OVERSEAS INTEREST

Poverty Bay Herald, Volume LX, Issue 18067, 19 April 1933, Page 11

OVERSEAS INTEREST

AN INTERESTING POINT PAYMENT OP EXCHANGE (Per Press Association.) AUCKLAND, this day. The opinion that where a local body has borrowed money overseas, and the debenture interest was, at the option of the debenture holders, payable in New Zealand or London, payment can bo made iu New Zealand with New Zealand pounds, was expressed at the Auckland Transport Board meeting today by tho chairman, Mr. J. A. 0. Allum.

Ho said this meant that the exchange rate did not apply. It was a matter of the greatest importance to local bodies. Mr. 11. G. R. Mason, M.P., said it would ho a matter of some concern to the banks also.

Mr. Allum quoted a, recent decision of the English Court of Appeal in the case of the Broken Hill Proprietary versus Latham and others that where a debenture issue was at the option of tiie holders payable in Australia or London, payment in London to holders on the Australian registry could bo in Australian currency if the holders exercised the option to be paid in London. This decision, said Mr. Allum, appeared to affect the board. The board referred the matter to the finance committee.