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Deposit of money as guarantee fund.
45 & 46 Vict. c. 38.
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3. Any person willing to secure the repayment of an advance made by the Land Commission to a tenant who is purchasing his holding either from the Land Commission or from the landlord of such holding may deposit with the Land Commission such sum, as a guarantee deposit, not being less than one fifth of the advance, as may be agreed on between him and the Land Commission.
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If the person willing to secure the repayment of such advance is a landlord entitled to be paid by the Land Commission, or out of moneys provided by the Land Commission, any sum for the purchase money of any land sold by him, he may provide such guarantee deposit by permitting the Land Commission to retain the same out of such sum so payable for purchase money.
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[1]
The Land Commission shall pay interest on the guarantee deposit at the rate of three per cent. per annum.
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Subject to the other provisions of this Act, the Land Commission shall [2]
retain the guarantee deposit until they ascertain and by order declare that the person liable for the repayment of the advance has repaid on account of principal money a sum equal to the guarantee deposit, and shall then pay over the guarantee deposit to the person entitled thereto.
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If at any time during the period for which the Land Commission are authorized to retain the guarantee deposit any sum due to the Land Commission in respect of an advance secured by a guarantee deposit under this Act is declared by them, by order, to be an irrecoverable debt, the Land Commission may apply the guarantee deposit in discharge or reduction of such irrecoverable debt.
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Such order shall not be made, unless the Land Commission, having exercised any power of sale of the holding which they legally may exercise, have failed to realise by means of such sale the sum due to them secured on the holding, or unless it appears by the order of the Land Commission that they have attempted to exercise such power of sale and have been unable to do so.
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Whenever it appears by such order that the Land Commission have attempted to exercise their power of sale and have been unable to do so, and the Land Commission thereupon apply a guarantee deposit or any part of it in discharge or reduction of any sum charged upon a holding, it shall be lawful for the Land Commission, by order, to declare that the interest in the holding of the person liable to pay such sum shall be charged in favour of the person entitled to the guarantee deposit with the amount of the guarantee deposit, or so much thereof as has been so applied by the Land Commission as aforesaid, with interest thereon at the rate of three per centum per annum until such charge is realised.
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Trustees entitled to receive the purchase money produced by the sale of any settled land may, and shall if required by the tenant for life of the settled land, or the person having the powers of a tenant for life within the meaning of the Settled Land Act, 1882, secure, by a guarantee deposit, the repayment of an advance made for the purchase of any holding being or forming part of such settled land, and may apply or permit the Land Commission to retain so much of the purchase money as the trustees or such tenant for life or other person may think fit for that purpose.
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[1 Rep. so far as respects an advance made by stock, 54 & 55 Vict. c. 48. s. 43.]
[2 As to investment of the deposit see 50 & 51 Vict. c. 33. s. 10.] |
