Land Bond Act, 1925

Claims against purchase money to be paid in Land Bonds.

4.—The Principal Act shall be construed and have effect and be deemed always to have had effect as if the following section were inserted therein in lieu of the section 3 now contained therein, that is to say:—

“3.—(1) Every claim against the purchase money shall be paid and discharged, so far as the land bonds representing the purchase money are sufficient for the purpose, by transferring to the claimant out of the land bonds representing the purchase money land bonds equal in nominal value to the amount of the claim, and in every such case the claimant shall be entitled to the interest accrued since the appointed day on the land bonds so transferred to him.

(2) Payment of a claim against the purchase money in accordance with this section shall be deemed to be a satisfaction of the claim to the extent of the amount of the nominal value of the land bonds transferred to the claimant in payment thereof.

(3) Notwithstanding the provisions of this section, the Judicial Commissioner may, in any particular case in which justice appears to him so to require, make such order inconsistent with the foregoing provisions of this section as appears to him to be proper in regard to any claim against the purchase money or the land bonds transferable in payment thereof or the interest on such land bonds.

(4) In fixing the redemption price of superior interests the Judicial Commissioner shall have regard to the price received by the vendor for the lands out of which such superior interests issue.

(5) In this section the expression “claim against the purchase money” includes the following things so far as the same are respectively payable out of the purchase money, that is to say:—

(a) the redemption price of all superior and intervening interests, incumbrances, and other claims attaching to purchase money paid by means of 4½ per cent. land bonds or payable out of such interests, incumbrances, and claims, and

(b) all arrears of and interest on such interests, incumbrances, and claims, and

(c) the costs of making title to such interests, incumbrances, and claims, and

(d) the vendor's costs of sale,

and the person entitled to receive the amount of a claim against the purchase money is referred to as the claimant.”