8.—9.

Meetings op Investment Board. 92. The Public Trust Office Investment Board held forty-nine meetings during the year, and dealt with 1,614 applications in respect of new loans, renewals of mortgages, partial releases, and allocation of mortgages. Land Settlement Finance Act, 1909. 93. The working of this Act, which is intended to facilitate the closer settlement of land in the Dominion, was fully set out in the last annual report. During the past year the mortgagors have satisfactorily maintained the payment of their instalments. As at the 31st March, 1925, only sixteen mortgagors were in arrear with their payments, the total amount outstanding being £1,739. The reduction in arrears effected during the year was £213. Six mortgagors are responsible for the bulk of the current arrears, their total indebtedness amounting to £1,26(5. In pursuance of the Public Trustee's general policy towards mortgagors during the prevailing financial stringency, every reasonable concession has been afforded to these settlers. Special attention has also been given to the redemption of debentures issued by the various associations. Of the debentures held in New Zealand, thirty-one have been redeemed during the period under review. Redemption in all cases was effected at par, and the total capital payments for this purpose amounted to £14,389. Upwards of £65,000 is available for redemption of debentures issued in London, but action in this regard has been temporarily suspended owing to the ruling prices of securities. The following figures show the volume of work performed by the Public Trustee as agent of these associations : — Number of associations . . . . . . . . 44 Number of mortgagors . . . . . . .. 208 Amounts received during year as interest and repayments of principal .. . . . . .. .. £36,464 Amounts held in Common Fund for ultimate redemption of debentures .. .. .. .. £104,216 Amount of mortgages outstanding . . . . . . £337,720 Interest paid on debentures during year . . . . £22,099 Collection oe Overdue Interest. 94. With the increase in the investments of the Office, the work involved in the collection of the overdue interest has become increasingly heavy. During the year this important matter has continued to receive close attention, and it is gratifying to report that the amount of arrears on Common Fund mortgages at the close of the financial year is less by 25 per cent, than the corresponding figures of the previous year. The policy of the Office is to extend every possible consideration to mortgagors, consistent with the Public Trustee's obligations to beneficiaries in estates under his administration. Applications for extensions of time in which to pay interest oil mortgages have been very numerous, but in most cases the postponement is for a short period only, to enable proceeds from sale of farm-produce to be received. It is the experience of the Office that the majority of the mortgagors who are granted extensions of time pay the amount due on the extended date as agreed. Each case is considered on its merits, and the Branch officers, having in many cases a personal knowledge of the circumstances of the mortgagors, are able to make valuable recommendations, ensuring a course of action which is equitable alike to mortgagor and mortgagee. During the past year there have been indications that unfair advantage has in some cases been taken of the Public Trustee's policy of granting extensions of time for payment of interest. To ensure that mortgagors made every effort to meet their obligations, and that the rights of the Public Trustee were not prejudiced in favour of other creditors, it became necessary to adopt the policy of demanding payment at the penal rate as provided by the mortgage-deeds. Although these demands are made as a matter of course, payment at the penal rate is never insisted on where the mortgagor is able to show that lie is doing his best to meet his obligations.

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