FINAL WEEKS.

Auckland Star, Volume LXVII, Issue 4, 6 January 1937, Page 9

FINAL WEEKS.

MORTGAGE FORMS. RELIEF APPLICATIONS. REQUIREMENTS OF NEW LAW. POOR RESPONSE SO PAR. There has been only a meagre response so far in Auckland to the advice, of the Government to "apply immediately" for protection under the Mortgage Adjustment Act, and persons owing money on mortgage or liable as guarantors of mortgages have only three more weeks in which to prepare and lodge their applications. Although many thousands of forms have been issued in the Auckland district, the applications filed with the clerk of the Court of Review, at the Supreme Court, at present number only 230, received over the past two months. It is expected at the Court that a lar« e increase will be recorded next week after the reopening of legal offices, and that a flood of applications will pour in during the latter half of the month. I o facilitate the handling of this volume of new business, intending applicants arc advised that there are, in the Auckland Province, thirteen courts of review, and that applications should be filed at the nearest office. The various courts are at Kaitaia, Kaikohe, rci, Dargaville, Auckland, Pukekolie, Thames, Te Aroha, Hamilton. Te Kuiti' Rotorua, Taumarunui and Whakatane. Warnings to Guarantors. It is possible that the number of applications received by the courts may cxceed the number of properties involved, the reason bein-r that sales and resales of properties have formed a fhnin of liability. Each person conceined will require to take action to protect Ins individual interest; that is if the mortgagee has given notice that the full powers conferred under the percovenant of a mortgage may be exercised. The large lending institutions, trustees, banks, insurance companies, building societies and all companies engaged in mortgage financing have naturally protected themselves by complving with the requirements of the Act.'and probably few guarantors #f mortgages have been overlooked. On the other hand, many people who may have forgotten or been unaware of their liability in connection with mortgages have been reminded of obligations contracted many years ago. All this has naturally involved a searching examination of mortgage documents and heavy correspondence. Volume of Registered Letters. During December notifications to guarantors were issued in thousands, in nearly all instances by registered letter, and the postal authorities report abnormal business in registrations for this period. At one of the large Auckland offices the number of registered letters in the latter part of December was a thousand a day above the usual figure. The letters have been posted in batches of dozens or hundreds and have been wMely distributed. In some districts one has been delivered at nearly every house. The warnings thus issued • protect the lender. The borrower, or guarantor, still has bis duty to fulfil, and it is in this regard that the Government has been most solicitous for the interests of the people. It has particularly emphasised that the closing date for making applications is January 31. "If your mortgage is 'running on' after the expiry of the date of repayment originally agreed upon, and you have been relying on the protection of previous legislation to prevent its being called up, note that that legislation is now repealed." So runs a statement of the Minister. "Moneys owing under such mortgages may shortly be called up unless application be made under the new Act. Do' not delay your application to the last minute." It is the aim of the Government to have a Dominion-wide revision and final readjustment of mortgage contracts carried out during the present year, and thus free the country of the recurring disturbance of mortgage legislation. The work will be done by adjustment commissions, of which 14 have been appointed, and if more commissions are required the Government will provide the necessary number. Purpose of Investigation. The purpose Of this exhaustive investigation of the mortgage position has been briefly 'stated as (1) to retain farmers in the use and occupation of their farms as efficient producers, and to make such adjustments of their liabilities as are necessary to bring them into line with the value of their properties; (2) to retain people in theh- homes and adjust their liabilities to the value of the properties; (3) to enable people who are neither farmers nor home applicants to retain possession of their mortgaged or leasehold properties and obtain any necessary readjustment of their mortgage or leasehold liabilities. One of the difficulties of the adjustment commissions will be to interpret the provision, in regard to farmer applicants, which states "that the total amount and terms of payment of all their liabilities (secured or unsecured) shall be such that, after allowing for all normal current expenditure and providing for the maintenance of themselves and their families in a reasonable standard of comfort, the applicants may reasonably be expected to mee"E their liabilities as they become due, either out of their own moneys or by borrowing on reasonable terms." The corresponding clause relating to home and other applicants omits the part about "normal current expenditure" and the maintenance of the families in a reasonable standard of comfort.