- (a) the expression "enter into possession" shall include the appointment of a receiver of mortgaged property; and
- (b) the provisions relating to foreclosure shall extend to the institution of proceedings for foreclosure or for sale in lieu of foreclosure; and
- (c) the expression "a mortgagee in possession" shall not include a mortgagee of property other than land or some interest in land.
§ (2) Where a petition has, whether before or after the passing of this Act, been presented for the winding up of any company, the Court shall have the like discretion as to staying proceedings under the petition as by Sub-section (3) of Section one of the principal Act is conferred on Courts having jurisdiction in bankruptcy in relation to bankruptcy proceedings.
§ (3) This Section shall have effect as from the twenty-fifth day of May, nineteen hundred and sixteen, and shall be deemed to have been in operation as from that date.
§ Mr. ELLIS DAVIES
I beg to move, in Sub-section (1), paragraph (a), after the word "and" ["mortgaged property; and"], to insert the words "mortgagee in possession shall have a corresponding meaning."
The object of the Amendment is this: Under the present Act power was given to the mortgagee in possession to sell, but there is a custom that instead of the mortgagee entering into possession he appoints a receiver, as they have power to do under the Conveyancing Act of 1881. The object of my Amendment is that the mortgagee is in the same position as under the Act.
§ The SOLICITOR - GENERAL (Sir George Cave)
I could not accept the Amendment in the form in which it has been moved, but I am quite willing that the principle of the Amendment should be accepted if it is limited to those who appointed receivers before the passing of the principal Act. If the hon. Gentleman is content with that I will move the insertion of words to give effect to his Amendment.
§ Mr. E. DAVIES
In view of what the right hon. Gentleman has said, I beg leave to withdraw my Amendment.
§ Amendment, by leave, withdrawn.
§ Sir G. CAVE
I beg to move, in Sub-section (l), paragraph (c), after the word "possession" ["mortgagee in possession"], to insert the words "shall include a mortgagee who before the passing of the principal Act appointed a receiver who is still in possession or receipt of rents and profits of the mortgaged property, but,"
§ Amendment agreed to.
§ Sir G. CAVE
I beg to move, in Sub-section (1), paragraph (c), at the end to insert the words, "except in any case where the power of sale had arisen and notice of intended sale had been given prior to the fourth day of August, nineteen hundred and fourteen."
This Amendment was discussed with the Association of Bankers, and I understand it removes all their objections to the Bill.
§ Mr. RAWLINSON
I see no objection to the words as they stand. There have been a large number of cases where the mortgagee of shares, stocks, and so forth had power to sell before the War began, and that power has not been exercised up to the present time. Is this really only meant to apply to very rare cases where a person has given notice more than eighteen months ago, and has not exercised it up to the present time, otherwise, surely no one would restrain the use of powers of sale where people have the securities in their hands, and the Act applies in greater part to them than to the case of those with real property.
§ Sir G. CAVE
It applies only to the rare cases to which the hon. and learned Member refers. The Amendment was approved by the Association of Bankers, and I think hon. Members may rest assured that it will not go further.
§ Amendment agreed to.2674
§ Clause, as amended, ordered to Stand part of the Bill.