Consolidated Fund (Permanent Charges Redemption) Act, 1873

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Contract for redemption of annuity.

2. Where any annuity (as defined by this Act) is charged on and payable out of the Consolidated Fund of the United Kingdom, or moneys provided by Parliament, either in perpetuity or for a period not determinable with the life of the individual to whom the same is for the time being payable, the Treasury may at any time contract for the redemption of the same or any part thereof by payment out of moneys provided by Parliament of a capital sum not exceeding such sum as would, according to the average price of Government securities at the date of such contract, purchase an amount of Government securities yielding annual dividends equal to the amount of such annuity.

In entering into any such contract, the Treasury shall have regard to the contingency (if any) of the determination of the annuity, and may surrender such contingency upon such terms as they may think reasonable.

Where the person to whom such annuity is for the time being payable is a limited owner, the contract made for the redemption of the annuity shall not be valid unless it is assented to, if such limited owner is an ecclesiastical corporation in England, by the Ecclesiastical Commissioners, and in any other case by the Court of Chancery, but when so assented to shall be binding on the heirs, successors, executors, and administrators of such limited owner, and all other persons interested in the annuity.