MORTGAGORS' RELIEF

Ashburton Guardian, Volume 53, Issue 273, 30 August 1933, Page 2

MORTGAGORS' RELIEF

COMMENT ON THE LAW. INTERPRETATION OF A WILL. (Per Piess Association}. AUCKLAND, August 29. A question stated to be of considerable importance to trustees came before Mr Justice Herdman, who was asked to interpret the will of Jane Hoey, who died in 1931, leaving a will made in 1927,. It was stated that the estate showed a- nominal surplus of £6311. The only asset was a mortgage on which £6954 was owed by a son of the testatrix. Last September the North Auckland Mortgagors' Commission considered giving relief to the mortgagor, and one of its suggestions was that the trustees should reduce the principal sum from £6OOO to £3385. The Commission considered that the property was not worth more than £2OOO to-day, although the father of the testatrix had paid £7OOO for it. Counsel said the question whether power existed to reduce a principal sum was of great importance to trustees.

The judge remarked that he did not know of any such power that tne court had.

"I am not going to decide anyr-hir.g unnecessary bepause of this newfangled legislation," said the jndge, referring to the Mortgagors Belier Act. The position seemed to be L:bat> the mortgagor was bankrupt raid it the commission had no power to reduce the principal than £ho trustees should exercise their powers to sell. Argument is proceeding.