MORTGAGES IN LAND

Stratford Evening Post, Volume II, Issue 356, 13 September 1933, Page 5

MORTGAGES IN LAND

| Clause in Will Questioned

! Press Association. —Copyright, j Wellington, Sept. 12. . Reserved judgment was given by Mr. 1 Justice Reed in the Supreme Court today in a ease raising questions whether the trustees in the estate of the late Edward William Lowe could be permitted to invest in mortgages on land in view of the fact that as a result of the recent legislation the securities stipulated in the 1 will would do longer yield 5 per cent.

Kis Honour held there was an express prohibition against investment in mortgages of land, and there was no such ! state cf emergency shown as would justify the Court in authorising disregard of such prohibition. His Honour made the following declaratory order;— The Public Trustee may invest moneys which may hereafter he in his hands as trustee of the will in investments of the nature authorised by the will which pro- : ducc on the investments a return of less i than 5 per cent., provided that at the time cf the investment such moneys can- : not he invested on security of the nature authorised by the will producing on investment a return of 5 per cent, or more.