Australian Capital Territory Repealed Acts

This legislation has been repealed.

CITY AREA LEASES ACT 1936 - SECT 19

        (a)     where the Minister has, in a notice under section thirteen of this Act offering for sale by auction a parcel of land on which there are improvements or a notice under section fourteen of this Act inviting applications for the grant of a parcel of land on which there are improvements, specified an amount as the value of the improvements—the amount so specified by the Minister;

        (b)     where the Minister has not, in such a notice under either of those sections, specified an amount as the value of the improvements— the amount bid, or offered, as the case may be, for the right to the grant of the lease of the parcel of land less the amount paid under paragraph (a) of subsection (14) of section thirteen of this Act or under paragraph (a) of subsection (8) of section fourteen of this Act, as the case may be; and

        (c)     where a lease of a parcel of land on which there are improvements is to be granted under section fifteen or seventeen of this Act—the amount determined by the Minister as the value of the improvements.

(2) A person who has become entitled to the grant of a lease of a parcel of land on which there are improvements, may—

        (a)     on or before the date of the grant of the lease, pay the amount payable in respect of the improvements on the parcel of land;

        (b)     subject to such terms and conditions as the Minister thinks fit, agree to pay the amount payable in respect of the improvements on the parcel of land (together with such interest on that amount as is fixed by the Minister) by such instalments as the Minister determines; or

        (c)     on or before the date of the grant of the lease, pay part of the amount payable in respect of the improvements on the parcel of land and execute in favour of the Commonwealth a mortgage of the land included in the lease, in such form as the Minister thinks fit, to secure the payment of the balance of the amount so payable and such interest as is provided for in the mortgage.

(5) A mortgage executed in pursuance of this section may contain such covenants as the Minister thinks fit.

(6) The Minister may, in the name of the Commonwealth, take any such mortgage, and may, in relation to any mortgage so taken, do, for or on behalf of the Commonwealth, any or all of the acts or things which the Commonwealth as mortgagee is empowered, permitted or required to do.

(6A) Where—

        (a)     a mortgage executed in pursuance of this section (whether before or after the commencement of this subsection) makes provision for the acceptance of an instalment without further interest if the instalment is paid on or before the due date for its payment; and

        (b)     an instalment was, before that commencement, or is, after that commencement, paid after the due date for its payment,

the Minister may, if in his opinion it is desirable to do so, waive on behalf of the Territory payment of the whole or part of the further interest that would, but for the waiver, be payable under the mortgage in respect of that instalment.

(7) Where, prior to the commencement of this Act, the Minister or any other authority or person has purported to take a mortgage of land included in any lease to secure to the Commonwealth or any authority under the Commonwealth the payment of any part of the amount payable for the improvements on the land, that mortgage shall be deemed to be and at all times to have been as valid and effectual for all purposes as if this Act had been in force when the Minister, authority or person purported to take it, and as if it had been taken by the Minister in pursuance of this section.

(8) On and after the first day of January, One thousand nine hundred and seventy-one, this section applies only to and in relation to a lease to the right to the grant of which a person became entitled before that date, and the references to specified provisions in subsection (1) of this section in its application to and in relation to such a lease shall be read as references to those provisions of the City Area Leases Act 1936-1969.

Security for balance of money payable where lease includes improvements

19AA. (1) This section applies to and in relation to the grant of a lease of a parcel of land the right to which a person has become entitled on or after the first day of January, One thousand nine hundred and seventy-one, being a parcel of land on which there are improvements.

(2) Where a person who is entitled to the right to the grant of a lease of a parcel of land to which this section applies has not paid the whole of the amount payable by him in respect of the grant of the lease and has signed an agreement that he will execute a mortgage securing the payment of an amount equal to the unpaid balance of that first-mentioned amount, that person shall, on or before the grant of the lease, execute in favour of the Commonwealth a mortgage of his estate in the parcel of land securing the payment of an amount equal to that balance and interest on that last-mentioned amount.

(3) Where—

        (a)     a mortgage executed in pursuance of this section makes provision for the acceptance of an instalment without further interest if the instalment is paid on or before the due date for its payment; and

        (b)     an instalment is paid after the due date for its payment,

the Minister may waive on behalf of the Territory payment of the whole or part of the further interest that would, but for the waiver, be payable under the mortgage in respect of that instalment.

Tenant right in improvements

19A. (1) Where, upon the expiration of the term of the lease of land upon which there are improvements, the lessee is granted a further lease of that land, or is granted a lease of any part of that land, he shall not be liable to make any payment to the Territory for the improvements on that land or part.

(2) Where, upon the expiration of the term of a lease of land upon which there are improvements, the lessee is not granted a further lease of the land or is granted a lease of part only of the land, the Territory shall—

        (a)     in respect of the land or any part of the land not leased to the lessee, where the land or part has not, prior to the expiration of the term of the lease, been declared by the Minister to be available for lease—forthwith;

        (b)     in respect of the land or any part of the land not leased to the lessee, where the land or part has, prior to the expiration of the term of the lease, been declared by the Minister to be available for lease and a lease thereof is granted, within six months after the expiration of the term of the lease, to a person other than the lessee—upon the grant of the lease to that person; and

        (c)     in any other case—upon the expiration of six months after the expiration of the term of the lease,

be liable to pay to the lessee—

              (i)     where no part of the land is leased to the lessee, the value of the improvements on the land; or

              (ii)     where part of the land is leased to the lessee, the value of the improvements on the part of the land not so leased:

Provided that, if the land or any part thereof is, prior to the expiration of the term of the lease, declared by the Minister to be available for lease, and the lessee does not, within six months after the expiration of the term of the lease, elect to take a further lease of the land or of that part, there shall be deducted from the amount payable to the lessee under this subsection the amount of such expenditure as the Minister determines has been incurred in connexion with the grant to any other person of a lease of the land or that part.

(3) Where, between the date of the expiration of the term of a lease of land upon which there are improvements and the date of the grant of a further lease of that land or part thereof, the Territory derives revenue, part or all of which is attributable to the improvements on that land or part thereof, the Territory shall pay to the lessee, from time to time, as the Minister determines, the difference between such sum as the Minister determines is attributable to revenue from those improvements and the amount of such expenditure as the Minister determines has been incurred by the Territory in maintenance and other costs in respect of those improvements.

(4) Notwithstanding anything contained in any lease, and subject to the covenants (if any) of the lease with respect to the erection of a building on the land having fully been observed or performed, where the lease is determined or surrendered by virtue of any provision contained in the lease, the provisions of this section relating to the payment to the lessee of the value of the improvements on the land comprised in a lease upon the expiration of its term shall (so far as applicable) apply as if the term of the lease had expired on the date of the determination or surrender:

Provided that there shall be deducted from any sum payable in respect of the value of the improvements on the land the amount of such expenditure as the Minister determines has been incurred by the Territory in connexion with the determination or surrender of the lease and the grant (if any) of a further lease of the land or any part thereof.

(5) For the purpose of this section—