LIABILITIES (WAR-TIME ADJUSTMENT) BILL. Memo. by Attorney General covering draft:

These powers are contained in Subs. (1) to (3) of C1.7. Where the value of the property has fallen to less than the amount of the debt secured upon it, as may well happen in war time, the creditor will remain secured only up to the reduced value of the property, and in respect of the balance he will "prove" like an unsecured creditor. As regards the secured debt itself, or so much of it as remains charged on the property; there is power to postpone repayment of the principal, and in a proper case to reduce the rate of interest or even, in some circumstances, to remit the interest altogether? while the adjustment order is in force.