812
THE NEW ZEALAND GAZETTE.

enforced in like manner as orders of the Court in
its ordinary jurisdiction are enforced.

K. FERGUSSON, A.D.C.,
Acting Clerk of the Executive Council.

Approved—
ALEXANDER J. JOHNSTON.

Regulations for Loans of Money under "The Govern-
ment Insurance and Annuities Act, 1874."

JAMES FERGUSSON, Governor.

ORDER IN COUNCIL.

At the Government House, at Auckland, this
twenty-sixth day of November, 1874.

Present:

HIS EXCELLENCY THE GOVERNOR IN COUNCIL.

WHEREAS by the fifth section of "The Govern-
ment Insurance and Annuities Act, 1874,"
(hereinafter referred to as "the said Act,") it is
enacted that the Governor shall have power, by
Order in Council, from time to time to do (inter
alia) the following things:--

To make rules respecting the loan of moneys
under the said Act, on the security of the sur-
render values of policies, and for the effectual
recovery of principal and interest accruing on
such loans.

To make rules generally for the purpose of
carrying the said Act into effect, and to impose
penalties not exceeding twenty pounds for
breach of such rules.

And whereas by the said Act it is also provided
that it shall be lawful for the Colonial Treasurer, in
accordance with such Regulations as may from time
to time be made by the Governor in Council, to issue
out of any funds standing to the credit of the Govern-
ment Insurance Account, thereafter provided for,
sums of money as loans to holders of policies issued
under the said Act which shall have been in force for
three years before such issue, and interest shall be
charged on such loans at a rate of interest per centum
per annum to be fixed from time to time by the
Governor in Council; but no money shall be lent
upon any such policy to an amount exceeding nine-
tenths of the surrender value of such policy at the
time of the loan, and the Colonial Treasurer shall, on
the certificate of the Commissioner, pay to him out
of the Government Insurance Account all such sums
as shall be required for such loans:

And whereas it is expedient that the Rules and
Regulations hereinafter prescribed should be made
for the purposes aforesaid:

Now therefore, His Excellency the Right Honor-
able Sir James Fergusson, Baronet, the Governor
of the Colony of New Zealand, in exercise and pur-
suance of the powers and authorities vested in him
by the said Act, and all other powers and authorities
in this behalf vested in him, and by and with the
advice and consent of the Executive Council of the
said colony, doth hereby fix the rate of interest to be
charged on loans made under the authority of the
said Act at the rate of seven pounds per centum per
annum. And in further exercise and pursuance of
the said powers and authorities, and by and with the
advice and consent aforesaid, doth hereby make and
prescribe the following Rules and Regulations, that
is to say,-

Interpretation.

1. In the construction of these Rules and Regula-
   tions, the expressions hereinafter mentioned shall
   have the meanings hereby assigned to them, that is
   to say: the expression "the Commissioner" shall
   mean the Government Insurance Commissioner for
   Insurance and Annuities Act, 1874;" the expression
   "the Assured" shall mean the person for whose benefit
   the insurance is effected.

Colonial Treasurer to issue funds required for loans out of the
Government Insurance Account.

2. It shall be lawful for the Colonial Treasurer, in
   accordance with these Regulations, to issue out of the
   funds standing to the credit of the Government In-
   surance Account, sums of money, as loans to holders
   of policies making application for the same in accordance
   with these Rules and Regulations and the provisions
   of "The Government Insurance and Annuities Act,
   1874."

Commissioner may grant Loans to Policy-holders.

3. The Commissioner may, upon the application of
   any policy-holder whose policy shall have been in force
   for three years, advance to him, by way of loan, any
   sum not exceeding nine-tenths of the then surrender
   value of the said policy: Provided always that no loan
   shall be granted upon the security of any policy which
   may have been issued for the benefit of the wife of the
   person whose life is insured, or of his wife and children,
   or of his wife and some or one of his children, or of his
   children only, or some or one of them.

Policy to be deposited with Commissioner with memorandum
signed by Assured.

4. In every case in which a loan shall be so granted,
   the policy in respect of which such loan is granted
   shall be deposited with the Commissioner, and the
   Assured shall thereupon sign a memorandum of
   deposit of policy, such memorandum to contain such
   stipulations for the effectual recovery of principal and
   interest as the Commissioner may think fit, not being
   inconsistent with the said Act or these Regulations.

Rate of Interest.

5. The rate of interest chargeable in respect of any
   such loan shall be seven per cent. per annum, payable
   half-yearly, at the Post Office at which the premiums on
   the policy may for the time being be payable.

Interest in arrear to be capitalized.

6. Whenever the interest due on any such loan shall
   be in arrear for thirty days after the date stipulated in
   the memorandum of deposit of policy, the amount of
   such interest shall be added to the principal sum, and
   shall henceforth bear interest at the like rate of seven
   per cent. per annum.

Assured may repay Loan without notice.

7. At any time during the currency of the loan the
   Assured may pay off the amount advanced to him,
   together with all interest due thereon, without giving
   any notice of his intention to do so. And upon pay-
   ment of all principal and interest moneys then due, the
   Assured shall be entitled to have his policy returned to
   him.

In certain cases Commissioner to declare Policy void.

8. If at any time the total amount due in respect of
   such loan, together with accrued interest thereon, shall
   exceed the then surrender value of the policy, or if the
   policy shall be allowed to lapse, or if the person who
   has obtained the loan shall assign or otherwise charge
   the said policy without the consent in writing of the
   Commissioner, then and in any such case the Commis-
   sioner may by notice in writing, to be given to the
   Assured, or posted to his last known address in the
   colony, declare such policy to be void, and such policy
   shall accordingly become absolutely void.

Repayment by instalments.

9. The Commissioner may receive repayment of any
   loan by instalments, and in every such case a pro-
   portionate reduction in the interest payable shall be
   made.

Maturity of Policy.

10. If the moneys assured under any policy, on the
    security of which a loan has been granted, shall become
    payable during the currency of the loan, the Com-