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Conditions affecting house purchased by means of advance. 3.(1) Where the ownership of a house has been acquired by means of an advance under this Act, the house shall, until such advance with interest has been fully paid, or the [district council] have taken possession or ordered a sale under this Act, be held subject to the following conditions (in this Act referred to as the statutory conditions), that is to say: (a)Every sum for the time being due in respect of principal or of interest of the advance shall be punctually paid: (b)The proprietor of the house shall reside in the house: (c)The house shall be kept insured against fire to the satisfaction of the [district council], and the receipts for the premiums produced when required by them: (d)The house shall be kept in good sanitary condition and good repair: (e)The house shall not be used for the sale of intoxicating liquors, or in such a manner as to be a nuisance to adjacent houses: (f)The [district council] shall have power to enter the house by any person, authorised by them in writing for the purpose, at all reasonable times for the purpose of ascertaining whether the statutory conditions are complied with. (2) The proprietor of the house may with the permission of the [district council] (which shall not be unreasonably withheld) at any time transfer his interest in the house, but any such transfer shall be made subject to the statutory conditions. (3) Where default is made in complying with the statutory condition as to residence, the [district council] may take possession of the house, and where default is made in complying with any of the other statutory conditions, whether the statutory condition as to residence has or has not been complied with, the [district council] may either take possession of the house, or order the sale of the house without taking possession. (4) In the case of the breach of any condition other than that of punctual payment of the principal and interest of the advance, the [council] shall, previously to taking possession or ordering a sale, by notice in writing delivered at the house and addressed to the proprietor, call on the proprietor to comply with the condition, and if the proprietor (a)within fourteen days after the delivery of the notice gives an undertaking in writing to the [council] to comply with the notice; and (b)within two months after the delivery of the notice complies therewith, (5) In the case of the bankruptcy of the proprietor of the house, or in the case of a deceased proprietor's estate being administered in bankruptcy ... the [district council] may either take possession of the house or order the sale of the house without taking possession, and shall do so except in pursuance of some arrangement to the contrary with [the Official Assignee or] the trustee in bankruptcy.
© 1899 Crown Copyright
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