Land Bond Act, 1933

Creation and issue of new land bonds.

4.—(1) In order to provide for the making of advances and the payment of purchase moneys which are required by this Act to be made or paid by means of an issue under this Act of new land bonds, the Minister for Finance shall (subject to the limitation imposed by this section) have power to create and issue, as and when required, bonds to be called four and one-half per cent. new land bonds of such denominations (not in any case less than one pound) as the said Minister may determine.

(2) The total amount of new land bonds issued under this Act shall not exceed one million pounds in nominal value.

(3) New land bonds shall bear interest at the rate of four and one-half per cent. per annum on the nominal amount thereof payable by equal half-yearly instalments at such times in each year as may be fixed by regulations made by the Minister for Finance under this Act.

(4) New land bonds shall be redeemable at par together with payment of all arrears of interest, and the Minister for Finance shall by regulations made by him under this Act make arrangements for such redemption by means of periodical drawings.

(5) The Minister for Finance shall, by regulations made by him under this Act, provide for the immediate redemption of new land bonds transferred by order of the Judicial Commissioner in redemption of land purchase annuities charged on lands acquired by the Land Commission under the Principal Act.

(6) At any time after the expiration of thirty years from the passing of this Act all or any new land bonds not previously redeemed may be redeemed at par at such time or times and either by drawing or otherwise as the Minister for Finance may direct.

(7) The interest on new land bonds and the sums required for the redemption thereof under this section shall be paid out of the Land Bond Fund and, if that Fund shall be insufficient for that purpose, shall be charged upon and paid out of the Central Fund and the growing produce thereof as a first charge thereon after charges created before the passing of this Act.

(8) All money paid out of the Central Fund to the Land Bond Fund under the next preceding sub-section of this section shall be treated as a temporary advance to the Land Bond Fund and shall be made good out of the Guarantee Fund.