Page images
PDF
EPUB

(b) to issue capital in the United Kingdom or to renew or extend the period of maturity of any security where the issue, renewal, or extension is made by or. on behalf of a person not ordinarily resident in the United Kingdom.

Provided that the foregoing prohibition shall not apply to the issue of shares of an amount not exceeding £100 in all to the subscribers of a memorandum of association.

2. Every prospectus or other document offering for subscription any stock, shares, or securities shall include a statement that no part of

the proceeds of the issue is to be applied for capital purposes outside the United Kingdom or to replace money which has been so applied, or in cases in which the proceeds of the issue are to be applied for capital purposes outside the United Kingdom or to replace money which has been so applied that the necessary licence has been obtained from the Treasury.

3. For the purposes of this regulation— A person shall be deemed to issue capital who

(i.) Issues (whether for cash or otherwise) any stock, shares, or securities; or

(ii) pays or receives any money on loan on the terms express or implied that the money is to be or may be applied at some future date in payment of any stock, shares, or securities to be issued at whatever date to the person making the loan. The expression "securities'

able securities.

[ocr errors]

means bonds,

other market

4. No person shall, except under and in Pursuance of a licence granted by the Treasury

(a) Buy or sell any stock, shares, or other Securities except for immediate payment, or (in cases where the purchase or sale takes place in any recognised stock exchange), subject to the rules or regulations of such exchange; or

by this regulation), where the issue is solely for the purpose of securing an overdraft or the repayment of a debt contracted or to be contracted in the ordinary course of trade, but a person shall not transfer or accept a transfer of any security so issued without a licence except under and in pursuance of a licence granted by the Treasury.

6. A licence granted under this regulation. may be granted subject to any terms and conditions specified therein.

7. If any person acts in contravention of this regulation, or if any person to whom a licence has been granted under this regulation subject to any terms or conditions fails to comply with those terms or conditions, he shall be guilty of a summary offence against these regulations, and where any capital or any prospectus or other document is issued in contravention of these regulations the person by whom the same has been issued shall be guilty of a summary offence against these regulations.

Increase of Rent and Mortgage
Interest (Restrictions) Act, 1919.

This Act came into force on the 2nd April, and its main provisions may be summarised as follows:

The operation of the principal Act (Increase of Rent and Mortgage Interest (War Restrictions) Act, 1915), and the enactment amending the same, is extended to the 25th March, 1921 (section 1), but, as from the date on which the principal Act would otherwise have expired (i.e., six months after the termination of the present war-which can only be computed after an Order in Council under the Present War (Definitions) Act, 1918), certain modifications take effect: (1) The landlord may add ten per cent. to the standard rent, unless the sanitary authority certifies that the (b) buy or sell any stock, shares, or other house is not reasonably fit for human habitasecurities which have at any time since tion or is not kept in a reasonable state of September 30, 1914, been in physical pos- repair, but subject to his having given to the session outside the United Kingdom. tenant four clear weeks' notice in writing of 5. Notwithstanding anything in this regula- his intention to increase the rent, and informtion a person may without a licence from the ing the tenant of his right to apply to the Treasury issue a security (being a security the sanitary authority for such a certificate as issue of which would otherwise be prohibited aforesaid. This increase is irrespective of the

increase authorised by section one of the principal Act, i.e., on account of structural alterations or (when the landlord pays the rates) increase of the rates (section 2). (2) A mortgagee may increase the rate of interest by onehalf per cent., but so that the increased rate does not exceed five per cent. per annum (section 3).

By section 4, the principal Act and the enactments amending the samne are extended to houses or parts of houses let as separate dwellings, where neither the standard rent nor the rateable value exceeds

£70 in the Metropolitan police district, including the City of London; £60 in Scotland;

£52 elsewhere.

And the extension applies also to mortgages where the mortgaged property comprises one or more of such dwelling-houses or any interest therein. The restriction on the increase of rent and mortgage interest takes effect as from the 25th December, 1918, and rent and interest accruing due before the 4th March, 1919, are not within the Act.

A slight concession is made to purchasers of houses after the 30th September, 1917, who require the house for their own occupation. Such purchasers may now (notwithstanding the amending Act of 1918) obtain an order for possession if, after considering all the circumstances of the case, including especially the alternative accommodation available for the tenant, the Court considers it reasonable to make such an Order (section 5, sub-section 2). Furnished houses are brought within the scope of the Act. The rent charged must not yield a greater profit than twenty-five per cent. of the normal profit--the normal profit being defined as the profit which might reasonably have been obtained from a similar letting in the year ending the 3rd August, 1914 (section 6).

Section 7 provides that in the case of a dwelling-house let at a progressive rent the maximum rent shall be the standard rent.

INCREASE OF RENT AND MORTGAGE INTEREST (RESTRICTIONS) ACT, 1919, 9 Geo. 5. c. 7. An Act to extend, amend and prolong the duration of the Increase of Rent and Mortgage Interest (War Restrictions) Act,

1915, and the enactments amending that Act. [2nd April, 1919.]

Be it enacted, etc.

1. The Increase of Rent and Mortgage Interest (War Restrictions) Act, 1915 (hereinafter referred to as the "principal Act"), and the enactments amending that Act, shall continue in force until Lady Day nineteen hundred and twenty-one, but during the period (hereinafter referred to as "the extended period") between the time when but for this Act the principal Act would have expired and the said Lady Day the principal Act shall have effect subject to the modifications contained in the two next succeeding sections.

2. (1) An increase in the rent of a dwellinghouse to which the principal Act applies payable in respect of the extended period or any part thereof which would but for the principal Act be recoverable, shall be recoverable if or so far as the amount of the increase does not exceed ten per centum of the standard rent:

Provided that no such increase shall be due or recoverable if the sanitary authority of the district in which the house is situate on the application of the tenant certifies that the house is not reasonably fit for human habitation or is not kept in a reasonable state of repair, nor in any case until or in respect of any period prior to the expiry of four clear weeks after the landlord has served upon the tenant a notice in writing of his intention to increase the rent, and informing the tenant of his right to apply to the sanitary authority for such a certificate as aforesaid.

(2) On any such application to a sanitary authority a fee of one shilling shall be payable, but if the authority, as a result of the application, issues such a certificate as aforesaid the tenant shall be entitled to deduct the amount of the fee from any subsequent payment of rent.

(3) The increase of rent permitted by this section shall be in addition to any increase permitted by section one of the principal Act.

3. Nothing in the principal Act shall prevent an increase in the rate of interest payable in respect of the extended period on a mortgage to which the principal Act applies, if the increase does not exceed one half per centum per annum, and the rate when so increased does not exceed five per centum per annum,

and sub-section (4) of section one of the principal Act shall apply as if the reference therein to the standard rate included a reference to such increased rate.

4. As from the passing of this Act, the principal Act and the enactments amending that Act shall extend to houses or parts of houses let as separate dwellings where such letting cloes not include any land other than the site of the dwelling-house and a garden or other premises within the curtilage of the dwelling-house, and where

of

(a) in the case of a house situated in the Metropolitan police district, including the City of London, both the annual amount the standard rent and the rateable value of the house or part of the house exceed thirty-five pounds, and neither exceeds seventy pounds;

(b) in the case of a house situated in Scotland, both the annual amount of the standard rent and the rateable value of the house or part of the house exceed thirty pounds, and neither exceeds sixty pounds;

or

(c) in the case of a house situated else

where, both the annual amount of the standard rent and the rateable value of the house or part of the house exceed twenty-six pounds, and neither exceeds fifty-two pounds;

and shall also extend to mortgages (not being mortgages to which the principal Act as originally enacted applies), where the mortgaged property consists of or comprises one or more of such dwelling-houses as aforesaid any interest therein, subject, however, to the exceptions mentioned in sub-section (4) of section two of the principal Act, but in the application to those houses and mortgages the principal Act and the enactments amending that Act shall have effect, subject to the following modifications:

(i) for sub-section (1) of section one of the principal Act, exclusive of the provisos. to that sub-section, the following provisions shall be substituted: :

Where the rent of a dwelling-house to which this Act applies or the rate of interest on a mortgage to which this Act applies has been since the twenty-fifth day of December nineteen hundred and eighteen, or is here

after increased and such increase would apart from this Act have been recoverable, then, if the increased rent exceeds by more than ten per centum the standard rent, or the increased rate of interest exceeds by more than one half per centum per annum the standard rate, the amount of such excess above the said ten per centum or one half per centum, as the case may be, shall, notwithstanding any agreement to the contrary, be irrecoverable from the tenant or the mortgagor, as the case may be, and, if paid, may be recovered by the tenant or mortgagor in the manner and subject to the provisions of subsection (1) of section five of the Courts (Emergency Powers) Act, 1917;

(ii) in proviso (1) to sub-section (1) and subsections (2) and (4) of section one of the principal Act the fourth day of March nineteen hundred and nineteen shall be substituted for the twenty-fifth day of November nineteen hundred and fifteen;

(iii) in sub-section (3) of section one of the principal Act references to the date of the passing of the principal Act shall be construed as references to the date of passing of this Act;

(iv) in sub-section (4) of section one of the principal Act for the reference to the standard rate there shall be substituted a reference to the rate permitted by this section;

(v) at the end of paragraph (a) of sub-sec

tion (1) of section two of the principal Act there shall be inserted the following proviso:

Provided that, if the rateable value of the dwelling-house on the said. third day of August exceeds the standard rent as so defined, that rateable value shall, as respects that house, be deemed to be the standard rent.

5.-(1) A landlord of a house to which the principal Act, either as originally enacted or as extended by this Act, applies shall, on being requested by the tenant of the house, furnish to him a statement as to what is the

standard rent of the house, and if he fails within fourteen days to do so, or furnishes a statement which is false in any material particular, he shall be guilty of an offence and liable on summary conviction to a fine not exceeding ten pounds.

(2) Where a person who has, since the thirtieth day of September nineteen hundred and seventeen, purchased a house to which the principal Act, either as originally enacted or as extended by this Act, applies, requires the house for his own occupation or that of some person in his employ, or in the employ of some tenant from him, nothing in the Increase of Rent, &c. (Amendment) Act, 1918, shall be construed as preventing the Court from making an order for the recovery of possession of the house, if, after considering all the circumstances of the case, including especially the alternative accommodation available for the tenant, the Court considers it reasonable to make such an order.

(3) The principal Act, both as originally enacted and as extended by this Act, shall have effect as if in proviso (vi) to sub-section (1) of section one of that Act after the word until " there were inserted the words "or in respect of any period prior to."

[ocr errors]

(4) Any rooms in a dwelling-house the subject of a separate letting as a dwelling shall, for the purposes of the principal Act and this Act, be treated as a part of a house let as a separate dwelling.

6.-(1) Where the occupier of a dwellinghouse to which the principal Act, either as originally enacted or as extended by this Act, applies, lets, or has, before the passing of this Act, let the house or any part thereof at a rent which includes payment in respect of the use of furniture, and it is proved to the satisfaction of the County Court on the application of the lessee that the rent charged yields to the occupier a profit more than twenty-five per centum in excess of the normal profit as hereinafter defined, the Court may order that the rent, so far as it exceeds such sum as would yield such normal profit and twenty-five per centum, shall be irrecoverable, and that the amount of any payment of rent in excess of such sum which may have been made in respect of any period after the passing of this Act, shall be repaid to the lessee, and, without prejudice to any other method of recovery,

may be recovered by him by means of deductions from any subsequent payments of rent.

(2) For the purpose of this section "normal profit" means the profit which might reasonably have been obtained from a similar letting in the year ending on the third day of August, nineteen hundred and fourteen.

7. At the end of paragraph (a) of sub-section (1) of section two of the principal Act, the following words shall be inserted:

Provided that, in the case of any dwellinghouse let at a progressive rent payable under a tenancy agreement or lease, the maximum rent payable under such tenancy agreement or lease shall be the standard rent.

8. Neither the principal Act nor this Act shall apply to houses erected after or in course of erection at the passing of this Act.

9. In the application of this Act to Scotland-

(a) the twenty-eighth day of May shall be substituted for Lady Day and the local authority under the Public Health (Scotland) Act, 1897, shall be substituted for the sanitary authority;

(b) as from the commencement of the extended period the principal Act shall be amended by the insertion in proviso (iv) of sub-section (1) of section one, after the word" dwelling-house" where first occurring therein, of the words " or where by the law of Scotland owners' rates are landlord chargeable on the of any dwelling-house."

10. In the application of this Act to Ireland

(a) the first day of May shall be substituted
for Lady Day in the case of tenancies
where the former day is the gale day;
(b) the medical officer of health of a dis-
pensary district shall be substituted for
the sanitary authority in section two of
this Act, and the issue of certificates and
the payment of fees in connection with
applications by tenants under the said.
section shall be subject to regulations to
be made by the Local Government Board
for Ireland.

11. This Act may be cited as the Increase of Rent and Mortgage Interest (Restrictions) Act, 1919, and shall be construed as one with the principal Act.

Non-communication of a Declaration of Trust.

An Analysis of the true Tests of a Valid Declaration of Trust; showing Non-Communication to be merely matter of Evidence and neither a Test nor an Essential Element.

Two Recent Decisions.

This point lately arose in the case of Radcliffe v. Abbey Road and St. John's Wood Permanent Building Society, [1918] 87 L. J. Ch. 557. The facts were these: A., being a solicitor, acted for various trustees and clients. In 1906 he received £4,000 belonging to B.'s trust. He stated he had paid it out on a specified mortgage in 1903, but in fact had misappropriated it. In December, 1916, A. mortgaged property of his own to C. for £2,000, and being insolvent signed what purported to be declarations of trust of certain of his property. As regards the property mortgaged to C., he declared himself trustee thereof for certain "persons or trusts above-named, and with power to myself or my executor to vary the allotment if another division be found more satisfactory. A. died in 1917 without the

above trust having been disclosed by him. Three points arose: (1) Non-communication of the trust; (2) Whether the trust was irreVocable; and (3) Whether the trust was void under 13 Eliz. c. 5. We shall notice only the first two points. Eve, J., answered them in favour of the declaration of trust. In Cozens, In re; Green v. Brisley, [1913] 2 Ch. 478; 82 L. J. Ch. 421, Neville, J., lays down these propositions: "The questions in this case and similar cases are after all mainly decisions on questions of fact, and it must be borne in mind that in each case where declaration of trust is relied on, the Court must be satisfied that a present irrevocable declaration of trust has been made. my opinion the absence of a communication raises a strong inference against an intention to make an appropriation irrevocable. In the absence of evidence to the contrary I think the presumption is that silence was intended to enable the declarant to adhere to or abandon the declaration as best served his advantage. In Cozens Case, A. appropriated trust funds. He inserted in his books the date and amount

In

of such appropriation and made a note in the margin of the account that the sum was advanced to himself, and sometimes identified the security on which he purported so to advance to himself. Some entries he signed or initialed, others had neither signature nor initials. Neither the entries nor the fact of appropriation were communicated to any one, and the only evidence was the entries. The question arose, Were these entries good declarations of trust? Neville, J., decided they were not, making the above observations. There is this further criticism made by the learned Judge which requires examination: "It is," says he, "somewhat startling to find, if that indeed be the law, that a man can declare a trust in the secrecy of his chamber uncommunicated to any living creature on the eve of bankruptcy by which he can determine which of his creditors shall be paid in full and which shall go without their money, so long as he is actuated not by sympathy for the creditor but by a desire to protect himself." Leaving the question of whether the trust in Cozens Case was good under 29 Car. 2. c. 3, s. 7, it will be instructive to test the decision with the reasoning and principles to be found in other decisions.

The Principle of Earlier Decisions
Considered.

First of all it should be stated all these cases on declarations of trust are primarily cases of fact. They must be examined and determined secundum subjectam materiam. When the facts are found and formed, then only is the principle to be applied. In this analysis it is of importance to consider the element of consideration-that is, the material cause which has moved the party declaring the trust-to find out whether it is a price paid for something obtained or a compensation made for some loss inflicted; and in particular whether what has been done takes its motion in the all-impelling motive of self-preservation from the peril into which a wrongful act may have betrayed the person seeking by way of reparation as in New Prance and Garrard's Trustee v. Hunting, [1897] 2 Q. B. 19; 66 L. J. Q. B. 554, and in Radcliffe's Case (supra)-to shield himself from the consequences of his acts. If there be valuable

« EelmineJätka »