OVERSEAS INTEREST

Poverty Bay Herald, Volume LX, Issue 18193, 14 September 1933, Page 7

OVERSEAS INTEREST

N.Z. OBLIGATIONS EFFECT OF N.S.W. ACT TEST CASE COMMENCED (Eloc. Tel. Copyright—United Press Assn.) (Received Sept. 14, 11 a.m.] SYDNEY, Sept. 14. r l'he hearing lias begun in the Equity Court, before the acting-Chief Justice, Sir J. M. Harvey, of a suit- on belialt of the Wanganui-Rangitikei Bower Board for a ruling as to whether the New South Wales Interest. Reduction Act-. 1931. applies to financial obligations by that board with the Australian Mutual Provident- Society on and after October 1. 1931; and, secondly, whether the plaintiff is entitled to redeem debentures dun since, that date upon payment to the A. M. P. of the total capital included in such debentures, together with . interest reduced in Accordance with the Act-. The ' plaintiff board contracted loans amounting to £149,999, £IOO.OOO, and £60.000 at various periods between 1924 and 1926. The interest was at 5-J per cent-., and all. debentures were, payable at Sydney. The plaintiff claims to be entitled to a reduced rate of interest of 3 per cent, prescribed in the New South Wales Interest Reduction Act on all interest obligations after the date of the passing of the Act, which contention the defendant society disputes. The ease was adjourned.