Land Bond Act, 1934

Payment of purchase money in land bonds.

2.—(1) All purchase money (except purchase money which is required by the Land Bond Act, 1933 (No. 33 of 1933), to be paid by means of an issue of new land bonds under that Act and except purchase money which is advanced otherwise than by means of land bonds issued under an Act passed before this Act) payable by the Land Commission after the passing of this Act to vendors shall be paid by means of an issue under this Act of land bonds created under this Act equal in nominal amount to such purchase money.

(2) Where purchase money is, under this section, payable by means of an issue of land bonds created under this Act, such land bonds shall, as between the vendor to whom they are issued and the Land Commission, be accepted by such vendor as the equivalent of the corresponding amount of purchase money, and any person having power to sell under the Land Purchase Acts may, although he is not an absolute owner, enter into a subsequent purchase agreement notwithstanding that the purchase money is, under this section, to be paid in land bonds created and issued under this Act instead of cash.

(3) Section 3 of the Principal Act as amended by section 4 of the Land Bond Act, 1925 (No. 25 of 1925), shall apply to all claims against the purchase money (as defined in the said section 3 as so amended) when such purchase money is, under this section, payable in land bonds created and issued under this Act in like manner as it applies to the claims mentioned in the said section 3 as so amended, but subject to the modification that references in the said section 3 as so amended to land bonds shall be construed and have effect as references to land bonds created and issued under this Act.