STATUTORY RULES
1916. No. 250.
REGULATION UNDER THE WAR REGULATIONS ACT
1914-1916.
I, SIR ARTHUR STANLEY, Governor of the State of Victoria and, its Dependencies, in the Commonwealth of Australia; acting as the deputy of the Governor-General in accordance with the provisions of the Constitution, acting with the advice of the Federal Executive Council, hereby make the following Regulation under the War Precautions Act 1914-16 to come into operation forthwith.
Dated this 11th day of October, 1916.
A. L. STANLEY,
Deputy of the Governor-General.
By His Excellency's Command,
W. M. HUGHES,
For Minister of State for Defence.
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WAR PRECAUTIONS (SUPPLEMENTARY) REGULATIONS 1916.
(Statutory Rules 1916, No. 97, as amended by Statutory Rules 1916, Nos. 112, 122, 128, 129, 167, 218, and 219.)
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The War Precautions (Supplementary) Regulations are amended by inserting, at the end thereof, the following Regulation:—
Limitation of rights of mortgagees.
“15. (1) No mortgagee(b) shall at any time within seven days from the commencement of this Regulation—
(a) call up or demand payment from any mortgagor;
(b) exercise any power of sale;
(c) commence any action or proceeding for breach of any covenant, agreement or condition expressed or implied in any mortgage other than a covenant, agreement, or condition for the payment of interest; or
(d) commence any action or proceeding for any rate of interest higher than the rate provided in the mortgage, or where there is provided in the mortgage a reduced rate in the case of punctual payment, for a rate of interest higher than the reduced rate.
“(2) In this Regulation—
“Mortgage” means any deed, memorandum of mortgage, instrument, or agreement whereby security for payment of moneys or for the performance of any contract is granted over land or chattels or any interest therein respectively, and includes an equitable mortgage by deposit of title deeds;
“Mortgagor” means the person liable under the provisions of a mortgage, and includes any person who has guaranteed the performance by the mortgagor of any covenant, condition, or agreement expressed or implied in the mortgage, whether such guarantee is expressed in the mortgage or in any other instrument;
“Mortgagee” means the person entitled to the benefit of the security of any mortgage.”
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Overview
The War Precautions (Supplementary) Regulations 1916 were introduced by the Governor of the State of Victoria, Sir Arthur Stanley, acting as the deputy of the Governor-General. These regulations were enacted to address the pressing need for supplementary measures to manage the economic and financial impacts arising from the First World War. They were made under the War Precautions Act 1914-16, aiming to provide relief to mortgagors by temporarily limiting the rights of mortgagees during the war period. The specific objective of Regulation 15, as outlined, was to prevent mortgagees from calling up or demanding payments, exercising powers of sale, or initiating legal actions for breaches of mortgage covenants, agreements, or conditions, except those related to interest payments, within the first seven days of the regulation's commencement. This legislative action was designed to offer immediate financial respite to individuals and entities affected by the war, thereby maintaining stability in the economy during a time of national crisis.
Scope and Application
The War Precautions (Supplementary) Regulations 1916, enacted under the War Precautions Act 1914-16, apply to all mortgagees and mortgagors within the State of Victoria and its dependencies. These regulations specifically prohibit mortgagees from demanding payment, exercising powers of sale, or initiating legal proceedings for breaches of mortgage covenants or interest rate disputes within seven days from the commencement of the regulation. This temporary limitation aims to provide relief to mortgagors during wartime. The regulation defines key terms such as "mortgage," "mortgagor," and "mortgagee," ensuring clarity in its application. Any amendments or further clarifications to these regulations may be made through subordinate instruments, which can extend or restrict the application of the legislation as necessary.
Key Provisions
The War Precautions (Supplementary) Regulations 1916 introduce specific limitations on the rights of mortgagees during wartime, as outlined in section 15. Under this section, mortgagees are prohibited from demanding payment from mortgagors, exercising any power of sale, or initiating legal proceedings for breaches of covenants, agreements, or conditions in a mortgage within seven days of the regulation coming into effect. This restriction extends to actions related to the payment of interest, where mortgagees cannot pursue rates higher than those specified in the mortgage or a reduced rate applicable for punctual payment (section 15(1)(a)-(d)). This regulation aims to provide temporary relief to mortgagors by halting certain enforcement actions that could otherwise exacerbate financial difficulties during the war period.
The obligations imposed by the War Precautions (Supplementary) Regulations 1916 on mortgagees are clear and specific. Mortgagees must refrain from taking any of the prohibited actions listed in section 15(1) for a period of seven days from the commencement of the regulation. This means they cannot call up or demand payment from mortgagors, exercise any power of sale, or commence any legal action related to breaches of covenants or interest rates as stipulated in the mortgage. This restriction is designed to offer immediate, temporary relief to those who are liable under a mortgage, thereby preventing further financial strain during the challenging times of wartime.
Breaches of the War Precautions (Supplementary) Regulations 1916, specifically the provisions outlined in section 15, can have significant consequences. Although the regulations themselves do not explicitly state penalties or consequences for non-compliance, the nature of wartime regulations often implies that violations could result in legal action or other administrative penalties. Given the context of the War Precautions Act 1914-1916, penalties could potentially include fines, legal action to enforce compliance, or other measures deemed necessary by the authorities to ensure adherence to the wartime provisions. The gravity of these potential consequences underscores the importance of adhering to the temporary relief measures introduced by the regulation.