THE MORATORIUM.

Auckland Star, Volume LII, Issue 303, 21 December 1921, Page 7

THE MORATORIUM.

AMENDING BILL'S PROGRESS. (By Telegraph.—Press Association.) WELLINGTON, Tuesday. When the Mortgages and Deposits Extension Bill was before the Legislative Council in committee to-day, the Hon. Mr. Izard said that the 1010 Act was ;i most excellent one, which had stood the test of time. He objected to all classes of people who accepted deposits being lumped together in the bill. Deposit companies proper .should be removed from the bill, for they were quite able to pay their way. The Hon. Mr. Campbell eaid there had been less litigation under the moratorium Acts than had been the case with most legislation of recent years. He suggested the percentage payable by deposit companies should be reduced to 5 per cent. Sir F. D. Bell, in his reply, said that the questions raised by Mr. Izard regarding calls made on shareholders of deposit companies would be considered by thiGovernment. The bill was committed nnd clause 10, dealing with the service of notice on the mortgagor, or mortgagee was amended to provide that ser vise upon mortgagors who executed lue mortgage, and also upon such other person as appears by duly registered dee-1 or instrument to be the owner of tinproperty subject to mortgage shall h: deemed sufficient service. Other amendments are in part ii of tlie bill, which deals with deposits. In tie clause prescribing conditions of extension words have 'been inserted to make it plain that the borrower must clear off interest due up to the time of the commencement of the Act, and then commence payment of interest at 0A per vstit or such higher rate as has been contracted for. .Sir Francis Bell stated that in cases where the contract for a lower rate existed nt the commencement of the Act the borrower could not take advantage of that I contract, but must pay tU per cent. Tli« I Council altered the provision as to r;- ,- payment of deposits by instalment.-. Where the total sum does not exceed : £1000 instalments a'e to be paid as follows: 5 per cent on April 1, 1922; .1 per cent on July 1, 1922; and 10 per cant on October I," 1922. Where the sum exceede £1000 four instalments of 5 per cent each are to be paid on July 1 and October 1. 1922, and January 1 and April 1, 1020. The bill passed the Council. I