Entail (Scotland) Act 1882

23 Price to be consigned. Where price paid in consols, dividends to be paid to applicant and his successors. Where estate encumbered. Where applicant desires investment, trustees may be appointed.Powers of trustees. Purchase of lands. Price may be applied to improvements. Investment after applicant’s death. Costs of application. S

Upon a sale of entailed estate, or such part of it, under the orders of the Court as aforesaid, the following provisions shall have effect:

(1) The price shall be paid into a bank to be named by the Court on a consignation receipt subject to the future orders of the Court, or, if the applicant desires it, instead of the price being paid in money the equivalent according to the current price of the day in consolidated stock of the United Kingdom shall be transferred into a special account to be opened in the name of the Accountant of the Court of Session, subject to the order of the Court.

(2) Where the estate, or such part of it, is unencumbered, and where the price is paid in consolidated stock, unless desired by the applicant or his successors in the estate, no further proceedings in the nature of investment shall be necessary. The Court shall grant an order in such general form as it, after consulting the Bank of England, may settle, which order shall be an authority to the bank to pay the dividends to the applicant during his life. After the death of the applicant a similar order shall be granted to his heir of tailzie and provision on production of a decree of service.

(3) Where the estate is encumbered the Court shall provide for the payment out of the price of all debts secured upon the estate, and the surplus, if desired by the applicant, may be invested in consolidated stock as aforesaid under the conditions expressed in the preceding subsections.

(4) If the applicant desires that the price or surplus should be invested in any of the Government stocks, public funds, or securities of the United Kingdom, or heritable security in Great Britain, or in stock of the Bank of England, or in East India stock, or the mortgages or debentures or debenture stocks of such municipal corporations or public trusts, or railway companies, as may be approved by the Court after inquiry, it shall be invested as entailed money in the names of trustees to be appointed by the Court, in trust for the applicant and the heirs of entail in their order, and it shall be sufficient in the deed of security to refer to the deed of entail without setting forth the terms of the destination or the conditions and clauses of entail. The trustees shall be not less than three in number, and a majority of the trustees in all cases shall be a quorum. They shall receive such remuneration, if any, as the Court may fix, as well as all charges and expenses incurred by them. If the purchaser of the estate sold as aforesaid and the applicant desire it, a part of the price may be secured on the estate. Subsisting debts affecting the estate may, if desired, be left secured thereon and allowed for in the settlement of the price instead of being paid off.

(5) If the money is called up or a change of investment is desired, the trustees shall not be bound to obtain the authority or approval of the Court in relation to new investments, but may themselves make such new investments in accordance with the provisions of this Act, or they may apply to the Court, if they think proper, for such authority. Until the first investment is found, or while it is waiting for re-investment, the entailed money shall remain in bank on a consignation receipt. The Court shall have power to accept the resignation of or to remove any trustee or trustees, and to appoint new or additional trustees, and the petition shall remain a depending process for all purposes until the entail comes to an end.

(6) If it is desired that the price or surplus, whether before or after it has been invested as aforesaid, shall be applied in the purchase of other lands, the Court, after inquiry and report, may grant the requisite authority, and the purchased lands shall be settled in conformity with the subsisting destination.

(7) The price of any part of an entailed estate which shall be sold under the provisions of this Act may be applied in payment of the cost of improvements executed but not charged upon the entailed estate, or executed but not charged upon any other estate belonging to the applicant and entailed upon the same series of heirs, or in course of execution, or contemplated, upon the remaining portion of the entailed estate, or upon any other estate belonging to the applicant and entailed upon the same series of heirs.

Provided that the Court shall be satisfied that such improvements, if already executed, are of a substantial nature and beneficial to the estate at the date of the sale, or, if in course of execution or contemplated, that they will be, if well executed, of a substantial nature and beneficial to the estate.

(8) All applications for investment or re-investment or other application of the price or surplus which might be made by the applicant may be made by his heir of tailzie and provision for the time being after the applicant’s death.

(9) The costs, charges, and expenses incurred in an application to the Court for an order of sale under this Act, and other applications or procedure following thereon shall, in so far as the same properly affect the capital of the estate, form a deduction from the price, and shall be payable out of the sum paid into bank, or deducted from the sums to be invested or applied as aforesaid, and all such costs, charges, and expenses as properly affect income shall be payable out of the income of the fund so paid into bank or invested.