MORTGAGE ACTS

Timaru Herald, Volume CXXXIX, Issue 20095, 30 April 1935, Page 12

MORTGAGE ACTS

OPERATIVE ON FRIDAY The Rural Mortgagors Final Adjustment Act will operate on Friday, when it is probable that the central feature of this new legislation, the Court of Review, will be completed by the appointment of the two assessors who will assist the Judge in this final court of appeal. Though not intended to exercise any partisan interest in the decisions, the Government in making appointments of assessors, took care that at least one would possess a thoroughly practical knowledge of the difficulties of rural mortgagors.

This legislation deals exclusively with mortgages upon land used for the cultivation of food products, including the keeping of bees pigs and poultry, and does not affect ’securities of any other class. However, it is well understood that the problem of adjusting urban mortgages in line with current economic conditions is under consideration, this being the main question referred by the Minister of Finance to his economic and financial advisers prior to his departure, with the object of preparing proposals for legislation later this year. As there has been some uncertainty about the relation of the new legislation to that included in the various Mortgagors and Tenants Relief Acts, it should be made clear that the Rural Mortgagors Final Adjustment Act repeals only one provision of the old legislation, namely the clause limiting its duration to the end of the present year. The result Is that arrangements made under the former Act stand good, although it is quite open to either of the parties to secure a review of the position by recourse to the later legislation.

Though the Court of Review may not be constituted in time to function on May 1, mortgagors will suffer no disability because they are given twelve months from May 1 in which to file notice that they intend to take advantage of the new provisions. Mortgagees have a similar right to secure adjustment of a mortgagor's liabilities if the latter fails to take the necessary action. .... It is expected that the legislation will facilitate many more voluntary arrangements, and for this reason the Adjustments Commissions constituted under former legislation will be the first active factors in the position. They have been working under the direction of the Minister of Justice, the Hon. J. Cobbe, who will continue to administer the mortgage relief statutes. A careful explanation of the provisions of the new legislation and the procedure to be adopted by mortgagors and mortgagees has been prepared under the Minister's direction, and will no doubt be published at an early date As the Act comprises seventy-eight clauses and many schedules, occupying nearly fifty pages of the statute book, a popular explanation understandable by the layman will be appreciated, though it would be unwise to take action in respect of mortgages without reference to the detailed terms of the Act itself. ___________