84Mode of application of capital money

84 Mode of application of capital money (1) Where the tenant for life is desirous that capital money arising under this Act shall be applied in or towards payment for an improvement authorized by this Act he may submit for approval to the trustees of the settlement or to the Court (as the case may require) a scheme for the execution of the improvement showing the proposed expenditure thereon. (2) Where the capital money to be expended is in the hands of the trustees of the settlement, then, after a scheme is approved by them, they may apply that money in or towards payment for the whole or any part of any work or operation comprised in the improvement, on— (a) a certificate to be furnished by a competent engineer or able practical surveyor nominated by the trustees or approved by the Court, certifying that the work or operation comprised in the improvement or some specific part thereof has been properly executed, and what amount is properly payable in respect thereof, which certificate shall be conclusive in favour of the trustees as an authority and discharge for any payment made by them in pursuance thereof; or (b) an order of the Court directing or authorizing the trustees so to apply a specified portion of the capital money: (a) in the case of improvements not authorized by Part I of the Second Schedule to this Act or by the settlement, the trustees may, if they think fit, and shall if so directed by the Court, before they make any such application of capital money require that that money, or any part thereof, shall be repaid to them out of the income of the settled land by not more than fifty half-yearly instalments, the first of such instalments to be paid or to be deemed to have become payable at the expiration of six months from the date when the work or operation, in payment for which the money is to be applied, was completed. (b) no capital money shall be applied by the trustees in payment for improvements not authorized by Parts I and II of the Second Schedule to this Act, or by the settlement, except subject to provision for the repayment thereof being made in manner mentioned in the preceding paragraph of this proviso. (3) Where the capital money to be expended is in court, then after a scheme is approved by the Court, the Court may, if it thinks fit, on a report or certificate of a competent engineer or able practical surveyor approved by the Court, or on such other evidence as the Court thinks sufficient, make such order and give such directions as it thinks fit for the application of that money, or any part thereof, in or towards payment for the whole or any part of any work or operation comprised in the improvement. (4) Where the Court authorizes capital money to be applied in payment for any improvement or intended improvement not authorized by Part I of the Second Schedule to this Act or by the settlement, the Court, as a condition of making the order, may in any case require that the capital money or any part thereof, and shall as respects an improvement mentioned in Part III of that Schedule (unless the improvement is authorized by the settlement), require that the whole of the capital money shall be repaid to the trustees of the settlement out of the income of the settled land by a fixed number of periodical instalments to be paid at the times appointed by the Court, and may require that any incumbrancer of the estate or interest of the tenant for life shall be served with notice of the proceedings. (5) All money received by the trustees of the settlement in respect of any instalments under this section shall be held by them as capital money arising from freehold land under the settlement unless the Court otherwise directs. No. 3771 s. 85.