MORTGAGE ADJUSTMENT

Te Awamutu Courier, Volume 53, Issue 3800, 26 August 1936, Page 4

MORTGAGE ADJUSTMENT

WRITING DOWN FARM DEBTS. THE BASIS OF ASSESSMENT. The Government’s plans for the adjustment of mortgages are revealed in detail in the Mortgagors and Lessees Rehabilitation Bill, which was introduced in the House of Representatives last night by Goyernoir-Gener-al’s Message. The main purpose, of the bill is to permit the adjustment of all mortgages and leases executed before the passing of the legislation in such a fashion that mortgages will be based on the present value of the securities, and rentals charged in leases will be ■deduced to the fair rental value. The bill consists of 84 clauses divided into 84 parts. •Applications for the adjustment of mortgages or leases may be made to adjustment commissions which will be appointed under the legislation. All such applications must be made before December 31st, 1936. The commissions appointed under the Mbrt--agors and Tenants Relief Bill, 1933, are to be abolished, but the members will be eligible for appointment to the new bodies. In the case of farm lands, adjustments are to be made on the basis of productive value, and provision is made for consideration to be given to the prices for farm products over the period Which was taken for the computation of the guaranteed price fol' dairy products. In dealing with leases, adjustment commissions will have power to fix basic rents. The Court of Review of mortgagors’ liabilities is to be retained as the sole court of appeal for the decisions of adjustment commissions, but power is given for the appointment of two additional Judges and four additional other members of the court should the pressure of applications necessitate this course. One clause of particular importance makes permanent the operation of part 111. of the National Expenditure Adjustment Act, 1932, which effected reductions in interest, rent and other fixed charges.