LOCAL BODIES' OVERDRAFTS.
[Per Press Association'.! WELLINGTON, August 13. The powers of local bodies to borrow for the purpose of paying overdrafts were the subject of a decision by Mr Justice Chapman to-day. The Napier Borough Council was plaintiff and the Australian Mutual Provident Society the defendant. It was asked whether the Council had power to borrow under the Municipal Corporations Act, 1910, to pay off its overdraft to the extent to which it existed on March 31, 1910, namely, £15,584 8s lid. The overdraft at present stands at £17,763 7s lOd. The Australian Mutual Provident Society was willing to advance the money required, provided it was assured of the Council's power to borrow. The question for the Court was whether the power to borrow was interfered with by the fact that the overdraft had been operated upon since 1910. His Honour decided that there was power to borrow, provided no other special loan had been raised for the purpose, and that the overdraft had not at any date subsequent to March 31, 1910, been less than on that date. When the Court was assured on these points it would make an order.
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Bibliographic details
Star (Christchurch), Issue 10538, 13 August 1912, Page 3
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193LOCAL BODIES' OVERDRAFTS. Star (Christchurch), Issue 10538, 13 August 1912, Page 3
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