FEB. 2.] THE NEW ZEALAND GAZETTE. 423

Regulations under the New Zealand State-guaranteed Advances Act, 1909 (Advances to Local Authorities).

ISLINGTON, Governor.

ORDER IN COUNCIL.

At the Government Buildings, at Wellington, this second day of February, 1911.

Present:

THE HONOURABLE J. A. MILLAR PRESIDING IN COUNCIL.

IN pursuance and exercise of the powers and authorities vested in him by the New Zealand State-guaranteed Advances Act, 1909 (hereinafter referred to as the said Act), and of all other powers and authorities enabling him in this behalf, His Excellency the Governor of the Dominion of New Zealand, acting by and with the advice and consent of the Executive Council of the said Dominion, doth hereby revoke the regulations made under the said Act on the fourteenth day of March, 1910, and the fourth day of July, 1910, and in lieu thereof doth hereby make the following regulations, and doth declare that those regulations shall come into force on the date of the publication thereof in the New Zealand Gazette.

REGULATIONS RESPECTING LOANS TO LOCAL AUTHORITIES.

1. The term of any loan granted to a local authority under the said Act shall be thirty-six years and a half.

2. The principal and interest of every such loan shall be payable by half-yearly instalments in accordance with such one of the tables contained in the First Schedule hereto (or hereafter prescribed by any regulations made in that behalf) as is appropriate to the case.

3. Any local authority may, before making an application for a loan in manner hereinafter provided, and although it has not yet taken the necessary steps under the Local Bodies’ Loans Act, 1908, and its amendments, or otherwise, for obtaining sufficient authority to raise that loan, make a preliminary application to the Board in the Form No. 1 in the Second Schedule hereto, or to the like effect, for the provisional approval of the proposed loan by the Board. Every such preliminary application shall be transmitted by post or otherwise to the Superintendent of the New Zealand State-guaranteed Advances Office at Wellington, and shall be accompanied by a copy of the last balance-sheet of the local authority.

4. The Board shall thereupon take this preliminary application into consideration, and may either refuse to entertain the proposal or may agree to entertain it on such terms and with such modifications (if any) as it thinks fit.

5. If the Board decides to entertain the said proposal, notice of the decision shall be given to the local authority in the Form No. 2 in the Second Schedule hereto, or to the like effect, in order that the local authority may take such steps under the Local Bodies’ Loans Act, 1908, and its amendments, or otherwise, as may be necessary for the purpose of obtaining sufficient authority to raise the loan, and for the making of the special rate required as security for the loan.

6. No such provisional approval by the Board shall be deemed to constitute any agreement between the Board or Superintendent and the local authority, or shall affect in any manner the right of the Board to refuse to grant the loan, or its right to impose any conditions on the grant thereof.

7. Every such provisional approval shall lapse unless an application for the loan so approved is made by the local authority in manner hereinafter provided, and received by the Superintendent within twelve months after the date of the decision of the Board approving of the proposed loan.

8. When the Board has provisionally approved of any loan in manner aforesaid the local authority may make application to the Board for the grant of the loan in accordance with the terms and conditions set out in the notice of provisional approval. Every such application shall be in such one of the forms Nos. 3, 4, or 5 in the Second Schedule hereto as is applicable, or to the like effect, and shall be verified by a statutory declaration in the Form No. 6 in the said Schedule. Every such application shall be transmitted by post or otherwise to the Superintendent at Wellington.

9. No such application for a loan shall be made until the local authority has taken all necessary steps under the Local Bodies’ Loans Act, 1908, and its amendments, or otherwise, for obtaining sufficient authority to raise the loan, and has duly made the special rate required as security for the loan.

10. The Board may, if it thinks fit, in special cases accept an application for a loan although no preliminary application or approval has been made or obtained in accordance with the foregoing regulations, or although the application does not conform to the terms and conditions provisionally approved by the Board.

11. Every application for a loan shall be taken into consideration by the Board, which shall by resolution either grant or refuse the application; and notice of the acceptance or refusal of the application shall thereupon be given to the local authority.

12. Every such notice of acceptance shall constitute a contract between the Superintendent and the Corporation of the local authority to grant and accept the loan in accordance with the terms of the application.