THE MORATORIUM.

Taranaki Daily News, 1 August 1921, Page 5

THE MORATORIUM.

NEW LEGISLATION OUTLINED. BANK DEPOSITS SAFEGUARDED. EXTENSIONS OF MORTGAGES. By Telegraph —Press Association. Wellington, July 30. Regarding what it is proposed should be done with the moratorium on deposits and mortgages, Sir Francis Bell stated to-day that legislation on the subject is being prepared under his direction, but has not yet been submitted for the consideration of Cabinet. “With regard to deposits held by companies and municipal corporations it is. I think, clear that provision must be made for an extension of the period when deposits can again be made free of restriction,” added Sir Francis Beil. “Under no circumstances will any limitation be imposed in regard to deposits, which are not now subject io restriction. No depositor in any bank lias been prevented from claiming his deposit at the duo date and no depositor with a bank will be in any manner hampered by the coming legislation. More especially doos that principle apply to depositors in the Post Office Savings Bank, where the people’s savings are placed. Neither now nor at any future time will legislation be proposed to Parliament which would in any manner effect the Post Office Savings Bank or people who placed their moneys there. “The position in regard to deposits with companies and municipal corporations is different. It was found nece.>aary last session to limit rights under that class of contract to December 31 next. That date will be extended, but provision will ho made fur the gradual removal of restrictions, requiring corporations ami companies to repay depositors fully by instalments over a further period not later than December 31, 11922. With ri'gard to mortgages I in» tend to propofle tn Cabinet that every mortgagor in the class of mortgage which is within the Mortgages Extension Act who requires an extension of 1 his mortgage should be required to notiIfy the mortgagee of his desire for an ! extension, such notice to specify a term ' not exceeding three yeans for such extension. and to propose to pay a rate of [interest not less than 6J per cent during I the period of the extension. Every , Huch mortgagor will also bo required to record with the Government department ‘ the fact of his giving such notice, with 'a copy thereof. If the mortgagee übijeets either to an extension or to tliQ rate of interest offered the mortgagee may file a summons in the Supreme . Court requiring the mortgagor to sub'stontiate his grounds for the extension [and for the rate of interest proposed. A summons will be summarily deposed of by a Judge in Chamberfl. I propose that a Judge should have power to refer any such ease to a Stipendiary ; Magistrate for devibion. If the mortgagee does not tile an objection then tho notice of the mortgagor will autoI matically take effect, both as io the extension and the rate of interest, and will be. registered by a proper Renistre.r of deeds or a Transfer Office. Jn ! the event of an objection the decision of a Judge or a Magistrate will be registered. This W’ll involve the employment of officials of some department and it, will be necessary to provide for ex- ! penses, which I propose should be proI vided by fees to Im* paid by each mortgagor when filing a copy of the notice. ' The fee io be a *mall percentage upon ! the capital sum secured by mortgag*. i The mortgagor who is flecking the privilege must pay part of the cost of the machinery to eriabii- him to have that privilege assured him.”