Housing and Labourers Act, 1937

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Amendment of sections 16 and 17 of the Principal Act and consequential provisions.

11.—(1) Sub-section (1) of section 16 of the Principal Act is hereby amended by the deletion of paragraph (c) of the said sub-section, and the said sub-section shall be construed and have effect accordingly.

(2) Sub-section (1) of section 17 of the Principal Act is hereby amended by the insertion at the end of the said sub-section of the following words, that is to say:—

“subject however to the following restrictions, namely, that if any rent is due in respect of such cottage, such vesting order shall not be made unless and until—

(i) in case the amount of rent due does not exceed one quarter year's rent, the said amount is paid to such board of health, or

(ii) in case the amount of rent due exceeds one quarter year's rent, a sum not less than one quarter year's rent is paid to such board of health on account of the said amount.”

and the said sub-section shall be construed and have effect accordingly.

(3) Where the board of health for a county health district make, under sub-section (1) of section 17 of the Principal Act as amended by this section, a vesting order in relation to a cottage in respect of which any sum (in this sub-section referred to as the arrears) in respect of rent remains due at the time of the making of such vesting order, the following provisions shall have effect, that is to say:—

(a) for the purposes of this sub-section—

the expression “the principal annuity” means the terminable annuity specified in relation to such cottage in the purchase scheme (within the meaning of the Principal Act) applicable to such cottage,

the expression “gale days” means the days specified in such vesting order in pursuance of paragraph (b) of sub-section (2) of the said section 17 ;

(b) the arrears shall be paid to such board of health within such number of years (in this sub-section referred to as the funding period), commencing with and expiring not later than the payment period (within the meaning of the said sub-section (2)) in respect of such cottage, as such board of health may appoint, and shall, if such board of health so directs, be paid with interest at such rate (not exceeding 4¾ per cent. per annum) as such board of health may appoint for such county health district;

(c) the arrears with interest thereon (if any) shall be paid by means of an annuity (in this sub-section referred to as the funding annuity) payable during the funding period;

(d) the funding annuity shall—

(i) in case such board of health direct that the arrears are to be paid with interest, be of such amount as, in the opinion of such board of health, will, during the funding period, repay the arrears, with interest at the rate so appointed, by equal instalments on the gale days falling within the funding period, or

(ii) in any other case, be an amount equal to the arrears divided by a number equal to the number of years in the funding period;

(e) such cottage shall, by virtue of this paragraph, be subject to and charged with the payment to such board of health of the funding annuity;

(f) the funding annuity shall be paid by equal instalments on the gale days falling within the funding period, and the statutory conditions applicable to such cottage shall, during the funding period, include a condition that on each gale day during the funding period an instalment of the funding annuity shall be punctually paid to such board of health, and the expression “instalment of an annuity” contained in sections 22 and 24 of the Principal Act shall be construed as including an instalment of the funding annuity;

(g) reference in section 27 of the Principal Act to the cottage purchase annuity shall during the funding period be construed as references to the principal annuity increased by an amount equal to the funding annuity;

(h) in calculating the amount of the funding annuity or the amount of any instalment of the funding annuity, any fraction of a penny less than a halfpenny shall be disregarded and any fraction of a penny equal to or greater than a halfpenny shall be reckoned as a penny;

(i) such vesting order shall state that the provisions of this sub-section are applicable to such cottage and shall specify the funding period and the amount of the funding annuity and of an instalment thereof.