THE FIRST TIME

Poverty Bay Herald, Volume LX, Issue 18234, 1 November 1933, Page 11

THE FIRST TIME

DEBENTURES INSCRIBED \UC#LAND POWER BOARD The first decision by a local body in New Zealand to inscribe certain of its debentures was made at a meeting of the Auckland Electric Power Board. In a report the general manager, Mr R. 11. Bartley, said that although provision was made in the Local Bodies Loans Act, 1926, for the inscription of local body conversion debentures, the provision hall never been put into practice and it was understood that the arrangements made by the board were the first of their kind carried out by any tpcal body in the Dominion. An offer was received through the Bank of New Zealand in London for the taking up of the balance, of the board’s* 1933 redemption loan, of £224,600 at 44 per cent, amounting to £104,000. The offer was at £97, with interest at 34 per cent, maturing on March 1, 1938. The interest cost to the beard was £3 12s 3d per cent and, including redemption, £4 (is lOd per cent. ' Th(f board accepted the offer and authptised the Bank of New Zealand to issue, scrip certificates. Meanwhile, it was explained, that on March 1 this year one of the board’s loans of £224,5p0 at 44 per cent, originally issued by the Auckland City Council, matured in Loudon. Although the board had funds available in Auckland to meet the loan, to avoid exchange on remittance, the existing dobentureholdeis Qere approached with a view to renewing their holdings for a further five years at the same rate of interest. Debenture-holders with interests amounting to £120,000 agreed to this course, the balance of £104,000 being paid in cash by the Bank of New Zealand in Auckland by way of hyjairiiecation. It has now been decidGl to convert these debentures into inscribed stock, and for this pqurpose the Bank of New Zealand has been appointed registrar.