (if jnortgage is discharged by the Advances to Settlers Office) ss, with an additional 2s for every certificate of title after the first. Mortgages under " The Deeds Registration Act 1868."— Costs of preparing or pern, ing and of registering mortgage, including disbursements (to be deducted from the advance) : If advance be not exceeding £500, £2 10s ; for every , additional £500, 155 ; costs of discbarge, including registration fees, £1 Is. No commission or charge or procuration fee for the promotion of an advance— that it, for the successful result of the application for the loan — should be paid. The application can be sent by the applicant direct to the superintendent, past free. In the event of the security being approved by the board, the superintendent forthwith instructs a solicitor to Government Advances to prepare the. mortgage deed. The officials of the Government Advances to Settlers Office are sworn to observe the strictest secrecy respecting applications, and are forbidden to give-any information respecting the name, of any applicant or the amount of the advance which the applicant may apply for or obtain, except to such of the officers as may be appointed to assist in carrying out the provisions of the act. Further, no information as to the transactions of any individual with the Advances to Settlers Office in respect toan advance under the act will be disclosed by the offioer or by the Government in any return or statistics or otherwise. No person, therefore, who may apply for or obtain a loan need be in any fear of the disclosure by the- office of the names of parsons who have transaction!, with the office or of their individual business. We think we have now .made the ex- , oeptional advantages and liberal provisions ■ which the Government Advances to Settlers Aot afford as clear as they possibly can be made, and given, our readers the minutest detail* of the working of the aot. MrF. H. Morice. the district agent of the Public Trustee, Dunedtn, who Is on the staff of the Advances to Settlers Office, by instruction from ! the superintendent is now making a tour through ' $ha more important centres of popuktitn in the I provincial districts of Ot«go and Southland, with I I view to explaining to settlers the provision of . to* Mi, ajtf to task from them any represtnta?

tions they may make (whioh will b&duly reported to the board of the office), and to give them every information and assistance they may require.— Taieri Advocate.