Land Act, 1927

Compounded Arrears of Rent.

2.—(1) Notwithstanding the provisions of sub-sections (3) and (4) of section 19 of the Land Act, 1923 , the Land Commission, where they deem it expedient so to do, may fix the appointed day for a holding notwithstanding that compounded arrears of rent payable in respect thereof may not have been collected by them from the tenant, and in such case a sum equivalent to the amount of the compounded arrears of rent remaining unpaid on the appointed day shall be added to the purchase money of the holding and repaid by a purchase annuity calculated at the rate of 4¾ per cent. on the amount thereof charged on the holding and added to and consolidated with the standard purchase annuity of the holding. The provisions of the Land Act, 1923 , with respect to the additional annuity payable where one half-year's compounded arrears of rent is added to the purchase money pursuant to the proviso in sub-section (3) of section 19 thereof, shall apply to the annuity created under this section.

(2) Any sum added to the purchase money of a holding in respect of compounded arrears of rent shall be paid out of the purchase money to the person who would have been entitled to receive such compounded arrears of rent for his own use provided that the income tax, if any, due in respect of the holding shall be deducted from such added sum on the distribution of the purchase money.