Land Bonds Act

Link to law: http://www.moj.gov.jm/laws/land-bonds-act
Published: 1955-12-09

LAND BONDS 1

THE 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 Iand bonds.
8. Redemption of land bonds.

to be deductible.

10. Exemption from stamp duty.
11. Moneys to bc credited to Land Bond Fund.
12. Power to declare land to be scheduled land.
13. Basis of compensation on acquisition of tensot& land.
14. Basis of compensation on acquisition of land in development

area.
15. Regulations,
16. Land bonds not applicable to certain leasehold interests.

8A. No surrender of series B bonds for taxes, but amount thereof

9. Registration and negotiability.

[The inclusion of this page is authorized by LN. 31119771

N1

LAh’D BONDS 3

3

l a w s
JSof1955.
14 of 1954
SI or 1958,

22 o r i s

670119M.
A*

S W.
THE LAND BONDS ACT

[9th December, 1955.1

1 . This Act may be cited as the Land Bonds Act.

2 . 4 ) 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 i s 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 acquisi-
tion of any land.

(2) References in this Act-
( L I ) to series A bonds are to land bonds issued other

(h ) to series B bonds are to land bonds issued under

wise than under subsection (4) of section 4; and

subsection (4) of section 4.

31 of 1%7,
Uof1969

3rd Sch,
41 ofl973,
30 of 1976.
5 of 1988,
3 orzow.

ShOlltide

rmerpraatigl.

siheduie.

30 1976
s. 2

4 LAND BONDS

Payment in
land bonds
with
rnnsem of
vendor.

Paymmt in
land
bonds fw
scheduled
land corn-
pllsuril)
acquired
30/1976
S. 3(a).

301 I976
S. 3(b).

3011976
s. 3(C).

3. 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 thecase may be.

4.+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 ofthis 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:

Provided that in relation to a bona fide mortgage, no
mortgagee shall be required to accept payment of considera-
tion 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 mortgagee, the Government may, by
memorandum in Writing kom the Minister to the
mortgagee, assume the liabilities and responsibilities of
the mortgagor under the mortgage.

(IA) For the purposes of the proviso to subsection (1)
"bona$de mortgage" means-

(a) a mortgage which was in existence prior to

(b) amor tgage

the 28th August, 1975; or

(i) effected on terms that the proceeds of the
mortgage shall be expended for the purpose

1% ~nc~u,m of ihls page 1p authoolcd 4v L N maaz]

LAND BONDS 5

of the purchase or development of property
so mortgaged; and

(i) 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-

(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.

(IB) For the purposes of paragraph (c) of subsection
( 1 ~ ) 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 born fide mortgage and
the Commission shall, for purposes of its decision-

(U) 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 mort-
gage so conform, presume (until the contrary is
me inclusion of this page is authorized by LN. 31119771

6 LAND BONDS

30/1976
S. 3(d).

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 provi-
sions 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 Com-
missions 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 Commis-
sion.

(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 a w a t i v e resolution of the House of
Representative, direct that the land bonds be issued-

(U) to a specified nominal amount;
(b) to such vendor as is specified by name;
I d towards payment in whole or in part, as the case

may be, of the specified consideration money,
being so much as shall be paid in regard to such
scheduled land pursuant to the Land Acquisition
Act; and

(4 for the purposes of the acquisition, with specified
use in view, of the scheduled land aforesaid, which
shall, by reference to its location, area and use
(if any) by the vendor, be described in the order,

and if the scheduled land is idle land as defined in the
Land Development and Utilization Act, the land shall be

IThe inclusion of this p g e is authorized by LN. 31/19751

so designated in the description thereof required by paragraph
(4

( 5 ) In subsection (4)-
"specified", in relation to any direction, means

specified in the order containing such
direction;

"acquisition" does not include any acquisition
for the purposes of which notice was
published pursuant to subsection (1)
of section 9 of the Land Acquisition
Act before the 1st day of December,
1976.

(6 ) Series B bonds shall not be issued in payment of
compensation pursuant to subsection (3) of section 15 of the
Land Acquisition Act.

5 -(1) For the purpose of paying any consideration lssueoc
land bands.

money which may under section 3 or section 4 be paid by
the issue of land bonds, the Accountant-General shall,
subject to the provisions of this section, create and issue
when and as required land bonds in such form and of such
denominations as may be prescribed.

(2) There shall not be outstanding at any one time land
bonds to a nominal value in excess of $1,000,000,000or
such greater amount as the House of Representatives may 3/zuon
from time to time, by resolution, approve. 5 2

&-(I) For the purpose of the redemption of land Ed
bonds and of the payment of interest upon land bonds there is m d
hereby constituted a h n d to be known as the Land Bond
Fund.

(2) All interest payable on land bonds shall be paid out
of the Land Bond Fund and if such Fund shall be insufficient
shall be charged upon and paid out of the Consolidated Fund.

8 LAND BONDS

(3) Ail moneys required for the redemption of land
bonds in accordance with the provisions of this Act shall be
paid out of the Land Bond Fund and if such Fund shall be
insufficient shall be charged upon and paid out of the
Consolidated Fund.

Redemp
1Wnef
land bond?.
30/1976
S. 4(a).

30,1976
S. 3ib).

A 7.+1) The Minister may, ffom time to time, by notifica-
tion published in the Gazette, determine the rate of interest
which shall apply to land bonds issued on or after the date on
which such notification takes effect, provided that no bonds
shalI be issued at a rate less than the rate at which the last issue
of stock issued under the Local Registered Stock Act was
issued.

~

(2) The interest on any land bonds shall be paid by the
Accountant-General at such time and in such manner as may be
prescribed.

8.-(!) All land bonds shall be redeemable at par together
with the payment of all arrears of interest thereon.

(2) Subject to subsection (2A), the Accountant-General
shall make arrangements for the redemption of land bonds by
means of periodical drawings at such time and in such manner
as may be prescribed provided that all land bonds shall be
redeemed within 20 years h m the date on which they are
issued.

(2A) For purposes of the redemption of any series B
bond, there shall be made, at the prescribed times, such equal
annual payments, during eighteen years fiom the second
anniversary of the issue of that bond, as are sufficient to
discharge the nominal amount of the bond before expiraion of
the period limited for redemption under subsection (2):

0

Provided that regulations under this Act may require every
such annual payment to be made byequal instalments at
prescribed times within a year, but no regulations made

[Tltc I I I E I U I I O ~ of tbir p a p \I aurhonicd by L N iOOOZl

pursuant to this proviso shall apply in relation to any bond
issued prior to their coming into operation.

(3) Regulations shall be made under this Act pro- 1411956
viding for the conditions on which land bonds may be- s. 2 (1).

(a) surrendered to the Commissioner of Inland Revenue in L.N.
satisfaction of any arrears of taxes 93S11986.
accrued due, in relation to the bonded estate in
connection with the purchase or acquisition of
which they were issued, at the time of such pur-
chase or acquisition; or

(b) surrendered to the Commissioner of Inland
Revenue in satisfaction of any estate duty
payable on the death of any person.

(4) Regulations may be made under this Act pro- 14 1956
viding for the conditions on which land bonds may be S. 2 (2).

surrendered to the Commissioner of Inland Revenue in
satisfaction of any taxes that may be prescribed.

(5) There shall be credited to the Land Bond Fund
such sums as may from time to time be provided for the
purpose of redemption of land bonds in the Estimates of
Revenue and Expenditure of the Island.

8A. Nothing provided by or under subsection (3) or (4)
of section 8 shall apply in relation to series B bonds, but
it shall be lawhl, in case of the acquisition of scheduled
land as mentioned in subsection (4) of section 4, for series
B bonds to be issued in payment of consideration money,
after deducting therefrom arrears of taxes accrued due on
the land before its acquisition, or transfer tax in respect
thereof, or both, whereupon liability for tax to the amount
so deducted shall be deemed to have been discharged and that
consideration money to have been paid in full by the issue of
such bonds, notwithstanding their issue to a nominal amount -
equal to the difference between the consideration money and
the said amount.

S o surrm-
der of series
B bonds for
taxes, but
amount
thereof to be
dsductibls.
30 1976
s. 5.

[The inclusion of this page is authorized by L.N. 87120041

1 0

Registration
and negotia-
bility.

3011976
S. 6(a).

3011976
S. 6(b).

Exemption
fiom stamp
duty.
1411956
S. 3.
3011976
S. 7.
Moneys to be
credited to
Land Bond
Fund.

9.-(1) The Accountant-General shall keep in the prescribed
form a register containing such particulars as may be prescribed
in relation to all land bonds issued under this Act.

(2) No sum payable by way of interest upon any
land bonds or upon the redemption of any land bonds, shall
be paid to any person except a person for the time being
shown upon the register as the holder of the bonds in
respect of which the payment is made.

(3) Subject to subsection (4), all land bonds shall be
capable of being transferred in such manner as may be
prescribed.

(4) No right, title or interest in or to any series B
bonds shall be transferable (whether by way of security
or otherwise) except in case of fulfilment of conditions for
its transfer which are prescribed under section 15, but no
variation of prescribed conditions during the subsistence
of any such bond shall abrogate or derogate from any
transferability appertaining thereto before the variation.

10. Land bonds and transfers or assignments of land
bonds and memoranda under the proviso to subsection (1)
of section 4 shall be exempt from stamp duty.

11.-31) Where any moneys are received (whether in a lump
sum or by instalments) by the Government of Jamaica in respect
of the sale or lease of any bonded estate or of any land
comprised in a bonded estate, the whole of the moneys so
received shall be credited to the Fund up to an amount which
together with the aggregate of any amounts previously so
credited in respect of such bonded estate is equal to the bonded
debt diminished by the amount of any interest paid out of the
Consolidated Fund under subsection (2) of section 6 upon bonds
issued in respect of the purchase or acquisition of the bonded
estate.

[The inclusion of this page is authorized by L.N. 87/2004]

LAND BONDS 11

(2) In this section-
“bonded debt” means in relation to any bonded estate

or any land comprised in such estate an amount
equivalent to the aggregate of the amounts of the
nominal value of land bonds issued in respect of
the purchase or acquisition of such estate and of
the interest accrued due thereon.

12.-(1) Subject to the provisions of subsections (2) and z ; & m
(3), the Minister may, after such enquiry as he may deem Landtob.
sufficient, by order published in the Gazette, declare any
land to be within the category spsified in paragraph (a)
or in paragraph ( b ) or in paragaph (d) of the Schedule, 6’1119~)
and thereafter the provisions of this Act relating to &&de.
scheduled land shall have effect with respect to the land:

Provided that every order declaring land to be within the
category specified in paragraph (b) of the Schedule shall be
laid upon the respective Tables of both Houses of Parlia-
ment and shall come into force upon being approved by
resolutions of each House with effect from the date of the
later of such resolutions.

scheduled

(2) Subject to the provisions of subsections (3) and
(6), whenever the Minister is satisfied that any land would
have fallen within the category specified in paragraph (a)
of the Schedule but for action taken since the 1st day of
January, 1955, or the day twelve months before the date
of the publication of the notice referred to in subsection
(31, whichever be the later day, by the owner or occupier
of the land, with a view to terminating the tenancies of
persons renting the land, he may, nevertheless, by order
declare the land to be within that category, and the provi-
sions of this Act relating to scheduled land shall thereafter
have effect with respect to the land.

[The incla.sion of this page is authariEcd by L.N. 5119921

12 LAND BONDS

(3) Before making an order under subsection (21,
the Minister shall, by notice published in the Guzerre,
appoint a Commission of one or more persons to determine
whether or not any action taken with a view to terminating
the tenancies of persons renting any land to be specified
in the order was taken in good faith and not in contempla-
tion of the enactment of this Act or in contemplation of
the acquisition of the land, and to report to him in relation
thereto.

(4) Every such Commission shall have all the
powers, privifeges, duties and obligations of, and shall for
all purposes be deemed to be, a Commission appointed
under the Commissions of Enquiry Act.

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

(6) If the Commission reports to the Minister that
the action taken by the owner or occupier of the land with
a view to terminating the tenancies of persons renting the
land was taken in good faith and not in contemplation of
the enactment of this Act or in contemplation of the
acquisition of the land, the order shall not be made.

Basis of 13. Where compensation is to be paid either in whole
boo or in part by the issue of land bonds for any land acquired
acquisiuon of fenanid under the Land Acquisition Act and comprising the
land. whole or part of an estate which has been declared by

the Minister for the purposes of this Act to be in his
opinion substantially used by the owner or occupier for the
purpose of renting to tenants for terms not exceeding five
years and in parcels not exceeding on the average ten acres
each, the amount of such compensation shall be determined
as if there were substituted for sub-paragraph (0) of para-
graph !i) of subsection (1) of section 14 of the Land
Acquisition Act the following sub-para,graph-

compeosa-

me inclusion d shis page ia aueharieed by L.N. 5/19921

LAND BONDS

"(a) the market value at the date of the service of the
notice under subsection (3) of section 9 estimated
on the basis that it is intended to continue to use
the land substantially for the purpose of renting
to tenants for terms not exceeding five years and
in parcels not exceeding on the average ten acres
e a c v .

13

14, Where compensation is to be paid either in whole Eui rd
or in part by the issue of land bonds for any land acquired *.
under the Land Acquisition Act and wholly within the ;Euon
categories of lands included in paragraphs (b), (c), and (f, i n d m b -
of the Schedule, the amount of such compensation shall be SC~CCIUIS.
determined as if there were added to paragraph (ii) of :/\?
subsection (1) of section 14 of the Land Acquisition Act
the following sub-paragraph-

-Pea=-

m a t uu.

''(13 any increase to the value of the land which is 30/1976
attributable to works of development undertaken
withim six years immediately p r d i n g the service
of the notice under subsection (3) of section 9,
or proposed by the Government or by any statu-
tory authority in the area in which the land is
situated where such area-

{i) has been declared to be a development area
for the purposes of the Land Bonds Act;

(ii) is an irrigation area within the meaning of
the Irrigation Act; or

(iii) is a housing area, or slum clearance area, 41/1973
or an improvement area within the meaningis, * (bL
of the Housing Act.".

15.-(1) The Minister may make such regulations for nea..

s. 1.

or

giving effect to the provisions of this Act as he may deem tioas.
necessary or expedient.

F inchrim of & page E authorid by LN. S / lW2]

14 LAND CONDS

AU regulations made under this Act, exoept as respects
section 7, shall be subject to negative resolution.

(2) Regulations under this section may prescribe
different provisions in relation to the different series of
land bonds, that is to say, series A bonds and series B
bonds.

421 I%9
3rd Sch.

s 9.
301 1976

16. Nothing in this Act shall be construed to authorize
the issue of any land bonds in payment of any consideration
money in respect of the acquisition of any leasehold interest
pursuant to the Land Development and Utilization Act.

Land bonds

applicable

leasehold

3011974
s. 10.

not

to =rain

inteFestg.

LAND BONDS

SCHEDULE (Sections 2, 14)

(Q) Land in parcels of fifty acres and upwards comprising the
whole or part of an estate declared by the Minister to be L.N.
in his opinion substantially used by the owner or occupier 68‘196’
for the purpose of renting to tenants for terms of not exceed-
ing five years and in parcels not exceeding on the average
ten acres each.

(6) Land wholly within an area dedared by the Minister in
aaordamx with the provisions of subsection (1) of section 12
to be a development area.

(E) Land wholly within an iniptmn area within the meaning

(d ) (i) Land comprising the whole or part of an area declared 6’1/1960
of thc Irrigation Act

by the Minister to be m his opinion substantially occupied S. 3.
by building tenants or squatters or both.

“building tenants” means tenants or sub-tenants occupying
part or the whole of an area of land who have erected
bonsw thazon. or who inhabit houses erected therean
by other persons, without any subdivision of that
area of land having k e n sanctioned pursuant to the
Lacal Improvements Act on terms permitting the
croction of such houses or without thcrc Wing in
force any legal provision excluding that area of land
from the application of the Local Improvemtats Act:

“squatters” means persons o~cnpying land who have no
right to do 80 either by purchase. tenancy, contract
or permission of any person having the right to grant
su& wrmissiw.

(ii) For the p-s of this paragraph-

I5

(e) Land acquircd compulsorily under the Land Development and 2211966
Utilization Act s. U.

(D Land wholly within a housing area, or a slum clearance area. 4 1 1 1 ~ 3
or an improvement area within the meaning of the Housing S. 3.
Act.

(9) Land, other than land in any of the foresoing -rim, 30/1976
which the Government acquires pursuant to the Land S. 11.
Acquisition Act.

[The inclusion of ,tl& page is auihorized by L.N. 5/1992]
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