LOCAL BODY LOANS

Waipukurau Press, Volume XXVIII, Issue 98, 20 April 1933, Page 5

LOCAL BODY LOANS

AND QUESTION OF EXCHANGE DEBENTURE INTEREST (Per Press Association) AUCKLAND, Last Night. The opinion that where a local body has borrowed money overseas and the debenture interest was, at the option of the debenture holders, payable in New Zealand or London, payment can be made in New Zealand with New Zealand pounds, was expressed at the Auckland Transport Board meeting today by the chairman, Mr Allum. He said this meant that the exchange rate did not apply. It was a matter -of the greatest importance to local bodies. Mr H. G. R. Mason, M.P., said it would be a matter of some concern to the banks also Mr Allum quoted a recent decision of the English Court of Appeal in tho case of the Broken Hill Proprietary v. Latham and others, that where a debenture issue was, at the option .of the holders, payable in Australia or London, payment in London to holders on the Australian registry could be in Australian currency if the holders exercised their option to be paid in London. This decision, said Mr Allum. appeared to affect the board. The board referred the matter to the finance committee.