of building.

bind not only himself but all psons claimg title under him to restrictive the hds taken in exchange by him as afsd, covt with the sd B. & C., and their hrs, & also septely with the sd A. & his succors in title, the owner or owners for the time being of the X. este, that the sd D., his hrs & assns will, &c., Covts restrictive of bldg, &c., on lands taken by D. in exchange, see p. 424; [Provo restrictg A.'s liability under implied couts for title, if required, p. 411, form п1.]: [Acknmt & undertakg by A. with D., & by D. with B. & C., as to munimts retained by them resply, p. 418.] IN WITS, &c.

[Two schdles of Peels & two of Munimts.]

INDEMNITY (u).

Recitals.

Agreement.

Witnesseth.

Bargain and sale.

As to freeing

lands from

incumbrances.

Stamp.

As to

nominal

I.

INDEMNITY to PURCHASER of LAND CHARGED with DEBTS and LEGACIES, effected by a DEMISE to TRUSTEES of lands of which the Vendor is seised in fee (b).

este to B.: AND WHAS

PARTIES, A., vendor, 1; B., pchaser, 2; C. & D., trees, 3. Recitals showg that A. is seised in fee of the lands "hby demised;" That under the will of K. he became seised in fee of theeste, subjt to a chge of debts & legacies; Sale and convce of even date of pt of the upon the sd sale it was agrd that the sd A shd give to the sd B. such indemnity agst the debts & legacies chged by the sd will on the sd hds & premes conveyed to him by the hinbfe recited indre, & orwise as is hinafter contd: NOW THIS INDRE WITNETH that in psuance of the sd recited agrmt, & in conson of the premes, & of the sum of 5s. now pd to the sd A. by the sd C. & D. (c) the sd A. doth hby bargain, sell, &

(a) See also BONDS and RELEASES.

(b) As to freeing land from incumbrances on a sale, see the Conv. Act, 1881, s. 5, above, p. 501, note; and as to settled estates, the Settled Land Act, 1882, ss. 5, 24. An indemnity against a defect of title should, of course, usually be by a separate instrument, in order that the defect may not appear on the face of the title.

As to the stamp duty on indemnity deeds and bonds, see the heading MORTGAGE, &c., in the schedule to the Stamp Act, 1891; Lord Canning v. Roper, 1 El. & B. 164; and as to equitable securities under hand only by way of indemnity, see sub-div. (3) of the schedule; the effect, however, of s. 88, sub-div. (2) of the Act is that where the total amount for which the indemnity is given is not limited, the security need not be stamped with ad valorem duty in the first instance, as the duty can be paid when occasion arises.

(c) A nominal consideration is stated, and the words “bargain and sell” added in order to raise a use in favour of the trustees, without which they

to trustees

trust to

demise unto the sd C. & D., pcels, p. 377; To HOLD the same Habendum UNTO the sd C. & D., their exs, ads, & assns, for the term of for term. 1,000 yrs from the day next bfe the date of these psnts, witht impeachmt of waste, upon the trusts hinafter decld, that is to say: UPON TRUST in case the sd B., his hrs, exs, ads, or assns, Upon shl at any time within the lives & life of H.M. the Queen & her indemnify issue now living & the survor of them, or within 21 yrs after purchaser. the death of such survor (d), pay or incur any sum or sums of moy, costs, damages, or expses in respt of the debts & legacies chged by the sd will of the sd K. on the sd hds & premes conveyed to the sd B. by the hinbfe recited indre of even date hwith, or any of them, or by reason of any action, pedg, claim, or demand in respt of such debts or legacies or any of them, then & in every such case the sd C. & D., or the survor of them, or other the trees or tree for the time being of these psnts, shl by & out of the rents & profits of the sd hds & premes hby demised, or by the sale of timber or minls, or by mtge of the same premes or any of them for all or any pt of the sd term, or by all or any of the means afsd, or by any other reasble means, from time to time raise such sum or sums of moy as shl be sufft to pay & satisfy all sums of moy, damages, costs, & expses wch the sd B., his hrs, exs, ads, or assns, shl pay or incur as afsd, & also such sum or sums of moy as shl be required to satisfy all costs & expses incurred in or about the exon of the trusts of the sd term, or wch the sd trees or tree may incur in conseqce of any action or other pedg weh may be instituted for raisg any moy under the trusts of the sd term or in anywise relatg thto, and shl apply the moys so to be raised as afsd accdly, & shl pay the surplus, if any, of the same moys to the sd A., his hrs or assns, AND SUBJT & witht prejudice to the trusts afsd, shl permit the sd A., his hrs & assns, to rece the rents & profits of the premes hby demised for his & their own benefit: PROVD ALWAYS & it Proviso for is hby agrd & decld that in case no claim or demand shl be made agst the sd B., his hrs or assns, or agst the sd hds &

cesser of term.

would only obtain an interesse termini until actual entry; Elph. Introd. considera p. 176.

(d) Probably it is necessary to restrict the time as to remoteness, during which the indemnity may take effect; see contra, Massey v. O'Dell, 10 Ir. Ch. 22. In most cases 21 years will be sufficient.

tion.

premes conveyed to the sd B. by the hinbfe recited indre of, &c., in respt of any of the sd debts or legacies within the period of yrs from the date of these psnts, or within the period hinbfe mentd wchever shl first happen, or in case all claims & demands wch shl be so made shl be orwise pd & satisfied within 3 calr months next after the same resply shl have been made, & if the sd B., his hrs, exs, ads, & assns, & also the sd trees or tree shl be reimbursed & satisfied by the sd A., his hrs, exs, ads, or assns, upon demand, all such moys, damages, costs, & expses, as he or they resply shl pay or incur in respt of the premes, then & in such case the sd term of 1,000 yrs shl immedly on the expiron of the sd period of yrs be assned or surrendered to the sd A., his hrs, exs, ads, or assns, if so required, or shl orwise cease & determine: AND IT IS HBY AGRD & DECLD that, upon any mtge purportg to be made in psuance of the trusts hinbefore contd, the mtgee or mtgees shl not be bound to inquire as to the necessity or occasion for raisg any moy for the pposes afsd, or to see to the applicon of his or their mtge moy, & any such mtge may be made with a power of sale & with such other provons as may Incorpora be deemed expedient: AND IT IS HBY decld that the same covts shl be deemed to be hby implied on the pt of the sd A. as if these psnts had been a convce by way of mtge & the sd A. had been expd to bargain, sell & demise the premes hby bargained, sold, & demised as benefl owner (a). IN WITS, &c.

Provision

for protection of mortgagees.

tion of statutory covenants for title.

Covenants

for title.

66

(a) Probably this is a mortgage" within the Conv. Act, 1881, s. 2, so that the insertion of the words "as benefl owner would imply the covenants for title under s. 7 (1) (C.) of the Act, see MORTGAGES; but to avoid question the statutory covenants are expressly incorporated. The trustees' receipt clause and power to appoint new trustees are supplied by the Trustee Act, 1893, repealing and by ss. 10 and 21 replacing the Conv. Act, 1881, ss. 31, 36; see SETTLEMENTS.

II.

DEED of DECLARATION of TRUST of a SUM of CONSOLS
produced by INVESTMENT of part of PURCHASE-MONEY

for INDEMNIFYING the purchaser against a CONTINGENT
EQUITABLE CHARGE.

PARTIES, A., vendor, 1; B., pchaser, 2; C. & D., trees, 3.

of even

received notice of

Recite convce of even date by A. to B. of "certn hds situate in Recitals. the parish of in the coy of known as, &c., & formg Conveyance pt of an este called the este"; AND WHAS during the date. investigon of the title to the premes comprd in the hinbfe Purchaser recited convce of even date hwith, the sd B. reced notice of a contingent equitable chge on the sd este of the sum of contingent equitable £——, raisable with intt, & payable to such child or chln of the charge. late L. as shl attn the age of 21 yrs: AND WHAS the sd L. had Persons 2 chln only, namely M. & N., who are minors of the respive to charge. yrs or thabouts; AND WHAS it has been

yrs &

entitled

of part of the pur

ages of Agreement agrd that, for the ppose of indemnifying the sd B., his hrs & for indemnifying assns, & the sd hds conveyed to him as afsd, agst the sd con- purchaser. tingent chge of £ & intt, in case the same shl become raisable & payable, & from all claims in respt thof, a sum of £, pt of the sd pchase-moy of £, shd be invested in the names of the sd C., a tree nominated by the sd A., & of the sd D., a tree nominated by the sd B., upon the trusts hinafter decld, & that the sd A. shd enter into the covts hinafter contd; AND WHAS immedly bfe the exon of these psnts, the sd B. has, Investment with the approbon of the sd A., invested the sum of £ pt of the sd pchase-moy wch in the sd convce is stated to have chasebeen pd to the sd A., in the pchase of the sum of £23 p.c. Consold Stk, in the names of the sd C. & D. NOW THIS WitINDRE WITNETH that in psuance of the sd recited agrmt & in conson of the premes, it is hby agrd & decld that the sd C. & Declaration D., their exs, ads, & assns shl stand possed of the sd sum of £ Stk as a fund for keepg indemnified the sd hds comprd in & To inderconveyed by the sd indre of even date hwith & every pt thof, nify pur & the sd B., his hrs & assns, in respt thof, agst the sd sum of £ & intt chged thron, & raisable & payable in the events afsd, & all sums of moy, costs, & expses, wch the sd B., his hrs, exs, ads, or assns, may at any time hrafter incur or

money.

nesseth.

of trust.