advance and readvance moneys on current account
so that the total indebtedness, exclusive of interest,
of the person to whom such advance is made shall
not at any time exceed the amount so authorized.
21. (1.) Advances made hereunder on current account
for the purposes of erecting buildings or effecting permanent
improvements, may, to such extent as the Minister may
approve, be discharged from a flat mortgage securing such
advances, and the amount so discharged shall thereupon
be secured by a mortgage over the land or the mortgagor's
interest in the lease or license thereof in the Form No. 10
in the First Schedule hereto or to the like effect:
Provided that no adjustment shall be made to the prejudice
of the position held by the security to the Crown, and
provided further that in the event of any adjustment being
made respecting a security by a flat mortgage next following
a security for advances under the provisions of section 2 of
the Discharged Soldiers Settlement Amendment Act, 1917,
the security for such adjustment may be given by memorandum
of increase, increasing the debt secured under the
mortgage given as security under the said section 2.
(2.) All moneys so secured by such mortgage, together
with interest thereon at the rate of five per centum per
annum, shall be repayable by half-yearly instalments over
such prescribed period, not exceeding thirty-six years and a
half, as the Minister may determine. Every instalment shall
consist partly of interest and partly of principal, and shall
be calculated and apportioned in accordance with such
table in the Second, Third, Fourth, Fifth, or Sixth Schedule
hereto as is appropriate to the period so fixed.
22. In any case where upon the acquisition of any land for
the settlement of discharged soldiers the Minister has considered
it expedient that farming operations on such land
should be carried on by the Commissioner of Crown Lands until
such time as is deemed opportune for placing the persons to
whom the subdivisions may have been allotted in possession of
such allotments, and if the Minister is satisfied that the
amount that may be advanced to any such person hereunder
is inadequate having regard to the liabilities which it may
be arranged that such person shall accept as mortgagor, he
may, notwithstanding anything to the contrary in these
regulations, make advances to any such person in the manner
following :-
(a.) On current account mortgage up to an amount not
exceeding the amount of the liabilities accepted by
the mortgagor with respect to stock and chattels.
(b.) On mortgage up to an amount equal to the value of
the improvements effected by the mortgagor. Repayment
under such mortgage shall be by half-yearly instalments of principal and interest at the
rate of five per centum per annum extending over
a period not exceeding thirty-six years and a half:
Provided that in no case shall the amounts advanced under
either paragraph (a) or (b), or both paragraphs, exceed such
amount or amounts as the Minister, having regard to the
special circumstances of each case and to the liabilities to be
accepted by the mortgagor, decides to be adequate.
23. For the purpose of assisting settlers with respect to
any of the matters for which advances may be made as
aforesaid, the Minister may purchase such materials or
articles as may be required, and may dispose of the same to
settlers on such terms as he thinks proper. Where any such
materials or articles are not paid for by the settler, their value
as determined by the Minister shall be deemed to be an
advance within the meaning of these regulations.
24. With respect to advances under paragraph (a), (b),
or (d) of section 2 of the Discharged Soldiers Settlement
Amendment Act, 1917, the following provisions shall apply:-
(a.) Every application for such an advance shall be made, in
the form No. 8 in the First Schedule hereto or to the
like effect, to the Land Board for the land district
within which the land affected is situated, and shall be
accompanied by the prescribed valuation fee. The
Land Board shall, before making its recommendation,
require the applicant to appear personally before it,
or before such person or persons as it may appoint.
(b.) Valuation fees shall be payable in accordance with the
following scale:
On an application for a loan not exceeding £100
£ s. d.
Exceeding £100 but not exceeding £250
Exceeding £250 but not exceeding £500
Exceeding £500 but not exceeding £2,500
Provided that in the case of an applicant who
has previously applied for an advance, and whose
application has been refused, the Commissioner of
Crown Lands may, with approval of the
Minister, reduce or dispense with the payment of
valuation fees on any subsequent application lodged
by the said applicant for an advance under these
regulations.
(c.) An application for an advance for any of the purposes
mentioned in paragraph (a) or (b) of the said sec-tion 2 shall not be considered unless it is accompanied
by an option to purchase the fee-simple or to acquire
the lease or license, as the case may be, given by the
owner or the lessee to the applicant. Such option
shall be in the form No. 9 in the First Schedule
hereto or to the like effect.
(d.) The amount of advance to any person for the purchase
of a dwelling and appurtenances on other than rural
land shall not exceed the sum of £1,000, and for any
other purpose shall not exceed the sum of £2,500:
Provided that in any case where advances are
authorized under the provisions of clause 20 hereof
the maximum advance here prescribed in the case of
rural land may be increased by the amount of such
advances, but in no case shall the total amount
advanced to one person hereunder exceed £2,750.
(e.) In such cases as the Minister may approve, an advance
may be made to any person hereafter assisted to
acquire land under section 2 of the Discharged
Soldiers Settlement Amendment Act, 1917, for the
purpose of enabling such person to pay any stamp
duty payable on any transfer, conveyance, or
assignment of such land to himself.
Notwithstanding anything to the contrary in sub-clause (d) hereof, the maximum amounts fixed for
advances therein may be increased by such amount
as may be advanced under this paragraph.
(f.) Except as provided in paragraph (h) hereof, all advances
shall be secured by mortgage over the land or the
applicant's interest in the lease or license in the
form No. 10 in the First Schedule hereto or to the
like effect; and the Minister may, as collateral
security, require that a bill of sale be given over
such stock and other chattels belonging to the
applicant as he may decide.
(g.) Except as provided in paragraph (h) or paragraph (i)
hereof, all moneys advanced under this clause,
together with interest thereon at the rate of 5 per
cent. per annum, shall be repayable by half-yearly
instalments over a period of thirty-six years and a
half. Every half-yearly instalment shall consist
partly of interest and partly of principal, and shall
be calculated and apportioned according to the table
in the Sixth Schedule hereto.
(h.) In such cases as the Minister may approve, advances
under this clause may be made on flat mortgage for
any period not exceeding ten years. Advances made
on flat mortgage shall bear interest at the rate of
5 per centum per annum and shall be secured by
mortgage in the form No. 6 in the First Schedule
hereto, with the necessary modifications.
(i.) In the case of applications for an advance to purchase
a dwelling and appurtenances on other than rural
land, the provisions of paragraph (b) of the next
succeeding clause shall apply in lieu of the provisions of paragraph (g) of this clause.
(j.) In the case of any advance made in respect of leasehold
land the following additional provisions shall
apply :—
(i.) The mortgage shall be deemed not only to
cover the mortgagor's interest in the lease, but to
extend to and include his interest in any further
lease issued to him in lieu of such first-mentioned
lease, whether by way of renewal or otherwise.
(ii.) The term of the mortgage shall, unless the
lessee receives in lieu of his lease a title in fee-simple,
expire on the date of the prescribed half-yearly
instalment next preceding the date of the expiration
of the lease (which term shall be deemed to include
any lease issued in lieu thereof, whether by way of
renewal or otherwise), and such instalments shall
include the balance of principal then owing under
the mortgage.
(iii.) No surrender of any lease on the security of
which money has been advanced shall, so long as
any portion of the moneys advanced remains unpaid,
be accepted, nor shall any such lease be declared
forfeited by a Land Board without the consent of
the Minister.
(iv.) For the purposes of section 82 of the Land
Act, 1924, any moneys owing by a lessee on account
of an advance made pursuant to these regulations,
together with interest due thereon (if any) shall be
deemed to be moneys due in respect of the land, and
such moneys shall constitute a first charge on moneys
received by the Receiver of Land Revenue pursuant
to that section.
(v.) The terms “lease” and “lessee” include
license and licensee.
25. With respect to a mortgage given in pursuance of the
provisions of section 9 of the Discharged Soldiers Settlement