LOSS OF DEBENTURES

Otago Witness, Issue 4042, 1 September 1931, Page 23

LOSS OF DEBENTURES

DESTROYED IN EARTHQUAKE BLENHEIM, August 28. At the time of the Hawke’s Bay earthquake 108 Blenheim Borough debentures, worth some £10,750, which were deposited in the strong room of the Bank of New Zealand at Napier on behalf of various clients of the bank were destroyed by fire, but the Blenheim Borough -will not benefit by the loss of the debentures, for a complete record of them is contained in one of the salvaged books in the hands of the bank. The council has been advised by the Audit Department that it has authority to replace the debentures upon receipt of an indemnity and upon proper proof of loss. The council also received a declaration by officers of the bank as to the destruction of the debentures. with their attached interest coupons. The council carried a resolution that fresh debentures be issued when sufficient indemnity is secured by the council, and subject to the paying the cost of printing and all other outgoings in connection with the replacement of the securities. Members of the council expressed the view that the replacement should be expedited as it may be that the interest on the securities ip some cases represents the owners’ principal source of income, and the Finance Committee was authorised to act if there are any developments prior to the next meeting of the council.

The town clerk reported that as a result of the loss of the debentures the borough’s bank was already holding some £3OO representing interest payments, for which no coupons had been forthcoming?