FARM MORTGAGES

Press, Volume LXXI, Issue 21429, 22 March 1935, Page 10

FARM MORTGAGES

* EFFECTS OF NEW BILL DANCER TO VOLUNTARY i AGREEMENTS (SPKCIALI.V WRITTEN FOR TUB fßEss.l I By "X.'M Canterbury led the way in voluntary agreements between mortgagor and mortgagee, and many hundreds, probably thousands, of pooling agreements on the lines initiated by the Canterbury Chamber of Commerce are now in force throughout the Dominion. In Canterbury, at any rate, it is probable that more than 80 per cent, of these have never been before the Adjustment Commission, and are the result of private negotiation. In most cases the terms are similar to what the commission would have recommended, and the result has been reached with the minimum of expense, time, and friction.

It is obvious that voluntary arrangements as a rule will be free from the bitterness which in many cases attends a settlement through an outside tribunal, and will not involve that distrust of rural securities on the part of investors which is one of the, most serious objections to compulsory interference with the contractual rights, and which threatens to undermine the whole system of rural finance in New Zealand for the future.

Mr Coates, in 'his recent visit to Canterbury, expressed the warmest approval of these voluntary agreements, and stated that the object of the new bill would be to foster the principle of voluntary settlements If the Rural Mortgagors Final Adjustment Bill becomes law, it is certain that in many cases either the mortgagor, with a view to getting the principal reduced, or the mortgagee, with a view eventually to being in a position to enforce his mortgage, will give notice; and such notice must be given within 12 months of the commencement of the act. On the filing of notice voluntary agreements and orders of the court automatically come to an end.