EXTENSION OF MORTGAGES.

Taranaki Daily News, 24 September 1921, Page 5

EXTENSION OF MORTGAGES.

NEW ARRANGEMENTS /MADE 1 . PROVISIONS GF THE BILL. (By Wire—Parliamentary Reporter.) Wellington, Last Night. The Mortgages and Deposits Extension Bill, which was introduced in the House of Representatives to-day, folJows (the 'lines ' that were dndiicfexed. some time ago by the Acting-Minister of Finance. It repeals the Mortgages Extension Acts of 1919 and 1921, and substitutes a new system of extension, with a limifiatiou of the term (and provision for the repayment of the principal by instalments. The Bill is lengthy and complex. The provisions apply to all mortgages, except trade mortgages and securities for loans under the Repatriation Act and mortgages executed after October 24. 1919. They apply, also, with the neces. sary modifications, to agreements for the sale and purchase of land made before October 24, 1919, and to leases of land containing an optional or compulsory purchasing clause granted before that date. A lease of land containing a purchasing clause shall be dealt with as if the lessor w r ere the mortgagee and the lessee were the mortgagor of the land, and as if the rent received by the lease were interest, and the agreed purchase money were the principal money secured. The Bill provides that a mortgagee shall not demand payment of the principal sum before June 30, 1922. If the principal sum is already due or falls due before June 30, 1925, the mortgagor may give notice to the Public Trustee before March 31, 1922, that he desires the mortgage extended. The mortgagee will be notified, by the Public Trustee, and if he does not lodge an objection, the mortgage will be extended to June 30, 1925, on certain conditions. If the mortgagee objects, the case will be referred to the Land Board for the district. The Land Board, after considering the circumstances, may allow the objection, disallow it or grant an extension for a reduced term or make special provision for repayments by instalments. The conditions of the extension, if no appeal is made by the mortgagee, are that the mortgagor shall pay interest at 6J per c'.ni., unless the interest provided by the mortgage exceeds that amount, and that the mortgagor shall pay 5 per cent, off the principal in the year 1923 and 10 per cent, off the principal in each of the succeeding years, the payments to be made by equal half-yearly instalments, j The second part of the Bill deals with money held on deposit. If the principal sum held on deposit dees not exceed £l9OO tne due date is extended to December 31, 1922, and if the sum exceeds £lOOO the due date is extended to June 30, 1923. The rate of interest is to be 61 per cent., and unless the lender desires otherwise, repayment is to be made by instalments. If the total sum does not exceed £lOOO the instalments will be 10 per cent, in the months of January, April, July and October, 1922, and the balance on December 31, 1*922. If the sum exceeds £lOOO, 7| per cent, will be paid in January, April, July and October, 1922, and January and April, 1923, and the . bauuice ob June 30.