RURAL CREDITS

Poverty Bay Herald, Volume LXII, Issue 18758, 15 July 1935, Page 4

RURAL CREDITS

WAIRARAPA BODY MEETING LOSSES T) 1 SAG RE EM ENT WIT II BOARD ( I’iij- Press Association.) MASTER-TON, last ni„lit. Tin; Wairarnpa Intermediate Credits Association, jntiiiyura.totl in JO2B. is in somewhat serious difficulties owing to a disagreement between its directors anti tim Kura] Intermediate Credits lioard over the method of meeting losses of approximately £IOOO. These 'have been incurred owing to some borrowers losing the occupation of their land and stool;, anti other securities not realising the amount of the loans. The Central .Board insists that, the uncalled shine capital must be called up to meet the losses. Dissenting on the ground, amongst others, that this would mean winding up the association, the directors asked that the losses be met from the central reserve. The chairman and two other farmer directors of the association have resigned, leaving only one farmer director in oftice, and 22 shareholders out of a total of 55 have surrendered their shares. The association is advised that shareholders having no loan obligations may surrender their shares and escape further liability. The Central Board maintains that all shareholders arc liable as contributories in the winding up proceedings. Some early .action by the Central Board is expected.