Other formats

    TEI XML file   ePub eBook file  

Connect

    mail icontwitter iconBlogspot iconrss icon

The Cyclopedia of New Zealand [Otago & Southland Provincial Districts]

Advances To Settlers — Advances to Settlers Office

Advances To Settlers.

Advances to Settlers Office , Government Insurance Buildings, Princes Street, Dunedin. The Advances to Settlers Act was passed in 1894, with the object of helping colonists who were struggling under the burden of a high rate of interest and heavy legal expenses connected with mortages. The Act authorised the Government to raise a loan of £3,000,000, bearing interest at a rate not higher than four per cent. To carry out the objects of the Act an office was established, and a Board was constituted to co-operate with and advise the Superintendent. The business of the office consists in advancing money on a first mortgage on lands and improvements held under the various tenures in force in New Zealand. No loan of less than £25, or more than £3000 can be granted. Mortgages under the fixed loan system may be for a period not exceeding ten years, and the principal is made repayable at the end of that term, or it may be repaid in whole or in part on any half-yearly date falling due during the term. Interest is at the rate of 5 percent. payable half yearly, and is reducible to 4 1/2 per cent. provided payment is made not later than fourteen days after due date. Mortgages on the instalment system are repayable by seventy-three half-yearly payment's, which contain the principal and interest combined. They also may be paid wholly or in part at any time. Every half-yearly instalment, page 140 except the last, is at the rate of £5 (less rebate of interest to 4 1/2 per cent. in case of prompt payment) for every £100 of the loan. The system has been of the greatest help to small struggling farmers, because it enables them to repay a loan by very easy instalments. The head office for the administration of the Act is in Wellington, and there are branch offices throughout New Zealand.