MORTGAGE ADJUSTMENT

New Zealand Herald, Volume LXXII, Issue 22071, 29 March 1935, Page 10

MORTGAGE ADJUSTMENT

The Government's amendments to the Rural Mortgagors Final Adjustment Bill provide for deletion of the much-debated 20 per cent equity provision and for a scheme in replacement of it. The procedure foi determining the basic value of the land is the same in principle as before, though alterations in the method of operation have bcCn made. The Court of Review continues to hold important powers ; it is made a kind of foreclosing authority at the end of the five years or smaller period of a stay order, and i 3 authorised to award to the outgoing mortgagor cash compensation for his services while the order was in operation. Incidentally, though nothing has- been done to reconstitute the Court, as had been urged, to make it representative of mortgagees and mortgagors—in the way that the Arbitration Court assessors represent the two parties to disputes —there has been a partial adoption of the principle. When the Court is to consider an appeal from the decision of an adjustment commission, assessors may be appointed for mortgagor and mortgagee in .that- particular action. Points such as these illustrate the amount of reshaping the original measure has undergone consequent on its extensive discussion inside and outside Parliament. It may now be regarded as in the final form in which it will be passed. That being so, there is little profit in its further dissection of details. It must presently face the test of action, when its strength or its weaknesses will b6 revealed ih the.light of experience. It will then be possible to amend it if necessary. Meantime, the end the measure is intended to serve is of the utmost value. Its purpose is to help to restore stability to rural finance. So far as it does this, especially by the voluntary agreements between parties, for which provision is made, it will have been of great service. In its terminology the bill indicates a return to basic values of land. That is badly needed as the starting point for sounder farm finance; it is to be hoped it helps to bring about such a return to realities.