Colonial Despatches
The colonial despatches of Vancouver Island and British Columbia 1846-1871
Despatch to London
Seymour, Governor Frederick to
Grenville, Richard 16 September 1867, CO 60:29, no. 10822, 104.
Abstract
Seymour, Governor Frederick to
Grenville, Richard 16 September 1867, CO 60:29, no. 10822, 104.
Despatch to London.
Minutes (4), Enclosures (untranscribed) (2), Other documents (1).
No. 112
Victoria
16th September 1867
My Lord Duke,
I have the honor to forward an authenticated and two plain
copies of an Ordinance of the late Session of the Legislative
Council of this Colony entitled;No 32.
No 32. An Ordinance to give to
Mortgages certain powers now commonly inserted in Mortgages.
No 32. An Ordinance to give to
Mortgages certain powers now commonly inserted in Mortgages.
I add the report of the Attorney General and also a
protest of Mr Justice Begbie against the allowance of the measure.
These papers were not before me at the time when I allowed the Bill. I
hardly know what importance Your Grace will attach tothem.
them.
them.
Minutes by CO staff
Sir F. Rogers
This Ordinance by the first 4 sections adopts part of the Imperial Act 23 & 24 Vict c. 145, with the exception that 3 months are substituted for 6 months.
This Ordinance by the first 4 sections adopts part of the Imperial Act 23 & 24 Vict c. 145, with the exception that 3 months are substituted for 6 months.
By sections 5, 6 & 7 a mortgagee—subject to any conditions
which may be imposed by the Court—is authorized to bid for and
to purchase the mortgaged property. Mr Begbie strongly protests
against this power being given to the mortgagee. One manifest
objection which may be made to the proposed measure is that
the
mortgagee would manage to buy in the property at a low price, and
then sue the mortgager for the balance. But even as the Ordinance
now stands, the Court has sufficient power vested in it to prevent
such an injustice being perpetrated (see sect 6) by affixing
conditions as to notice & conduct of the sale and otherwise as
shall appear just.
the
mortgagee would manage to buy in the property at a low price, and
then sue the mortgager for the balance. But even as the Ordinance
now stands, the Court has sufficient power vested in it to prevent
such an injustice being perpetrated (see sect 6) by affixing
conditions as to notice & conduct of the sale and otherwise as
shall appear just.
I think however it would be desirable to have a clause
inserted to the effect that a mortgagee, who so purchases, should
be deprived of any further remedy under the covenant for the
balance of the mortgage money.
There is a suspending clause in the Ordinance; & I should
be disposed to inform the Governor that H.G. is prepared to
sanction this Ordinance when an Ordinance has been passed
containing a clause to the above effect.
Mr Begbie also
objects to section 8 of this Ordinance, but it adopts the
provisions of sect 15 of the Imperial Act. It enables the person
who exercises the power of sale to vest in the purchaser the
Estate and interest which the mortgager had power to dispose of.
This the purchaser has certainly a right to require & with less
no purchaser would be contented.
Mr Begbie also
objects to section 8 of this Ordinance, but it adopts the
provisions of sect 15 of the Imperial Act. It enables the person
who exercises the power of sale to vest in the purchaser the
Estate and interest which the mortgager had power to dispose of.
This the purchaser has certainly a right to require & with less
no purchaser would be contented.
HTH
6/11
Documents enclosed with the main document (not transcribed)
H.P.P. Crease, Attorney General, to Seymour, 19 August 1867,
reporting on the ordinance as per despatch.
Memorandum, M.B. Begbie, 20 July 1867, objecting to the
proposed mortgage ordinance, with explanation.
Other documents included in the file
