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The Milk (Cessation of Production) (Scotland) Scheme 1987

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Landlord’s right to payment

12.—(1) Subject to subparagraph (4), where a successful applicant occupies his holding or any part thereof as a tenant, each of his landlords shall be entitled to obtain from him a payment in respect of the relevant quota.

(2) The payment to which a landlord is entitled under subparagraph (1) shall be an amount agreed between the tenant and the landlord or, in default of agreement–

(a)where the tenant has only one landlord, the landlord’s amount; and

(b)where the tenant has two or more landlords, such proportion of the landlord’s amount as shall be agreed or determined by arbitration in accordance with paragraph 14.

(3) The landlord’s amount, or, where subparagraph (2)(b) applies, the proportion of the landlord’s amount to which a landlord is entitled, shall be payable in seven equal yearly instalments, each instalment being due–

(a)on the day after the day the tenant receives his instalment of compensation; or

(b)where, in respect of any quota year the tenant (by reason of his death or any default of his) does not receive an instalment of compensation, at the end of the period of 3 months after the date on which that instalment would otherwise have become due.

(4) Where

(a)a successful applicant who is a tenant dies before he has received all his instalments of compensation, and

(b)a successor of the deceased tenant enters into the tenant’s obligations for the purposes of paragraph 4,

any landlord of the deceased tenant shall be entitled to recover from the successor such instalments of the payment referred to in subparagraph (2) as become due to that landlord on or after the date on which that successor entered into those obligations and, from that date, the landlord shall cease to be entitled to recover those instalments from the estate of the deceased tenant.

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