LOAN CONVERSION
POWER BOARD'S WISE MOVE.
The report of the executive meeting in respect to conversion of the-ori-ginal £62,000 loan, at 7 per cent, for •ten years, wals considered at yesterday’s meeting of the Te Awamutu Power Board. It was shown that in the five years that the loan has been in existence the sinking fund 'has grown to over £3OOO. By paying this sutm off, the loan could be converter^, to one of much longer date , at cheaper rate of interest. , Mr Johnson reminded members that money was expensive when the £62,000 loan was raised, so it was only borrowed for a short term, in the expectation that money would, be cheaper. Now is, he considered, an. opportune time to convert the loan. Offers oL the money at 58 per cent, were in hand as a result of negotiations by the chairman and secretary while in Wellington recently. The Board went into committee to discuss details, and on resuming the recommendations of the executive were unanimously agreed to. If the table mortgage system of con- t version i/s not practicable, the Board favours proceeding in accordance with the arrangement made with the lenders. The term of the new loan would be* 361 years.
The chairman said that the result of this conversion will he that the whole of the Boardfs loans will be. bearing interest at the rate of £5 14s per cent.
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Bibliographic details
Waipa Post, Volume 32, Issue 1789, 31 July 1926, Page 4
Word Count
234LOAN CONVERSION Waipa Post, Volume 32, Issue 1789, 31 July 1926, Page 4
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