SOLDIER SETTLERS

Southland Times, Issue 19100, 19 November 1923, Page 5

SOLDIER SETTLERS

DEFERRED PAY REGULATIONS. EASIER SPREAD OF PAYMENT'S. (Special to the Tinies). WELLINGTON, November 16. Regulations having for their effect an easier “spread” of deferred payments in the case of mortgages by soldier settlers, as security for unpaid purchase money for land acquired by the Crown, were issued last night. One regulation gives effect to section 9 of the 1921 Act, which enabled the Government to dispose of interests acquired by the Crown through foreclosure, and to take a mortgage for whatever the consideration may be, for a period not exceeding 364 years. If that mortgage goes to a soldier, the interest is 5 per cent.; to any other person 54 per cent. In the amending legislation passed last session, the Government took power in certain cases where they were disposing of lands that had reverted to the Crown, to give what is practically a new kind of deferred payment license, that is a license to occupy for a period not exceeding 364 years, interest being payable at the rate of 5 per cent, on the unpaid purchase money. The deferred payment license provides that payments will be practically the same as if they were payments calculated and apportioned according to one of the tables in the schedules .to the regulations under the 1915 Act.

The new regulations operate more favourably to soldier settlers. An illustration is quoted: Under the ordinary deferred payment license, a soldier whose purchase money was £2OOO m’ght pay a deposit of £lOO, that is 5 per cent, and the balance of principal by nineteen further instalments of £lOO. In addition he was also liable to 5 per cent, interest on the balance unpaid at any time, thus his instalment of principal and interest at the end of the first year would total £195. Under the new regulation under the 1923 Act, ori the same purchase money and period, he would pay £79 13s 4d each half year throughout the 20 years’ period of his license. It is a considerably easier “spread” for the payment of the balance of f he purchase money.