§ 6.58 p.m.
§ The Attorney-GeneralI beg to move, in page 10, line 39, to leave out Subsection (3) and to insert:
(3) The right to receive any principal sum of money secured by a mortgage or other charge and the right to foreclose on the property subject to the mortgage or charge shall not be deemed to accrue so long as that property comprises any future interest or any life insurance policy which has not matured or been determined.This is a Clause dealing with mortgages on future interests, and in such a case the future interest may mature or be realised on different dates. The Clause, as drafted, does not very aptly or clearly cover that contingency. We have made some in- 1954 quiries on the matter and the Amendment embodies the results of those inquiries. It makes the period of limitation run from the date when the last or the latest interest was realised.
§ Amendment agreed to.
§ The Attorney-GeneralI beg to move, in page 11, line 28, at the end, to insert:
(b) where the property subject to the mortgage or charge comprises any future interest or life insurance policy and it is a term of the mortgage or charge that arrears of interest shall be treated as part of the principal sum of money secured by the mortgage or charge, interest shall not be deemed to become due before the right to receive the principal sum of money has accrued or is deemed to have accrued.This Amendment also deals with mortgage interest. In cases where the property charge cannot be realised until a future date it is not infrequently found that provision is made that if the interest is not paid there is not default, but the amount is added up and put on to the capital sum. The parties contemplate that the mortgagor will be unable to pay and will not be required to pay the interest until the property charged falls into possession. In a case of that kind it would be unreasonable to have the period running until the date when the parties contemplate that the actual interest would be paid.
§ Amendment agreed to.