A QUESTION OF PRECEDENCE.

Shannon News, 20 August 1926, Page 4

A QUESTION OF PRECEDENCE.

POWER BOARD OR MORTGAGEE? According to the provisions contained in the Electric Power Board’s Act of 1920, the installation of any electrical apparatus in a building is chargeable against the estate of the mortgagee or owner in the event of the occupier’s failure to pay for same. The position in regard to unpaid rates is identical. On Tuesday last Mr Andrew Guy, of Palmerston North, and owner of certain land at Koputaroa, appeared before the Horowhenua Power Board to ask for some consideration in view of the fact that a sum of £lO6 % id, owed by the now bankrupt mortgagor', was ‘loaded on tlie Koputaroa property. The amount claimed by the Board represented the installation of a milking plant, pump, fittings,; etc. Mr Guy said a pump and motoir, valued at £24 TOs 6d, should be struck out as these were not on the property. His 6on was now using the property as a sheep farm and the milking plant was not required. The mortgagor had taken the installation on the instalment plan and when he got in arrears the Board had failed . to advise the owner of the property as to the circumstances. Had such , notice been given the ari’eans would have been collected. It was news to the speaker that power installations i held priority over tile lien held by the mortgagee. The account for the pump and motor at Teast, should be cut out. The Board secretary said the only thihg not there was a J h.p. motor, valued at £8 10s. Mr Guy: The extravagance of the whole thing! The Board puts 11 points in the hoiise and asks for £5 only: down. Had the instalments been collected when due it would have been alright, and if they ware not paid, ft he mortgagee' should have t been advised, and he would see payment made. The Chairman: Possibly, Mr Guy, yotu have some complaint, hut it is impossible for us to take our 2000 odd consumers and find out the mortgagees’ names. •Mr Yincent: In the event of the property being sold, would not the present installation be sold as an asset with the farm? Mr Guy: Yes, but my son is not running it as a dairy farm—it is being used as sheep country. ! After Mr Guy had withdrawn, from, the meeting members of the Board discussed the circumstances surrounding the case, it being finally decided that the Board would be willing to take back the motor, at valuation, but the balance of the account stands.