LAND ACQUISITION AND COMPENSATION ACT 1986 - SECT 45 Loans to dispossessed home owners

LAND ACQUISITION AND COMPENSATION ACT 1986 - SECT 45

S. 45(1) amended by No. 91/1994

s. 21(a).

    (1)     If—

        (a)     the whole or any part of land in which an acquired interest subsists is, on the date of acquisition of that land, occupied by the claimant as the claimant's principal place of residence; and

        (b)     the market value of the claimant's interest in the land does not exceed the amount prescribed from time to time by the Governor in Council; and

        (c)     the amount of compensation payable to the claimant under this Part is insufficient to enable the purchase of a similar interest in land to be used by the claimant as a principal place of residence providing accommodation reasonably comparable with the accommodation on the acquired land—

the Authority may, and must if directed by the Tribunal or the Court on the application of the claimant, grant a loan (with or without interest) of such amount as the claimant may reasonably require, in addition to the compensation payable, to enable the claimant to purchase such reasonably comparable accommodation.

    (2)     Any loan granted under subsection (1) must not exceed an amount equal to the difference between the market value of the interest of the claimant which is acquired, as assessed for compensation under this Part, and the amount prescribed under subsection (1).

    (3)     If interest is payable on any loan granted under subsection (1), the rate of that interest must not exceed the rate determined under section 52.

    (4)     Any loan granted under subsection (1) is subject to the following terms and conditions—

        (a)     the loan must be secured by a mortgage of the interest in land purchased by the claimant to provide comparable accommodation;

S. 45(4)(b) amended by No. 27/2001 s. 3(Sch. 1 item 5.3).

        (b)     the loan is repayable if the interest is sold or if the claimant or the claimant's spouse or domestic partner cease to use the land as a principal place of residence or if the claimant and the claimant's spouse or domestic partner have both died;

S. 45(4)(c) amended by No. 91/1994

s. 21(a).

        (c)     such other terms and conditions as are agreed upon between the Authority and the claimant, or, failing agreement, as are determined by the Tribunal or the Court on the application of either party.

Part 5—Compensation where no interest in land is acquired