MORTGAGE ON SHARES

New Zealand Herald, Volume LXX, Issue 21540, 11 July 1933, Page 12

MORTGAGE ON SHARES

OUTSIDE BELIEF ACT

DECISION OF FULL COURT STATEMENT BY A JUDGE [nv TF.LKCiUArff —TMIBSS association] , WELLINGTON, Monthly Delivering its reserved decision to-day in connection with an application heard by it last month the Full Court held that the Mortgagors Kclief Aft, 1931, did not extend to cover, and effect by its terms, a mortgage of bank shares. Mr. Justice Blair, a member of the Bench, said that upon mature consideration, and after reading the judgments of other members of the Court, ho was satisfied that, his previous oral judgment in Shashoud v. Young was wrong. In that case ho had held that a mortgage of shares was covered by the Act. The question before the Court was whether or not the 1931 legislation and its amendments applied to mortgages on shares in companies. An application was filed on behalf of a mortgagor for relief in respect of a mortgage executed in .luly, 1930, over three parcels of bank shares, securing repayment of £3OOO and interest.

Counsel for the mortgagor submitted that the word "chattels" should be given tlio modorn meaning, which was "any type of property except real property," and that Hie meaning would he sufficiently wide to cover choses in action, such as shares in a

company. Counsel for the mortgagee contended that the Court should adopt the older and narrower meaning of the word, which restricted the term 'chattels" to tangible personal property. He doalt at length with difficulties which would arise in connection with local body loans in tlio event of choses in action being held to be chattels within the meaning of tlio relief legislation.