MORTGAGE CORPORATION AND THE FARMER

Northern Advocate, 24 October 1935, Page 6

MORTGAGE CORPORATION AND THE FARMER

A questioner at Mr Clive Cameron’s meeting at Mania last evening asked the candidate i| it was not a fact that, -while the bondholders of the Mortgage Corporation are secured, the farmer who receives a loan from the corporation is not secured. The question really fesolves itself intftf*, the ordinary relationship of lender and borrower. The Mortgage Corporation naturally has the security of tire farm, because on that security it lends its money. On the other hand, the farmer has the security of not being ejected from his farm, even if things become very bad, for a number of years, and he is still able to carry on. The farmer is protected, inasmuch as he receives his money at the lowest rate ol: interest ever offered on such security. He ban convert his present loan into a table mortgage extending over a term of 45 years, and lie can make the payments much lighter 1 should he become financially embarrassed. The farmer is still entitled to retain his farm through hard times, and he ean work under the budgetary scheme, which gives him five years’ permanent occupation. If at the end of five years the farmer ,is still embarrassed, and does not wish to lose his farm, he has the right to place the matter before the Court of Review, which court has the right to assess the value , of the security in ,the farm. If the court is of the opinion that the farmer has done his best, under the circumstances, to improve the farm, ,and done his best to make it pay, then the court can write down the capital value, so that the farmer will be able to remain on the farm, Thq Mortgage Corporation certainly has the farm for security against the loan advanced, but everything is done so that the farmer can remain in possession.