FURTHER RELIEF FOR MORTGAGORS

Rotorua Morning Post, Volume 1, Issue 175, 17 March 1932, Page 5

FURTHER RELIEF FOR MORTGAGORS

("Post" Special Commissioner)

bill introduced

borrqwers 1way ini tiate applicatlons to court LESSEES ALSO INCLUDED

- - WELLINGTON, last night. Exlensive alteratioris iii ih'p law relating ^to mdrtgage relief ;are proposed in the IVIortgagbrs and Tenaiits Relief Bill', whieh "lvias introduced in the 'House of Representatives by GovernorGeneral's message to-night. . The provisions of fhe m^in Act are to be made tp apply to all moytgagprs instead of as previously, being restricted to farm land. Crown .mortgages are also brought within , the scope of the Legislation, Authority is also given for the granting - of relief to- lessees by way of remission of interest or rent. . , » .. In an expjanatio.n pf t^he Bill, the Prime Minister, the Rt. Hon. G..W, Forbe^, said the Gevernment would talke stqps to ensure. that. the -provisions of the Legislation w;ere not anticipated by mortgagees. Lessees. were included under tbe provisions of tbe Bill, and provision was. also made i for reviewing the personal covenant in mortgages of land. The Bill was to be read with the Mortgagor Relief Act as a whole, and the second clause empowered a mortgagor fo> make appli'cation to the Court for relief,. although his mortgagee had not given notice in accordance with tbe provisions of the ppincipal Act to exercise his powers of sale, .etc. Delay Must be Reasonahle

Delay by a mortgagor in making application was to be allowable only on „a reasonable excuse. Succ6s§ive applications for relief might be made to the Court by the mortgagor^ but after tbe first, others may be made only by leave of the Court. The original legislation fipplied.to farm lands, said Mr. Forbes, but now it was extended to include all cjasses of mortgages. In the case where an application was made by a_ mortgagor under a table mortgage, the Court, in addition to, or in lieu of, any other relief might extend tbe term.of the mortgage by any period not exceeding two years, and might postpone for a similar period the due date for payment of instalments of priiicipal and interest due or comrng due at tbe date of the Court order.. The Court might impose such conditions as it thought fit in extending the term of the mortgage. In cases where orders were not made by the Court, any mortgagee under a table mortgage, ineluding State Departments, might agree, on the application of the mortgagor, to any extension of a mortgage, or the postponement of the payment of prineipal and interest, that could have been ordered.by the Court, in whieh case the terms are to be agreed upon by both parties. Personal Covenant

Regarding the personal covenant in mortgages of land, the Bill states that on the application of any mortgagor of any estate or interest in land for relief, the Court, in addition to its powers of granting relief, may postpone for any period it thinks fitr the right of the mortgagee to sue for, or recover as a debt, from the mortgagor the principle or any part of the estate, or the interest payable under the mortgage, and may make an order determining any such right in respect of either the whole or portion of the money concerned. Such an order made by the Court, however, will not extinguish the debt or affect the right of the mortgagee or any other person to prove the debt in the case of the bankruptcy of the mortgagor, or to recover the money from any other person other than the mortgagor. Application under this section of the legislation may be made either before or after the mortgagee has exercised any powers of sale or other disposition of the property. Under this section, the mortgagor and the mortgagee may be persons wliose relationr ship has terminated either before or after. the passing of the legislation. . The Supreme . Court is the only body that can make orders in respect of the personal covenant. Relief for Lessees

In the poi'tion oi the Bill dealmg with lessees, any lessee may make application to the Court for relief and relief may be given by the remission or reduction of rent. Applicants must specify whether they want a reduction of rent for the remainder of the term of the lease where it does not exeeed two years or for a term of two years where the unexpirej portion of the lease is longer. The Court is empowered to give such relief as it thinks fit, and the procedure of the application is as nearly as possible the same as 'in respect of a mortgage. When the lessor is notified of the lessee's appeal, he cannot seize or sell any property by way of distress and may not exercise any power to re-enter on land. Powers can be exercised only hy .authority of the Court. Where the annual rent is not above £104 per annum a Magistrate may exercise the power of the Court, and the Supreme Court will deal with any application in excess of that figure. Further relief is given to mortgagors by a clause that prevents mortgagees from issuing a judgment summons without the leave of the Court. The period within whieh a mortgagor may apply for relief in respect of chattels is extended from seven days to fourteen days. Any order for a reduction of the late of interest under the Mortgagors' Relief Amendment Act, 1931, may be for a limited period less than the full term of the mortgage, but not exceeding in any case two years. Applications to the Court for relief, both from mortgagors and lessees, are to be referred to can adjustment eommissipn, unless the parties concerned otherwise agree. If the proceedings of Court or commission are made vexations by any party, costs made. -yexatious by any party, costs concerned. r . . . • Labour Disappointed Disappointment that the Bill did not make statuory provision for reduction of interest and rent was expressed by Labour -menibei's after the Bill had been outlined. "What is proposed," said the Lead-

er of the Opposition, Mr. H. E. Holland, "is to a very great extent an improvement on the existing legislation, but I am wholly disappointed in the proposals because there is such a wide difference between the method of the Government of dealing with the wages of the working man and with the interest collected by mortgagees and money lenders generally." He said that what was wanted was a statutory reduction of the interest rate and rent to the man who was being threatened with eviction and to the farmer who was being threatened with foreclosure. It was not much satisfaction to be told that he could have a right to move the Court, providing he could find the legal fees neeessary for that particular- purpose. The Prime Minister said that thousands of properties would be brought • under the Bill, whieh were at present not included. The Bill under discussion was not the place to bring down provisions in respect of interest and rent or to make statutory reductions. There had been no statutory reductions in wages. Other measures would be coming down to deal with reductions and there would be ample opportunity to discuss tbem. "I think that by the time the session is over," said Mr. Forbes, "members will agree that quite a lot of matters in whieh they are interested to-night, will have been tackled by the House. "Wa do not -yant . to . destroy securities to such an extent that people will not lend money. I know of the effect of measures of this sort, but these are times in whieh we have to take such measures, for while .thqy may prove a discouragement to nuihbers, they are the means of affording relief. Members may rest assured'thaf other measures will he brought down to make reductions."