MATURITY OF LOANS
CONVERSION OPTION OPPOSED. VIEWS OF STOCK EXCHANGE MAN. By Telegraph—Press Association. Dunedin, Oct. 15. The opinion that stock exchanges should enter a strong protest was expressed by Mr. Reeves, chairman of the Dunedin Exchange, in discussing some features of the conversion of local body debentures. He referred particularly to the option given local bodies where a debenture became payable after 1940 to mak a new debenture payable at any date thereafter by giving the holder six months’ notice.
He stated that this involved a distinct injustice to long-dated debenture holders, for if any local body availed itself of this option, including it as a provision in the new debenture, devaluation as stock exchange security would immediately follow to the detriment of the holder.
Mr. Reeves stated that the Dunedin City Council when the injustice was pointed out had immediately eliminated the optional clause and fixed a maturity date for all loans, but there were other public bodies who were not meeting lenders in the same, fair way.
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Taranaki Daily News, 16 October 1934, Page 9
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170MATURITY OF LOANS Taranaki Daily News, 16 October 1934, Page 9
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