AN AMENDING BILL

King Country Chronicle, Volume XXIX, Issue 4762, 22 October 1935, Page 5

AN AMENDING BILL

MORTGAGE CORPORATION. Described by the Minister! of , Finance (the Rt. Hon. J. G. Coates) as a technical measure containing no alteration in principle, an amendment of the Mortgage Corporation of New Zealand Act was introduced in_ the House of Representatives by Gover-' ' nor-General’s Message and read a first time. The Bill, explained Mr.'Goates, contained fifteen clauses covering points which had been found necessary to deaT with as\ the result of experience in the working of the Corporation. For instance, it was necessary to give power to spend money on maintenance of properties which come into the Corporation’s hands which were unoccupied. Provision was also made to meet difficulties which had arisen in connection with advances on leasehold properties. Clause 11 of the Bill authorises an additional form of mortgage as security for loans granted by the Corporation. This may be for a term of five years, renewable at the end of the period, but the aggregate term of the mortgage shall not exceed fifty years. During each year of the mortgage the mortgagor will be required to pay off some amount of the principal, not less in any year than 1 per cent, of the capital moneys originally secured. The Bill authorises the Mortgage Corporation to grant an interesting form of new mortgage as security for loans for terms not exceeding five years renewable at the option' Of the board although the aggregate terms are not to exceed fifty years. In each year of the mortgage there shall be repayment of principal not exceeding 1 per cent, of the original capital secured and on any renewal rate interest may be varied.