The Founders of Canterbury
Copies of the following Memorandum were sent yesterday (2nd April) to J. A. Smith and John Simeon, enclosed with Letters which were not copied
Copies of the following Memorandum were sent yesterday (2nd April) to J. A. Smith and John Simeon, enclosed with Letters which were not copied.
We, the undersigned, in consideration of the abandonment of the New Zealand Company of the provision in their agreement with the Canterbury Association, whereby the latter body is bound to sell £100,000 worth of land by the 30th April instant, hereby undertake that in case the quantity of land sold by the Association before the 1st September next shall be less than £100,000 worth, we will place the Company in the same position, with respect to the present financial engagements between them and the Association as if the page 245whole £100,000 worth had been sold according to the abandoned provision.
But it is understood between the parties that in case it should become necessary after the 1st September next to give a legal form to the present honorable engagement, the instrument to be executed for that purpose shall provide—
1st. That any monies for the payment of which we may engage shall not be made payable before the 185.
2nd. That in the meanwhile the pecuniary amount of our engagement shall be diminished by every payment which the Association may make to the Company in pursuance of existing agreements between the two bodies.
3rd. That in case any land forming part of the Canterbury settlement should revert to the Company for the purpose of sale by them, and in case at the time of such event any part of the guarantee shall not have been redeemed by the Association's payments to the Company, such unredeemed portion of the guarantee shall be a charge upon such unsold reverting land, to be redeemed, as sales shall be effected by the Company, at the rate of one-sixth of the purchase money.