Mr. PATMAN. This is a motion to postpone action. I think that is always in order.

Mr. MCLEOD. The regular order before the committee now is the original motion of the gentleman from Wisconsin. We voted on the substitute to that motion.

Mr. PATMAN. I will make this as a substitute to postpone.

Mc. MCLEOD. The substitute would not be in order while there is a pending motion.

Mr. PATMAN. Do you mean that a motion to postpone is not in order?

Mr. MCLEOD. If you want to offer your postponement motion as a substitute, I think it would be.

Mr. PATMAN. There is only one motion pending, and that is the motion by the gentleman from Wisconsin; and I make mine as a substitute here. I really think the original motion would be in order because it is a motion to postpone.

Mr. MCLEOD. Are you offering this as a substitute to your own, or to Mr. Lampert's motion?

Mr. PATMAN. I am offering it in any way to be in order. I think it is in order as an original motion because it is a motion to postpone, and that is always in order. But if the chairman holds that it must be a substitute, I will offer it as a substitute.

Mr. MCLEOD. The chair feels that the proper order would be first to vote on Mr. Lampert's motion.

Mr. PATMAN. His motion is to report the bill.

Mr. MCLEOD. All right. I feel that that should be voted on first. Mr. PATMAN. Listen. There would not be any use in my putting my motion if this motion is carried.

Mr. MCLEOD. If that is defeated, you can put your motion. Mr. PATMAN. But if it is carried? My motion would have no effect. I want to make a motion to postpone this legislation.

Mr. MCLEOD. In the opinion of the chair that would be the proper order and the chair rules accordingly.

Mr. PATMAN. Does the chair rule that we have got to vote on that motion first?

Mr. MCLEOD. The chair rules that you have got to vote on what is pending before the committee at the time the substitute was voted upon.

Mr. PATMAN. And the motion to postpone is not in order?

Mr. MCLEOD. It is not in order while there is also a pending

motion.

Mr. PATMAN. And you refuse it as an original motion or as a substitute either?

Mr. MCLEOD. Your motion was not an original motion.

Mr. PATMAN. I will make a substitute motion that we postpone it two weeks.

Mr. STALKER. We voted on his amendment.

Mr. MCLEOD. Yes. The motion, Mr. Patman, according to my opinion, which possibly is not worth much, is that the original motion of Mr. Lampert's being offered, you offered a substitute which was voted upon. Therefore, that left remaining Mr. Lampert's original motion. Now the original motion can be voted on. If it is defeated, your new motion will be in order.

Mr. PATMAN. And no other substitute is in order now?
Mr. MCLEOD. Not when there is a pending motion.
Mr. PATMAN. Not while there is a pending motion?
Mr. MCLEOD. Not after a vote has been taken.

Mr. PATMAN. After a vote has been taken a substitute is not in order?

Mr. MCLEOD. You should have offered another substitute before this last vote was taken. Then the substitute would have been in order. That is the chairman's understanding.

Mr. BEERS. I ask for regular order.

Mr. MCLEOD. Regular order being demanded, the order is on the motion that the bill be reported favorably with the perfecting amendments. Those in favor will signify by saying "aye.' opposed "nay."

(A vote was taken.)

Mr. MCLEOD. The clerk will call the roll.
(The clerk called the roll.)

The CLERK. There are 9 ayes and 5 noes.
Mr. BEERS. I move that we adjourn.

وو

Those

The bill will be reported.

Mr. MCLEOD. The committee will stand adjourned.

(Whereupon at 12 o'clock noon the committee adjourned.)

REAL ESTATE, MORTGAGE FORECLOSURE, AND

BLUE SKY LEGISLATION

TUESDAY, FEBRUARY 24, 1931

HOUSE OF REPRESENTATIVES

SUBCOMMITTEE ON JUDICIARY OF THE

COMMITTEE ON THE DISTRICT OF COLUMBIA,

Washington, D. C.

The subcommittee met at 10.30 a. m., Hon. Clarence J. McLeod, chairman, presiding.

The CHAIRMAN. The committee will come to order. We have met to consider S. 3489 and S. 3491, bills to regulate the foreclosure of mortgages and deeds of trust, and prevent fraud in the promotion or sale of stocks, bonds, or other securities in the District of Columbia.

[S. 3489, Seventy-first Congress, third session]

AN ACT To regulate the foreclosure of mortgages and deeds of trust in the District of Columbia, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

DEFINITIONS

SECTION 1. (1) In this act, unless the context or subject matter otherwise requires: "Mortgage means a mortgage of real property situated in the District of Columbia and includes an agreement or conveyance whereby the mortgagor gives to the mortgagee real property as security for payment of a debt or fulfillment of other obligation. "Mortgage" includes an equitable mortgage, an absolute deed given as security, and a trust mortgage, as well as a conveyance on condition as security.

"Trust mortgage means a mortgage in which the mortgage gives the real property to a third person, the trustee, to hold as security for a debt or other obligation.

66 Execute means to sign, acknowledge, and deliver with all the requirements for a deed of real property to entitle it to be recorded.

"File" means to file in the office of the recorder of deeds of the District of Columbia.

"File for record" or "record" means to file for record in the office of the recorder of deeds for the District of Columbia.

"Lienor " includes any person having a lien or incumbrance, legal or equitable, upon the premises or a part thereof, by reason of a mortgage, judgment, or other cause, and also includes a purchaser at a foreclosure, execution, or other sale from which the period of redemption has not expired.

"Mortgagee" includes any person succeeding to any of the rights of the mortgagee, and may mean the trustee of a trust mortgage or holder of the obligation secured or both.

66

Mortgagor" includes any person succeeding to any of the rights of the mortgagor in the premises or part thereof, but does not include a lienor.

66

'Obligation secured by a mortgage includes the performance or nonperformance of any act so secured, although there be no personal obligation involved.

"Person" includes a corporation, a partnership, and two or more persons having a joint or common interest.

"Proceeding" when used to refer to proceedings to foreclose a mortgage, includes foreclosure by power of sale.

"Purchaser" when used to mean the buyer at the foreclosure sale, includes any person succeeding to any of the rights of the purchaser.

"Real property" or "premises " includes any estate or interest in land, legal or equitable, including leasehold estates.

"Record owner of the mortgage" means the person holding title of record to the mortgage although the debt secured be held by others, and in the case of a trust mortgage means the trustee or his successor of record; and it includes an executor, administrator, guardian, or other personal representative of the record owner, when proof of his appointment has been recorded.

66

'Recording office means the office of the Recorded of Deeds of the District of Columbia; and "recording officer" means the Recorder of Deeds of the District of Columbia or his deputy.

66

"Marshal' means the United States marshal for the District of Columbia. 'Taxes" include other governmental levies and local assessments, and also include the lien of taxes represented by tax sales and certificates thereof. "Trustee" includes any successor to the trustee.

(2) "Assignments" and "assignee" as used in sections 2 and 4, do not apply to the instruments secured by the mortgage; and in the case of a trust mortgage "assignment means any instrument creating a successor to the trustee, and "assignee means a successor to the trustee.

"Mortgagee" in section 4, in the case of a trust mortgage, means the trustee.

POWER OF SALE FORECLOSURE

SEC. 2. REQUISITES FOR FORECLOSURE.-(1) Every mortgage containing a power of sale, and whether or not containing a conveyance, may be foreclosed by the record owner thereof in the manner hereinafter specified.

(a) If there has been a default in some condition of the mortgage, by which the power to sell has become operative;

(b) If no action or proceeding has been instituted at law to recover any part of the debt then remaining secured by the mortgage, or if an action or proceeding has been instituted, but has been discontinued, or an execution upon the judgment therein has been returned unsatisfied in whole or in part; and

(c) If the mortgage has been recorded, and, when it has been assigned, if all assignments thereof have been recorded.

(2) No mortgage shall be foreclosed by exercise of power of sale in any manner other than as provided herein; but a power of sale in a mortgage may be exercised as herein provided, regardless of the person to whom the power runs and of the terms of the power.

SEC. 3. POWER OF ATTORNEY TO FORECLOSE, RECORDED.-The foreclosure may be conducted by an agent of the record owner of a mortgage. His authority shall be by a power of attorney duly filed for record before or at the time of recording the certificate of sale and executed by the record owner or by his agent whose authority is also evidenced by a recorded power of attorney. SEC. 4. CONTENTS OF NOTICE OF SALE.-Notice of the foreclosure sale shall be given specifying:

(1) The names of the original mortgagor and mortgagee, and of each assignee of the mortgage, if any, and of the record owner of the mortgage;

(2) The date of the mortgage, and date and place of record;

(3) The amount claimed to be due thereon at the date of the sale;

(4) A description of the mortgaged premises, including street address if there be one; and

(5) The date, time, place, and terms of sale, complying with section 7. SEC. 5. PUBLICATION OF NOTICE, POSTPONEMENT OF SALE. (1) The notice of sale shall be published three times, once in each of three successive weeks, in a newspaper of general circulation, published in the District of Columbia, the first publication to be not less than 25 days prior to the date of sale.

(2) The marshal may postpone the sale from time to time, with the consent of the person foreclosing, and shall set forth the postponements in the certificate of sale.