34.
34. The Local Government Board will fix the period for which sums of money for particular purposes may be borrowed. Generally the periods are as follows:
| For | sites or lands | 60 | or 50 years. |
| „ | buildings (including fixtures like counters, screens, wall and standard bookcases, wall newspaper slopes, barriers, etc.) | 30 | years.[1] |
| „ | books | 10 | „ |
| „ | furniture (tables, chairs, desks, and movable furniture only) | 10 | „ |
The money may be borrowed from the Public Works Loan Commissioners, County Councils, Banks, Friendly Societies or private individuals. The rate of interest varies, according to the state of the money market. Four per cent. may be regarded as an average interest at present, but library authorities have borrowed for as low as 3 per cent.
[1] A loan for purchasing an existing building will not be sanctioned by the Local Government Board for a period exceeding twenty or twenty-five years.
35.
35. The methods of repayment vary, and this must be entirely a matter for local arrangement, and should follow the practice in vogue with other municipal loans. An equalized repayment of principal and interest on the annuity system has the advantage of distributing the payments uniformly over the whole period, and of placing part of the burden on succeeding ratepayers as well as upon those who establish the library. This is much fairer than making the pioneer ratepayers practically bear the whole foundation cost of establishing an institution which increases in its value to the community as it progresses. On the other hand, buildings are sure to depreciate in value, and the question of repairs is a constant one, so that some authorities maintain that loans on structures should be paid off by annually diminishing instalments of principal and interest. In Scotland repayments of principal must be made from a sinking fund which is to be formed from a certain proportion of the rate put aside annually.
The arrangements for negotiating a loan and drawing up the necessary deeds should be placed in the hands of a solicitor, but in many cases the accountant or town clerk of the district is responsible for all arrangements, and will see that the deed is duly sealed as prescribed by the Act.
In connexion with this it should be noted that by Section 237 of the “Public Health Act, 1875,” a register of the mortgages on each rate must be kept, and that “within fourteen days after the date of any mortgage an entry shall be made in the register of the number and date thereof, and of the names and description of the parties thereto, as stated in the deed.” Furthermore, “every such register shall be open to public inspection during office hours at the said office [local authority’s office] without fee or reward.” As the auditor will call for this register, the clerk to the library authority should see that it is provided, if the local authority has not already done so.