The Land Registration (Amendment) Rules 2008

New rule 195

62.  For rule 195 substitute—

“Payment of interest on an indemnity

195.— (1) Subject to paragraph (3), interest is payable in accordance with paragraph (4) on the amount of any indemnity paid under Schedule 8 to the Act—

(a) where paragraph 1(1)(a) of Schedule 8 applies other than in respect of any indemnity on account of costs or expenses, from the date of the rectification to the date of payment,

(b) where any other sub-paragraph of paragraph 1(1) of Schedule 8 applies other than in respect of any indemnity on account of costs or expenses, from the date the loss is suffered by reason of the relevant mistake, loss, destruction or failure to the date of payment,

(c) in respect of an indemnity on account of costs or expenses within paragraph 3 of Schedule 8, from the date when the claimant pays them to the date of payment.

(2) A reference in this rule to a period from a date to the date of payment excludes the former date but includes the latter date.

(3) No interest is payable under paragraph (1) for any period or periods where the registrar or the court is satisfied that the claimant has not taken reasonable steps to pursue with due diligence the claim for indemnity or, where relevant, the application for rectification.

(4) Simple interest is payable—

(a) where the period specified in paragraph (1) starts on or after 10 November 2008, at one percent above the applicable Bank of England base rate or rates, or

(b) where the period specified in paragraph (1) starts before that date,

(i) for the part of the period before that date, at the applicable rate or rates set for court judgment debts, and

(ii) for the part of the period on or after that date, at one percent above the applicable Bank of England base rate or rates.

(5) In this rule “Bank of England base rate” means—

(a) the rate announced from time to time by the Monetary Policy Committee of the Bank of England as the official dealing rate, being the rate at which the Bank is willing to enter into transactions for providing short term liquidity in the money markets, or

(b) where an order under section 19 of the Bank of England Act 1998(1) is in force, any equivalent rate determined by the Treasury under that section.”.

(1)

1998 c.11.