MORTGAGE FINANCE

Hawke's Bay Tribune, Volume XXVI, Issue 146, 5 June 1936, Page 7

MORTGAGE FINANCE

House Puts Bill Through All Stages

ONE AMENDMENT By Telegraph—Press Association. WELLINGTON, June 4. Mr Endean moved an amendment to clause 29 of the State Advances Corporation Bill limiting the amount of a loan to 80 per cent, of the security except in the case of dwellings, where up to 100 per cent, of the security might be advanced.

After the supper adjournment progress was reported in order that an amendment might be introduced to the State Advances Corporation Bill by Governor-General’s message. Mr Nash explained that the amendment made an extra safeguard in connection with life-insurance policies associated with the State Advances Corporation Bill. Under the Bill it was quite possible, when an insurance policy became available for repayment of the balance of a loan, that the property became the estate of the mortgagor who had just passed away, and automatically the widow might be deprived of the estate by other creditors. The amendment simply assured that in all circumstances the property should be completely free as far as the window of the mortgagor was concerned. The House again went into committee. Mr Endean’s amendment was lost by 41 votes to 16, and the clause was passed.

Mr R. A. Wright (Indept., Wellington Suburbs), moved an amendment to clause 32 dealing with the provision that a life-insurance policy may be required as an additional security to the effect that a policy may be taken out with any approved company, association or society as well as the Government Life Insurance Office. He thought all life insurance companies should be placed on the same level as the Government office.

Mr W. A. Bodkin (Nat., Central Otago), asked if an insurance table had been drawn up by the Government actuary and whether a policy was to be preceded by a medical certificate. Mr Nash defended the proposal to keep business in the Government office. The question of medical examination would be decided by the Insurance Commissioner.

The closure was again moved and was carried by 45 votes to 16. The amendment was lost by 46 to 16.

The amendment introduced earlier by Governor-General’s message was agreed to and the clause was passed. Mr Hargest (Nat., Invercargill), moved an amendment to clause 34, which gives the board power to fix interest rates, to the effect that the rate should be not more than one per cent, more than the rate paid by the corporation for its most recent loan. The amendment was lost on the voices.

The Hon. Sir Alfred Ransom moved an amendment to clause 39 to provide that the distribution of profits should bo made by the Minister of Finance and the board instead of by the Minister only. The amendment was lost by 42 votes to 16.

The committee stages were completed and the Bill was reported to the House with amendments. After a brief debate the Bill was read the third time and passed. The House rose at 0.45.