36.—(1) In a case where an annual sum which has been or might be awarded under these Regulations does not exceed £26, the determining authority may, at their discretion, determine that the liability of the paying authority in respect thereof shall be compounded by payment of a lump sum equivalent to the capital value of the annual sum, and if any lump sum payment has been or might be awarded in addition to such annual sum under Regulation 18, 19, 20 or 21 of these Regulations, the determining authority may likewise determine that the liability of the paying authority in respect thereof shall be discharged by an immediate payment.
(2) In any other case the determining authority may, if the person who has been awarded long-term or retirement compensation request them to do so and they, in their discretion, after having regard to the state of health of that person and the other circumstances of the case, deem fit, determine that up to one quarter of the liability of the paying authority to make payment under the award (other than payments to a widow, child or other dependant under Regulation 24 of these Regulations) shall be compounded by the payment of an equivalent amount as a lump sum sum or, where any compensation has been awarded as a lump sum, by increasing that compensation to such equivalent amount; and in calculating for this purpose the liability of the paying authority to make payments, account shall be taken of the annual value of lump sum payments of compensation.
(3) The making of a composition under paragraph (2) of this Regulation in relation to an award of long-term or retirement compensation shall not prevent the subsequent making of a composition under paragraph (1) of this Regulation in relation to that award, but, subject as aforesaid, not more than one composition may be made in relation to any award.