STATUTORY RULES.
1943. No. 4.
REGULATIONS UNDER THE NATIONAL SECURITY ACT 1939–1940.*
I, THE GOVERNOR-GENERAL in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulations under the National Security Act 1939–1940.
Dated this twelfth day of January, 1943.
GOWRIE
Governor-General.
By His Excellency’s Command,
H. V. EVATT
for and on behalf of the Minister of
State for Defence.
Amendments of the National Security (Contracts Adjustment) Regulations, †
Definitions.
1. Regulation 3 of the National Security (Contracts Adjustment) Regulations is amended by inserting, before the definition of “respondent”, the following definition:—
“‘party’, in relation to a contract or agreement, being a mortgage, includes—
(a) any legal or equitable assignee of an actual party to the mortgage;
(b) any person entitled to the equity of redemption in respect of the property subject to the mortgage; and
(c) the legal personal representative of an actual party to the mortgage or of any person specified in the last two preceding paragraphs;”.
* Notified in the Commonwealth Gazette on 13th January, 1943.
† Statutory Rules 1942, No. 65, is amended by Statutory Rules 1942, Nos. 162, 258, 470 and 481.
2. After regulation 4 of the National Security (Contracts Adjustment) Regulations the following regulation is inserted:—
Special provision as to mortgages.
“4a. Where a party to a mortgage applies to a tribunal for relief under these Regulations, and it appears to the tribunal that, by reason of the applicant being engaged, or being deemed to be engaged, on war service within the meaning of the National Security (War Service Moratorium) Regulations, he has suffered a diminution of his income, that diminution shall be prima facie evidence that the performance or further performance of the obligations of the applicant under the mortgage with respect to the payment of interest has become inequitable and unduly onerous, and the tribunal shall consider any such diminution of income and any benefit or income derived by the applicant from the property subject to the mortgage and thereupon may make an order suspending or reducing, for such period, to such amount, and subject to such conditions, as it thinks fit, the interest payable under the mortgage.”.
Orders may be made subject to terms and conditions, &c.
3. Regulation 6 of the National Security (Contracts Adjustment) Regulations is amended by omitting the word “two” and inserting in its stead the word “three”.
By Authority: L. F. Johnston, Commonwealth Government Printer, Canberra.
Overview
The Statutory Rules of 1943, Number 4, were enacted under the National Security Act 1939–1940, aiming to address the economic impacts on individuals engaged in war service during World War II. These regulations were created by the Governor-General in Council, reflecting the urgent need to provide relief to those affected by the war. The primary policy objective of these regulations is to assist individuals engaged in war service by ensuring that their financial obligations, particularly those related to mortgages, are adjusted to reflect their diminished income, thus preventing undue financial hardship. This legislative instrument expands on the existing framework by specifically addressing the unique circumstances of those serving in the war, offering them equitable treatment in financial matters.
Scope and Application
The Regulations under the National Security Act 1939–1940 apply to any party involved in a mortgage contract who has suffered a reduction in income due to being engaged in war service, as defined by the National Security (War Service Moratorium) Regulations. This encompasses individuals, legal or equitable assignees of the mortgage, persons entitled to the equity of redemption in respect of the property subject to the mortgage, and the legal personal representative of the aforementioned parties. These regulations are applicable across the Commonwealth of Australia and are designed to provide relief to those impacted by the war service, particularly in the context of mortgage agreements. The scope of the regulations extends to modifying the obligations under mortgage contracts to account for the financial hardships faced by individuals engaged in war service, thereby ensuring that such individuals do not face undue financial burdens as a result of their service.
Key Provisions
The statutory rules outlined in the legislative instrument (C1943L00004) amend the National Security (Contracts Adjustment) Regulations under the National Security Act 1939–1940. These amendments introduce specific provisions related to mortgages and war service, particularly focusing on the impact of war service on the financial obligations of mortgage holders. Regulation 3 of the National Security (Contracts Adjustment) Regulations is amended by introducing a new definition of "party," which includes legal or equitable assignees of an actual party to the mortgage, persons entitled to the equity of redemption, and the legal personal representative of any such parties. This broader definition ensures that a wide range of individuals and entities can be considered parties to a mortgage for the purposes of these regulations.
The new regulation, 4a, inserted after regulation 4, provides that if a party to a mortgage applies for relief and it is evident that they have suffered a reduction in income due to war service, this reduction is considered prima facie evidence that the performance of their mortgage obligations, particularly the payment of interest, has become inequitable and unduly burdensome. The tribunal is empowered to consider the reduction in income and any benefits derived from the property subject to the mortgage and may order a suspension or reduction of the interest payable under the mortgage for a specified period and amount, subject to conditions it deems appropriate. This provision aims to provide relief to those adversely affected by the financial impacts of war service.
These amendments impose obligations on the tribunal to carefully consider the circumstances of applicants affected by war service, including the impact on their income and any benefits derived from the mortgaged property. The tribunal must make informed decisions that balance the interests of the mortgagee and the applicant, potentially leading to adjustments in mortgage obligations to ensure fairness and equity. The new provisions also mandate that orders made by the tribunal regarding the suspension or reduction of mortgage interest payments can be subject to specific terms and conditions, ensuring that any relief granted is structured and appropriate to the individual circumstances of the applicant.
Breach of these regulations, or failure to comply with orders made by the tribunal, could result in legal consequences. While the specific penalties for non-compliance are not detailed in the legislative instrument, under the broader National Security Act 1939–1940, penalties for non-compliance with regulations made under this act can include fines and imprisonment. The exact penalties would depend on the nature and severity of the breach, but the overarching intent is to ensure that the provisions of these regulations are enforced to provide necessary relief to those impacted by war service.