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" sth April 1895 —Messrs. Buckley, Stafford, and Treadwell, Wellington.—Section , Block ' .—I have to acknowledge.the receipt of yours of the 27th ultimo, and to return herewith mortgage-docket, in which a clause must be inserted to the effect that the conditions of section 83 of ' The Land Act, 1892,' relating to mortgages, are implied therein before the Land Board can approve.—G. Weight, for Commissioner of Crown Lands. "The Government Advances to Settlers Office, Wellington, 11th April, 1895.-The Commissioner of Crown Lands, District Land and Survey Office, Wellington.—Section Block , .—Sir,—With reference to your reply of the sth instant to Messrs. Buckley, Stafford, and Treadwell, respecting the mortgage-docket for this land, __stating that before the Land Board can approve of the mortgage a clause must be inserted m the docket that the conditions which relate to the mortgages in section 83 of ' The Land Act, 1b92, are implied in such docket, I beg to enclose a copy of a memorandum on the subject generally from my solicitor, Mr. Stafford, which will, I think, satisfy the Land Board that the insertion of the required clause is not necessary to the approval. The insertion, indeed, of the clause ' would I believe, be of no avail if the provisions of the Advances to Settlers Act were paramount to those of the Land Act. On the other hand, the rights of the Land Board would not, according to Mr. Stafford, be prejudiced by a consent which the law should not authorise. —I am, &c, J. K. Waebueton, Superintendent." Enclosure. " The Superintendent, Government Advances to Settlers Office, Wellington.—Mortgages of land leased under ' The Land Act, 1892.'—Mortgagees powers of such lease are limited by the provisions of subsection (3) of section 83 of ' The Land Act, 1892.' Eepeals by implication of the provisions of a statute are not favoured. The principle is that the provisions of a statute dealing specially with a particular subject are not by implication to be deemed to be repealed by the provisions of a later statute unless the implication is undoubted. In the present case ' The Land Act, 1892,' is a special statute dealing with Crown lands, and the Legislature, by subsection (3) of section 83 of ' The Land Act, 1892,' has limited the powers of a mortgagee. ' The Government Advances to Settlers Act, 1894,' is a statute authorising advances upon mortgage. It authorises advances on mortgage of leases held under ' The Land Act, 1892.' Mortgages in such cases must be subject to the statute under which the leases are granted. The mortgagee s powers under a mortgage of a lease held under ' The Land Act, 1892,' must be subordinate to the provisions of that Act. While that is so, there is no reason why the consent of the Land Board should be refused to a mortgage under ' The Government Advances to Settlers Act, 1894, notwithstanding the implied covenants. The consent cannot prejudice the provisions of subsection (3) of section 83 of ' The Land Act, 1892,' and the implied covenants cannot control those provisions The position will be that the Superintendent of the Advances to Settlers Act, as mortgagee of leases under ' The Land Act, 1892,' can only exercise his powers subject to the provisions of subsection (3) of section 83 of ' The Land Act, 1892.'—8. Staffobd, 9th April, 1895. This explanation of the position was at the same time communicated to the Under-Secretary of the Department of Lands and Survey, in reply to a representation which he had made on the subject, and in order that he might make the position known to the Commissioners of Grown Lands throughout the colony. ' . It was at first apprehended that the form of mortgage as set forth in the Act, with the implied covenants, would not sufficiently provide for the proper protection of the advances, and it was suggested that an Order in Council might be expedient to overcome, as far as possible, any such deficiencies. On this point, however, the office solicitor gave his opinion in the following memorandum : — " Memorandum for the Superintendent, Government Advances to Settlers Office, re ' Government Advances to Settlers Act, 1894.' " I think it unnecessary to issue an Order in Council modifying or altering the covenants and conditions in the Fourth Schedule. Those are not so comprehensive as are ordinarily used in practice, but they are sufficient to protect the Superintendent as mortgagee. An Order in Council which would be satisfactory must recast the v/hole of the Fourth Schedule, and I do not think that advisable. I enclose, for your perusal, the ordinary form of mortgage, showing the covenants and provisions which are usually inserted in mortgages to clients, including the Public Trustee. You will see that these covenants and provisions are more comprehensive than those in the schedule to the Act. " There is an objection to the form of mortgage-docket as set fortn in the second part of the Fourth Schedule, where the security is leasehold (not under the Land Transfer Act). The effect of the mortgage-docket is to make the Superintendent, as mortgagee, the assignee of the leasehold, and so render him liable to the payment of the rent and the performance of the covenants of the lease—a practice never adopted unless where the rent is small and the covenants immaterial. To alter this by Order in Council under section 64 of the Act may be >';-'- dangerous, as the order may be ultra vires. If loans are not granted on leaseholds which are not subject to the Land Transfer Act, this question will not arise. Under the Land Transfer •'■. Act the mortgage only creates a charge, there being no liability as between the mortgagee and ■ ' the lessor. In the majority of cases (if not in all) the loans in cases of leases will probably be (•judging from section 25 of the Act) of leaseholds under the Land Transfer Act, and so the ■■■■■ ■dbjeStion will not arise. . " B. Staffoed. •:. ■•: : "Wellington, 28th March, 1895." : :....:, Then the leasehold interest of land comprised in the. education reserves, and administered by the Land Boards of ther colony, would also appear to -be- excluded from the securities on which ad-