HL Deb 11 May 1939 vol 112 cc1043-4

Page 11, line 28, at end insert:

("(b) where the property subject to the mortgage or charge comprises and, 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.")

THE LORD CHANCELLOR

My Lords, this Amendment also is one that requires some explanation. The object of the Amendment is to secure that where there is a mortgage on future interests and the mortgage deed contains, as is not at all uncommon, a capitalisation clause according to which the interest is capitalised until the principal becomes due, the Statute ought not to run, and is designed according to the Amendment not to run, as respects claims for interest until it begins to run as regards the principal debt. It would obviously be a considerable hardship to both parties if the mortgagee were compelled to bring actions in respect of claims for interest in order to preserve his rights at a time when the actions might be profitless. That is the matter with which this Amendment is concerned—to prevent that hardship. I beg to move that the Amendment be agreed to.

Moved, That this House doth agree with the Commons in the said Amendment.—(The Lord Chancellor.)

On Question, Motion agreed to.