APPEAL DISMISSED

Wanganui Chronicle, Volume 80, Issue 249, 20 October 1937, Page 7

APPEAL DISMISSED

PRIVY COUNCIL CASE INTEREST OF LOCAL BODY DEBENTURES. Received Oct. 19, 5.5 p.m. LONDON, Oct. 18. The Privy Council dismissed the New Zealand appeal of the Municipality of Mount Albert versus the Temperance and General Mutual Life Society. This case concerned the rate of interest to be paid on certain loans raised by local bodies in New Zealand, most of which are covered by debentures for over £1,000,000 held by the Temperance and General Mutual Life Society of Victoria (Australia). The specific case taker, to the Courts referred to one debenture of £lOOO issued by the Mount Albert Borough Council. On these debentures the local bodies agreed to pay a certain rate of interest, but subsequently legislation in the State of Victoria reduced the rate of interest on loans and the New Zealand local bodies argued that they were entitled to the benefit of this legislation. The society contended that it was entitled to the original rate. The Supreme Court decided in favour of the debenture holders. The local bodies chiefly concerned are the Hawke’s Bay Power Board £200,000, Mt. Albert Borough Council £130,000, Auckland City Council £99,000, Grey Power Board £83,000, and Lower Hutt Borough Council £59,000.