S.I. No. 6/1974:

LAND BOND ORDER, 1974.

LAND BOND ORDER, 1974.

I, RICHIE RYAN, Minister for Finance, in exercise of the powers conferred on me by section 4 of the Land Bond Act, 1934 (No. 11 of 1934), section 4 of the Land Act, 1936 (No. 41 of 1936), and sections 4 and 8 of the Land Act, 1953 (No. 18 of 1953), hereby order as follows:--

1. (1) This Order may be cited as the Land Bond Order, 1974.

(2) The Land Bond Orders, 1934 to 1972, and this Order may be cited together as the Land Bond Orders, 1934 to 1974.

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

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

4. The land bonds shall be issued in denominations of one pound and in no other denominations.

5. The issue of the land bonds shall be restricted to the purpose of making advances and paying purchase moneys the amounts of which are agreed or fixed or deemed to be fixed in the period commencing on the 1st day of January, 1974, and ending on the 31st day of December, 1974, except in relation to advances and purchase moneys required to be made or paid by means of an issue of land bonds bearing the same rate of interest as land bonds previously issued.

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

7. (1) The land bonds shall when issued be inscribed in the books of the Central Bank of Ireland--

( 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 Central Bank of Ireland 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. 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 six and three-eights 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 1st day of the previous half-year, a sum calculated at the rate of twelve 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 twelve 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 (No. 42 of 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 Article (less by the deductions aforesaid) since the next previous drawing, together with any accretions derived from the investment of such 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 twelve and three-quarters per cent. per annum on the amount of the purchase money so paid or the advance so made.

10. Interest at the rate of twelve and one-half per cent. per annum and sinking fund at the rate of 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. 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 Central Bank of Ireland.

GIVEN under my Official Seal, this 10th day of January, 1974.

RICHIE RYAN,

Minister for Finance.

EXPLANATORY NOTE.

The main purpose of this Order is to fix the rate of interest (12½%) on bonds payable in respect of lands acquired by the Land Commission, where the purchase prices are agreed or fixed or deemed to be fixed between 1 January, 1974 and 31 December, 1974.

The Order also prescribes the redemption arrangements, specifying a sinking fund rate of ¼% and an annuity rate of 12¾% to provide therefor.