230 THE NEW ZEALAND GAZETTE. | No. 17

of the person so entitled, shall grant to such person a
paid-up policy (that is, a policy exempted from any
future payments) equivalent to the then surrender
value.

Commissioner may grant loans to policy-holders.
26. 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 sur-
render 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 "the wife and children," or of "the
children" generally, unless such policy specifies her
or their names.

Policy to be deposited with Commissioner with memorandum
signed by borrower.
27. 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 borrower 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.
28. The rate of interest chargeable in respect of any
such loan shall be not less than six per cent. per
annum, payable half-yearly, at the post office or
other office of the Department at which the pre-
miums on the policy may for the time being be
payable.

Interest in arrear to be capitalized.
29. Whenever the interest due on any such loan
shall be in arrear for one calendar month 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 rate charged on the said principal sum.

Borrower may repay loan without notice.
30. At any time during the currency of the loan
the borrower 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,
he shall be entitled to have his policy returned to
him.

In certain cases Commissioner may declare policy void.
31. If at any time the total amount due in respect
of any 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 Commissioner may, by notice to be given to
the borrower, 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.
32. 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.
33. 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
Commissioner shall deduct all principal and interest
moneys which may then be due thereon from the
amount assured.

Release on repayment.
34. On payment of all principal and interest due on
any such loan, the Commissioner shall return to the
person entitled thereto the policy deposited on the
granting of the loan, together with an acknowledg-
ment in writing, signed by the Commissioner, setting
forth the payment of such principal and interest, and
such acknowledgment shall be sufficient discharge.

Legal remedies for principal and interest unpaid.
35. Notwithstanding anything contained in these
regulations, or in any memorandum of deposit of
policy, if a policy on the security of which a loan
has been granted shall become or be declared to be
void, whether under these regulations or in any
other manner howsoever, the Commissioner may at
any time and from time to time have recourse to such
legal remedies as he may deem necessary for the
recovery of the principal and interest then remaining
unpaid in respect of such loan.

Commissioner may refuse loans.
36. The Commissioner may refuse to make any
loan in respect of any application under these regula-
tions without being required to assign any cause for
such refusal.

Regulations not to apply to Industrial Branch.
37. These regulations shall not apply to policies
issued in the Industrial Branch of the Government
Insurance Department.

SECOND SCHEDULE.

WITH PARTICIPATION IN PROFITS.
TABLE I.—PREMIUMS payable during whole of Life, to secure
£100, payable at Death only.

• EXAMPLES.—A person aged 30 may secure £1,000 at Death by a
  yearly payment during life of £20 8s. 4d. This premium, if paid to
  Private Offices, would only secure a Policy for about £850, instead of
  £1,000.