N.Z. MORATORIUM

Grey River Argus, 3 August 1940, Page 8

N.Z. MORATORIUM

On Mortgage

WELLINGTON, August 2

The Minister for Justice (the Hou. H. G. R, Mason) in an interview said the Mortgages Extension Emergency Regulations applied to a mortgage or any property, whether real or personal. or of choses in action, such as a life insurance policy.

A virtual moratorium is imposed for the duration of the war. Agreements for sale and purchase are protected, a purchaser being treated as a mortgagor. Similarly, <a lease with a purchasing ciaus e is protected, and if necessary a lease can; be extended to protect a lessee’s right of purchase.

The Minister said the protection given virtually amounted to a moratorium for thp duration! of the war. The regulations precluded the callingup from any mortgagor or guarantor of the principal sum or any part of the principal sum secured by mortgage, or of the exercise bi' any power of sale or entry into possession, unless the mortgagor had abandoned the property. Similarly actions or proceedings in Court for the principal sum may not be taken without leave of the Court. Pena! rates for th e recovery of interest may not be enforced without leave of the Court. Where periodical payments were made, which included an instalmenof principal and interest, the whole payment was treated for the purposes of the regulations as if it were all interest.

The Court may, in an action for interest, giv e judgment tor payment at a date to be fixed or for paymen. by intsalments at such time as the Court determined. Where the principal sum exceeded £200(1 the Supremq Court alone had jurisdiction, but io> amounts under that the Magistrate > Court also had jurisdiction Therw wa s no appeal from one Court to true other.

There could be no contracting out of the regulations, and the mortgagor’s consent to th e performance of any act by a mortgagee whicn would otherwise require application to the Court was effectual' only lx witnessed by a solicitor employed independently of th e mortgagee, wlio certified that consent was given bv his advice.

The new regulations do not in any way require a mortgagor to show that his difficulty i s due to war conditions. The Debtors Emergency Regulations, Mr. Mason said, afford protection in cases outside the scope of the Mortgages Extension Emergency Regulations. In the superseded regulations, one set of made applicable to all cases; 'out vwas found that two sets of cases required handling rather differently. In the debtors’ emergency regulations certain action may not be taken against members of the armed forces or their dependants, except by leave of the Court. In the cas e of dependants, leave had to be obtained before action may be taken. Other persons •may obtain the protection of t!iCourt; but in their case it was necessary for them expressly to apply to the Court for protection. Protection which may be granted applies to the seizure of goods in hire purchases, writs for the possession, seizure or sale of any property, the issuing o£ judgment summons, or of attachment orders, the sale or leasing of property under the Rating Act, filing a petition in bankruptcy or a windingup petition, the appointment of a receiver, re-entry or determination of s lease, and distraint for rent. The Court was given full discretionary powers as to affording protection. Where the property in question was less than £2OOO, jurisdiction may be exercised by the Magistrate’s Court. The provisions against contracting out, and as to consent by a debtor to the exercise of powers were similar to thos e in the Mortgages Extension Emergency Regulations.