LAND BONDS ACT

ARRANGEMENT OF SECTIONS

   1   Short title

   2   Interpretation

   3   Payment in land bonds with consent of vendor

   4   Payment in land bonds for scheduled land compulsorily acquired

   5   Issue of land bonds

   6   Land Bond Fund

   7   Interest on land bonds

   8   Redemption of land bonds

      No surrender of series B bonds for taxes, but amount thereof to be deductible

   9   Registration and negotiability

   10   Exemption from stamp duty

   11   Moneys to be credited to Land Bond Fund

   12   Power to declare land to be scheduled land

   13   Basis of compensation on acquisition of tenanted land

   14   Basis of compensation on acquisition of land in development area

   15   Regulations

   16   Land bonds not applicable to certain leasehold interests

      SCHEDULE

 

THE LAND BONDS ACT

[Date of Commencement: 19th December, 1955]

Laws
48 of 1955,
14 of 1956,
57 of 1958,
67 of 1960.

Acts
22 of 1966,
31 of 1967,
42 of 1969,
41 of 1973,
30 of 1976,
5 of 1988,
3 of 2000.

LN 93S/1986.

1   Short title

   This Act may be cited as the Land Bonds Act.

2   Interpretation

   (1) In this Act-

   "acquisition" with its grammatical variations and cognate expressions means acquisition in the exercise of powers conferred by any enactment for the time being in force in relation to the compulsory acquisition of land;

   "bonded estate" means any parcel of land the consideration money in respect of the purchase or the acquisition of which by the Government was paid in whole or in part by the issue of land bonds;

   "consideration money" includes, in relation to land which is purchased, the purchase price of such land and, in relation to any land which is acquired, any sum which is payable by Government to any vendor in respect of the compensation awarded to such vendor by reason of the acquisition of his interest in such land;

   "land bonds" means bonds issued in accordance with the provisions of this Act;

   "scheduled land" means land of a category specified in the Schedule:

   "vendor" means any person to whom any consideration money is payable in respect of the purchase or acquisition of any land.

   (2) References in this Act-

[30/1976 s 2.]

   (a)   to series A bonds are to land bonds issued otherwise than under subsection (4) of section 4, and

   (b)    to series B bonds are to land bonds issued under subsection (4) of section 4.

3   Payment in land bonds with consent of vendor

   Where any land is purchased or acquired by Government the consideration money payable to any vendor in respect of the purchase or acquisition of such land may, by agreement between such vendor and Government, be paid either in whole or in part by the issue to such vendor of land bonds to a nominal amount equivalent to the whole of the consideration money or to the part of the consideration money which it is agreed may be so paid, as the case may be.

4   Payment in land bonds for scheduled land compulsorily acquired

   (1) Where any scheduled land is acquired by Government for resale or for any other public purpose the consideration money payable to any vendor in respect of the acquisition of such scheduled land may in the discretion of the Minister, subject to the provisions of this section, be paid either in whole or in part by the issue to such vendor of land bonds to a nominal amount equivalent to the whole of the consideration money or the part of the consideration money determined by the Minister, as the case may be:

[30/1976 s 3(b).]

   Provided that in relation to a bona fide mortgage no mortgagee shall be required to accept payment of consideration money in land bonds in respect of the whole or any part of the mortgage debt but, in lieu of payment of consideration money to the mortgage the Government may, by memorandum in writing from the Minister to the mortgage assume the liabilities and responsibilities of the mortgagor under the mortgage.

[30/1976 s 3(b).]

   (1A) For the purposes of the proviso to subsection (1)-

[30/1976 s 3(c).]

   "bona fide mortgage" means-

   (a)   a mortgage which was in existence prior to the 28th August 1975 or

   (b)   a mortgage-

         (i)   effected on terms that the proceeds of the mortgage shall be expended for the purpose of the purchase or development of property so mortgaged; and

         (ii)   the proceeds of which, in so far as they have been received from the mortgagee, are included in expenditure incurred for such purpose; or

   (c)   any other mortgage not being a mortgage found

by a Commission appointed under this section to have been executed-

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         (i)   by the mortgagor acting in contemplation of proceedings being taken to acquire the land subject to the mortgage; and

         (ii)   with a mortgagee who knew or had reason to suspect at the time of the execution of the mortgage that the mortgagor was so acting.

   (1B) For the purposes of paragraph (c) of subsection (1A) the Minister may, by notice published in the Gazette appoint a Commission of one or more persons to determine whether or not a mortgage is a bona fide mortgage and the Commission shall, for purposes of its decision-

   (a)   have regard to whether-

         (i)   the mortgage was a result of a transaction at arms length between persons who were not connected persons within the meaning of that expression in the Income Tax Act; and

         (ii)   the terms of the mortgage conform with practice which, at the time of execution of that mortgage, prevailed as to the terms stipulated in effecting like mortgages; and

   (b)   if satisfied that the mortgage was the result of such a transaction, or that the terms of the mortgage so conform, presume (until the contrary is proved to the Commission) that there was no such action, knowledge, or reason for suspicion, as mentioned in sub-paragraph (i) or (ii) of paragraph (c) of subsection (1A).

   (2) Every Commission appointed under the provisions of this section shall have all the powers, privileges, duties and obligations of, and shall for all purposes be deemed to be, a Commission appointed under the Commissions of Enquiry Act.

   (3) Any person whose interests are, or may be, prejudicially affected, shall be entitled to be heard by himself or counsel or solicitor before any such Commission.

   (4) Where the Minister's discretion under subsection (1) is exercised for the purpose of issuing land bonds in payment of any consideration money in respect of the acquisition of scheduled land under or in accordance with the Land Acquisition Act (whether in its application pursuant to any other Act or not), the Minister shall, by order, subject to affirmative resolution of the House of Representative, direct that the land bonds be issued-

[30/1976 s 3(d).]

   (a)   to a specified nominal amount;

   (b)   to such vendor as is specified by name;

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