MORTGAGE RELIEF ACT

Hawke's Bay Herald-Tribune, Issue 54, 19 March 1937, Page 6

MORTGAGE RELIEF ACT

Rates Not Likely to be Affected COMMISSION'S VIEW An assurance that in all ordinary cases borough rates will not be interfered with by the Adjustment Commission sitting under authority of the Mortgagors Relief Act has been given thie Hastings Borough Council in response to its inquiry as to the position of rates in cases likely to come before the Commissiom. The borough solicitors advised that they had obtained a statement from the chairman of the Adjustment Cominission on the matter, and he had stated that rates are held to be adjustable securitiifes and thejrefore stood, with certain exceptions, in the position of first mortgages. "In ordinary circumstances they will not be written off in any part until all other mortgages have been written off, and then only if the value of the land is less than the amount of rates ow" ing," says the statement. "If such a case oceurred the amount of the rates would be written down to the valu© of the land, but not further. The exceptions are in a case where arrears of rates might he very large, and the rating authority might be glad to receive a cash payment of part in satisfaction of the whole, and where the Qrown in any of its capacities has & first mortgage on the property." "It is very gratifying to know that we do not have to anticipate any reduotion in the rates as regards the application befoue thei Adjustment Commissioner," commented the Mayor, Mr G. A. Maddison, when moving that the communication be received.