(c)
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If the mortgagee has enjoyed the rents and profits either by appointing a receiver or taking possession, he should be permitted to keep these up to the amount of the outstanding interest (pre-occupation and occupation interest) due by the mortgagor, accounting to the mortgagor for any balance.
(a) If the mortgagee has sold the land (with or without a prior fore-
closure) the mortgagor should have an option, exercisable within three months of the lifting of the moratorium, to recover the land upon payment to the present owner of the amount of the principal, and interest (not calculated at a penal rate) due prior to the occupation date and due after the lifting of the moratorium.
(e)
23.
If the mortgagee has foreclosed, and is in possession, the mortgagor should have a similar option exercisable within a similar period, to recover his land upon payment of principal and interest similarly calculated.
CATEGORY 2
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MORTGAGEE ABSENT IMPRISONED OR INTERNED: MORTGAGOR IN POSSESSION AND AT LIBERTY TO EXERCISE RIGHTS.
Arrears of mortgage interest will be payable, but the Commission should be empowered to allow payment by instalments in cases of hard- ship.
24.
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CATEGORY 3 MORTGAGOR AND MORTGAGEE BOTH ABSENT OR NOT AT LIBERTY TO EXERCISE RIGHTS.
Mortgage interest should be deemed to have ceased to be payable from the occupation date to the date of lifting of the moratorium.
The Commission should, if applied to, make any necessary order to eject any trespasser, or person claiming under the Japanese Custodian of Enemy Property or other authority acting under Japanese direction, and should assess compensation for damage or waste.
25. INFLATION.
The relation between mortgage indebtedness and the value of money may require review when the facts relating to the latter are known.
PART V. LEASES AND TNANCIES.
26. INTERPRETATION. Where the context admits, "lease" includes a sub-lease and an agreement for a lease or sub-lease; "lessor" includes an assignee of the reversion expectant on a lease or sub- lease and persons deriving title under a lessor or sub-lessor; "lessee" includes an assignee of a lease and a sub-lessee and any person deriving title under either of them.
27. GENERAL POLICY. The general policy, (on the information now available), should be to refrain from interfering with transactions inter vivos concluded freely and voluntarily during the Japanese Occupation, whil: ensuring that persons who have been deprived of the enjoyment of the premises by reason of war circumstances, (such persons, for instance, as prisoners of war, internees and refugees), should be restored as far as possible to their previous position and should not be left without accommodation or be faced with large claims for accumulated rent. The doctrine of frustration probably does not apply to leases and legislation will be necessary. Cases in which remedies will be required may be divided into categories as under:
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X See Cricklewood Property and Investment Trust Limited and others v. Leighton's Investment Trust Limited (1945) 61 T.L.P. 204.)