. Legislative regulation of railway finance in England . the creditors, section CLXI of thesame Act provided that in case of non-payment of interest asspecified in the Act, by en order of two justices of the peace,some person may be appointed to receive the whole or such part ofthe said rates, tells, or sums as are liable to pay such interestso due and. unpaid The time for repayment of the principal was required to be 2 clearly specified in the mortgage deed, and if no time was speci-fied, the holders of such mortgages might demand payment aftertwelve months from the date when the loan was mad
. Legislative regulation of railway finance in England . the creditors, section CLXI of thesame Act provided that in case of non-payment of interest asspecified in the Act, by en order of two justices of the peace,some person may be appointed to receive the whole or such part ofthe said rates, tells, or sums as are liable to pay such interestso due and. unpaid The time for repayment of the principal was required to be 2 clearly specified in the mortgage deed, and if no time was speci-fied, the holders of such mortgages might demand payment aftertwelve months from the date when the loan was made, upon giving six calendar months notice in writing to the secretary or clerk 3 of the If the company failed to meet such demand of repayment cf the principal due and if such prin^ipa^in the as i f* aggregate amounted to the sum of £20,000, ^n the case of the non- payment of interest, two justices might order the appointment of4 receivers. 1. See Chapter V on Registration of Railway Securities. 2. Sec. CLXIII. 3. Sec. CLXIV. 4. Sec. Prom these provisions, it is clear that besides the limi-tations upon the borrowing powers of railway companies, two dis-tinct principles were laid down, (l) the real security of the 1 mortgagees wa? limited to the undertaking, the tolls and rates ofthe company, and (2) these mortgages were for limited periods,liquidated or renewed upon the expiration of such periods. Bothof these principles gave rise to much difficulty afterwards, theone on account of its own defect which was not foreseen at thetime and the other because of the wrong conception of it by thepubli c. These special provisions regarding loan capital soon be-came too numerous and hence difficult for the railways to such circumstances, it was but natural that many irregular-ities took place in making loans, irrespective of the intention ofParliament to prevent them. To simplify matters, Parliament de-voted no less than twenty sections of its first Compan
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