COLLATERAL SEOURITY.

Waikato Times, Volume 119, Issue 19904, 5 June 1936, Page 7

COLLATERAL SEOURITY.

LIFE INSURANCE POLICIES. i i AMENDMENTS APPROVED. WELLINGTON, Thursday. During the committee stage or the State Advances Corporation 8111 in the House of Representatives this evening. amendments to the clause providing for the taking out. of a life insurance policy with the Government Life in—surance omce as collateral security for a loan granted by the corporation were introduced. A new sub—clause stipulates that a mortgagor may be required to efl'ect and assign to the corporation a policy providing for payment. in the event of the death of the mortgagor. of the amount then owing under the mortgage. it is provided that any moneys rcceried ivy the corporation under a life insurance policy may he applied in whole or in part in satisfaction of (my moneys. whether principal or interest, owing under the mortgage. Such moneys may also be paid by the cor—poration in whole or in part to the executor or administrator of the estate ot’ the mortgagor. All moneys so paid shall for all pur-[lnst-S be deemed to be moneys paid into the estate of the mortgagor under a pniir) of life insurance of which at the (talc of his death he was the policy holder. it is stipulated that no moneys received by the corporation under a life insurance policy and applied to the estate of the mortgagor shall be deemed to have been received by the corporation in satisfaction of any moneys owing under the mortgage, and that the Security of the corpora—linu Sildll not in any way be affected therein. .\ir it. .\. \\'right (independent—\\‘e|liu,xzinu Suiiurius, moved on allucnt’lment in the clause to make it. possible for a mortgagor to insure with nny npprlnud company. it was not.a fair tiling, Mr \\’riiriit claimed. that the insurance should he restricted to the one iirm, and that :1 State institution .\t‘tcr some further discussion the Prime Minister, Mr Samar, mowd the closure. The nmt‘thimcnt was defeated on a division and the clause retained on the voices. together with the new filiit—(‘itllist‘s introduced by Governor—tirnerai's Message. 1 OUT OF ORDER. ‘ tIUS’i‘iiICSS tZiiElti'l‘ MHVE. I \\ i-liililXti'l'ltN. 'l'iltlrsdiiy. i The "r-mtluss rrrdit" :um'ndmv‘ul iu iihw Stati- ,\tl\'.ii|t't‘,\‘ linrlhu'nlitul iiiii jiuirudlirn-d m the House at" iii-prrsrun itdthvs )t'>i|'i'(itl) l>_\ .\ll' H. ,\imnrv ‘ \lii‘lt'luln|l'yili"u\“ls‘7”V nud rx'jrrii-d I'} itiit‘ ilhnirmnn ut' tjuuimiiti-os. Mr H. ‘.i. illmtird. on tho grounds ttmt it in \ulu-d nu .ipproprinlion, \\iih tiuuiiy ruled out of ot'drr [whiny ily Hit' .\‘pmlu‘r. Itui on different :rulluds. ill 1.. prupnri'nl tii'i'i~inii, lIH‘ Spruiti‘l' iii»:.lliii\\|'il lilt' ltllii'illllllt’lil nu Hil‘ L'l'lilliiltr» illmi it did ilul i'ttiilt' \\iiiiiil iih- m‘np‘ 'm :h.- inn. ' 'l’hu :itllt‘iliiillv‘li‘i in I]lii‘.~liull was in sth.» [l.ll‘Hi’iiiJi‘ rinusc oi the iiill which tbi'vltx in I'i‘ill\)\\‘ the restririious on the imrroniu-‘J power of the I'orpnrm tion, .\ll' .\tmurc sought in imw Inliliiuu‘iiy Kiri-n in ilii‘ itv‘st‘rw‘ i'hnit I\\iil‘u so ili|’~'n*twi il_\ tili‘ tinvm'um' {mineral I'l l.v||llli'il to I:i.nu~.~urh .\iiith ‘.l\ miullt in' du'm-tmt in tlh- rivdit at t: spr‘i'lal Stair _\(i\:il|i'l'\ i.i‘f‘|“|‘i'i'ii"i ‘A-‘i‘uuut. no int-‘rmt tiring rimrgixil'ii [on on: :UCil sunn.