When the holder of a life insurance policy fell into arrears on the payment of premiums, the taxpayer was entitled to charge the cash surrender value of the policy with the amount of the arrears plus accrued interest thereon, such amounts being a first charge on monies payable under the policy. In finding that the interest was "income from investments of any kind other than investments in or on land" for purposes of the Land and Income Assessment Act, 1900 (New Zealand) Edwards J. found that the amounts which were so charged should be characterized as sums advanced upon the security of the policy and bearing interest, and therefore should be regarded as investments, it being "quite immaterial that no money actually passes: the premium, if paid, would be available for investment" (p. 458). He earlier stated (pp. 456-457):
There is no statutory definition of the word 'investment'. The word must therefore be read in its popular meaning. That popular meaning embraces, I think, every mode of application of money which is intended to return interest, income, or profit. Money employed as capital in a business is, in popular language, money invested in the business; money used for the purchase of negotiable instruments is an investment; so also money lent upon a bond or other personal security; so money deposited with the bank or other financial institution at interest. Money advanced by the defendant society upon the security of its own policies is therefore, in my opinion, clearly an investment.