MORTGAGORS’ RELIEF

Southland Times, Issue 21661, 24 March 1932, Page 7

MORTGAGORS’ RELIEF

AMENDMENTS TO VITAL CLAUSES. ACTION BY LEGISLATIVE COUNCIL. (From Our .Parliamentary Reporter). Wellington, March 23. Amendments affecting vital clauses of the Mortgagors’ and Tenants’ Relief Bill which was passed in the House of Representatives were made to-day by the Statutes Revision Committee of the Legislative Council. The measure was set down for committal to-morrow morning. When the Council met in the afternoon, the Bill was read a second time pro forma and referred to the Statutes Revision Committee which sat all afternoon and into the evening reporting to the council shortly before 9 o’clock. The committee had heard evidence and made several amendments centreing round the personal covenant clauses of the Bill to sub-section A which gave power to the Supreme Court on the application of a mortgagor to postpone the right of a mortgagee to sue under the personal covenant in a mortgage. The committee added a provision giving a judge express power to impose special conditions on a mortgagor as a consideration for postponement of a mortgagee’s rights. In the Bill which came from the lower House it should be explained the judge had no power except to make an unconditional order of postponement. Under the committees’ amendment the judge may, if he thinks fit, rule that the mortgagor shall pay up his interest and otherwise face his responsible obligations before receiving the benefit of the personal clause. An important alteration has been made to sub clause B. This clause gave power to the Court to make an order putting an end to all mortagees’ rights in connection with the personal covenant, either as regards the whole principal sum or a defined portion or interest monies due in respect thereof. The committee has deleted this power entirely from the Bill, leaving the Court with power to postpone only for such periods as it thinks fit, mortgagees’ rights. It is apparent that no reference to Crown mortgages has been made by the committee in order not to trespass upon the rights of the lower House in respect of the financial provisions effecting Crown revenues.