STATE DEPARTMENTS

Dominion, Volume 28, Issue 34, 3 November 1934, Page 8

STATE DEPARTMENTS

Relief Given Mortgagors QUICKER SETTLEMENTS The opinion that the clause in the Finance'Bill (No. 3) authorising State lending departments to grant relief to mortgagors without an order of the court, would make for easier and quicker settlements as between these institutions and their mortgagors, was expreessed by the Minister of Finance, Bt. Hon. J. G. Coates, in the House of Bepresentatives yesterday. Mr. Coates said that private mortgagees in a great many cases had met their mortgagors and granted relief in various ways without any recourse to the adjustment or the court. In the case of State lending departments, however, there was not the same freedom of action. It had been found that even in cases where a department did not oppose the measure of relief proposed by an adjustment commission, it was necessary formally to obtain an order from the 'court. This made for delay and was to some extent irritating. The clause would empower the investment boards of the departments concerned t.o grant the necessary relief to mortgagors in cases where they agreed it was warranted, and they could do this on the application of the mortgagor. Thus there was no need to invoke the aid of either adjustment commissions or of the court. At the same time the mortgagor was not deprived of his rights, to apply to the commissions and the court if the department was unable to see its way to, grant the measure of relief to which he considered his circumstances entitled him under the Mortgagors and Tenants Belief Act. Mr. C. A. Wilkinson (Ind., Egmont) said the proposal would be of very great help, and it would also result in a big saving in legal charges. The clause was‘agreed to.