MORTGAGES

Hokitika Guardian, 20 March 1931, Page 5

MORTGAGES

RELIEF BILL BEFORE HOUSE OUTLINE OF PROVISIONS. WELLINGTON. March 18. The Mortgagors’ Relief Bill, des- > crihed as an Act to giant relief to mor- ■ gagors in certain cases by th e posttjum'iueni cl the powers . of sale by mortgagees on account of th e special etunonAc conditions now prevailing which was introduced by GovernorGeneral’s Message in the House of Representatives to-day, empowers I the Supreme Court to consider measures for relief providing the mortgagor makes application to the Court within one month of the date upon winch the mortgagee has served him with notice of intention to exercise h.'s powers of sale, recession, or entry into possession of the property, or interest over which the security is held. In determining whether relief shall be granted the Court may consider the effect of the continuance of the mortgage upon the security, the inability of the mortgagor to redeem the property either with his own money or money borrowed at a reasonable rute of interest, the conduct of the inert-. gagor in relation to any breaches:of the mortgage covenant, the possibility of hardship to either Party, the extent to vvlucii the mortgagor’s default has been caused by the economic conditions of the country and"wheth or any relief grunted will enable the mortgagor to meet his liabilities within a reasonable time. Having regard to these circumstances the Court may order, for not more than 12 months, the suspension of the foreclosure powers of the mortgagee, although the mortgagee may apply for an alteration of the order within the specified period should the terms he broken by the ,. ho «ord,er may be extended from time to time as the Court thinks fit for periods not exceeding 12 months, and the Court may alter the terms of the order in any way, as dictated by the merits of fh e case.

NO RIGHT, OF. APPEAL. Applications for relief may be made to,and. heard before, a Judge in Cham bers, and neither . Party shall have .the right of appeal against an order made under the Act. When the unpaid principal under any mortgage does not exceed £SOO a Magistrate is empowered t 0 make orders for relief. Similarly no appeal may be made against trie Magistrate’s decision. : By Order-in-'Council I the GovernorGcnercl may bring . within the provisions of the Act all leases of land with compulsory or' optional p urchaslna clauses, the Supreme Court receiving full power and jurisdiction to adjust these agreements ns is granted in the case of mortgages to the Crown, included in the operation of the Act, which will be brought into force by the issue of a proclamation and virtually repealed by n similar procedure. Saving provisions are made, however, that following the cessation of the operation of the Act by proclamation all orders made under the Act shall endure and all proceedings may be taken and jurisdiction exercised under these orders.

In addition to securities for loans granted under the Repatriation Act, 1918, and mortgages executed after the passing of this Act, which arc specifically exempt, the Governor-Gen-eral is empowered to exempt by Ot\l-er-in-Council any other class of mortgage.

For the purpose of definition a mortgage includes any deed, memorandum of mortgage, instrument, ■or agreement where security is granted over land o,r chattels, and includes agreements where security is given on life insurance or annuities and endowment policies, and will affect the unpaid balance on agreements of sale and purchases of land.