S.I. No. 20/1942 - Land Bond Order, 1942.

STATUTORY RULES AND ORDERS. 1942. No. 20.

LAND BOND ORDER, 1942.

WHEREAS it is enacted by sub-section (1) of section 4 of the Land Bond Act, 1934 (No. 11 of 1934), that, for the purposes therein mentioned, the Minister for Finance may, from time to time as occasion requires but subject to the provisions of that Act, by order create a series of land bonds of such total amount and such denominations (not less in any case than one pound) and bearing interest at such rate (not less than three nor more than four per cent. per annum) and subject to such conditions in relation to registration or inscription as the said Minister shall think proper and shall specify in such Order:

AND WHEREAS it is enacted by sub-section (1) of section 4 of the Land Act, 1936 (No. 41 of 1936), that any order made by the said Minister under the Land Bond Act, 1934 (No. 11 of 1934), for the purposes of sub-section (2) of section 7 of that Act may provide that no drawings for the redemption of the series of land bonds to which such order relates shall take place before the expiration of two years from the date of the first issue of such series of land bonds or until, on some 1st day of May or 1st day of November, not less than eighty per cent. of the nominal amount of such of the said series of land bonds as shall have been issued before such day are registered in the books of the National City Bank:

NOW, THEREFORE, the Minister for Finance in exercise of the powers conferred on him by section 4 of the Land Bond Act, 1934 (No. 11 of 1934), and section 4 of the Land Act, 1936 (No. 41 of 1936), and of every and any other power him in this behalf enabling, hereby orders as follows:—

1 Short title and citation.

1.—(1) This Order may be cited as the Land Bond Order, 1942.

(2) This Order and the Land Bond Orders, 1934 to 1941, may be cited together as the Land Bond Orders, 1934 to 1942.

2 Interpretation.

2. The Interpretation Act, 1937 (No. 38 of 1937), applies to this Order.

3 Creation of series of land bonds.

3. A series of land bonds is hereby created of the total amount of two hundred and fifty thousand pounds to be known as three and one-half per cent. land bonds, and in this Order the expression " the land bonds " means land bonds of such series.

4 Denominations of the land bonds.

4. The denominations in which the land bonds shall be issued shall be one pound, ten pounds, and one hundred pounds, and no other denominations.

5 Restriction of the land bonds to amounts fixed in specified period.

5. The issue of the land bonds shall be for the purpose of making advances and paying purchase moneys the amounts of which are agreed or fixed in the period commencing on the 1st day of February, 1942, and ending on the 31st day of December, 1942, except advances required to be made by means of an issue of new land bonds under the Land Bond Act, 1933 (No. 33 of 1933), or of four per cent. land bonds under the Land Bond Act, 1934 (No. 11 of 1934).

6 Rate of interest on the land bonds.

6. The land bonds shall bear interest at the rate of three and one-half per cent. per annum.

7 Inscription and registration.

7.—(1) The land bonds shall when issued be inscribed in the books of the National City Bank Limited—

(a) if such land bonds are issued for the purposes of the Costs Fund, in the name of the Irish Land Commission and to the account of the Costs Fund, or

(b) if such land bonds are issued for any other purpose, in the name of the Irish Land Commission and to the account of the estate in respect of which such land bonds are issued.

(2) Any of the land bonds inscribed in the books of the National City Bank Limited and subsequently allocated by the Court of the Irish Land Commission shall, after such allocation, be transferred to and registered in the names of the persons for the time being entitled to such land bonds.

8 Redemption.

8.—(1) For the purpose of the redemption of the land bonds there shall be set aside in the Land Bond Fund at the close of every half-year ending on the 1st day of May, or the 1st day of November, until all the land bonds have been redeemed, the following sums, that is to say:—

(a) a sum equivalent to two and three-eighths per cent. on all sums advanced or paid by the issue of the land bonds up to the close of the previous half-year and not certified by the Minister for Finance to have been repaid, together with, where such bonds were issued on the last day of the previous half-year, a sum calculated at the rate of four and three-quarters per cent. per annum for the period from the close of the half-year up to the next following dividend day, and

(b) a sum calculated at the rate of four and three-quarters per cent. per annum on all sums advanced or paid by the issue of the land bonds since the beginning of such half-year and not certified by the Minister for Finance to have been repaid, such sum being so calculated for the period from the date of issue of the bonds up to the dividend day next after the end of such half-year, and

(c) all sums paid during such half-year by tenant-purchasers in redemption of purchase annuities payable in respect of advances made by means of an issue of the land bonds, and

(d) every sum paid during such half-year in cash by a purchaser on the sale to him by the Land Commission of any land vested in them under the Land Act, 1923 , as amended or extended by any subsequent enactment, the purchase money whereof was paid by means of an issue of the land bonds, and

(e) all sums paid into the Land Bond Fund during such half-year by the Land Commission in respect of such of the land bonds as are excess land bonds within the meaning of section 11 of the Land Act, 1936 (No. 41 of 1936), as amended by section 10 of the Land Act, 1939 (No. 26 of 1939).

The sums so set aside at the close of any half-year shall be subject to the following deductions, that is to say :—

(f) the amount of the interest payable on the next dividend day in respect of all the land bonds issued and not redeemed up to the end of such half-year, and

(g) the amount of any advance made from the Guarantee Fund during such half-year for payment of interest on the land bonds issued on or after the last day of the previous half-year and before the dividend day occurring in the first-mentioned half-year for the period between such issue and such dividend day.

The sum required for the redemption of the land bonds on any yearly or half-yearly drawing shall be the total amount of all sums set aside under this clause of this Order (less by the deductions aforesaid) since the next previous drawing, together with any accretions derived from the investment of such sums.

(2) At any time after the expiration of thirty years from the passing of the Land Bond Act, 1934 (No. 11 of 1934), all or any of the land bonds not previously redeemed may be redeemed at par at such time or times and either by drawings or otherwise as the Minister for Finance may direct.

9 Rate purchase annuities and other annual sums.

9. Purchase annuities and other annual sums payable for the repayment of purchase money paid or advances made by means of an issue of the land bonds shall be calculated at the rate of four and three-quarters per cent. per annum on the amount of the purchase money so paid or the advance so made.

10 Payments to the Land Bond Fund.

10. Interest at the rate of three and one-half per cent. per annum and sinking fund at the rate of one and one-quarter per cent. per annum shall be paid in half-yearly instalments on the 21st day of June and the 22nd day of December in each year by the Land Commission to the Land Bond Fund on all sums advanced or paid by an issue of the land bonds, and not certified by the Minister for Finance to have been repaid, until all such sums have been repaid.

11 Restriction on drawings.

11. No drawings for redemption of the land bonds shall take place before the expiration of two years from the date of the first issue of the bonds or until, on some 1st day of May or 1st day of November, not less than eighty per cent. of the nominal amount of such of the bonds as shall have been issued before such day are registered in the books of the National City Bank.

GIVEN under the Official Seal of the Minister for Finance, this 29th day of January, 1942.

(Signed) J. J. McELLIGOTT,

Secretary, Department of Finance.