from dealings with the settled land under the powers conferred by the Acts on the tenant for life. They are, therefore, receivable upon the trusts and for the purposes of the settlement, and are to be paid either to the trustees of the settlement or into court. The tenant for life has the option as to which of these modes of payment shall be adopted (). Where the capital moneys are paid to the trustees, there must be two trustees at least (unless the settlement authorizes one trustee to receive such moneys) (y); and the trustees or (if the case is so) the trustee may give an effectual receipt for the moneys so paid to them or him (z). Each trustee is to be answerable for his own receipts only, and not for any loss of. capital moneys, even when received by him, unless the loss arises through his own wilful default (a). Every trustee may also reimburse himself his proper charges and expenses out of the capital moneys (b). Capital moneys arising under the Acts will be applicable primarily for the specific purpose (if any) for which they were raised, e.g., to pay for equality of exchange, or to pay the consideration-moneys or expenses on an enfranchisement; and, subject thereto, and to any other payments primarily payable out of the capital moneys, they are to be applied in all or some or one of the following ways (c), that is to say: (i) In investment on Government securities, or on other securities on which the trustees of the settlement are by the settlement or by law authorized to invest the trust moneys of the settlement. The securities in which trustees may now invest trust moneys are set out in sect. 1 of the Trustee Act, 1893. (ii) In the discharge, purchase, or redemption of (x) Sect. 22; Cookes v. Cookes, (1887) 34 Ch. D. 498. (y) Sect. 39. (z) Sect. 40. (a) Sect. 41. (b Sect. 43. (c) Sect. 21; Clarke v. Thornton, (1887) 35 Ch. D. 397. incumbrances (d) affecting the inheritance of the settled land, or of the land tax, rentcharge in lieu of tithe, Crown rent, chief rent, or quit rent, charged on or payable out of the settled land: (iii) In payment for any improvement authorized by the Act: (iv) In payment for equality of exchange or partition of (other) settled land: (v) In the purchase of the seignory of any part of the settled land, being freehold land, or in the purchase of the fee simple of any part of the settled land, being copyhold or customary land: (vi) In the purchase of the reversion or freehold in fee of any part of the settled land, being leasehold land held for years, or for life, or for years determinable on life: (vii) In the purchase of land in fee simple, or of copyhold or customary land, or of leasehold land held for sixty years or more unexpired at the time of purchase, and subject or not to any exception or reservation of or in respect of mines or minerals therein, or of or in respect of rights or powers relative to the working of mines or minerals therein or in other land : (viii) In the purchase, either in fee simple or for a term of sixty years or more, of mines and minerals. convenient to be held or worked with the settled land, or of any easement, right, or privilege convenient to be held with the settled land for mining or other purposes: (ix) In payment to any person becoming absolutely entitled to, or empowered to give an absolute discharge for, the capital moneys: (x) In payment of costs, charges, and expenses of or incidental to the exercise of any of the (d) Re Richardson,[1900] 2 Ch. 785. powers (e), or the execution of any of the provisions of the Act: (xi) In any other mode in which money produced by the exercise of a power of sale in the settlement is applicable thereunder (ƒ). 7. SECURITIES ACQUIRED WITH CAPITAL MONEY.Capital moneys received by the trustees of the settlement are to be invested by them according to the direction of the tenant for life, and, failing any such direction, at their (the trustees') own discretion, but with such (if any) consents as the settlement requires (g); and no investment is to be altered or varied unless with the consent of the tenant for life (). Capital paid into court is to be invested, or otherwise applied, under an order of the court to be obtained by the tenant for life, or by the trustees (i), or it may be paid out to the trustees to be duly invested by them. The investments, and the moneys until invested, are to be substituted for the settled land, and are to be considered as land for all the purposes of alienation or devolution (k). The income is to go and be paid as the rents and profits of the settled land would be. And, in particular, when the capital money is purchase-money paid in respect of a lease for years, or life, or years determinable on life, or in respect of any other estate or interest in land less than the fee simple, or in respect of a reversion dependent on any such lease, estate, or interest, the trustees of the settlement, or, as the case may be, the court,-and, in the case of the court, on the application of any party interested in that money, -may, notwithstanding anything in the Act, require and cause the same to be laid out, invested, accumulated and (e) Re Smith's Settled Estates, [1891] 3 Ch. 65. (f) In re Lord Aylesford's Settled Estates, (1886) 32 Ch. D. 162. (g) Sect. 22, sub-s. (2). (h) Ibid. (sub-s. 4); In Te Clitheroe Estate, 28 Ch. D. 378; 31 Ch. Div. 135. (i) Sect. 22, sub-s. (3). (k) Ibid. sub-s. (5); Re Bond, (1901) 1 Ch. 15. paid in such manner as will give to the parties interested in that money the like benefit therefrom as they might lawfully have had from the lease, estate, interest, or reversion in respect whereof the money was paid, or as near thereto as may be (1). 8. LANDS ACQUIRED WITH CAPITAL MONEY.-Lands acquired by purchase with capital moneys arising under the Act, or acquired by exchange or on partition, are to be settled to, for, and upon the uses, purposes, and trusts of the settlement (m); and, in particular, (1) freehold land is to be conveyed to the uses, on the trusts, and subject to the powers and provisions which, under the settlement, or by reason of the exercise of any power of charging therein contained, are subsisting with respect to the settled land, or as near thereto as circumstances permit, but not so as to increase or multiply charges or powers of charg ing; and (2) copyhold, customary, or leasehold land is to be conveyed to and vested in the trustees of the settlement, on trusts and subject to powers and provisions corresponding, as nearly as the law and circumstances. permit, with the uses, trusts, powers, and provisions to, on, and subject to which freehold land is to be conveyed as aforesaid; but so, nevertheless, that the beneficial interest in land held by lease for years shall not vest absolutely in a person who is by the settlement made by purchase tenant in tail who dies under the age of twentyone years, but shall, on the death of that person under that age, go as freehold land conveyed as aforesaid would go. 9. HEIRLOOMS.-Regarding heirlooms and personal chattels, settled in trust so as to devolve with land until a tenant in tail of the land entitled thereto by purchase (as opposed to descent) is born or attains the age of twenty-one years, the Act provides (n) that the tenant (7) Sect. 34. (n) Sect. 37; Fane v. Fane, (1875) 2 Ch. D. 711; Re Carnac, for life of the land may (but only with the sanction of the court) sell the heirlooms, or chattels, or any of them. And the sale-proceeds are to be dealt with as capital moneys arising under the Act; or they may be invested in the purchase of other chattels of the like or any other nature, to be settled upon the like trusts as the heirlooms or chattels sold. 10. TRUSTS FOR SALE. In a trader's settlement (as it is called, to distinguish it from a strict settlement), the settled land is usually settled upon trust for sale, and the rents and profits of the land until sale, and the income of the sale-proceeds when invested, are usually given to one or more persons for his, her, or their lives, and the capital moneys are afterwards divisible among the children. of marriage and their descendants; and to such a settlement, all the beneficial provisions of the Settled Land Acts are applicable, mutatis mutandis (o). It is obvious, however, that such land is for all purposes of transmission and devolution merely personal estate; consequently, the trust funds are not to be invested in the purchase of land, unless there is an express provision in the settlement authorizing such an investment (p). As already pointed out, there is this further distinction between strict settlements and traders' settlements, that, by the provisions of the Settled Land Act, 1884 (q), a tenant for life under a trader's settlement can only exercise, with the sanction of the court, the powers conferred upon the tenant for life under a strict settlement. (1885) 30 Ch. D. 136; Duke of Ch. D. 402. (0) S. L. Act 1882, s. 63. (9) Sects. 6, 7. |