MORATORIUM

Hawera Star, Volume XLVIII, 17 July 1924, Page 5

MORATORIUM

A LIMITED EXTENSION. (By Telegraph—Special. to Star.) WELLINGTON, July 16. • ± i "L° r t;gages Final Extension Bill, introduced by the Premier, repeals the existing legislation on the subject of the moratorium, and excludes trade mortgages and securities under the Repatriation Act or mortgages executed after October 24, 1919. The Bill applies to subsequent mortgages and to agreements for the sale or purchase of lands, and sets out the system under which mortgagors requiring relief may apply .to the Supreme Court for an extension order. Application must he made not later than December 31, 1924, and no extension order can extend the due date of mortgage later than December 31, 1926. Motions for extension are to be heard by a judge in Chambers. There is a general continuation of the moratorium to which txi€ Act applies till the end of December, 1924. Where an extension order is given in respect of a mortgage bearing less than 6) per cent interest the rate during the extension shall be 62per cent.

In determining whether any extension order shall be made, tue court may take into consideration:— (a; Tne en'ect o'l the continuance of the mortgage upon the seeurjty thereby attorded to tne mortgagee;, (b) tne inability of the mortgagor to redeem the property either Irom his own moneys or by 7 borrowing at a reasonable rate, of interest; (e) the conduct of the mortgagor in respect of any breaches by him of the covenants of the mortgage; (dj any hardship that would lie indicted on the mortgagee by the continuance of the mortgage or upon the mortgagor by the enforcement thereof. Prorision is made for the court appointing several dates for the payment in parts of the principal moneys, and it may also cancel an extension if default is made in a payment on the day appointed. The court may also dismiss a motion fey; an extension of a mortgage of the mortgagor fails to exercise diligence in serving notice on the mortgagee. AVliere a motion has .been determined no other notice for an extension may be filed by the same or by any other mortgagor m respect of the same mortgage unless the court grants special Leave. It shall not be lawful until after December 31, 1924, for a mortgagee to call up any part of a mortgage, to exercise any power of sale on entry into possession conferred by the mortgage or by the statute, or to commence any action for a breach of covenant, agreement or condition expressed in the mortgage other than the condition expressed in the mortgage other than the condition relating to the payment of interest. If the date fixed for the repayment of any principal money has passed the mortgagor may Tepay the principal on giving three months’ notice.