RELIEF OF MORTGAGORS

New Zealand Herald, Volume LXIX, Issue 21325, 28 October 1932, Page 13

RELIEF OF MORTGAGORS

LEGISLATION CRITICISED " MUTUAL REGARD STIFLED" The claim that harmful results had attended recent legislation for the relief of mortgagors was made by Mr. W. R. Wilson, acting-chairman of directors of the South British Insurance Company, Limited, in addressing shareholders at the annual meeting yesterday. "At the time, we took the view that the legislation was ill-advised, and its harmful results have been demonstrated," said- Mr. Wilson. "That an adjustment between mortgagors and mortgagees, and between landlords and tenants, was in many cases called for is not to be denied, but it was, and would have continued to be, the exception for advantage to be taken of the difficulties arising out of the adverse conditions at present ruling. The spirit of mutual regard for the other's interests, aroused in a time of general stress, led to concessions being made according to the circumstances of each case and amounting in some instances to more than the reductions fixed by statute. Legislation not merely stifled this spirit, but has led to a demoralising disrespect for a contractual obligation." Mr. Wilson said it was scarcely an exaggeration when a leading legal authority recently stated that a generation was growing up which understood a mortgage to be a document signed by a mortgagor containing an implied covenant by the mortgagee agreeing to a moratorium.