RURAL HOUSING LEGISLATION

Wanganui Chronicle, Volume 84, Issue 178, 31 July 1940, Page 6

RURAL HOUSING LEGISLATION

CERTAIN ALTERATIONS MADE [ Per Press Association. I WELLINGTON, July 30. Certain alterations to the existing lural housing legislation designed to facilitate its administration, is contained in the Rural Housing Amendment Bill which was introduced and read a first time in the House of Representatives to-night. Provision is made for county councils, through which bodies the scheme is administered, to impose a penalty of £5 per cent, if instalments of loans are not paid by due date. The Crown is given power, in cases where it is the mortgagee, to yield its priority to any advance made under the Act! while the same power is extended to trustees. Any fire insurance on buildings erected under the Act is to be held by the local authority. Members of local authorities are not to be disqualified by receiving advances under the Act. County councils are given power to collect instalments of loans in the same way as rates are collected, with the result that a county council can demand them from the actual occupier of a house even though that person may not be the one who borrowed the money.

Local authorities are given power to issue debentures for repayment 01 loans from the State Advances Corporation before the whole amount has been advanced to them. Any buildings hired to farmers to provide accommodation for farm workers are to remain the property of the Crown, but such transactions are not to be subject to the Hire Purchase Agreements Act, 1939.