LEGAL QUESTION

Hokitika Guardian, 29 August 1933, Page 6

LEGAL QUESTION

IMPORTANT TO TRUSTEES. [Per Press Association Copyright.) AUCKLAND, August 2D. A question, stated to be of consider.able -importance to the v , trustees, came before Justice Herdman, who was asked to interpret the will df Jane Holy, who died in 1931, leaving a will made in 1927. It was stated tlie estate showed a nominal surplus of £6,311. The only asset was a mortgage ,on which £6954 was owed by the son of testatrix. Last September, the north Auckland mortgagors commission considered relief to the mortgagor and one of its suggestions was that the trustees should reduce the Principal sum from £6OOO to £3385. The commission considered the property was not worth more than £2,090 to-day, although deceased’s father had paid £7OOO for it. Counsel said the question whether power existed to reduce the principal sum was of great importance to the* trustees.

The judge remarked that he did not know of any such power that the Court had. I am not going to decide .anything unnecessary, because .of this new fangled legislation said the. judge, referring to the Mortgagors Relief Act. The position seemed to be that the mortgagor was bankrupt, and if the commission had no power to reduce "the principal then the trustees •should exercise their powers to sell. The .argument is proceeding.