PARLIAMENT

Wairarapa Daily Times, 17 March 1932, Page 5

PARLIAMENT

MORTGAGORS ’ RELIEF. The second of the Government’s important policy measures to be brought down this session, the Mortgagors and Tenants Relief Bill, was given a first reading in the House of Representatives las* evening. Relief granted last year in the ease of farm lands is extended until the Bill to all classes of mortgages, and authority is granted for the making of applications by lessees for the remission or reduction of rent. The last-named provision, which refers to leasehold interest in land, does not affect weekly rentals. Very little progress was made on the Industrial Conciliation and Arbitration Amendment Bill as the result of the introduction of the Mortgagors Bill. The elosure on the short title was moved by the Prime Minister shortly before the iea adjournment, and in spite of the-mct that the Opposition forced a div Mon, the discussion was brought to an end. The short title was passed by 42 votes to 31.

Shortly after the House resumed in the evening, progress was reported m order to .gamble the Mortgagors Bill to be introduced. Eventually the House went into Committee, and a return to the Arbitration Bill was made late in the evening. The Government sought to add a new clause to the Arbitration Bill to enable the appointment for one year of one or two conciliation commissioners to facilitate the administration of the proposed new law. The proposed new clause was still under discussion when the House rose at midnight. PROVISIONS OF> BILL. The extension of the provisions of last year’s legislation for the relief of mortgagors and provision for the relief lessees in certain cases are dealt in the Mortgagors and Tenants mtfoi Bill, which was read a first time in the House of Bepresentatives last evening. The Bill releases a mortgagor from the obligation of waiting for the mortgagee to give notice of his intention to exercise his powers of sale before applying to the court for relief. In future the mortgagor may apply to the court, even although the mortgagee has not notified his intention to , exercise his powers. It is laid down under section five of the Mortgagors Eelief Act that the mortgagor is entitled to one month’s notice of the mortgagee’s intention to exercise his power. If the mortgagor does not make application to the couit within that period, the mortgagee is entitled to proceed. Under the amending Bill the mortgagor may, by leave of the court, apply for relief after the expiration of this period, but it must be shown that the delay of the moitgagor wasV'iixcusable. The special provisions as to the relief of mortgagors in the case of farm lands will, under the proposed legisla+iojfc)e extended to ail classes of mortgages. Where application for relief is made by a mortgagor under a table mortgage, the court, in addition to, or in lieu of, any ether relief, may extend the term of that mortgage by any period not exceeding two years, and may postpone for a similar period the due date for the.payment of every instalment of principal' and interest due and unpaid at the date of the order or thereafter becoming due. Any order for the extension of such a mortgage may be made subject to such conditions as the court thinks proper, including profusion for the payment of interest dining the period of postponement on any postponed instalment of principal and interest. is also made for private settlement on similar terms, providing the powers of the mortgagee under such a mortgage are not limited in consequence.

Power is also given the court to de-ichwith the question of the personal as it affects mortgages on land. On application made by the mortgagor, the court may postpone for such period as it thinks tit the light of the mortgagee to sue for or recover as a debt from the mortgagor, by action in any court, the principal moneys, or any part of the principal moneys, or any interest or other moneys, then or thereafter becoming payable under the mortgage. The court may also make an order determining any such right as to the whole or a defined portion of any principal moneys or interest or other moneys. Such an order shall not extinguish a debt to which it relates or affect any a-ight of the mortgagee or any other person to prove such a debt in the event of the bankruptcy of the mortgagor, or to recover any moneys from any person other than the mortgagor named in the order of the court. Any application or order may be made to or oy the court either before or after the mortgage has exercised any powers of sale or other disposition of the mort-

gaged property. TlAecond half of the Bill deals A-•with We relief of lessees in certain cases. A bjfise is defined as an instrument whereby a leasehold interest in land is created whether at law or in equitv. Nothing in this section shall apply with respect to leases executed after 17th April, 1931. Any lessee under a lease defined as above may apply to the court for relief. He may seek a reduction of the rent payable -under the lease for the remainder of the term where the unexpired term of the lease is not more than two years, or where the lease has more than two years to run, a reduction of the rent for a period not exceeding two years. In a Edition he may apply for a remission of rent in arrears at. the date of application for relief, or both a reduction in rent and the remission of arrears. uQn the service on the lessor of a copf of the lessee’s ermlicntmn for relief and until the nprdmntmn has Peon disced of bv tlm court, the lesfi«t ° ell . PJIV r ' Tr "' r "'' ~ flintrrss for rent due

under the lease or exercise any power

of re-entry un the land comprised in the lease or any power of determining the lease. After that the lessor shall exercise any power only in accordance with the order of the court. Where the annual rent reserved by any lease does not exceed £lO4 the jurisdiction conferred by the court may be exercised by a magistrate; in any other case it must be exercised by the Sujireme Court. Several miseellaiiGOUS amendments to former Acts are made. The mortgagee is not entitled without lcai c of the court to the issue of a judgment summons. The period within which a mortgagor may apply for relief in respect of chattels after notice has been served by the- mortgagee is extended from seven to 14 days, but this provision does not affect any notice given before the passing of the Bill. An order of the court reducing the rate of interest payable under any mortgage pursuant to the Mortgagors Belief Amendment Act may in the discretion of the court be for a period less than the full, term of the mortgage, and it shall not in any case be for a term exceeding two years. Applications for the relief mortgagors or lessees are to be referred by the court for recommendations by one of the adjustment commissions unless i the parties otherwise agree. Costs may be awarded against any •party if the proceedings are deemed to he vexatious.