SALE AT BETTER PRICE

Evening Star, Issue 22447, 18 September 1936, Page 12

SALE AT BETTER PRICE

DEBARRED TO ASSISTED MORTGAGOR IMPORTANT AMENDMENT TO MEASURE '[From Ook Parliamentary Reporter.] WELLINGTON, September 18. An important amendment to the mortgage legislation introduced by the Minister of Finance in the House today, 1 covers the position where a mortgagor, after obtaining a reduction of his capital liabilities, subsequently sells his property at an increased price. Sir Nash remarked that the purpose of the' Bill is to keep farmers on the land and help them to make its use profitable for themselves, but not to' help them to ■ sell their land. Therefore, a new provision has been introduced • that a mortgagor . who secures readjustment, cannot sell his land before January,. 1941, without the consent of the court, which will not grant leave except under exceptional circumstances, and after taking into consideration the general principles of the rehabilitation legislation. If the sale is approved, and results in a higher" price than the adjusted capital, then the court would take into account the sum written oif the mortgage, or any: adjustable debt, and would have power :to apply such portion of the excess, price as it deems equitable for the benefit of all or any of the creditors whose claims have been discharged in whole dr part by the operation of the Act.