No. 76

I have to acknowledge the receipt of your Despatch No. 89 of the
5th of August, in which you inform me that the Legislative Council have
declined to effect the Amendments in Ordinance No. 32 of 1867 which were
suggested in my Despatch No. 80 of the 13th November.

Upon a reconsideration of the subject, I retain the opinion that
without these amendments the Ordinance is not one which should receive
Her Majesty's sanction.

No reason has been assigned why the period of time fixed by the
Eleventh Section of the Imperial Act 23 and 24 Victoria C. 145 (upon
which this Ordinance is based) should have been reduced, and in the
absence of any special reason, I am of opinion that such reduction is
uncalled for, and might tend to abuse.

The power given to a Mortgagee to purchase the mortgaged premises
is new, and if granted requires to be carefully guarded to secure proper
protection to the Mortgagor. Certain checks upon the Mortgagee may be
imposed by the Court or Judge under Section 6 of the Ordinance, but it
may be doubtful whether the condition which was imposed by the proposed
amendment could be imposed under the Section as it now stands. Moreover
I am disposed to think that this condition should not be left at the
discretion of the Court or Judge but should be absolute in order
effectually to check, if not altogether to prevent a Mortgagee from
making a forced sale and thereby unduly injuring the Mortgagor.

Under these circumstances I am not prepared to advise Her Majesty
to sanction the Ordinance.