FARM MORTGAGES

Waikato Times, Volume 119, Issue 19883, 12 May 1936, Page 9

FARM MORTGAGES

FARMERS’ UNION REPORT.

EXTENSION OF MACHINERY. A report from :1 sub-committee consisting of Taranakl inemhers. pre—sented to a meeting of the Dominion executive 01‘ the New Zeziiand l-‘nrmors' Union in “rump-Hun. provides an imit— Cation of the News 01‘ farm El's regard—ing mortgage legislation. The feature of the report was that it recommended that the present mortgage machinery should be maintained and extendeJ. The report. contained the following recommendattonsz—

1. That the mortgage adjustment machinery provided under the 'Mort—gugors‘ and Tenants' Relief Act. 1938, for the adjustment 0! mortgages. should be retalncd, and that its provisions should he extended to apply to all mortgages, the committee being of the uplntuu that the great changes In

circumstances which have Lulu-n plum sinrc 1931 rvndcl' It desirable that. the review of mortgage conditions offered under the Act should apply to mortgages generally and not he Con— Ilnetl to those entered into prior to April, 1931.

i 2. That if tiie Rural .\lortgngors' Final Adjustment Act is to be con—tinued, the time should be extended under which morigagors may apply to come under the Act beyond April 30, 1936. because of the doubt and confusion creuted in the minds of mortgngors by the change in governmental policy occasioned by the General election which has influenced many mortgagors to wait for further developments. ~ Equity of Morton”. 3. That the equity of the mortgagor who submits to a stay order and continues to develop his farm [or five years should be put beyond doubt by an amendment of the Act authorising the court to ilx a minimum of 20 per rent it it is satisiled that the mortgagor has faithfully observed the con—ditions laid down by it for the period or the stay order. It. That in the event of the Rural .\lortgagors' Final Adjustment Act be—ing repeated, the Special Court of Review should be retained and be given ithe right. upon the recommendation of the Adjustment Commissioners, to make adjustments of principal as well as of interest; the mortgagee. or course. having the same rights as exist in the 1933 Act. 5. That it such adjustments are made by the court the new mortgage shalt be for a period of ten years, as in the Final Adjustment Act, subject to the mortgagee’s right or appeal at any time against the conduct of the mortgagor. Relief on Merits. “In making these recommendations Ithe committee has been influenced by i the uncertainty which exists in regard to the trend of future legislation," the import stated. "It is sstisiled that ‘when relief is needed each case should be treated on its merits, and that the machinery provided in the 1933 Act should be utilised for this purpose, in view of the experience gained by the commissioners. The special knowledge 01' the Court of ltcvicw should also be made use of. The committee also feels that an im—mediatc adjustment would he prefers able to the delay created by the the years” stay order period and subse—quent the years‘ mortgage, which in ‘the conunittee‘s opinion possesses disadvantages for both mortgagor and ‘mortgageefl'

It‘u'asragreed that a copy of this report should be sent to the Minister of Justice.