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(1)Where an estate or interest in land has vested in the Secretary of State under section 2 above, it shall be his duty to sell it as soon as it is reasonably practicable to do so, taking all reasonable steps to ensure that the price is the best that can reasonably be obtained.
(2)The Secretary of State shall apply the purchase money—
(a)firstly in payment of expenses properly incurred by him as incidental to the sale or any attempted sale;
(b)secondly in discharge of prior incumbrances to which the sale is not made subject or in the making of any payments to mortgagees required by Schedule 1 to this Act;
(c)thirdly in payment of expenses relating to the land reasonably incurred by him on repairs or security;
(d)fourthly in discharge of such liabilities to pay rates or sums in lieu of rates on the land or on any other land as the Secretary of State thinks fit;
(e)fifthly in discharge of such judgment debts arising out of matters relating to the land or to any other land as he thinks fit,
and, subject to subsection (3) below, shall pay any residue to the person divested of the estate or interest.
(3)Where a State was divested but there is no person with whom Her Majesty’s Government of the United Kingdom has dealings as the Government of that State, the Secretary of State shall hold the residue until there is such a person and then pay it.
(4)A sum held by the Secretary of State under subsection (3) above shall be placed in a bank account bearing interest at such rate as the Treasury may approve.
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