SETTLEMENT ON FARMS

Press, Issue 29236, 21 June 1960, Page 11

SETTLEMENT ON FARMS

Adjustment Of Mortgages

(New Zealand Press Association) WELLINGTON, June 20.

The Government has decided to adjust the capital liabilities of former servicemen settled after 1949 on Crown land with rehabilitation finance by the Land Settlement Board or the Department of Maori Affairs. The Minister of Rehabilitation (Mr Skinner), announcing this today, said that those who would qualify for this adjustment were those who were still the registered owners of'Crown-developed sections on which they were settled with rehabilitation finance and were personally farming their properties; and those who were charged an additional amount on account of new buildings in terms of the “J to J” judgment. The adjustments would take the form of the conversion of the whole of the amount, representing the difference between the 1942 assessed values of the servicemen’s buildings and the actual amount charged for the buildings, as determined when charges were fixed, to a special supplementary interest free mortgage. This mortgage would be brought to charge with interest at the current lending rates at the time of settlement, after the principal charges on the property had been repaid. The annual charges would then not exceed those required to service the present mortgage. Mr Skinner said that on sale of former servicemen’s property during the currency of the mortgage the whole of the principal involved would be immediately payable.

To those qualifying former servicemen who had already paid off all or portion of the amount involved, the Minister gave an assurance that appropriate credits would be arranged by adjustments in their current mortgage accounts. Administrative details to carry out this decision would be determined by the Rehabilitation Board.