THE PERSONAL COVENANT

Taranaki Daily News, 24 March 1932, Page 7

THE PERSONAL COVENANT

AMENDMENT TO RELIEF BILL LEGISLATIVE COUNCIL PROPOSAL. SUSPEND RIGHTS CONDITIONALLY. ..........._„l EXTENSION OF JUDGE’S POWER. Vy Telegraph.—Press Association. Wellington, Last Night. Important amendments have been made by the Statutes Revision Committee of the Legislative Council iu the Mortgagors’ and Tenants’ Relief Bill. The amendments principally affect the clause dealing with the personal covenant, which clause has been substantially altered.

The committee has added to the clause dealing with the personal covenant a provision that a judge should have express power to impose special conditions on a mortgagor as consideration for the postponement of the mortgagee’s rights. Under the original Bill the judge had no power other than to make a bare unconditional order of postponement; nbw -the judge may rule that a mortgagor shall pay up his interest or otherwise reasonably face his obligations before receiving the benefit of the clause. The provision in the original Bill, giving the Court power to determine all the mortgagee’s rights as regards the personal covenant has also been altered. The Statutes Revision Committee has deleted entirely this provision, leaving the Court power merely to postpone for such period as it thinks fit the mortgagee’s rights. The committee has not interfered with the provisions in regard to Croyn mortgages as it was-not desired to trespass on the rights of the House in reference to financial provisions affecting Crown revenue.

Replying in the House of Representatives to Mr. W.- Ji Polson (Co., Stratford), the Minister of Justice (the Hon. J. G. Cobbe) said it had been decided to hold a conference of the chairmen of the- various adjustment commissions set up under the Mortgagors’ Belief Act for the purpose of establishing uniformity of action and formulating a 'definite policy' concerning such matters as the po. to be given a second mortgagee and the method to be adopted regarding vendor mortgages.