SINKING FUNDS
LOCAL BODY LOANS PART OF LENDERS’ SECURITY STATEMENT BY MR FORBES (Per United Press Association.) Wellington, September 26. “There can be no doubt that, having regard to the purposes for which sinking funds may legally be used, lenders are entitled to regard such funds as part of their security and the postponement of annual contributions could reasonably be considered a breach of faith with the lenders unless their concurrence was obtained,” said the Prime Minister (the Rt. Hon. G. W. Forbes) replying to a resolution passed by the executive of the New Zealand Counties’ Association asking for the postponement of the payment of county council sinking funds for two years, owing to the financial stringency among counties due to the non-pay-ment of rates. The Prime Minister said it was usual in the case of local body loans to include in the loan proposal voting papers the amount of sinking fund to be set aside for the repayment of the loan. Lenders taking up local body securities would to some extent be influenced by the provision made.
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Bibliographic details
Southland Times, Issue 21822, 27 September 1932, Page 6
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178SINKING FUNDS Southland Times, Issue 21822, 27 September 1932, Page 6
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