MORTGAGE RELIEF

Evening Post, Volume CXXIII, Issue 47, 25 February 1937, Page 17

MORTGAGE RELIEF

POSITION OF BANK ACCOUNTS

The Minister of Justice (the Hon. H. G. R. Mason) stated yesterday that he finds some mortgagors have failed to make application for adjustment by. reason of a misapprehension. They believed, he said, that there would be an interruption of their banking account and that the account would be stopped. This so-called "stopping" wa3 merely the separation of transactions previous to the filing of the applications from those subsequent to the applications. "For a number of reasons it is necessary that this distinction should be made," continued the Minister. "The statute gives its special protection-to advances made to farmers for the cur« ent season's requirements. These are therefore separated from the old account and placed in'a second account. The credit of the farmer at the bankis not in any way interfered with by; the filing of an application for adjustment . ■ ' ,'

' ."If any farmer through misunder* standing of the position has failed ta apply for adjustment of his liabilities, there is still time for him to retrieve the position," added Mr. Mason.. "He may apply to the Court of Review for special i permission to file his application. This must be done not later than the last, day of the present, month— namely, February. 28. Any farmer in such a position would be well advised to refer to his solicitor immediately.

"In the case,t>f applicants other than farmers, there'need be no fear of existing overdrafts being interfered with by; tffi? banks, as the ' banks are most anxious to co-operate in making the legislation effectual," concluded the Minister. "There cannot be- in such, cases the same assurance of further credit, pending the hearing of the applications, as there is in the case of farmers' banking accounts, because the statute does not give protection to the banks in making further advances to such applicants during that period."