MORTGAGORS AND TENANTS

Timaru Herald, Volume CXXXVIII, Issue 19861, 26 July 1934, Page 8

MORTGAGORS AND TENANTS

ABOLITION OF PERSONAL COVENANT DESIRED By Telegraph—Press Association WELLINGTON, July 25. Leave to introduce the Mortgagors and Tenants Relief Amendment Bill was asked by Mr W. A Veitch (Ind., Wanganui) in the House to-day. He said it contained only one operative clause which dealt with personal covenants under mortgages. He said the provision was included in the Mortgagors and Tenants Relief Bill last session, but was withdrawn by the Minister after representations had been made to him. Mr F. W. Schramm (Lab., Auckland East) said that the Bill did not go far enough. He thought that it should apply to all mortgages.

Mr A. Harris (C., Waitemata) said that when a man was in danger of losing his all he should be given an opportunity of making an appeal without expense to himself. The Hon. W. Downie Stewart (C.. Dunedin West) said it was obvious that the Bill had been brought in to meet a particular case. It was intended that the measure should apply to ecclesiastical and educational mortgages, but they were particular mortgages in which the personal covenant was of very first importance. A church was not a very saleable property. If there was no personal covenant it would be difficult for those institutions to borrow at all. At the present time, when the community was looking for the restoration of confidence, it would be a mistake and unwise for the House to adopt the Bill. Mr W. E. Barnard (Lab., Napier) said that the Bill was reasonable and would not destroy any rising confidence in the community. Mr R. A. Wright (Ind., Wellington Suburbs) supported the Bill and said in future that mortgages should have no personal covenant. The Hon. J. G. Cobbe said that he had intended to do something on lines similar to those in the Bill last session, but it was found impossible, particularly in view of the amount of money lent by Government departments. He was in favour of something being done if it could be done.

Mr W. J. Broadfoot (C., Waitomo) said he thought that relief commissions should deal with each case on its merits, and that personal covenants should be eliminated from future mortgages. The Bill was introduced and read a first time.

AMENDING BILL INTRODUCED