3792 THE NEW ZEALAND GAZETTE. [No. 88

(f) They may, with the consent in writing of the Board, refer any claims or demands by or
against the association to arbitration, and observe and perform the awards.
(g) They may make and give receipts, releases, and other discharges for money payable to
the association, and for the claims and demands of the association.
(h) They may out of the available cash capital or profits of the association set aside such
sum or sums as they may think fit as a reserve fund; and they may invest the several
sums so set aside upon such investments as are authorized by the Rural Intermediate
Credit Act, 1927, and may from time to time deal with and vary such investments
and dispose of all or any part thereof for the benefit of the association.
(i) They may enter into all such negotiations, contracts, and agreements, and rescind and vary
and execute and do all such acts, deeds, and things in the name and on behalf of the
association, as they may consider expedient for or in relation to any of the matters
aforesaid or otherwise for the purposes of the association.
(j) They may make regulations for the use and safe custody of the common seal, provided
that every instrument to which the seal is affixed shall be signed by one director and
the secretary.
(k) They may make and execute all such assurances and instruments as may be necessary,
provided that the same shall be signed by two directors, or by one director and the
secretary, and provided that every promissory note or bill of exchange made, accepted,
or endorsed on behalf of the association shall be sealed with the common seal of the
association.
(l) They may appoint a temporary substitute for the secretary, who shall for the purposes
of these regulations be deemed to be the secretary.
(m) They may manage and deal with or acquire the ownership of any real or personal property
which may come into the possession of the association as security for any debt in such
manner as they may think fit, with as full powers as an individual would have in like
case.

BORROWING-POWERS.

94. The directors may from time to time, and without negativing any implied power to borrow,
    at their discretion borrow for the purposes of the association from the Board or any bank carrying
    on business in New Zealand or any other financial institution approved in each case by the Board,
    any sum or sums of money on the security of all or any of the association’s property (real or personal),
    assets, and effects, both present and future, inclusive or exclusive of its unpaid calls or unpaid capital,
    or any part thereof, either under legal mortgages or charges, with powers of sale and other usual
    powers, or by the issue of mortgage debentures, debentures, bonds, obligations, or any other securities
    of the association; and any such mortgage debentures, debentures, bonds, obligations, or securities
    as aforesaid may be issued on the terms that the amount to be secured may be paid up by instalments,
    and that the debentures may be paid off by periodical and other drawings, and generally on such other
    terms and conditions as to rate of interest or otherwise as the directors think fit.

95. Every debenture or security for securing the payment of money issued by the association may
    be so framed that the moneys thereby secured shall be assignable free from any equities between the
    association and the person to whom the same may be issued.

96. Any mortgage debentures, debentures, bonds, obligations, or other securities may be issued
    at a discount, premium, or otherwise, and with any special privileges as to redemption, surrender,
    drawings, and otherwise.

97. The directors shall register in accordance with section 129 of the Companies Act, 1908, all
    mortgages and charges specifically affecting the property of the association.

LOANS TO MEMBERS.

98. (a) Applications for loans from the association shall be made in the prescribed form, and the
    applicant shall deposit with the secretary a sum of money (hereinafter referred to as "application
    money") sufficient to pay 1s. per share on such of the shares required to support the application as have
    not actually been allotted and such further sum as in the opinion of the secretary will be sufficient
    to cover the cost of such valuations as the directors may require.

(b) The secretary shall thereupon convene a meeting of the directors, who shall consider the
application, and give such directions concerning the same, and concerning the valuations to be
obtained, and generally in relation thereto, as they shall think fit.

(c) If the application is declined by the directors any unexpended valuation fees and any application-
money deposited in connection with shares which have not actually been allotted to the applicant
shall be returned to him. If the directors, after making such inquiries as they deem prudent, shall
desire to grant the application, a copy of the application and of any valuation or report relating thereto,
and of the decision or recommendation of the directors thereon, shall forthwith be forwarded by the
secretary to the District Intermediate Credit Supervisor with a request in the proper form for an
advance from the Board to the association of a sum of money sufficient to enable the association to
grant the advance to its member.

(d) An advance from the association to a member shall not be granted by the association unless and
until the association has arranged with the Board or with a bank or financial institution with the
approval of the Board to provide the necessary funds by way of loan to the association.

(e) If any loan is granted by the association to a member, the mortgage or other instrument securing
the same shall be prepared at the expense of the member by such solicitor as the Commissioner in each
case shall direct. All legal costs incurred in connection with the said securities, including the cost of
any security which the Board may require from the association, shall be paid by the member who
obtains the advance and shall be deducted therefrom.