MORTGAGES FINAL EXTENSION.

Hokitika Guardian, 18 July 1924, Page 3

MORTGAGES FINAL EXTENSION.

WELLINGTON. July Hi

T he Government measure to provide fur iln- Idling of the moratorium is the .)l.iu tgages P inal Extension Bill, in charge of the I’linii- Minister. It repeals all existing iimriiLi>rimu legislation. and unless leave is granted li.v a Judge of the Sii| ivme (unit, protects mortgages to which the moratorium applies till December 31. 1921. Any further extension must be secured on application to a Judge in Chambers or to a registrar of the Supreme Court. The Mill will not a| ply to trade mortgages, securities granted under Uio Mepatriat ion Act or mortgages executed on or after t li-tobcr 21. 1919. I he Bill, however, does apply to agreements tor sale and purchase ol laud made before October 21, 1919, with the exception of (a) any agreement for sale anil purchase of land enteiod into pursuant to the Workers’ Dwellings Act. 1910. (b> any agreement mr sale and purchase of a leasehold interest in land unless freehold land is t-nmpri.scd with the leasehold in the agreement.

BMOCEIHBE FOB. EXTENSION

Mortgagors requiring extension beyond December 31, 192-1. must before that date give notice ot their intention 1.,, apply for an extension order, which if granted, shall not apply longer than December 31. 1920. In determining whether any extension order shall he made the Court may take into consideration :

(a) The effect oi' continual tin

mortgage upon the security thcri-ny atforded to the mortgagee. (bl Inability of the mortgagor to redeem the property either from his own moneys or by hot rowing at a reasonable rate of interest. (e) Conduct of tbo mortgagor in ! sficct of any bleaches by him of the covenants of mortgage.

(di Any hardship that would ho iullii ted on the mortgagee hy continuance of the mortgage or upon the mortgagor bv the ontorcemont thereof.

In granting an extension the Court may Six several dates for part repayment of the principal moneys. There is no appeal against the Judge’s decision. If the date fixed for repayment has passed and no agreement has been made for renewal nl the mortgage the mortgagor may repay the principal on three months' notice. Where the r-tc

of interest in respect of mortgages

which the Act applies is more than (H per cent tlii- shall be maintained, but in i as.-s where interest is less than IB it shall be brought up to this amount. Where a mortgage to which this Act applies, or an agreement in writing or other document executed subsequent to Mich mortgage provides a reduced rate ol interest on punctual payment such rcduied rate shall far the purposes ol this section lie deemed to he the rate provided. Trustee- are empowered to arrange renewals of mortgage lor terms not exceeding five years at not less than G per cent., notwithstanding that a higher rate of interest might be obtainable for a new loan. INST ADM ENT MORTGAGES.

Whereby the terms uf a mortgage to which this Aft applies payment of lntth principal’and interest is provided hv a series of regular instalments, upon completion of which the principal debt becomes extinguished, each such instalment shall for the purposes only of this Act lie deemed to consist wholly of interest.

All the provisions of the Act ore to applv to the Crown.