THE MORTGAGOR

Evening Star, Issue 22271, 24 February 1936, Page 8

THE MORTGAGOR

RELIEF LEGISLATION IN OPERATION 281 STAY ORDERS ISSUED [Special to the ‘ Star.’] WELLINGTON, February 24. Mortgagors who to secure the protection of the Final Adjustment Act passed last year have a little more than two months in which to make application for stay orders. Up till January 31 the number of stay orders issued totalled 261, which cannot be considered large in comparison with the numbers of mortgagors who are in difficulties. One explanation of this position is that the latest legislation, as in the case of Parliament’s earlier efforts for relief, places first the importance of securing if possible a voluntary arrangement between the mortgagor and his creditors, so that the number of stay orders in relation to mortgagors, or the applications they make to the court, does not altogether reflect the effective activity of the machinery which is operating to improve the rural mortgagor's future outlook. Applications for adjustment of mortgages first go to one of the various commissions, from which there is the right of appeal to the Court of Review. [f°not less than three-fourths in value of the creditors agree to adjustment of the mortgagor’s liabilities, the commission can approve the arrangement, though the dissenting creditors are protected by the right of appeal to the Court of Review. In practice many voluntary arrangements are effected without necessity for a formal court order. Up till January 31 the applications for adjustment totalled 684, of which 529 were filed by mortgagors and 155 by mortgagees. Stay orders had been issued up till that date in 261 instances, and the Adjustment Commissions in 49 cases had given the decision that no stay order should be issued. The total value of mortgages affected by the issue of stay orders is £1,384,374. Another interesting feature of the work of the courts is that 404 of the applications received relate to Stateowned mortgages. Pending the disposal of an application, the legislation empowers the appointment of a provisional trustee, whose function is to act as the agent of the mortgagor and pay to him from moneys received from farm operations, the living expenses ot the mortgagor and his family, and working expenses connected with feeding operations. There have been 448 appointments of provisional trustees to the end of January. . . The last legislation indicated in its title that it was a “ final ” adjustment, therefore an important clause provides that applications for stay orders must be made within 12 months of the passing of the Act. Thus the time for making applications expires on May 1 next, as the measure came into operation on May 1, 1935.