B—l3.

The volume of new loan business granted since 1935 is shown by the statement submitted hereunder : — Loans authorized— Number. Amount. Residential— £ Refinancing .. .. .. .. 3,808 2,346,532 Erection .. .. .. .. .. 6,272 5,458,276 Other purposes .. .. .. .. 1,913 1,251,183 11,993 9,055,991 Farm— Refinancing .. .. .. .. 2,439 5,568,192 Other purposes .. .. .. .. 1,508 1,579,548 3,947 7,147,740 Total authorized .. .. .. 15,940 16,203,731 An analysis of the loans under administration as at 31st March, 1940, which is appended, shows the number and amount of mortgages in districts subdivided into farm amd residential sections.

In addition to the accounts included in the above statement, the Corporation is responsible for the management of some 11,000 tenancies, the bulk of which are in respect of houses erected under the new Government Housing Scheme, which is referred to in more detail in Part II of this report. The Rural Intermediate Credit system of stock loans, which is under the control of this Board, involves the administration and supervision of a business consisting of approximately 900 loans, the majority of which have been arranged through Co-operative Rural Intermediate Credit Associations. Interest-rates and Terms of Lending. The lending rate for first mortgages remains unchanged at 4| per cent., and this rate has been maintained since 1935. The Corporation's main lending policy is allied to long-term table mortgages. For house-building loans the terms vary according to the type of building and the circumstances of the borrower, and for suitable farm securities the maximum term is forty-five years. New Business. The Board has continued to give preference to loans for erecting houses either in rural or urban districts and has also met the requirements of its existing rural mortgagors for improvements and development work undertaken for the purpose of increasing production. The loans granted for the year may briefly be stated as under : — No. Amount. For house building .. .. .. .. 1,617 1,540,130 For other purposes .. .. .. .. 494 328,238 Total •• •• •• 2,111 1,868,368

5

Farm. Residential. Total. District. P Number. Amount. Number. Amount. Number. Amount. £ ' £ £ Auckland .. .. .. 4,272 4,492,199 10,935 6,963,442 15,207 11.455,641 Hamilton .. .. .. 4,600 5,890,379 4,102 1,941,871 8,702 7,832,250 Napier .. .. .. 1,409 1,655,633 2,860 1,406,712 4,269 3,062,345 New Plymouth .. .. 2,346 2,738,292 1,555 651,754 3,901 3.390,046 Wellington .. .. 2,511 3,202,089 13,471 9,149,142 15,982 12,351,231 Nelson .. .. 1,603 1,319,198 2,011 870,700 3,614 2,189,898 Christchurch 2,221 2,619,213 7,364 3,801,144 9,585 6,420,357 Dunedin .. .. .. 1,057 1,146,534 1,555 802,993 2,612 1,949,527 Invercargill .. .. 1,685 2,263,255 925 479,650 2,610 2,742,905 Total .. .. 21,704 25,326,792 44,778 26,067,408 66,482 51,394,200