Mortgages and Deposits.

Hokitika Guardian, 20 December 1921, Page 4

Mortgages and Deposits.

IMRORTANT CHANGES IN BILL. WELLINGTON, Dee 15. The Statutes Revision Committee of the House has completely remodelled the Government’s Bill dealing with mortgages and deposits extension. The whole of tbe. original proposals relating to mortgages have lieen deleted. Rights of extension of mortgages are to apply until December 3st, 1924. Section 7 of the principal Act. which empowered the Supreme Court to hear and determine applications for extension of the term of a mortgage is repealed, but this does not interfere with the provisions of the original Act for hearing by a Judge nr registrar in chambers of motions in respect to mortgage extension. Trustees are empowered to arrange with mortgagors for renewal of a, mortgage for any term hot exceeding five years at a rate of interest not less than (it. without any application to the Court, notwithstanding that a ! i her rate of interest might be obtainable for a icw loan. Alortgagors are given bv Clause !> (lie right to repay priiu-ioal on the date of renewal or oxexlensi: n of a loan upon giving three moil 11 is’ notice to the mortgagee. Clause 111 prescribes that the rate of interest mi an rxtenilod morlgagei shall nut, lie less than (it per cent. The whole of the elaborate series of clauses providing for notice of extension of a mortgage being given to the Public Trustee all 1 of refei-eiiee -of objections to land boards have been deleted. DEPOSIT PAYMENTS.

The deposits seel ion of the Bill has not boon so materially modified. The committee has amended the repayment provisions to provide that from the commencement of the Act interest shall be paid on .extended deposits at; the rate of (if per rent, and that 111 per rout, repayments in ease of.loans under i£IUK) shall bo made in the first week of .July anil October 1922, the balance being repaid on December 3lsl. 1922. Repayment provisions in respect of deposits over £l()l!<> provide for instalments of 71 per cent, during the first weeks of duly anil October. 1922. anil January and April, 1923, the ha la-nee being payable on dune 31 Itli 1923. The right of a Un rower to repay in accordance with the terms of the contract is not affected. REIIOR ROWING.

A clause provides that every borrower v liq bolds money on contract deposit under the terms of this Act and who receives any moneys upon any contract of deposit after the commencement of this Act shall apply all money so| received in repayment of money payable unde/ the terms of such first mentionoil contract and not otherwise, until all moneys so payable have been repaid. Every incorporated company which is a borrower and bolds money under contract deposit in terms of this Art, anil which issued debentures at the commencement of this Act (other than mortgage debentures to secure its current account with its bankers) .shall apply all money so received in repayment of moneys so payable under the terms of the contract of deposit and not otherwise until all moneys so payable have been repaid. Every borrower who applies any money in contravention of this section is liable to a fine of £IOO on summary conviction for each such application.

The Governor-General is empowered • alto regulations for giving effect, to those provisions.