S.I. No. 335/1956:

LAND (FINANCE) (NO. 2) RULES, 1956.

LAND (FINANCE) (NO. 2) RULES, 1956.

I, GERARD SWEETMAN, Minister for Finance, in exercise of the powers conferred on me by section 30 of the Irish Land Act, 1909, section 17 of the Land Act, 1923 , section 7 of the Land Bond Act, 1925 , section 57 of the Land Act, 1927 , section 53 of the Land Act, 1931 , section 11 of the Land Bond Act, 1933 , section 3 of the Land Act, 1933 , section 10 of the Land Bond Act, 1934 , section 3 of the Land Act, 1939 , section 7 of the Land Reclamation Act, 1949 , section 3 of the Land Act, 1950 , and section 2 of the Land Act, 1953 , hereby make the following Rules and Regulations (hereinafter referred to as Rules) :

1. (1) These Rules may be cited as the Land (Finance) (No. 2) Rules, 1956.

(2) These Rules shall come into operation on the 1st day of January, 1957.

2. (1) The Interpretation Act, 1937 (No. 38 of 1937), applies to these Rules.

(2) In these Rules, save where the context otherwise requires--

every reference to (as the case may be) advance, purchase annuity, annuity, holding or land, whether or not subject to consolidation, shall be construed as including a reference to part or parts of an advance, purchase annuity, annuity, holding or land respectively (whether or not so subject) ;

every reference to purchase annuity or annuity shall be construed as including a reference to annual sum equivalent to a purchase annuity or to part or parts of such an annual sum or to additional sum or to part or parts of an additional sum ;

every reference to consolidated annuity shall be construed as including a reference to part or parts of a consolidated annuity ;

every reference to holding shall be construed as including a reference to a parcel of land in whole or in part ; and every reference to land shall be construed as including a reference to an interest or right in or over land.

3. (1) Where the price has been or shall be payable in land bonds for land to which section 10 of the Land Act, 1950 , applies, the purchase annuity in repayment of any advance made on the resale of the land, whether or not discharged from a payment under section 11 of that Act, shall be calculated at the same rate as if the land, when acquired or purchased by or vested in the Land Commission, had not been subject to a purchase annuity.

(1) S.10, Land Act, 1950 --prices in land bonds.

(2) Where the resumption price of a holding has been or shall be payable in land bonds and the holding is resold under a scheme approved of after the commencement of these Rules, the rate of purchase annuity and the rate of sinking fund in repayment of any advance made on the resale of the holding shall--

(a) where the rate of interest on the land bonds in respect of the standard price of the holding is higher than that on the land bonds in respect of the resumption price or where the holding is included in a re-arrangement scheme, be those rates fixed in relation to the land bonds in respect of the standard price, and

(b) in every other case, be those rates fixed in relation to the land bonds in respect of the resumption price.

(2) Resumed holdings--prices in land bonds.

(3) Where land has been or shall be purchased by the Land Commission pursuant to section 27 of the Land Act, 1950 , and resold, whether or not discharged from a payment under section 11 of that Act, then, save as provided in paragraph (5) of this rule, the rate of purchase annuity and the rate of sinking fund in repayment of any advance made on the resale of the land shall--

(a) where, immediately before such purchase, the land stands vested in the Land Commission for an estate in fee simple without actual possession, be those rates which would be applicable if the land had not been purchased pursuant to the said section 27, and

(b) in every other case, be those rates which would be applicable if the price agreed under the said section 27 were payable in land bonds.

(3) S.27, Land Act, 1950 .

(4) Where land has or shall have--

(a) vested, subject to a purchase annuity, in the Land Commission pursuant to section 7 of the Land Law (Commission) Act, 1923 , or

(b) vested in a purchaser under the Land Purchase Acts and subsequently has or shall have been transferred to the Land Commission in exchange for other land, or

(c) vested in the Land Commission pursuant to section 37 of the Land Act, 1927 , or

(d) vested in the Land Commission pursuant to section 30 of the Land Act, 1950 , then--

(i) if the land is resold under a scheme approved of after the commencement of these Rules, the rate of purchase annuity and the rate of sinking fund in repayment of any advance made on the resale of the land, whether or not discharged from a payment under section 11 of the Land Act, 1950 , shall, save as provided in paragraph (5) of this rule, be those rates which would be applicable if the land had been purchased by means of an issue of land bonds at a price agreed on the date the first scheme for the resale of the land is approved of, or

(ii) if the land was or is resold under a scheme approved of before the commencement of these Rules and the advance made on resale is repayable by means of a purchase annuity at the rate of four and three-quarters per cent., the sinking fund in the purchase annuity shall--

(I) in the case of an advance made on the resale of land transferred to the Land Commission in exchange for other land--

(A) if the land had, prior to the transfer, been subject to a purchase annuity at the rate of four and three-quarters per cent., be at (as the case may be) the rate or the lower or lowest rate of sinking fund applicable to the land prior to the transfer, or

(B) if the land had not been so subject and the purchase annuity was set up on or before the 31st day of December, 1952, be at the rate of sinking fund which would be applicable if the land had been purchased by means of an issue of land bonds at a price agreed on the date the purchase annuity was set up, or

(C) if the land had not been so subject and the purchase annuity was or is set up after the 31st day of December, 1952, be at the rate of three-quarters of one per cent., or

(II) in the case of an advance under section 43 of the Land Act, 1939 , made after the 31st day of December, 1952, or an advance (other than an advance under the said section 43) made on the resale of land vested in the Land Commission pursuant to section 37 of the Land Act, 1927 --

(A) if the land had, prior to vesting in the Land Commission under the said section 37, been subject to a purchase annuity at the rate of four and three-quarters per cent., be at (as the case may be) the rate or the lower or lowest rate of sinking fund applicable to the land prior to such vesting, or

(B) if the land had not been so subject, be at the rate of three-quarters of one per cent.

(4)S.7, Land Law (Commission) Act, 1923 ; S.46, Land Act, 1923 , etc. S.37, Land Act, 1927 ; S.30, Land Act, 1950 .

(5) Where land to which paragraph (3) or (4) of this rule applies is included in a rearrangement scheme approved of after the commencement of these Rules, the rate of purchase annuity and the rate of sinking fund in repayment of any advance made on the resale of the land shall be the rates certified by the Land Commission to have been mainly applicable before re-arrangement to the holdings in the re-arrangement scheme.

(5) Re-arrangement schemes--land for which lands bonds not issued.

(6) The provisions of the preceding paragraphs of this rule shall apply to a purchase annuity notwithstanding that the land in respect of which such annuity is payable was sold at an enhanced price owing to expenditure by the Land Commission on improvements.

(6) Enhanced prices.

4. Every purchase annuity payable under subsection (1) of section 9 of the Land Act, 1923 , or that subsection as amended by subsection (2) of section 4 of the Land Act, 1953 , shall, subject to paragraph (3) of rule 31 of the Land (Finance) Rules, 1925, be payable in equal half-yearly instalments on the first day of May and the first day of November in each year and shall commence--

(a) in the case of land vesting in a purchaser on one of the said gale days, on that day, and

(b) in every other case, on the gale day next after such vesting, and in any event the first half-yearly instalment of the purchase annuity shall be payable on the gale day next after the day of the commencement of the purchase annuity.

5. (1) Where, pursuant to an agreement entered into or a certificate under subsection (5) of section 44 of the Land Act, 1923 , or subsection (2) of section 22 of the Land Act, 1927 , given after the commencement of these Rules, an annuity referable to expenditure by the Land Commission for the benefit or improvement of land becomes payable, then--

(a) if the expenditure is sanctioned before the vesting of the land in the purchaser, the rate of annuity and the rate of sinking fund which shall apply shall be those rates referable to the advance for the purchase of the land provided that--

(i) if two or more purchase annuity rates are so referable, the higher or highest or such rates shall apply, and

(ii) if the purchase annuity rate which shall apply contains two or more sinking fund rates so referable, the lower or lowest of such sinking fund rates shall apply, and

(b) if the expenditure is sanctioned after the vesting of the land in the purchaser, the rate of annuity and the rate of sinking fund which shall apply shall be those rates which would be applicable to an advance made on the resale of land purchased by means of an issue of land bonds at a price agreed on the date the expenditure is sanctioned provided that, where the expenditure was sanctioned after the 31st day of December, 1952, and before the 8th day of July, 1953, the rate of annuity and the rate of sinking fund which shall apply shall be four and three-quarters per cent. and three-quarters of one per cent. respectively.

(2) Where, pursuant to an agreement entered into or a certificate under subsection (5) of section 44 of the Land Act, 1923 , or subsection (2) of section 22 of the Land Act, 1927 , given before the commencement of these Rules, an annuity referable to expenditure by the Land Commission for the benefit or improvement of land has or shall become payable--

(a) the rate of annuity specified in the agreement or certificate shall continue to apply, and

(b) where a rate of sinking fund is not specified in the agreement or certificate, then--

(i) in the case of land sold under an Act passed before the Land Act, 1923 , (including land so sold and subsequently transferred to the Land Commission in exchange for other land) if--

(I) the agreement was entered into after the making of the Land (Finance) Rules, 1934, and the land had vested in the purchaser before the expenditure was sanctioned, or

(II) the certificate was given after the passing of the Land Act, 1923 ,

the sinking fund in such annuity shall be at the rate which would be applicable to an advance made on the resale of land purchased by means of an issue of land bonds at a price agreed on the date of the setting up of the annuity provided that where the annuity was or is set up after the 31st day of December, 1952, the sinking fund shall be at the rate of three-quarters of one per cent., and

(ii) in every other case, the rate of sinking fund shall be at the rate referable to the advance for the purchase of the land provided that, where any such annuity charged upon land comprised in a resumed holding is at the rate of four and three-quarters per cent., the sinking fund shall be at the rate referable to the portion of the advance corresponding to the standard price of the holding.

(3) Every annuity referable to expenditure by the Land Commission for the benefit or improvement of land shall be payable in equal half-yearly instalments on the gale days on which the purchase annuity in respect of the land is payable or, where no purchase annuity is payable in respect of the land, on the first day of May and first day of November in each year and shall commence--

(a) in the case of an annuity charged upon the land on one of the said gale days, on that day, and

(b) in every other case, on the gale day next after such charging,

and in any event the first half-yearly instalment of the annuity shall be payable on the gale day next after the day of the commencement of the annuity.

6. Where, pursuant to section 40 of the Land Act, 1927 , compensation is awarded otherwise than in land bonds--

(a) the rate of annuity and the rate of sinking fund in repayment of any advance made on the sale of a turbary right to which such compensation is referable shall be those rates fixed in relation to the land bonds in respect of the standard price of the holding out of which the turbary right is reserved, provided that, where an agreement has been entered into before the commencement of these Rules for the repayment of any such advance, the rate of annuity shall be as specified in such agreement and the rate of sinking fund shall be one-quarter of one per cent., and

(b) the annuity in repayment of any such advance shall be charged upon the land to which the turbary right is appurtenant.

7. Paragraph (1) of rule 31 of the Land (Finance) Rules, 1925, is hereby amended by the substitution of--

(a) " any of the advances " for " the advance that was first made ", and

(b) " remaining advance or remaining advances " for " subsequent advance or subsequent advances ".

8. (1) A purchase annuity or annuity mentioned in rule 3, rule 5 or rule 6 of these Rules shall be consolidated with any other purchase annuity or annuity to which the land is or becomes subject.

(2) The provisions of rule 31 of the Land (Finance) Rules, 1925, as amended by rule 4 of the Land (Finance) Rules, 1933, by rules 4 and 11 of the Land (Finance) Rules, 1954, and by rule 7 of these Rules, shall apply to a purchase annuity or annuity mentioned in rule 3, rule 5 or rule 6 of these Rules which, under paragraph (1) of this rule or otherwise, is consolidated in like manner as those provisions apply to the purchase annuities mentioned in the said rule 31 as so amended provided that every reclamation annuity or part thereof included in a consolidated annuity shall continue to be subject to the provisions of the Land Reclamation Act, 1949 (No. 25 of 1949), and the Rules and Regulations made thereunder for the time being in force.

9. Subject to rule 4 of the Land (Finance) Rules, 1954--

(a) where the price has been or shall be payable in land bonds for land to which section 10 or section 11 of the Land Act, 1950 , applies, the purchase annuity in repayment of any advance made on the resale of the land shall be paid into the Land Bond Fund, and

(b) every purchase annuity to which paragraph (3), (4) or (5) of rule 3 of these Rules applies and every annuity to which rule 5 or rule 6 of these Rules applies shall be paid--

(i) into the Land Bond Fund in case the purchase annuity or annuity is at the rate of four and three-quarters per cent. or at the rate which would be applicable to an advance made on the resale of land purchased by means of an issue of land bonds, and

(ii) into the Purchase Annuities Fund in every other case.

10. The provisions of rules 32, 33 and 35 of the Land (Finance) Rules, 1925, and of rule 4 of the Land (Finance) (No. 2) Rules, 1934, shall apply to--

(a) every purchase annuity or annuity--

(i) which under rule 3 or rule 5 of these Rules is at the rate of four and three-quarters per cent. or the rate which would be applicable to an advance made on the resale of land purchased by means of an issue of land bonds, or

(ii) to which rule 6 of these Rules applies, and

(b) every advance repayable by such a purchase annuity or annuity,

provided that the references in the said rule 32 to " 4½ per cent." and in the said rule 35 to " four and one-half per cent." shall be construed and have effect as references to the rate of interest in the purchase annuity or annuity and the reference in the said rule 35 to " the amount equal in nominal value to the advance in Bonds " shall be construed and have effect as a reference to the amount of the advance.

11. Paragraph (7) of rule 4 of the Land (Finance) Rules, 1944, is hereby amended by the substitution of " as and when required " for " in the case of a vested holding not earlier than the date of the relevant Deed of Transfer and in the case of a holding or parcel subject to an annual sum, not earlier than on the gale day following the date of the purchase agreement in which the additional advance is applied for ".

12. In Forms G, H, I and K contained in the First Schedule to the Land (Finance) Rules, 1925, as the said Forms are applied by rule 8 of the Land (Finance) Rules, 1933, and by rule 10 of the Land (Finance) (No. 2) Rules, 1934, " an Irish Diplomatic or Consular Officer (e.g. an Irish Ambassador, Minister, Chargé d'Affaires, Consul General or Consul) " shall be substituted for " a Diplomatic or Consular Officer of the Irish Free State or Great Britain ".

13. (1) The Land (Finance) Rules, 1927, shall not apply to purchase annuities in repayment of advances made in respect of holdings resold under schemes approved of after the commencement of these Rules.

(2) The following are hereby revoked :

(a) rule 30 of the Land (Finance) Rules, 1925 ;

(b) paragraphs (1), (2), (3), (4), (5) and (7) of rule 10 of the Land (Finance) Rules, 1934 ;

(c) rule 8 of the Land (Finance) (No. 2) Rules, 1934 ;

(d) paragraphs (2) and (3) of rule 4 of the Land (Finance) Rules, 1944.

GIVEN under my Official Seal, this 31st day of December, 1956.

GERARD SWEETMAN,

Minister for Finance.

EXPLANATORY NOTE.

The main object of these Rules is to regulate the rates of purchase annuity and sinking fund for certain types of land allotted by the Land Commission viz., lands which are already subject to purchase annuity (or its equivalent) when taken over, resumed holdings (prices in land bonds), lands purchased by the Land Commission for cash, and lands taken up in exchange or for default or from trustees of pasturage and other schemes. Rates are also prescribed for improvement and turbary annuities. Incidental provisions for gale days, consolidation, disposal, accumulation and redemption of the annuities are included. The procedure for attestation of certain forms relating to dealings in land bonds, when completed abroad, is also amended. Some obsolete rules are revoked.