STOCK MORTGAGES

Hauraki Plains Gazette, Volume 51, Issue 3153, 5 August 1942, Page 3

STOCK MORTGAGES

NEW AMENDMENT

POWERS OF THE COURT

The import of the 1941 amendment to the Mortgages Emergency Regulations was outlined, in a letter from the Auckland executive received at the meeting of the Te Kuiti branch of the Farmers’ Union on Friday last following queries as to the position, and as to statements made upon the subject by the Minister of Finance.

ThA letter stated -that the amendment did not, as suggested in the letter, operate as from the commencement of the Act —the idea was that the Court could make an order for a seasonal period and the stock mortgagee would have to bring into account all items of receipts and expenditure identified with that period. The mortgages would not necessarily remain stationary nor would the mortgagor necessarily be entitled to operate to the full amount of revenue, but the question of the application of moneys would be determined by the Court as between the mortgagor, the stock mortgagee, . the mortgagee of the land, and any other having a secured interest in the land or its proceeds. Where a mortgage was reducible annually by a stated amount the Court would decide whether or not that arrangement would stand.

“Speaking generally, the provision is a very comprehensive one and should give every reasonable . protection to farmers,” the solicitor’s opinion concluded.

As the letter was received the comment was made that the reply appeared, a very satisfactory one.