Enclosure 2.
Report by the Crown Solicitor.
496
The Title Deeds of the other properties proposed to be given as Security for from $500,000 to $600,000 have now been laid before me.
The properties are the following, belonging to the Land Investment Company: -
Marine Lot 71 valued at $499,047
Marine Lot 65 valued at $175,000
and the Remaining Portion of M.L. 116 valued at $24,000
Total... $698,047
I have investigated the Title to these properties and can report that it is in order.
It is proposed that the Land Investment Company should mortgage these properties to the Hongkong Bank for one year certain for $600,000 and that the Bank should then sub-mortgage or charge the same in favour of the Government for a similar amount. The Government would thus have the security of the covenants of the Bank and of the Company as well as the property; and if the Company paid off at the expiration of the year, the Government would only re-assign or re-lease upon other sufficient security being substituted.
(Signed) A. B. Johnson,
9th April, 1890.
Crown Solicitor.