STATE-ADVANCES.

Southland Times, Issue 14372, 19 March 1910, Page 6

STATE-ADVANCES.

MEETING OF GUARANTEE

BOARD.

SEVERAL LOANS 3IADE.

(Per United Press Association.)

WELLINGTON, Alar. 18. In an Interview with a “New Zealand Times” representative this evening the Prime Minister said that the State Guaranteed Advances Board had met during the day. Sir Joseph Ward had presided and the whole of the members (Messrs Poynton. Warburton, Salmond. Kember and Dr Fitchctl) were present. A large number of loans to local public bodies for various purposes were considered and loans were provisionally- approved to the extent of £612,000. The preference was given to local bodies applying for moneys for toads, ! bridges, sewerage, drainage and watof purposes, and those local bodies meeting backblock requirements were first considered, Where the securities were right the applications were granted. Sir Joseph also stated that the whole of the loans were granted at 3Vj per cent. Interest,' with a sinking fund as provided- under .the Act. The Prime Minister mentioned that some idea of the value of the new system to the local public bodies might be gauged from the fact that the .amounts authorised at to-day’s Board meeting totalled more than three times the whole amount granted during any one year under the oict system of the Loans to Local Public Bodies Act. The loans authorised ranged from £3OO to £6OOO. These amounts, when expended by the various local bodies in the centres, will mean the provision of many necessary works and will add to the comfort and convenience of the people In Aiffereht portions of the Dominion. The local bodies dealt with covered the whole of the Dominion from the North of Auckland to- the Wallace District in the far south.. The- various public bodies will be advised to-morrow of the result of their applications. • THE STEW REGULATIONS

Regulations under the State Guaranteed Advances Act -are gazetted to-night. The terra of the loans is to be 3G% years-at 3% per cent. Interest. The principal and interest of every loan are to be payable by half-yearly instalments. Any local authority, before making application for a loan, and although it has not yet taken the necessary steps under the Local Bodies Loans Act. 1908, or otherwise for obtaining sufficient authority to raise a loan, may make preliminary application for provisional approval of the proposed loan by the Board. When the Board has provisionally approved of any loan the local authority may make application to the Board for the grant of the loan tn accordance with the terms and conditions set out in the notice of provisional approval. No such application for a loan shall be made until the local authority has taken all necessary steps under the Local Bodies Loans Act, 1908,, or otherwise for obtaining sufficient authority to raise the loan and has duly made the special rate required as security for the loan. The Board may, if It thinks fit in special cases, accept an application for a loan although no

preliminary application or approval has been made or obtained in accordance / with the foregoing regulations, or although the application does not conform ,to the terms and conditions provisionally approved by the Board. Every application for a loan shall he taken Into consideration by the Board, which shall-by resolution either grant or refuse the application, and notice of the acceptance or refusal of the application shall 'thereupon be given to the local authority. EVery such notice of acceptance shall constitute a contract between the Superintendent and the corporation of the local authority to grant and ac- " cept the loan in accordance with the terras of tho application. The term of the loan shall commence on the day agreed upon between the Superintendent find the local authority in manner aforesaid, notwithstanding any default byi the . local authority in accepting tho amount of the;load or in fulfilling the conditions of the receipt thereof, and the dates of the payment of principal arid interest by the local authority shall be com——pietod. and determined accordingly. Any loan may, if so agreed upon, be made payable to the local authority by instalments, and in any such case each instalment shall, for the purpose of calculating the term of the loan and the payments of principal and interest in respect thereof, be deemed to constitute a separate loan, mace on the day on which-that Instalment is made receivable by the local authority. No loan and no instalment of a loan shall ho made receivable by a local authority at any date later than two'years after the date of the application for the loan. Every; debenture shall he executed in pursuance of a resolution of the local ■ authority and shall he signed by the Mayor or Chairman of the local autho- • rlty and countersigned by an officer appointed by the local authority for that • purpose. A commission fee of one-half f per cent, on the amount of the loan shall be payable to the Superintendent by the local authority to whom the loan is granted. The said fee shall bo paid at the time when the amount of tlfe loan is paid to the local authority ; but where the loan is paid to the local authority by instalments the commission fee shall be apportioned between those Instalments and a proportionate part thereof shall be paid by the local authority at the time when each instalment is received by it.