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American Bank to Sell Debenture Stock of New Israel Corporation

Tourist Industry Development Corporation Limited, an Israel Corporation, today announced that it had entered into an indenture with Bankers Trust Company of New York City covering $2, 250,000 of the corporation’s perpetual seven percent subordinated debenture stock.

Registration of the corporation’s offering with the Security and Exchange Commission became effective on February 28, 1958, according to Lawrence G. Laskey of Boston, chairman of the board of the American section of the corporation. Mr. Laskey, motion picture executive and New England chairman for Israel bonds, said the corporation’s debenture stock offering is being issued to enable private investors in the United States to take part in financing Israel’s growing tourist industry.

The new capital will be used to provide sound, long-term mortgage and other loans to Israel’s hotels, restaurants, sightseeing and companion tourist industries. Mr. Laskey stated that interest of the TIDC debenture stock is payable in dollars and the investment is also linked to the dollar. It is intended that investment of TIDC assets will be made only in profit-earning tourist enterprises.

The chairman of the 15-member board of directors of TIDC is Theodor Kollek, director general of Premier David Ben Gurion’s Office. It’s American members, beside Mr. Laskey, are: Jacob Arvey, Benjamin H. Swig, Louis H. Boyar, and Rudolf G. Sonneborn.

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