FURTHER RELIEF

Poverty Bay Herald, Volume LIX, Issue 17945, 24 November 1932, Page 7

FURTHER RELIEF

MORTGAGE LEGISLATION NEW POWERS PROVIDED MINISTER EXPLAINS BILL (Parliamentary Reporter.) WELLINGTON, this clay. The restoration to mortgagors of the protection given under the Mortgagors’ Relief Act, which lias been lost, either by a variation of the mortgage or by the execution of a new mortgage in replacement of one that was within the scope of the Act, is provided for in a new Government measure, the Mortgagors and Tenants’ Further Relief Bill, .which was read a first time in the House yesterday. “This is tho most important provision in the bill.” said the Hon. J. G. Cobbe, Minister of Justice, when explaining the provisions to the House. He added that the existing law had no application to mortgages executed after April .17, 1931, the date of the passing of tho main Act, or to mortgages which, having been executed before that date, had since been varied by the parties. The clause in question provided for tho extension of the application of the Act to a mortgage, which, being at any time subject to the principal Act, had been varied either before or after the passing of the legislation now before the House, or which had, during a similar period, been executed in replacement or substantial replacement of mortgages that had been at any time within tho application of the principal Act. If any question arose as to whether a mortgage was eligible for relief, the matter would be determined by the courts. HARDSHIPS EXPERIENCED The objective was to protect; mortgagors who, in expectation of an improvement in prices, had foolishly agreed to a variation of their mortgage and had. executed a fresh one in replacement. Great hardship had arisen in some eases, and the now legislation sought to relieve those who suffered.

Under the main Act, the guarantor cf a mortgage enjoyed the same protection as the mortgagor himself. It had been represented, however, that there were persons who, although for all practical purposes were guarantors of a mortgage debt, were not technically so, and the bill extended the protection of the former legislation to persons in that position. The idea was to help those who, with the best intention, had guaranteed returned soldiers and others in order to get them on the land. Some of these people had now been hit, and the measure would give them better protection.

By the issue of an Order-in-Counetr, tho Governor has power to exclude from the operation of tho Act any specified mortgages or classes of them. Under the new bill he will have express authority to revoke any such orders .instead of relying on implied authority to do so. PROTECTION FOR COMPANIES

Although under the main Act, a mortgagee is prevented from exercising certain powers until a mortgagor has been given an opportunity of applying to the court for relief, a mortgagee is not prevented, when an incorporated company is concerned, from applying to the court for a compulsory winding up of the company. Under the new bill a mortgagee will not be able to file a petition forSvinding up except after notice as in the other cases referred to.

The bill also authorises the court to extend the period for which relief may be granted under the Act. At present a relief order expires, uidess resumed, 12 months after the date of the mortgagor’s application. Where the pro-, ceedings are protracted, the Minister pointed out, it might happen that an order was due to expire almost as soon as it was made. The purpose of the relevant clause was to allow the court to fix the duration of the order bv reference to the date when it, and not the application, was made. It was considered that to save repeated applications to the courts for an order restraining a mortgagee from exercising his powers, the court should have discretion to iix the period of restraint for -two years from the date on which the order was made. MAGISTRATES’ POWERS The purpose of another clause is to allow the parties, by written agreement, to accept the decision of a stipendiary magistrate .in an application which could otherwise be beyond his jurisdiction. The Minister explained that this clause was designed to save heavy travelling expenses on the part of the applicants. It affected applications where the unpaid principal exceeded £2OOO, which was the present limit of a stipendiary magistrate’s jurisdiction. A similar provision was incorporated in respect of applications for Telief by lessees, notwithstanding that the annual reserved rent exceeds £2lO.

The bill also authorises the court to join a stock mortgagee in proceedings as between a mortgagor and the mortgagee of land. In any such case the court and the adjustment commission arc directed to consider whether or not the stock mortgagee has shown proper consideration of the interests of the mortgagor and of the mortgagee. The lands concerned, oL ! course, are those used mainly or substantially for agricultural, pastoral or other farming purposes. Mr. Walter Nash (Labor, Hutt) asked if time payments were included in the provisions of the bill. Replying Jo the discussion, the Minister said no provision was made for dealing with hire purchase.