Universities and College Estates Act 1925

31 Power to raise money by way of compensation for loss of fines on non-renewal of leases

(1) Whenever any lease of land belonging to a university or college, the leases of which have been customarily renewed on payment of a fine, from any cause whatever (other than such as is hereinafter mentioned) remains unrenewed at any customary period of renewal, or whenever any loss of fines has been occasioned by the surrender of any lease upon any transaction by way of sale or exchange between the university or college and its lessees, it shall be lawful for the university or college, with the consent of the Minister, to raise by mortgage of any land belonging to the university or college such sums of money (together with all reasonable costs and expenses incidental to such raising) as may be required, and be stated in the order evidencing the consent of the Minister, carrying interest at a rate not exceeding the rate to be specified in the order, for the purpose of paving, by way of indemnity, to the then existing members of the university or college the same amount of money as would have accrued to the said members if any such lease had been renewed in manner theretofore accustomed : Provided that—

(a) the power of raising money under this section shall not be exercised for the purpose of providing for the loss of more than two fines in respect of the same land; and

(b) upon the creation of any such mortgage provision shall be made by the university or college, with the approval of the Minister, for the discharge of the borrowed money within or at the expiration of thirty years from the borrowing thereof; and

(c) after any sum has been raised under the power hereinbefore contained in lieu of the fines payable in respect of any lease of any land no fine shall henceforth be taken for the renewal of any lease of that land.

(2) This section does not apply where the non-renewal is due to the refusal of the university or college entitled to the reversion of the land to accept such sum of money by way of fine as may be deemed reasonable by the Minister, and may be tendered by the lessee at the first and each successive time of renewal after the sixth day of August, eighteen hundred and sixty, or within three months of such time, for the renewal of any lease theretofore regularly renewed.