REVIEW COURT.

Auckland Star, Volume LXVI, Issue 99, 29 April 1935, Page 7

REVIEW COURT.

RURAL MORTGAGES.

MEMBERS CHOSEN.

MR. JUSTICE JOHNSTON.

LAW OPERATIVE THIS WEEK,

(By Telegraph—Own Correspondent.) WELLINGTON 1 , this day. The acting-Prime Minister, Mr. Ransom, announces that the Court of Review of Rural Mortgages will be constituted as under: — Mr. Justice Johnston. Mr. Ralph S. Chadwick, of Dannevirke. Mr. Alfred Coleman, of Stratford. The two latter are associate members. Mr. Chadwick is chairman of the Whakatu Freezing Company, Hawke s Ray, and he has also been chairman of the Hawke's Bay Adjustment Commission since its inception.

Mr. Coleman, who is a solicitor, lias been chairman of the Mortgage Adjustment Commission in Taranaki. Function of Court. The Rural Mortgagors final Adjustment Act will operate on May 1. Though it is not intended that the assessors should exercise any partisan interest in the decisions, the Government, in niakin" appointments, took care that at least one would possess a practical knowledge of the difficulties of rural mortgagors.

This legislation deals exclusively with mortgage-; upon land used for the cultivation of food products, including the keeping of bees, pigs and poultry, and does not affect securities of any other class. However, it is well understood that the problem of adjusting urban mortgages in line with current economic conditions is under consideration, this being the main question referred by the Minister of Finance to his economic and financial advisers prior to his departure, with the object of preparing proposals for legislation later this'year.

Scope of the Act. As there has been some uncertainty about the relation of the new legislation to that included in the various Mortgagors and Tenants Relief Acts, it should be made clear that the Rural Mortgagors Final Adjustment Act repeals only one provision of the old legislation, namely, the clause limiting its duration to the end of the present year. The result is that arrangements made under the former Act stand good, although it is quite open to either of the parties to secure a reopening of the position by recourse to the later legisla-

tion. Though the Court of Review may not be constituted in time to function on May 1, mortgagors will suffer, no disability because they are given twelve months from May 1> in which to file notice that they intend to take advantage of the new provisions. Mortgagees have a similar right to secure adjustment of a mortgagors liabilities if the latter fails, to take the necessary action.

Explanation of Procedure. It is expected that the legislation will facilitate many more voluntary arrangements, and for this reason the Adjustments Commissions constituted under former legislation will be the first active factors in the position. They have been working under the direction of the Minister of Justice, Mr. J. Cobbe, who will continue to administer the mortgage relief statutes. A careful explanation of the provisions of the new legislation and the procedure to be adopted by mortgagors and mortgagees has been prepared under the Minister's direction, and will no doubt be published at an early date. As the Act comprises 78 clauses and many schedules, occupying nearly 50 pages of the Statute Book, a popular explanation understandable by the layman will be appreciated, though it would be unwise to take action in respect of mortgages without reference to the detailed terms of the Act itself.