RURAL CREDITS.

Star (Christchurch), Issue 16875, 27 October 1922, Page 8

RURAL CREDITS.

! PROVISIONS OF THE BILL. (Special to the ,f Star.’’) WELLINGTON. October 27. | The Rural Credit Associations Bill, j introduced by Mr Massey, is to make i provision for financial assistance to farj mers and other rural workers. It will I afford statutory recognition to incorporated societies established for the j purpose of the Bill, though an explan- ! atory memorandum states that it. is I doubtful if the Bill will confer anv powers on associations which are not contained in the Companies Act. Tt is considered, however, that company law is too complex for this class of association. Rural Credit Associations ma v accept deposits, and may make ad vances to their members for the following purposes:--Clearing, fencing, draining and gen eral improvement of land in occupa- ! tion of a member. The erection of buildings on such land. The purchase of implements, stork, seeds, plants, trees, and other, things required in respect of the occupation and use of the land. The purchase of tools-of the trade. Payment of'any mortgage, debt, or other liability of a member. Any other purpose that ma> be declared by the Governor-Gen pt a I in Council to be an approved purpose. Members of associations arc to be jointly and severally responsible for its liabilities, which will constitute an equitable charge upon them subject to encumbrances existing at the time of the society’s incorporation. Loans aiv limited to £SOO. and administration expenses are limited to the payment of one member onlv. who will act as sec. retary and treasurer, together with an annual allowance to the chairman of the management committee.