MORTGAGEES’ RIGHTS.

Hawera Star, Volume XLVIII, 28 November 1924, Page 2

MORTGAGEES’ RIGHTS.

AMENDED LEGISLATION. We are indebted to .the Public Trustee, Hawera, for the following interesting information:— , Section 14 of the Finance Act which has just been passed by Parliament irepeals section 86 of the Public " Trust Office Amendment Act, 1921-22. This latter section provided that where any deceased person whose estate was being administered by the Public Trustee was, at the time of his death, liable under the covenants in any mortgage, the Public Trustee might serve on the mortgagee a notice of his intention to sell or transfer the property, subject to the mortgage. If the mortgagee, within one month from the date of the service of such notice did not apply to a judge of ‘the court for relief, the Public Trustee might thereupon transfer the property subject to the mortS a ßdj mid neither the Public Trustee nor the assets of the estate would he liable under the covenant contained in the mortgage. Section 14 of the Finance Act further provides that any covenant or stipulation in a mortgage executed after the passing of the Finance Act whereby the mortgagor covenants that the moneys secured by such mortgage' shall become due and payable, in the event of the Public Trustee becoming Administrator of the estate of the mortgagor, shall be null and void. The effect of this legislation is, therefore, that the rights of mortgagees will not now be affected by the fact that the estate of a, mortgagor is administered by the Public Trustee.