FARM LOANS

Waikato Times, Volume 127, Issue 21220, 17 September 1940, Page 7

FARM LOANS

FINANCE FOR COMPANIES ! PROMOTING PRODUCTION STATE ADVANCES SECURITY Copies are in circulation of the Dairy Companies’ Loans Emergency Regulations, which contain authority for dairy companies to borrow money from the State Advances Corporation and lend it to any of their milk or cream suppliers. The regulations are regarded as supplementary to the recent Farmers’ Loans Emergency Regulations, which empower the State Advances Corporation to make special advances to any farmer lor the purpose of increasing or promoting the production of any primary product. The Dairy Companies’ Loans Emergency Regulations empower dairy companies to use the loans they receive from the State Advances Corporation, or any other money belonging to them, to enable any of their suppliers to increase or promote their primary production. They therefore provide those farmers who supply dairy companies with an alternative means of financing production expansion by obtaining money from the dairy Companies instead of directly from the State Advances Corporation. Discretion Regarding Security Interest on the loans made to company suppliers is not to exceed £4 2s 6d per cent per annum. A company is empowered to take such security as it thinks fit for any loan made. The money borrowed by the companies from the State Advances Corporation will be from funds made available for the purpose by the Minister of Finance upon such terms as may be agreed upon by the corporation and the company, including a term that the corporation will not be responsible for the application of the money borrowed. Repayment of any money borrowed and the interest on it will be secured by agreement between the corporation and company, in particular by the giving of debentures, mortgages or other charges over all or any of the company’s present or, future property including uncalled capital.