Powers.
Exercise
of
powers.
Movable
property, furniture, fixtures,
&c
"
Hirings
42
9. Section 8 of the Proclamation is designed to give the Custodian the very fullest powers possible subject only to the limitations that -
(i) in the case of leaseholds with an unexpired term exceeding three years the Custodian may not sell, assign,mortgage, surrender or otherwise dispose of the property without the consent in writing of the Chief Legal Adviser or the Legal Adviser, except by a sub-letting for a term not exceeding three years; and
(ii) the Custodian has no power to carry on any trade formerly carried on in any premises taken into his custody. Wide powers of calling for information are given by section 10.
10. In the performance of his functions and particularly in the exercise of his powers the Custodian must always consider the interests of the owner of the property. He should ask himself what the owner's mandate would be likely to be and act accordingly. For the very reason that the powers and discret- ions entrusted to him are so large there should be nothing arbitrary in their exercise and there should be no departure from the position that the Custodian is, in effect,a trustee for the owner.
Çircumstances are likely to vary so greatly in relation to different premises that it is impossible to lay down any hard and fast rules of action,but,having regard to the primary object of preserving property, it may in general be suggested that in the first instance a caretaker should be installed and that as soon as possible the premises should be let (furnished, if furniture is there) and further that in letting the possibility of the early return of the owner should be borne in mind and only a short tenancy arranged.
In this connection it may be as well to give the reminder that the Custodian's duties will not stop at installing a caretaker or effecting a letting the premises must be kept under supervision.
If possible the individuals employed as caretakers or watchmen should give security for the performance of their duties. Peculation might otherwise be fife. Even the bonds which were in common favour in Hong Kong are preferable to no security at all.
11. In general where the movable property on any premises takes
the form of furniture, shop fittings or the like, it would be preferable to effect a letting including such items and to have a signed inventory and even require a deposit, if the tenant is unknown.
Where the property on the premises consists of machinery provision must be made for care and maintenance, unless a letting with use of the machinery can be effected.
Where the movable property consists of merchandise and the like,sale should be effected as soon as possible and for this purpose the goods can be removed and stored pending sale.
It is doubtful whether facilities will exist for sale by auction, but if they do auction is preferable to sale by private treaty as the bona fides of the sale is unchallengeable.
12. In matters relating to both hirings of moveables and lettings & lettings.of property it has to be borne in mind that, while the best rental should be sought, the paramount consideration is the preservation of the property a reliable hirer or tenant at a somewhat low rental is preferable to an untrustworthy one at a high rental.
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In the early days of the re-occupation there will doubtless be many empty houses and there will be little competition for accommodation;therefore there will be a period of low rents. It will be desirable therefore to make initial tenancies short and later, when the situation adjusts itself and rents rise, longer tenancies can be arranged at economic rents.
Incidentally, the Custodian should aim at being a good landlord. It is in the owner's interest that premises should be kept in a good state of repair.
4.