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is a very creditable achievement under the conditions which have existed in the industry, and would serve to indicate that borrowers from the Board have not, as a general rule, required to avail themselves of the provisions of the Mortgagors Relief Act. Although a few applications have been made against the Board or associations, only in isolated cases has the Court granted relief which the Board would not have been prepared to grant voluntarily without recourse to the procedure laid down under the Act. During the year the Board adopted a standard form of agreement negotiated by the Public Trustee with the principal stock and station agents providing for an equitable distribution of surplus revenue from farming properties between the mortgagees of land and mortgagees of stock. This agreement subsequently appeared in the First Schedule to the Mortgagors and Tenants Relief Act, 1933, as one of the forms set out for the guidance of the Court in making orders on applications for relief. 6. The Board has fully realized that repayments fixed when the value of farmproduce was greater cannot be maintained when lower values are ruling, and has considered on their merits all applications made by borrowers for relief. "Numerous concessions have been granted, and the aim of the Board has been to administer the system sympathetically so far as this can be done without impairing the security of debenture-holders. 7. Both borrowers and associations have expressed appreciation of the attitude adopted by the Board and the assistance given, and it is a matter for gratification that the Board has been able to build up an organization which, while fully protecting the interests of 'debenture-holders, has been able in times of stress to ease conditions to a reasonable extent for the benefit of farmer borrowers. The Board has met changing conditions by revision of its policy from time to time, and has endeavoured consistently to increase the usefulness of the system. 8. During the year a Royal Commission was appointed to investigate the position of the dairy industry and make recommendations having for their object the improvement of the position of the dairy-farmer. An account of the Board's operations was presented to the Commission, and the value of the system and the advantages it offers were brought under notice. It is hoped that as a result of the Commission's investigations the position of the industry will be improved and that added scope will be offered for an extension of the system with further benefit to individual farmers. DELEGATIONS TO DISTRICT ORGANIZATIONS. 9. The Board recognizes that to ensure the success of the system there must be decentralization, and it has accordingly carried out a policy of gradual delegation of powers to its district representatives, district boards, and co-operative rural intermediate credit associations. Chattels securities, which form the main class of security accepted by the Board, need constant supervision if the loan-moneys are to be protected, and this supervision can be provided only by the district organizations. It is in this respect particularly that the co-operative rural intermediate credit associations and district boards have proved so valuable. In the consideration of applications for loans, also, local knowledge of the applicant and of the property concerned are very important. The stage has now been reached where a substantial portion of the administration work is carried out in the districts. 10. At the commencement of its operations the Board retained to itself the consideration of all applications for loans, but as soon as the general policy regarding the classes of security acceptable, the margins of security, the terms of repayment, and the other safeguards required had been defined it delegated to district boards the power to grant loans up to £250, subject to the general requirements being complied with. 11. The Board subsequently entrusted to District Supervisors, district boards, and .associations the power of granting to a limited extent refunds of proceeds received from sales of stock and produce. The powers of the district organizations have been extended from time to time, and only in isolated cases where the amounts involved are large is the Board's approval required. During the year under review the Board authorized District Supervisors in respect of Part 111 loans to make readvances of the proceeds of sales of stock up to £25 for any purpose.

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