MORTGAGORS’ RELIEF

Hawera Star, Volume LIII, 31 October 1933, Page 8

MORTGAGORS’ RELIEF

AMENDED LEGISLATION SOUGHT FARMERS’ RESOLUTIONS. Questions of rural finance and particularly methods of relieving the present tjurden of the mortgagor were web to the fore at the Dominion executive meeting of the New Zealand Farmers Union at- Wellington, on Thursday. A committee report embodying a num ber of recommendations formed mate rial, ior a lengthy discussion at the end of which a series of resolutions were carried. The discussion was taken m committee.

The resolutions set out below will be presented to the Hon. J. G. Cobbe by iv£i- W. J. Faison, M.P., president 01 the union, and Mr F. Waite, Balclutha. llie first- three have been suggested as urgent amendments' to the present Acts, which should be consolidated and extended before the expiry of the present legislation on December 31 next.

The remaining clauses deal mainly with the desire of the union to have some comprehensive scheme for the reconstruction period. The members of the executive believe that some constructive scheme is urgently required, as many farmers are very apprehensive of w'hat may hapnen when the present legislation ceases. The resolutions as approved by the executive are as follow:

“That in older to make possible an equitable pooling arrangement between all parties, "the Act be amended to give the commissions and the courts power to bind the holders of chattel securities as well as the land mortgagee, and the mortgagor.

That the Act he amended to ensure that when the court is disposed to vary materially the recommendations made by an adjustment commission no-such material alteration shall be made in the conditions on which relief is granted until the variations are referred back to the adjustment commission- for further report. That legislation be enacted enabling

the various mortgagors’ relief commissions to recommend reductions in the principal of vendor mortgages in addition to those of interests, when considered advisable and reasonable. When prices rise and the period of reconstruction conies, provision be made protecting those holding farm ancl land from unreasonable realisation. To that end we urge "that for a period after the lapse of the relief legislation, mortgagees should be restrained from real ising on the securities held providing

mortgagor was paying current interest | That when a property has been transferred from the orimnoi for a period of more than two years, and the mortgagee has acquiesced in the transfer by not raising any objection to the transfer in that period, the personal liability of the original mortgagor shall be regarded as being also transferred to' the transferee. That it i,s in the interests of all carties that a definite interest in his land should be secured hv the mortgagee. Tt is also most desirable that- the present insecure tenure of many farmers should at the earliest possible moment ho replaced by a secure tenure. It is urgent that a scheme of re-finance of farm mortgages shall secure to both the mortgagor and mortgagee their property risrhts. Schemes of Wilkinson and Fletcher: ‘Hiat these schefnes entail many undesirable. consequences, and we cannot recommend them to the executive. TheJ Smith proposal is orobablv too ehcumbersomo for general adoption, and eases vary too niuch to allow of any set rules to be rigidly applied. Government Lending Departments

and the Public Trust. Government lending departments should set an example in initiating and carrying out methods of refinance which will place both themselves and their mortgagors, on a permanent and secure footing. In order to eriqble this to proceed immediately—which is urgent—wo suggest that either a definite proportion of the net proceeds be allocated to each party as a permanent arrangement, or that a rental value be assessed from time to time, and be accepted as interest up to the full amount thereof.. The addition of a small amount of principal] repayment to be made as soon as possible, and a permanent assessment of the capital liability no# to exceed the capitalised yearly earning capacity or rental value he made within five years.