Land Act, 1931

Provisions consequential on increase of purchase annuity.

18.—(1) Where the Land Commission, after the appointed day, make an order (not being an order consequential on a declaration that a subtenant is to be deemed to be the tenant of land in his separate occupation) increasing the standard purchase annuity for a holding and make an additional advance and issue additional land bonds for the purchase of such holding, the tenant of such holding shall pay to the Land Commission the following sums, that is to say:—

(a) a sum equal to interest at the rate of four and one-half per cent. per annum on the additional advance so made (other than so much of such advance as consists of the contribution of the State) for the period from the appointed day to the date of making such additional advance; and

(b) the sum to which sinking fund payments on the additional advance so made (other than so much of such advance as consists of the contribution of the State) would have amounted at the rate of four and one-half per cent. per annum compound interest if such additional advance had been made on the appointed day.

(2) Where the Land Commission make such order and make an additional advance and issue additional land bonds in such circumstances as are mentioned in the foregoing sub-section of this section, there shall be payable by the Land Commission to the person entitled to receive the same a sum equal to interest (less income tax) at the rate of four and one-half per cent. per annum on the whole amount of such additional advance for the period from the appointed day to the date of the issue of such additional land bonds.

(3) All sums payable under this section to the Land Commission by a tenant shall be a charge on the holding in respect of which they are payable in priority to all interests and incumbrances (other than the purchase annuity) whether created before or after the passing of this Act then affecting such holding and the Land Commission shall have for the recovery of such sums the same remedies as they have for the recovery of unpaid instalments of purchase annuities.