PAYMENT IN LONDON

Taranaki Daily News, 14 February 1931, Page 17 (Supplement)

PAYMENT IN LONDON

AUCKLAND CITY DEBENTURES.

DOMICILE CHANGED.

Auckland, Feb. 10.

The adverse exchange rate operating in the case of money transferred from New Zealand to England is. likely to involve the Auckland City Council in additional expense as a result of a laige holder of debentures in city loans desiring to have the debentures and their coupons made payable in London instead of in Auckland as at present. In view of the conditions attached to the sale of the debentures the council has no option but to accede to the request. The request has come from the Bank of New Zealand,, which has forwarded formal notification that as. the holder of debentures for £200,000 in the consolidated loan of 10’26 of £500,000 it desides to take advantage of the option to alter the domocile of the debentures to London. In a report to the council the town clerk, Mr. J. S. Brigham, stated that holders of debentures of this loan had the option of giving three months’ notice to the council of having the debentures and their respective coupons made payable at the office of the Bank of New Zealand either in London, Sydney, or Auckland, and a condition to this effect was printed on each debenture. fihe notice therefore was in order and could take effect on the expiry of three months from January 14, 1931. The first interest payment concerned would be that of September 28, 1931. It is estimated that with the present rate of exchange the transfer of this parcel of debentures to London will cost the City Council an additional £5OO a year.