REPORT DENIED
MORTGAGE OORPORATTOST . /Per Press Association, Copyright). WELLINGTON June 25. The Acting-Minister of Finance, Ml’ Adam Hamilton, made the 1 following statement to-day : ‘‘The Leader of the Opposition is reported to have said, inter alia, at Maungaturbto, that the effect of the Mortgage Corporation of New Zealand. Act was to destroy fined -into between file -State and it? clients. This statement is not correct.
- The existing rights of the State Advances mortgagors or of the Lands Be--partment’s mortgagors will not be -affected in any way iby the transfer of their mortgagors to the Corporation ; and, in terms of Section 37 of the Act, the Corporation, upon the transfer taking plnce, will have, in respect to such securities, all of the powers, the rights, the privileges and the discretions of the Superintendent of State Advances, nr of any other person entitled to exercise any such powers, rights, privilagcs, or discretions under the mortgages in questionThus, it is clear that the existing contracts will not be destroyed, -as suggested : for the Corporation is not empowered to vary the terms of the mortgages in any way, without the consent of the mortgagor. On the other hand,' the -mortgagor isw-givem mi* 'additional* right, under the Act, whereby he can require the Corporation to vary' the mortgage to give him a lower rate of .interest, provided that he Agrees to add two per cent to the principal of the mortgage for Die benefit fo the reserve fund of the Corporation, and that he al?o converts the mortgage to a table mortgage, if it is not already in this form.
This is a very valuable concession to thousands of mortgagors, who this will be able, at any time within three years after the transfer, to obtain a reduction in the rate of interest under their mortgages from five pel* -cent, and more to -a lending rate to be fixed by the Corporation for its own business. Tn fact, mortgagors have nothing to lose by the transfm of their mortgages to the Corporation, and a great, many of them will gain a substantial concession.”
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Bibliographic details
Hokitika Guardian, 26 June 1935, Page 5
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348REPORT DENIED Hokitika Guardian, 26 June 1935, Page 5
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