774
Objects and Reasons.
1. By section 3 (5) of the principal Ordinance the whole or part of the deposit required to be made might consist of fixed deposits in certain banks. To cover the remaining portion, if any, of the deposit companies often offer mortgages of leasehold property.
These are an unsatis-
factory form of security in that they are liable to great fluctuation in value, are not readily realizable and cause considerable work to Government in periodical assessing of their value. Moreover, it is not now the practice in England to accept mortgages as securities under such acts as the Assurance Companies Act, 1909, the Trustee Act, 1925, and the Road Traffic Act, 1934, although they are authorized investments under the Trustee Act, 1925. It is considered that the time has come when mortgages should no longer be accepted as security under the Ordinance and existing ones should be replaced.
2. Clause 2 of the Bill, which replaces section 3 (5), sets out the nature of the securities to be deposited. In future only cash or gilt-edged securities will be accepted as deposit. The proviso allows those companies which have already made a deposit a period of three years within which to comply with the new requirements.
3. The amendment in clause 3 is consequential on the repeal of section 3 (5).
June, 1940.
C. G. ALABASTER,
Attorney General,
[No. 10:16.5.40.-1.]
A BILL
INTITULED
An Ordinance to authorize the Appropriation of a Supple- mentary sum of two million four hundred and eighty- four thousand nine hundred and ninety-one dollars and forty-seven cents to defray the charges of the year 1939 and also to appropriate a sum of eighty thousand three hundred and thirty-one dollars and twenty-five cents from the Waterworks Renewals and Improvements Fund in the said year.
WHEREAS it has become necessary to make further provision for the public service of the Colony for the year 1939 in addition to the charge upon the revenue of the Colony for the service of the said year already provided for, and also to make provision for expenditure from the Waterworks Renewals and Improvements Fund in the said year: