FINAL ACT

Southland Times, Issue 25361, 13 August 1935, Page 7

FINAL ACT

MORTGAGE ADJUSTMENT ATTITUDE OF STATE DEPARTMENTS RESULT OF MEETING (Per United Press Association.) Rotorua, August 12. “Consideration has recently been given by the Government as to the attitude to be adopted by the State lending institutions under Part 2 of the Rural Mortgage Final Adjustment Act, which makes special provision for voluntary adjustments of mortgagors liabilities,” said the acting-Minister of Finance, the Hon. Adam Hamilton, in the course of a statement issued in Rotorua to-day. A conference of the officials of the Government Departments interested recently held was attended by the responsible Ministers to consider, first, whether it was wise or not to agree to the principle of writing off Public Funds (representing capital money) by voluntary agreement, or to allow every case involving State Money to be decided by the Court of Review, and second, if considered wise, by what method .the procedure could be best safeguarded. It •was unanimously agreed that all reasonable efforts should be used by the State Lending Departments to come to a voluntary adjustment. Arrangements have now been completed as to the .procedure to be adopted in all cases that come under review. The chief difficulty that arises in these times of shifting values is to find an equitable basis for the valuation of securities that are under consideration.

“Tlxe following has been adopted as a guide to the State Departments and the Mortgage Corporation fox- fixing the value of any rural property by assessing the annual gross income that should be obtained from such lands, if properly farmed, calculated at an average of the prices received by farmers within. that particular land district during the last eight seasons, and thereaftex- by following the relative provisions of the compulsory part of the Act. Commissioners of Crown Lands and district valuers, togethexwith a local farmer, will act as valuers and advisers. The procedure will be as simple and expeditious as possible. “If rural liabilities can be adjusted on these lines it is considered that the farming industry will again be established in confidence, especially if the price of produce othei- than meat would advance slightly.”