South Australian Consolidated Acts South Australian Consolidated Acts48B—Payment for improvements on lease of block comprised in surrendered
lease
(1) If the surrender
of the lease of any block is accepted and a perpetual lease is granted of the
block (other than a lease granted pursuant to section 48), the Minister
may direct that the provisions of this section shall apply with respect to the
block and the lease so granted.
(2) In any such case
the improvements made in or upon the land shall be valued by the Land Board
and the incoming lessee shall, either before or at the time of the grant of
the lease, pay to the Minister the whole of the amount at which the
improvements are valued or, in any case in which the Minister thinks fit,
shall pay to the Minister such portion of the said amount as is determined by
the Minister and shall grant to the Minister a mortgage of his lease and his
estate and interest in the land comprised in the lease to secure the balance
of that amount or shall grant to the Minister a mortgage of his lease and his
estate and interest in the land comprised in the lease to secure the whole of
the said amount.
(3) Every such
mortgage shall provide for the payment of interest at the fixed rate and be
for such term and be subject to such conditions as are fixed by the Minister
on the recommendation of the Land Board. The provisions of section 98 to 104
(both inclusive), and 106 shall, mutatis mutandis , apply with respect to
every such mortgage and the lease and land given as security thereunder.
(4) The Minister may,
in any case he thinks fit, require a lessee, in addition to executing a
mortgage as aforesaid, to give any additional security to secure the payment
of any amount required to be paid by the lessee under this section.
(5) In fixing the rent
of any lease to which this section applies, any improvements made in or upon
the land shall be disregarded and the rent shall be fixed on the basis of the
value of the land without such improvements.