AMENDING BILL

Rotorua Morning Post, Volume 2, Issue 388, 24 November 1932, Page 5

AMENDING BILL

("Post'1 Special Commissioner).

MORTbAGEE^ RELIEF GREATER PROTECTION GIVEN THOSE SEEKING RELIEF GENERAL PROVISIONS

Wellington, Wednesday. Special restoratsoni to mortga^ors cf the protection .given u^ider the Mortgagors Relief Act which has heen lost either by, yariation of the mortgage or by the execution of a new mortgage in jplace of one that was w;ithin the scope.bf the Act, is provided in thfe new Government measure, the Mortgagors and Tenants Further Relief Bill, which was read a first time in the House to-day. "This is the most important prdvision in the Bill," said the Hon. J. G. Cobbe, Minister of Justice, when explaining the provisions to the House. He added that the existing ' law had no application tp mortgages executed after April 17, 1933^- the date of the passing of the main Act, or to mortgages which, having been executed before that date had since been varied hy the parties. . The clause in question provided for the extension of the application of the Act to mortgages which being. in existenee at the time and subject to the principal Act, had been varied either before or after the passing of the legislation now before the House. or which had, during a similar period, been executed in replacement ... . or substantial replacement of the mortgages that had been at any time •within the application of the prinpical ActIf any question arose as to whether a mortgage was eligible for relief the matter would be determined by..the court. The objective was to protect mortgagors who, in expectation of ,an " improvement in prices, had. foolishiy agreed to a variation of their mortgage, and had executed a fresh pne in replacement. Great hardship had arisen in -some cases and new legislation sought to relieve those who suffered under the main Act. . . The guarantor of a mortgage enjoyed the same protection as the mortgagor himself. It had been. represented, ' however, that there were persons who, although for all practical purposes were guarantors of :a mortgage. debt, were not teehnically so, and the Bill extended the protection of former legislation to persons in that position. Well Intentioned Bill The idea was to help those who, with the best intention, had guaranteed returned soldiers and others in order to get them on the land. Some of these people had now been hit and the measure would give them better protection.. By the. issue of an Order-in-Couneil the GovernorGeneral has power to exclude . from the operation of the main- Act any speeified mortgages or -classes and O.K. them. Under the new Bill.. he will have express authority to revoke any such orders instead of relying on implied authority to do so. Although under the main Act the mortgagee. is prevented from exercising,. certain powers he will be given an opportunjty of applying to the court for-re-li'ef. A mortgagee is not prevented where an incorporated company is joncerned from applying to .the court for the compulsory winding up of a company. Terms of Relief - • Under the new Bill a mortgagee will not hc able to file a petition for winding up except after notice. Ile will also authorise the court to extend the period for which relief may be granted under the A.ct. • At present a relief order expires 'unless renewed twelve months after date-of the mortgagors application. • Where proceedings are protracted, the Minister pointed out, it might happen that an order was due to expire almosfc as soon as it was made. The purpose of tlie relief clause was to aliow the court to fix the duration of tlie order by reference to the date when it, and the application made for it, will be considered. To save repeated applications to courts for an order restraining a mortgagee from exercising his powers the courfc should have discretion to fix the p&riod of restraint for two years frqm the date on which the order was made. Magsstrates to Act The purpose of another clause is to allow parties by written agreement to accept the decision of a stipendiary magistrate in applications which would otherwise be beyond his jurisdiction. The Minister explained this clause was designed to save heavy travelling expenses on the parts of applicants. It affected applications where the unpaid principal exceeded £2000, which was at present the limit of a stipendiary magistrate's jurisdiction. A similar provision in incorporated in respeet of applications for reli.ef by lessees, notwithstanding the annual reserved rent exceeds £210. The stoek mortgagee is proceeding as between mortgagor and mortgagee of land- In any such case the court and adjustment eommissions are directed to consider whether or not the stock .mortgagee has shown proper consideration of the interests of the mortgagor and of the mortgagee of the lands concerned. Of course there are those mortgagors made. mainly or substantially for agricultural, pastoral or other farming purposes. t Mr. Walter Nash (Labour, Hutt), asked if time payments were included in the provision of the Biljs. Replying to discussion the Minister said no provision was made for debling' with hire purchase. The Bill was read a first time.