LAND SETTLEMENT BILL.

Gisborne Times, Volume XXVI, Issue 2297, 16 September 1908, Page 2

LAND SETTLEMENT BILL.

AID TO ASSOCIATIONS A GOVERNMENT BILL, (Special to “Times.”)

WELLINGTON, Sept. 14. The object of the Government’s Land Settlement Finance Bill, which was introduced' to-day, is to promote the closer settlement of land, by enibling groups of purchasers to buy an estate for subd'ivision, among them and to raise the purchase money by means of a loan guaranteed by the Government. For this purpose any ten or more persons may form an Incorporated: Land Settlement Association, and may purchase any estate consisting of more than six hundred and forty acres. Tho estate shall ho subdivided into . allotments not .Tees than fifty aeries in extent, and 1 which shall be soldi at a fixod price. The agreement becomes operative only if it is confirmed by Order-in-Council in pursuance of a. recommendation of tho Board 1 of Land Purchase Commissioners. On the confirmation of the agreement, the Incorporated Association:, acting through the Public Trustee as its agent, is empowered to raise the total purchase money of the estate by tho issue of debentures under the guarantee of the Government. On the completion of the purchase, the rebate is transferred to the ,association and the several allotments,are thou transferred' by the association to the individual purchasers. Each 1 purchaser gives a mortgage to the association to secure tlje purchase money of his allotment, together- with interest at such rate as is "ufiicient to meet the 'interest on the debentures and tho incidental expenses of the association. 'The purchase money of each allotment so secured by mortgage is payable by such instalments as tho mortgagor chooses, licit less than ,a. specified amount in each; year, and tho balance must bo paid l ii.n twenty years. All capital and interest money so paid to the 1 association by the purchasers are expended in meeting the interest accruing due on the debentures, and the balance is accumulated in the hand's of the Public Trustee as a sinking fund for the redemption of tho debentures. The title t'o any allotment is subject, to the following restrictive provisions': (1) Every purchaser must possess the qualifications required by intending lessees under part 111 of the Laud' Act, 1908; (2) Until at leasft one-third of the purchase money has been paid' off a purchaser must reside on' his allotment and has no power to alienate or change it Transfers of ainv allotments are subject to tho provisions of part XIII of tho Land Act, 1908. ion the same manner ns in the case of land alienated in fee simple by the, Crown since the passing of the Land Laws Amendment Act, 1908. The amount which may be guaranteed hv tho Government is limited to £500,000 a year.