EXTENDED MORTGAGES.

Auckland Star, Volume LV, Issue 168, 17 July 1924, Page 8

EXTENDED MORTGAGES.

LIFTING THE MORATORIUM. TERMS OF GOVERNMENT BILL. MINIMUM INTEREST RATE. (By Telegraph-—Special to "Star. 1 ! WELLINGTON, this day. A Government measure to provide for lifting the moratorium is the mortgagees Final Extension Bill, in charge of the Premier. It repeals all existing moratorium legislation, and, unless leave is granted by a judge of the Supreme Court, protects mortgages to which the moratorium applies till December 31, 1924. Any further extension must be secured on application to a judjie in chambers or to a registrar of the Supreme Court. The -bill will not apply to trade mortgages, securities granted under the Repatriation Act, or to mortgages executed on or after the 24th October, 1919. The bill, however, does apply to agreements for the sale or purchase of land made before the 24th of October, 1919, with the exception of (a) any agreement for sale and purchase of land entered into pursuant to the Workers' Dwellings Act. 1910, (b) Any agreement for 6ale and purchase of a leasehold interest in land, unless freehold land is comprised with leasehold in the agreement. Procedure for Extension. Mortgages requiring extension beyond December 31, 1921, must before that date give notice of their intention to apply for an extension order, which, if granted, shall not apply longer than December 31, 1926. In determining whether any extension order ehall be made, tbe Court .may take into con? sideration (a) the effect of continuance of mortgage upon the security thereby afforded' to the mortgagee; (b) the inability of a mortgagor to redeem property either from his own moneys or by borrowing at a reasonable rate of interest; (c) conduct of the mortgagor in Tespect of any breaches by him of corivenants of mortgage; (d) any hardship that would be inflicted on a mortgagee by continuance of a mortgage or upon a mortgagor by enforcement thereof. In granting extension the Court may fix several dates for part repayment of principal moneys. There is no appeal against a judge's decision. If the date fixed for repayment has passed and no agreement has been made for renewal of mortgage, the mortgagor may repay the principal on three months' notice. Where the rate of interest, in respect to mortgages, to which the Act applies, is more than 6i per cent, this shall be maintained, but in cases where interest is less than 6§ per cent, it shall be brought up to this amount. Where a mortgage to which this Act applies, or an agreement in writing, or other document executed subsequent to such mortgage, provides for a reduced rate of interest on punctual payment, such reduced rate shall, for the purposes of this section, be deemed to be the rate provided. Trustees arc empowered to arrange renewals of mortgage for terms not exceding five years at not less than 6 per cent, notwithstanding that higher rate of interest might be obtainable for a hew loan. Instalment Mortgages. Where, by terms of a mortgage to •which this Act applies, payment of both principal and interest is provided by a scries of regular instalments, on completion of which the principal debt becomes extinguished, each such instalment shall, for purposes only of this Act, be deemed to consist wholly of interest. All provisions of the Act are to apply to the Crown.