PRINCIPAL AND ' INTEREST
(To the Editor.) : _ Sir, —I am given to understand that under the Interest Reduction Act, recentlypassed, mortgagors who had agreed to pay a certain fixed sum periodically, combining principal and interest, were still obliged to pay this amount, and that^the 20 per cent, reduction in interest was added to payments off the principal.. If this is correct, it do& not give the immediate relief necessary to the mortgagor and is contrary to the intentionsvof the Act to reduce fixed charges.—l am, etc., . , AFFECTED. [In terms of Part 111. of the National Expenditure Adjustment Act, 1932, interest on mortgages/ with certain exceptions, is subject to the standard reduction of 20 per cent, as from the Ist April, 1932, with a.minimum of 5 per cent, per annum. When instalments include-both principal and interest, the interest • only is'subject to the " foregoing, reduction. The. correspondent is, not correct in" assuming that the redaction in interest is applied towards ' repayment 'of ' principal.—Ed.] . * , >\ ' ~\>
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Bibliographic details
Evening Post, Volume CXIII, Issue 142, 17 June 1932, Page 6
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160PRINCIPAL AND ' INTEREST Evening Post, Volume CXIII, Issue 142, 17 June 1932, Page 6
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