RELIEF OF MORTGAGORS

Manawatu Standard, Volume LIV, Issue 289, 3 November 1934, Page 7

RELIEF OF MORTGAGORS

BY STATE DEPARTMENTS. WELLINGTON, Nov. 3. The opiuion that the clause in the Finance Bill (No. 3) authorising State lending departments to grant relief to mortgagors without an order of the Court would make for easier and quicker settlements as between these institutions and tlieir mortgagors, was expressed by the Minister of Finance (Rt. Hon. J. G. Coates) in the House of Representatives yesterday.

Air Coates said that private mortgagees in a great many cases had met their mortgagors and granted relief in various ways without any recourse to the adjustment commissions or the Court. In the case of State lending departments, however,. there was not the same freedom of action. It had been found that even in cases where a department did not oppose the measure of relief proposed by an adjustment commission, it was necessary formally to obtain an order from the Court. This made for delay and was to some extent irritating. The clause would empower the investment boards of the departments concerned to grant the necessary relief to mortgagors in cases where they agreed it was warranted, and they could do this on the application of the mortgagor. Thus there was no_ need to invoke the aid of either adjustment commissions or of the Court. At the same time the mortgagor was not deprived of his rights to apply to the commissions and the Court if the department was unable to see its way to grant the measure of relief to which he considered his circumstances entitled him under the Alortgagors and Tenants Relief Act. Air C. A. Wilkinson said the proposal would bo of very great help, and it would also result in a big saving in legal charges. The clause was agreed to.