For the purpose of carrying out the objects of this Act, there is hereby established an office, to be called “The Government Advances to Settlers Office,” administered and managed by an officer to be called the Superintendent, who shall be appointed by the Governor, and shall hold office during pleasure.

The Superintendent is hereby constituted a corporation sole under the style of “The Government Advances to Settlers Office Superintendent,” with perpetual succession and a seal of office, which shall be kept and used by him alone.

The Governor in Council may from time to time—

In the case of the death, removal, or resignation of the Superintendent, appoint some other fit and proper person in his stead;

If he shall deem it expedient so to do, temporarily suspend the Superintendent;

Appoint some person to act as the Deputy of such Superintendent in the case of the illness, suspension, or absence from duty of the Superintendent.

The Deputy Superintendent shall, during the time be acts as such Deputy, have all the powers and perform all the duties of the Superintendent.

No person shall be concerned to inquire whether any occasion has arisen requiring or authorising the Deputy Superintendent to act as such Deputy.

The Governor in Council may from time to time appoint such officers and clerks (hereinafter called “the staff”) as may be necessary for the business of the Government Advances to Settlers Office (hereinafter called “the Advances to Settlers Office”).

The staff shall hold their offices during pleasure, and shall be subject to the orders, direction, and control of the Superintendent.

The Superintendent and staff shall be paid such salaries as may be fixed from time to time by the General Assembly, and shall be subject to the laws for the time being in force affecting and regulating the Civil Service of the colony.

The Superintendent, and every member of the staff whose fidelity is not guaranteed under “The Civil Service Officers’ Guarantee Act, 1893,” shall severally give security for the faithful discharge of their duties in such form, by such sureties, and to such amount as the Governor, by regulations or otherwise, may from time to time direct.

The Governor in Council may also from time to time appoint such Valuers (not being members of the staff) as he may deem necessary for the business aforesaid, and they shall be paid such remuneration as may be appropriated for that purpose by the General Assembly.

In all deeds, instruments, or documents of any kind incident to the business of the Advances to Settlers Office, or the purposes of this Act, the Superintendent shall be described by his corporate style.

All deeds, instruments, and other documents to be executed by the Superintendent under seal shall be executed by him by signing his name underneath his corporate style, and affixing his seal, at a duly-constituted meeting of the hereinafter-mentioned General Board, one member whereof shall subscribe his name as witness.

All documents to be signed by the Superintendent shall be signed in his personal name with the addition of his corporate style.

All proceedings in any Court or before any person by or against the Superintendent as such Superintendent shall be instituted, prosecuted, and defended in his corporate style and capacity only.

The appointment, signature, and seal of the Superintendent and Deputy Superintendent, and the appointment and signature of every member of the General Board, shall be judicially noticed without further proof.

For the purpose of better carrying out the objects of this Act, there is hereby constituted a Board, under the style of “The Government Advances to Settlers Board” (elsewhere throughout this Act called “the General Board”), consisting of six persons in addition to the Superintendent.

The Superintendent shall be ex officio Chairman of the General Board, and the six persons holding for the time being the offices of the Colonial Treasurer, the Public Trustee, the Government Insurance Commissioner, the Surveyor-General, the Solicitor-General, and the Commissioner of Taxes shall be, ex officio, members of the General Board.

In the event of the Superintendent at any time holding conjointly any one of the other above-mentioned offices, the Governor shall appoint some other public officer to be a member of the General Board, so that the number of members may at no time be less than six, exclusive of the Superintendent.

Four members shall form a quorum at any meeting of the General Board, whose resolutions shall be binding on the General Board and upon every person purporting to be affected thereby.

In the temporary absence of the Superintendent or Deputy Superintendent, the other members present at a General Board meeting may appoint a Chairman from among themselves.

The Chairman shall have a deliberative and also a casting vote.

The General Board shall at all times cause proper minute-books to be kept, in which shall be entered full and faithful minutes of all the proceedings at each General Board meeting, with proper tabulated details of the business transacted thereat. The minutes of each meeting shall be read and confirmed at the next succeeding meeting, and signed as correct by the Chairman.

The General Board may, from time to time, make by-laws for regulating the general conduct of business and proceedings of the General and District Boards.

The General Board shall co-operate with and assist the Superintendent in carrying out the objects of this Act, and advise with him upon all matters connected therewith.

A resolution of the General Board shall bind the Superintendent.

It shall be lawful for the Governor from time to time, by Order in Council, to constitute and define such districts throughout the colony as he may think fit, and to appoint a District Board in each district.

Each District Board shall consist of such Government officers or other fit persons (being not less than three) and shall be located in such town as the Governor in Council may appoint.

The duties of the District Boards shall be to receive and consider all applications for advances on land within their respective districts, to report thereon to the General Board, and co-operate generally with the Superintendent and the General Board in carrying out the objects of this Act.

The District Boards shall be under the control of the General Board.

The business of the Advances to Settlers Office is the advancing of money on first mortgages of the following classes of lands, not being urban or suburban lands, in New Zealand, free from all encumbrances, hens, and interests other than leasehold interests, that is to say,—

Freehold land held in fee-simple under “The Land Transfer Act, 1885,” or the title to which is registered under “The Deeds Registration Act, 1868”; or

Crown land held on perpetual lease under “The Land Act, 1885”; or

Crown land held under Parts III. and IV. of “The Land Act, 1892”; or

Crown land held on lease as a small grazing-run under “The Land Act, 1885,” or under “The Land Act, 1892”; or

Crown land held on agricultural lease under “The Mining Act, 1891”; or

Crown land held on lease (not being for mining purposes) under “The Westland and Nelson Coalfields Administration Act, 1877”; or

Native land held on lease under “The West Coast Settlement Reserves Act, 1892”; or

Land held on lease under “The Westland and Nelson Native Reserves Act, 1887”; or

Land held under “The Thermal Springs Districts Act, 1881.”

The class of land in each instance shall be determined by the Board.

The funds of the Advances to Settlers Office to be invested by way of advances on mortgage as aforesaid consist of the proceeds of all Government loans raised from time to time under Part II. of this Act (hereinafter called “the Debenture Fund”).

For the purposes of this Act the Governor in Council is hereby empowered to appoint any two or more persons he may think fit as Agents for the purpose of raising and managing the loans authorised to be raised under this Part of this Act, with all such powers as may be necessary to carry into effect the purposes of this Act, and in their appointments to define the relative powers of such Agents.

Such Agents shall have full power and authority to raise from time to time in Great Britain or elsewhere, by debentures or scrip, or by the issue of inscribed stock under “The New Zealand Consolidated Stock Act, 1877,” or otherwise, such sum or sums, not exceeding in the aggregate the sum of one million five hundred thousand pounds in any one year, as the Governor in Council may from time to time authorise: Provided that whenever the total amount of bonds or other securities authorised to be created in any one year is not issued within such year, the aforesaid Agents may at any subsequent period create and issue bonds or other securities for the balance of the amount so authorised as aforesaid, in addition to the amount authorised to be issued at or during such subsequent period:

Provided further that the authority hereby conferred upon the Governor shall absolutely cease at the expiration of two years from the date of the coming into operation of this Act; and provided farther that the total amount raised under this Act shall not exceed in the aggregate three million pounds sterling.

All sums raised under this Part of this Act shall be raised for the purpose of being advanced by way of mortgage under the provisions of this Act.

The aforesaid Agents shall have full power and authority to prescribe the mode and conditions of repayment of the aforesaid loans, the time of such repayment, the rates of interest thereon, and the time and place when and where principal and interest shall be made payable.

In addition to the general powers by this Act conferred upon the aforesaid Agents, they may from time to time agree that debentures issued by them shall be converted into stock created or issued under “The New Zealand Consolidated Stock Act, 1877,” and may either specify the terms of such conversion or arrange that such terms shall be subsequently agreed upon.

No debenture or other security issued under this Part of this Act shall be sold or otherwise disposed of at a price which will yield to the purchaser thereof a higher rate of interest by the year than four pounds for every hundred pounds of the purchase-money given for the same; but such debentures or other securities may for the purposes of temporary advances be hypothecated or mortgaged upon such terms as to interest as the said Agents may deem expedient.

The amount of all debentures, scrip, or other securities issued under this Act outstanding at any one time shall never exceed the amount for the time being authorised to be raised under section twenty-eight hereof.

Every debenture, scrip, or other security issued under the authority of this Act shall be countersigned by the Controller and Auditor-General, or by an officer of Audit to be appointed from time to time for that purpose by the Controller and Auditor-General.

The sum of money named in any debenture, scrip, or other security issued under the authority of this Act, and all interest thereon, are a charge upon and shall be paid out of the Consolidated Fund of New Zealand.

All the powers vested in any Agents appointed under this Part of this Act may by such Agents be wholly or partly delegated to two or more other Agents, subject to such conditions as the Agents delegating such powers may think fit.

The Governor may at any time, and from time to time, remove or accept the resignation of any Agent appointed by him under this Part of this Act, and in any such case, or if any such Agent should die, the Governor may appoint another person in his place, and such appointment may be made by telegraphic message or otherwise.

No person, body, or authority from whom the whole or any part of such sums shall be borrowed and raised as aforesaid shall be concerned to see or inquire whether or to what extent the powers given in this Act have been previously exercised or are intended to be exercised; and all moneys raised or purporting to be raised under this Act shall, so far as concerns the lender, be deemed to be raised within the powers by this Act conferred in that behalf, and to have been lawfully raised accordingly.

Nothing in this Act contained shall be held to prejudice, alter, affect, or vary any security heretofore charged on the revenues of New Zealand or any of them.

No advance shall be granted except upon the written application of the proposed borrower, and by the resolution of a duly-constituted meeting of the General Board at which the question is duly considered.

Every such application shall be in the form in the First Schedule hereto.

No advance shall be granted for a sum of less than twenty-five pounds nor more than two thousand five hundred pounds.

Not more than two thousand five hundred pounds shall be advanced to any one borrower.

Applications for loans not exceeding five hundred pounds shall have priority over applications for larger sums.

No advance on the security of freehold lands shall be granted for an amount exceeding three-fifths of the value of the security.

No advance on the security of leasehold lands shall be granted unless and until all covenants and conditions on the lessee’s part contained or implied in the lease are complied with up to the date of the application for the advance; and

No advance on the security of leasehold lands shall be granted for an amount exceeding one-half of the value of the lessee’s interest in the lease.

The valuation of every security shall be made by or on behalf of the Superintendent and to the satisfaction of the General Board.

The security shall consist of some one or more of the several classes of land mentioned in section twenty-five hereof, free from all encumbrances, liens, and interests other than leasehold interests.

The Valuer’s report shall in each instance be signed by him and addressed to the Superintendent, and particulars thereof shall be noted in the minute-book of the General Board.

With respect to every mortgage executed under this Act the following provisions shall apply:—

The Superintendent shall be the sole mortgagee in his corporate style and capacity:

The term of the loan shall be thirty-six and one-half years:

The loan, with interest thereon at the rate of five per centum per annum, shall be repaid to the Superintendent by seventy-three half-yearly instalments, all such instalments being of equal amount except the last, and the first half-yearly instalment being payable six months after the date of the loan:

Every such half-yearly instalment shall consist partly of principal and partly of interest, but every such instalment shall, except the last, be at the rate of three pounds for every one hundred pounds of the loan:

All such half-yearly instalments shall be calculated and paid according to the table in the Second Schedule hereto, which sets forth as to every one hundred pounds of the loan all the half-yearly instalments, and shows also how much of each and every half-yearly instalment is on account of principal and how much thereof is for interest, and also what balance of principal is owing by the borrower at the due date of each half-yearly instalment:

Irrespective of the prescribed half-yearly instalments the mortgagor may from time to time pay to the Superintendent any sum of not less than five pounds or a multiple of five pounds in reduction of the mortgage debt:

Such last-mentioned payments shall not affect the prescribed half-yearly instalments or the obligation of the mortgagor in respect thereof, but shall be held and applied as hereinafter provided:

All such last-mentioned payments shall be credited with interest at the rate of four pounds per centum per annum with yearly rests until such payments, together with the accumulations of interest thereon, are equal to the balance of principal owing for the time being according to the aforesaid table, together with all other moneys (if any other) owing under the mortgage, when they shall be set off against such principal and other moneys, and the mortgagor shall be entitled to a discharge of the mortgage on payment of the prescribed fees.

The respective forms of mortgage in the first and second parts of the Third Schedule to this Act (hereinafter called “the mortgage docket”) shall be used for mortgages of land held under “The Land Transfer Act, 1885,” and land registered under “The Deeds Registration Act, 1868,” respectively.

Notwithstanding anything contained in this or any other Act the following provisions shall apply to every mortgage of leasehold land under this Act:—

The term of the mortgage (in no case exceeding the aforesaid term of thirty-six and one-half years) shall expire on the due date of the prescribed half-yearly instalment next preceding the date of the expiration of the lease, and such instalment shall include the balance of principal then owing under the mortgage.

Subject to the aforesaid modification, principal and interest shall be payable by the prescribed half-yearly instalments.

It shall not be lawful for the mortgagor to surrender his lease or to exercise any right of purchase of the land comprised therein without the consent in writing of the Superintendent.

So long as any moneys remain owing under the mortgage the Superintendent shall have the sole right to receive all sums payable to the mortgagor in respect of compensation or valuation for improvements or otherwise however under the lease, and may at the expense of the mortgagor do all things necessary in order to obtain the same.

All such sums when received by the Superintendent shall be treated as moneys arising from the lawful exercise of the power of sale.

A register of mortgages shall be kept in the Advances to Settlers Office, and in such register shall be entered full particulars of every mortgage.

Every mortgage docket shall be deemed to be executed by the mortgagor subject to the provisions of this Act, and the provisions of this Act shall apply thereto accordingly.

In every mortgage docket there shall be implied on the part of the mortgagor and in favour of the mortgagee the covenants and conditions contained in the first part of the Fourth Schedule hereto:

Provided that in the covenants implied in mortgages of land registered under “The Deeds Registration Act, 1868,” “The Property Law Consolidation Act, 1883,” shall be read in lieu of “The Land Transfer Act, 1885,” whenever the last-mentioned Act occurs.

In every mortgage docket of leasehold land there shall be similarly implied as an additional covenant the covenant contained in the second part of the said Fourth Schedule.

In every docket of agricultural land there shall be similarly implied an additional covenant, the covenant contained in the third part of the said Fourth Schedule.

All such covenants and conditions shall extend to and include the executors, administrators, and assigns of the mortgagor and the successors and assigns of the Superintendent.

The Governor in Council may from time to time by regulations alter any of the aforesaid covenants and conditions or prescribe additional covenants and conditions: But such regulations shall not affect any mortgage existing at the time when they are made.

Every mortgage docket of land held under “The Land Transfer Act, 1885,” shall, for all purposes whatsoever, be deemed to be a memorandum of mortgage within the meaning and under the provisions of that Act, the Superintendent being the mortgagee, the person signing the docket being the mortgagor of such person’s estate and interest in the land named in the docket, and the principal sum thereby secured being the principal sum named in the docket.

Every mortgage docket of land registered under “The Deeds Registration Act, 1868,” shall for all purposes whatsoever be deemed to be a deed or instrument within the meaning of that Act, and a deed of conveyance of land by way of mortgage within the meaning of “The Property Law Consolidation Act, 1883,” and may be registered under the former Act accordingly, the Superintendent being the mortgagee and the person signing the docket being the mortgagor of the land therein mentioned.

The Debenture Fund, and all other moneys whatsoever belonging or payable to the Superintendent, shall be paid into a bank, to be appointed by the Governor, to the credit of an account called “The Government Advances to Settlors Office Account,” elsewhere throughout this Act called “the Advances to Settlers Office Account,” which shall be operated on only by cheque signed by the Superintendent and countersigned by the Audit Office.

All moneys in the Advances to Settlers Office Account, or payable into that account by any person whomsoever, and also all moneys owing by any mortgagor on the security of any mortgage under this Act, whether the same be accrued due or not, are hereby declared to be the property of the Crown, and recoverable accordingly as from debtors to the Crown.

All such moneys as aforesaid arc hereby declared to be public moneys within the meaning of “The Public Revenues Act, 1891.”

Any moneys payable to the Superintendent or to the Advances to Settlers Office Account may be lodged for credit of that account with such Postmasters as the Postmaster-General may authorise; and the amount of such lodgments shall be transferred by the Postmaster-General to the credit of the Advances to Settlers Office Account as often as the Superintendent and the Postmaster-General may arrange.

In addition to such other accounts as he may think necessary, the Superintendent shall cause to be kept the following accounts, made up to the close of each financial year, ending the thirty-first day of March, that is to say,—

The Management Account, which shall be charged with—

And shall be credited with—

An Investment Account, which shall be credited with—

And shall be charged with all moneys invested on mortgage.

If the balance in the Management Account is at any time insufficient to meet the charges thereon, the Colonial Treasurer may from time to time advance such sums out of the Consolidated Fund as may be necessary to meet the deficiency:

The Superintendent shall within sixty days after the close of each financial year as aforesaid prepare and lay before Parliament if sitting, if not within fourteen days after the commencement of the next session, a balance-sheet showing—

The whole receipts and expenditure of the Advances to Settlers Office Account during such year;

The whole receipts and expenditure of the Management Account, also the advances from and repayments to the Consolidated Fund, and the balance outstanding due to that fund;

The whole receipts and expenditure of the Investment Account, showing the moneys invested under this Act;

The amounts in arrear in respect of principal and interest respectively;

Such further accounts and particulars as may be prescribed by regulations under this Act.

The Colonial Treasurer shall have full access to all the accounts, documents, and papers in the Advances to Settlers Office, and the Superintendent shall at all times furnish to the Colonial Treasurer all such information as the latter may require.

The Controller and Auditor-General shall have, in respect of the Superintendent, the Advances to Settlers Office, the accounts thereof, and all persons employed therein, and in respect of all other persons employed under this Act, all the powers which he possesses under the provisions of “The Public Revenues Act, 1891.”

One-tenth as aforesaid of all moneys received in respect of interest on investments under this Act shall, as and when paid into the Management Account, be thence transferred and paid over to the Public Trustee as an Assurance Fund.

Into the same Assurance Fund shall be paid the balance (if any) standing to the credit of the Management Account at the close of each financial year.

The Assurance Fund shall be held and invested by the Public Trustee in manner provided in section fifty-seven of this Act.

With respect to interest—

All interest received from mortgagors shall be applied—

With respect to principal moneys advanced from the Debenture Fund—

All repayments of such principal moneys shall be paid over to the Public Trustee for investment as a sinking fund, called “the Debenture Sinking Fund.”

The interest earned by such sinking fund shall be payable to the Superintendent, but the capital shall be held and retained by the Public Trustee at the disposal of the Colonial Treasurer towards redemption of the debentures issued under Part II. of this Act.

The Colonial Treasurer may, however, from time to time direct the Public Trustee to pay over such sinking fund, or any part thereof, to the Superintendent for reinvestment on mortgages under this Act as part of the Debenture Fund, and the Public Trustee shall obey such direction.

With respect to other moneys—

All other moneys received from mortgagors shall be available for the general expenses of the Advances to Settlers Office.

All moneys paid over to the Public Trustee for investment under the provisions of this Act shall be invested by him in such of the securities sanctioned by section ten of “The Public Trust Office Acts Amendment Act, 1891,” as will yield the highest rate of interest, and, save in so far as is otherwise provided by this Act, he shall dispose of such moneys and the interest thereon as the Governor in Council may from time to time direct.

Every person employed in the business of the Advances to Settlers Office who directly or indirectly takes any fee or reward from any applicant for a loan under this Act shall be dismissed from his office and be liable to imprisonment for any term not exceeding two years with or without hard labour.

Every person who,—

acts as Valuer in connection with such land or loan, or sits and votes at any meeting of the General Board or a Local Board upon any resolution having reference to such land or loan, shall be liable to a penalty of not less than fifty pounds nor more than two hundred pounds, and shall also be dismissed from his office.

Every person who,—

is liable to imprisonment for any term not exceeding two years, with or without hard labour.

Valuation-fees shall be payable by the proposed borrower in any event, and according to the scale in the Fifth Schedule hereto.

The costs and fees of preparing and completing any mortgage and of discharging it shall be payable by the mortgagor according to the scale in the Sixth Schedule hereto.

The Governor in Council may vary any of the aforesaid costs and fees.

The Governor in Council may from time to time make rules and regulations for all or any of the following purposes, that is to say,—

For the conduct of the business of the Advances to Settlers Office:

For determining the duties of the staff, and the forms, amounts, and nature of the securities to be furnished by each member of the staff:

For the custody and control of the moneys in the Advances to Settlers Account, and the payment of moneys to, and the withdrawal of moneys from, that account; the mode of keeping and rendering that account, and any other account in connection with the Advances to Settlers Office:

For the receipt and payment of moneys under this Act:

For determining what moneys under this Act shall be invested, and in what securities:

For the safe custody of securities:

For the principle and method to be adopted in valuing lands for the purposes of this Act:

For prescribing what accounts, registers, and books shall be kept, and in what form:

For fixing the scale of costs and fees for the preparation, completion, and discharge of mortgages, and the valuation of securities:

For prescribing the functions and duties of District Boards:

For prescribing the duties of Valuers, and the scales of their salaries and travelling-allowances:

For specifying the rules of good husbandry:

For exempting any person employed under this Act from the examinations prescribed by the Civil Service Regulations:

For any object or purpose that may be deemed necessary for the efficient administration of this Act.

All such rules and regulations shall be gazetted, and thenceforth shall, so far as not inconsistent with this Act, be binding and conclusive upon all persons as if the same had been contained in this Act.

The Governor in Council may from time to time alter any of the forms in the Schedules hereto.