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Hokitika Guardian, 9 December 1932, Page 4

The purpose of the property Law Ameiiuihenc Bnl riuroauiced m the House to-aay is to confer powers of leasing on mortgagees who are entitled to exercise their powers of sale but ■are unable to hud a pure hater for the mortgaged property at a reasonable price. The Bill comprises only one clause besides the short title. With one addition the clause is in the same form as the clause that was inserted in tiie Property Law Amendment Bill, 1927, and approved by the -Statutes Revision Committee of the Legislative Council. The clause was not proceeded with then as. it was understood that ■objections were raised on behalf of the New Zealaicl Law Society. Those objections, it is believed have now been withdrawn, and' the Government is of the opinion that the Bill will not be in any way contentious. The Bill is based on provisions which have been in force fn England for over 50 years. It empowers a mortgagee in possession unless expressly prohibited by the terms of mortgage—(a) To grant leases of mortgaged lands for not more than seven years at the best rent obtainable, not to be binding on prior encumbrances unless by consent in writing, (b) To surrender any lease granted by' him under the Bill, (c)) To sue any tenants of land transfer laud for rent or for the performance of the covenants of any lease whenever granted, and to exercise all the lessors’ powers thereunder. Similar power already exists in respect of land under the deeds system. The Bill applies to all mortgages, including those already in existence, as otherwise it is stated it would be of little or no value in meeting present conditions. A sub-clause which bos been added to the 1927 draft enables the first mortgagee to exercise the powers conferred by the Bill if he is entitled to possession of the land by reason of the mortgagor’s default without having actually entered into possession. This means that the power of leasing can be exercised by the first mortgagee whenever a power of sale can be exercised. This provision, it is explained, is not expected to cause any practical difficulty, because the mortgagee must be in a position to give the lessee possession before he can expect to arrange a lease, although he may object to enter into possession in advance and then possibly find it impossible either to sell or to lease the property.