Provisions of the New Bill

Manawatu Times, Volume LV, Issue 6810, 17 March 1932, Page 7

Provisions of the New Bill

WELLINGTON, Last Night. Extension of the provisions of last year’s legislation for the relief of mortgagors and proposals for the relief of lessees in certain casos are dealt with in tho Mortgagors and Tenants’ Relief Bill, which was read a first time in the House of Representatives tonight. Special provisions as to relief of mortgagors in the case of farm lands will, under the proposed legislation, be extended to all classes of mortgages. Power is also given the Court to deal with the question of personal covenant as it aflects mortgages on land. On an application made by the mortgagor, the Court may postpone for such period as it thinks fit the right of the mortgagee to sue for or recover as a debt from tho mortgagor by action in any Court the principal moneys or any part of the principal moneys or any interest or other moneys then or thereafter becoming payable under the mortgage. Tho Court may also make an order determining any such right cither as to the whole or a defined portion of any of tho principal moneys or interest or other moneys. .Such order shall not extinguish the debt to ivhich it relates or affect any right, of the mortgagee or any other person to provo such debt in the event of the bankruptcy of tho mortgagor or to recover any moneys from any persons .other than the mortgagor named in the order of the Court. Any application or order may be made to or by the Court either before or after the mortgagee has exercised any powers of sale or oilier disposition of mortgaged property. The second half of the Bill deals

with the relief of lessees in certain eases. A lease is defined as an instrument whereby leasehold interest in land is created whether at law or in equity. Nothing in this sectiou applies with respect to leases executed after April 17th, 3931. Any lessee under a lease defined as above may apply to tho Court for relief. Ho may seek a reduction in the rent payable under tho lease for the remainder of the term where the unexpired tonn of th lease is not more than two years or where the lease has mere than two years to run, a reduction of rent for a period not exceeding two years. In addition he may apply for a remission of rent in arrears at the date of application for relief or both reduction in rent and remission of arrears.