§ Colonel Burtonasked the Financial Secretary to the Treasury how many borrowers have defaulted under the Agricultural Credits Act; what was the rate of interest charged; how many farms have been seized by the Public Works Loan Commissioners; what profit or losses have been made by the Commissioners in their operations of these properties; and the profits or losses made upon the realisation of such properties?
§ Captain CrookshankIt would involve much labour to give the number of borrowers under the Agricultural Credits Act who have at any time been in default, and the information would not in my view serve any useful purpose since in many cases the default has merely amounted in practice to delay in payment.
1231WThe rate of interest payable in respect of all loans under the Act, which were made between the years 1923 and 1928, is 5 per cent. per annum.
The Public Works Loan Commissioners have been compelled by default of borrowers who were granted loans under the Act to enter into possession of 209 properties between 1925 and the present date.
As mortgagees the commissioners are not entitled to make a profit on realisation of a security, but merely to recover principal and interest due in respect of the loan and the cost of realisation.
Losses occurred on realisation in 71 cases and amounted in all to £57.995 9s. 6d.