LOANS TO LOCAL BODIES.

Timaru Herald, Volume XLIII, Issue 3756, 15 October 1886, Page 2

LOANS TO LOCAL BODIES.

I « — ! (By Tkleqrafh.) [WELLINGTON, Oct. 14. The Treasury has issued the following circulars to local bodies, coTcring a precis of the Loans Act passed last sossioii : — " The Local Bodies Loaoß Act provides machinery by which a local body may obtain authority to borrow money for public works of any nature, nnd anj undertaking or purpose which a local body is authorised to erect, construct or engage m, or pro Tide for by means of borrowed money. The Act may be adopted by the local body m part or m whole. Where tho local body does not i adopt the Act, the statutory provisions set out at the foot of this letter remain m force, and regulate the mode of raising loans. Where tho local body does adopt the Act, the mode of exorcising tVie power must be that provided by the ' Local Bodies Loans Act, 1886.' The ' Government Loans to Local Bodies Act ' empowers the Government, when power to borrow lias been properly obtained, to lend tho money to Uie local body on tormi at a favorable nature. Applications for

loans yi]\ be received on the Ist of December next, and notice thereof appears m (he Gazette of this dale. A3 this is the first occision of calling for applications, and as there is reason to suppose the loans actually authorized by the rjtepayers are not large m amount I have determined also to receive applications from local bodies which have proceeded no further than to Teaolveto recommend borrowing to tho ratepayers, and to consider their applications together with those for loans o'-tually authorised by the ratepayers. It is obvious, however, that this course must not be taken as a precedent, eince if the amount of loans authorised by tbe ratepayers were large, it would not be right to defer such loans by placing on an equal footing applications which the ratepayers miaht not approve. Although on thi3 occasion I propose considering and approving applications as juct stated, it must be clearly understood that tho loan cannot bo made, nor any more paid until the statutory formalities aro complied with." Tho statutory provisions alluded to are chiefly certain sections m the Municipal Corporations, Counties, Town Districts, and Bivcr Boards Acts.