STATE ADVANCES ON LAND

Ashburton Guardian, Volume VII, Issue 1865, 12 June 1888, Page 3

STATE ADVANCES ON LAND

The member for Waitotara, Mr Hutchison, has taken up the idea of the late]; Mr Macandrew and has introduced a Bill providing for the State advancing monies upon the security of freehold estate. Although we think that there is little probability of any such measure being adopted unless brought m by the Government, still the subject is one of so much interest, that it may be as well to see precisely what Mr Hutchison proposes. These then are the leading features of his scheme : — A freeholder desiring to obtain an advance on his property will be entitled to a debenture certificate to the amount of ono half of the value, upon surrender of his certificate of title, provided that the land is free ot encumbrances. Where the land is subject to a lease or other outstanding intorest, returning less than 6 per cent per annum on the last valuation under the Property Tax ; or if the valuation includes buildings representing more than a fifth ot the whole value, the issue of a debenture certificate cannot be claimed, but is optional on the part of the Commissioner who has the administration of the Act. The intorest payable by the State on the debenture is not to exceed 6 per cent per annum, but the person obtaining the loan is to. pay to the State a half per cent more on all payments of less than one hundred pounds, and a quarter per cent on all loans exceeding one hundred pounds. Such payment is to be made at the place named m the debenture certificate, three clear 1 days before tho date on which the interest thereon is duo and payable, and m default thereof a further charge of ten shillings is to be made for the first calendar month after sucfi default, a,ud thereafter &i tho rate of 10' per cent per annnm. The Commissioner is to be deemed the mortgagee, with all the power which should bo conferred by a me^orand^m of; mortgage u.hdor the "Land, Transfer Act," and m case of foreclosure is to have the rights of a mortgagee as to any bianco due upon any. sale. The. registry u,ndcr " Tlio Land Transfer Act " is to ho absp,l\\te and. conclusive proof of title, at the time of the issue of tho debonture certificate, and it is providad that no stamp duty shall be payable m respect of any transaction under the Act. Lastly power is given, to the Governor by < rdcv j"n Council ,to make, rescind, or amend, all necessary regulations to enable tho Act to be carried into effect. The scheme eeemß workable enough, but the rate of interest is too high to be o^ any gvea,t relief to mortgagors Fftur an d" a half ( 6x at most' $ye per cent should bo substituted for six, which would enable those having good security to obtain advances at five or five and a half per cent including tho additional half or quarter per cent ad,ded, to." cover the charges of administration, and with this the : proposed measure would certainly be a boon to those who need to raise money upon their properties. Parliament will, however, wo fancy, be ch.a.jy of adopting any cobtoie auoh' as ibis, : proposed by a private member, and there is Uttlo probability, therefore, of Mr Hutchison's Bill finding its way to tbjeStatute Book. S^ill, if it coiaes on, for d^sc^saion, it may pave the way to some proposal at th,e hands ot GjoYernmo.n.t» which woitfd command fajoratye cpn.fjideri&tion,