§ Mr. AMERYasked whether approved societies will be able to borrow money on the security of the three-sevenths of the reserve values credited to them but not entrusted to them for investment?
Mr. McKINNON WOODThe reserve values are credited to the societies to enable them to give benefits at the full rate to insured persons who are over sixteen at the commencement of the Act, and will be paid in cash as required; they cannot be hypothecated to other purposes.
§ Mr. AMERYI do not think the right hon. Gentleman has quite understood my point. Under Clause 7 the money is to be handed over to the societies. I want to know whether, the societies knowing that 815 that money is coming to them, they will be able on their own authority to borrow money? [HON. MEMBERS: "No."] Is there any provision in the Bill to prevent it?
§ Mr. AMERYCan the right hon. Gentleman refer me to the provision in the Bill which prevents them from being hypothecated?