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Advances by guaranteed land stock.
51 & 52 Vict. c. 2.
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1.—(1) Every advance under the Land Purchase Acts as amended by this Act . . . . . except as hereinafter mentioned, shall be made by the issue of a sum of guaranteed land stock equal in nominal amount to the advance; such stock, as between vendor and purchaser of the holding purchased, shall be accepted by the vendor as equal in value to the nominal amount thereof.
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(2) Such stock shall be a capital stock, consisting of annuities yielding dividends at the rate of two pounds fifteen shillings per cent. per annum on the nominal amount of the capital, payable by equal half-yearly payments on the first days of July and January, and after thirty years from the commencement of this Act, and not before, shall be redeemable in accordance with subsection two of section two of the National Debt Conversion Act, 1888, as if it were stock redeemable under that section; and for the purpose of such redemption of any stock, at or before the expiration of the term of forty-nine years from the time of the issue of such stock, a Sinking Fund shall be established by means of an annual sum at the rate of one per cent. on the nominal amount of the capital, payable in equal half-yearly payments.
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(3) The said dividends and payments to the Sinking Fund shall be paid out of the Land Purchase Account herein-after mentioned, and, if that is insufficient, shall, to the extent of the deficiency, be paid as a temporary advance out of the Consolidated Fund, and every such advance shall be repaid to the Consolidated Fund out of the Guarantee Fund as provided by this Act.
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