MORTGAGES AND DEPOSITS.

Auckland Star, Volume LII, Issue 281, 25 November 1921, Page 6

MORTGAGES AND DEPOSITS.

MORATORIUM LEGISLATION. SUGGESTED AMENDMENTS. • (By Telegraph.—Press Association.) CHRISTCHURCH, Thursday. The Mortgages and Deposits Extension Bill now before Parliament was severely criticised by the Chambers of Commerce Conference to-day. It was resolved to urge upon the Minister of Finance a> number of suggested changes in the WM. The following remit was presented by the Hastings Chamber:—"That the Minister of Finance be requested to withdraw the Mortgages and Deposits Extension Bill as at present drafted, and that the new draft provide for (a) mortgages originally due in 1914, 1915, and 1916 be paid on the corresponding dates in 1922, 1923, and* 1924, provided no such mortgage be repayable before June 30, 1922, and that mortgages which were originally due between January, 1917, and the present date be payable on the corresponding date in 1924; (b) That it is desirable that there be no fixed rate of interest, but the matter be one of mutual arrangement between the mortgagee and mortgagor, and failing agreement the interest to be fixed by a judge or magistrate; (c) That the machinery clauses relating to the Public Trustee and land boards be dropped, and that any question of hardship and the right of the mortgagee to exercise his powers be decided by a judge or magistrate, as provided in the original Act; (d) That with regard to deposits the rate of interest thereon be the bank rate on oveTdraft, and that such interest, in the absence of other agreement, shall be payable haJf-vearly from the date of deposit; (c) That some measure of preference be given to depositors over other ordinary unsecured trade creditors." Mr. A. G. Lunn (Auckland) supported the whole of the remit except clause (c), to which he objected. The first four clauses were adopted, clause (a) bcinjr amended to cover mortgages entered into in 1917. Regarding clause fe), Mr. H. W. Hudson (Auckland) said the proposal would prejudice depositors and defeat the object in view. He was certain no commercial firm would accept deposits on such a basis. He agreed that the depositor should have the right to demand an amendment if he believed security was disappearing. After some discussion the clause was altered to read "That some mesaure of protection be given to depositors." In this form it was adopted It was resolved that the executive, after conferring with the Xew Zealand Law Society, should give effect to the wishes expressed by the conference regarding the Mortgages and Deposits Extension Bill.