LOAN CONVERSIONS

Wairarapa Daily Times, 19 September 1934, Page 2

LOAN CONVERSIONS

BOROUGH COUNCIL PROPOSALS SCHEME APPROVED. At the Borough Council meeting last night the following loan conversion report was submitted: —Proposed conversion loan No. 1, £165,300, No. 2 £16,100, No. 3 £18,685; date of conversion, No. 1, Ist December, 1934; No. 2, Ist December, 1934; No. 3, 7th March, 1935. Summary of public debt at 31/3/33: — State Advances Department loans not subject to conversion, £4760; inscribed loans not subject to conversion, £35,941 7/6; Ruamahanga River Bridge Loan, maturing 1/2/35 (sinking fund sufficient), £483; loans included in Conversion Loan No. 1, £188(565; Conversion Loan No. 2, £17,000; Conversion Loan No. 3, £23,290. Total, £270,039/7/6, less repayments. Conversion Loan No. 1 (various lenders’ security over whole borough).—Amount of loans as set out, £188,565; less approximate amount of sinking funds in respect of loans from Public Trustee, £26,065. Total, £162,500; add premiums (approx.), £2800; grand total, £165,300. Loan to be repaid by annual redemptions from sinking fund as set out in attached resolution. Term: 26 years finally maturing Ist December, 1960. Redemptions annually on Ist December. Annual contribution to sinking fund £2540. Accrued sinking fund available for transfer to sinking fund for conversion loan approx. £17,626. The names and addresses of all the lenders are known to the local authority. The Public Trustee is the Sinking Fund Commissioner and is to be appointed Sinking Fund Commissioner for the conversion loan. Premiums aro to be met by the issue of new securities to the nearest multiple of £5 and the odd amounts under £5 are to be paid in cash out of revenue or sinking funds. The local authority also desires authority to dispose of the premium debentures oh the open market and to x>av the whole of the premiums in cash out of the proceeds thereof. The maximum extension beyond the present term of any loan being converted is 5 years. Conversion Loan No. 2 (security over North Ward) Amount of loans as set out in resolution, £l/,000; less sinking funds set off (approx.), £1650; total, £15,350; add premiums (approx.), £750; approximate amount of conversion loan, £16,100. The loan is to be repaid by . equal halfyearly instalments of interest and principal over term of 29 years Anally maturing on Ist December, 1963.. The amount of the half-yearly instalment is £485/10/-. The maximum extension beyond the present terms of loans included is 16 years. The annual charges before and after conversion in respect of loans Nos. 2 and I.—Prior to 31/3/1933, £14,160; at present, £12,288; on conversion, £10,436; saving, £lßo2. Conversion Loan No. 3 (security over South Ward). —Amount of loans as set out in resolution, £23,290; less repayment to 7/3/1935, £4600/2/1; total, £18,689/17/11; further cash payment, £4/17/11; conversion loan for £18,685. Loan to be repaid by equal half-yearly instalments of interest and principal over term of 24 years which is approximately the average of the unexpired terms of the loans being converted, the date of maturity being 7th March, 1959. The amount of halfyearly instalment is £624/15/3. The Mayor stated that the local loans Board had approved of the loans conyersion scheme as above. The Council was waiting for the Order-m-Council to be issued. On the motion of the Mayor it was, decided to send a letter of thanks to the secretary of the Loans Boaid for the valuable assistance which he had rendered the council in regard to the conversion. The saving to the borough, said the Mayor, would be £1852 a year, and in 1960 the borough loans would be practically all paid off.