sec.37Deferred payment on sale of property

### sec.37 Deferred payment on sale of property A sale of property by a trustee, in exercise of any power vested in the trustee in that behalf by the instrument creating the trust or by or under this Act or any other enactment, may be on terms of deferred payment. The terms of deferred payment may provide that the purchase money and interest (if any) shall be paid by instalments. The terms upon which property is sold shall, in addition to such other provisions as the trustee may think proper, include provisions giving effect to the following, namely that— the part of the purchase money to be paid by deposit shall not be less than the sum which a person acting with prudence would, if the property were the person’s own, have accepted in the circumstances in order to sell the property to the best advantage, and in any case shall not be less than one-tenth of the purchase money; the balance of the purchase money shall be payable by such instalments and shall bear interest payable half-yearly or oftener on the amount from time to time unpaid at such rate as a person acting with prudence would, if the property were the person’s own, have accepted in the circumstances in order to sell the property to the best advantage, and in any case the whole purchase money shall be payable within a period not exceeding 10 years from the date of sale; if any instalment or interest or part thereof is in arrear and unpaid for 6 months, or for such less period as may be specified, the whole of the purchase money shall become due and payable; the purchaser shall maintain and protect the property, and, in the case of land, keep all buildings (if any) thereon insured against loss or damage by fire and by storm and tempest to their full insurable value. Notwithstanding that the property has been sold on terms of deferred payment, the trustee may, at any time after one-third of the purchase money has been paid, convey the property and take a mortgage to secure payment of the balance of the purchase money and interest, with or without the security of any other property. Whether the sale is made under the order of the court or otherwise, the court may make such order as it thinks fit as to the terms of deferred payment. A trustee selling property on terms authorised by this section or by any order of the court shall not be affected by section 30 in respect of so much of the purchase money as is payable under an agreement for sale or is secured by a mortgage, and shall not be liable for any loss that may be incurred by reason only of the security being insufficient at the date of the agreement or mortgage. For the purposes of any consent or direction required by the instrument (if any) creating the trust or by statute, a trustee selling property on terms of deferred payment shall be deemed not to be lending money or investing trust funds. s 37 amd 1999 No. 69 s 7 sch (sec.37-ssec.1) A sale of property by a trustee, in exercise of any power vested in the trustee in that behalf by the instrument creating the trust or by or under this Act or any other enactment, may be on terms of deferred payment. (sec.37-ssec.2) The terms of deferred payment may provide that the purchase money and interest (if any) shall be paid by instalments. (sec.37-ssec.3) The terms upon which property is sold shall, in addition to such other provisions as the trustee may think proper, include provisions giving effect to the following, namely that— the part of the purchase money to be paid by deposit shall not be less than the sum which a person acting with prudence would, if the property were the person’s own, have accepted in the circumstances in order to sell the property to the best advantage, and in any case shall not be less than one-tenth of the purchase money; the balance of the purchase money shall be payable by such instalments and shall bear interest payable half-yearly or oftener on the amount from time to time unpaid at such rate as a person acting with prudence would, if the property were the person’s own, have accepted in the circumstances in order to sell the property to the best advantage, and in any case the whole purchase money shall be payable within a period not exceeding 10 years from the date of sale; if any instalment or interest or part thereof is in arrear and unpaid for 6 months, or for such less period as may be specified, the whole of the purchase money shall become due and payable; the purchaser shall maintain and protect the property, and, in the case of land, keep all buildings (if any) thereon insured against loss or damage by fire and by storm and tempest to their full insurable value. (sec.37-ssec.4) Notwithstanding that the property has been sold on terms of deferred payment, the trustee may, at any time after one-third of the purchase money has been paid, convey the property and take a mortgage to secure payment of the balance of the purchase money and interest, with or without the security of any other property. (sec.37-ssec.5) Whether the sale is made under the order of the court or otherwise, the court may make such order as it thinks fit as to the terms of deferred payment. (sec.37-ssec.6) A trustee selling property on terms authorised by this section or by any order of the court shall not be affected by section 30 in respect of so much of the purchase money as is payable under an agreement for sale or is secured by a mortgage, and shall not be liable for any loss that may be incurred by reason only of the security being insufficient at the date of the agreement or mortgage. (sec.37-ssec.7) For the purposes of any consent or direction required by the instrument (if any) creating the trust or by statute, a trustee selling property on terms of deferred payment shall be deemed not to be lending money or investing trust funds. - (a) the part of the purchase money to be paid by deposit shall not be less than the sum which a person acting with prudence would, if the property were the person’s own, have accepted in the circumstances in order to sell the property to the best advantage, and in any case shall not be less than one-tenth of the purchase money; - (b) the balance of the purchase money shall be payable by such instalments and shall bear interest payable half-yearly or oftener on the amount from time to time unpaid at such rate as a person acting with prudence would, if the property were the person’s own, have accepted in the circumstances in order to sell the property to the best advantage, and in any case the whole purchase money shall be payable within a period not exceeding 10 years from the date of sale; - (c) if any instalment or interest or part thereof is in arrear and unpaid for 6 months, or for such less period as may be specified, the whole of the purchase money shall become due and payable; - (d) the purchaser shall maintain and protect the property, and, in the case of land, keep all buildings (if any) thereon insured against loss or damage by fire and by storm and tempest to their full insurable value.