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Special Kates, the other purpose solely shall not exceed such proportion of

that given rate as appears to have been expended for that other purpose by an account of the average yearly expenditure during the last seven years before the passing of the Municipal Corporations Act, 1835, or during those of the same seven years during which the rate was levied.

[The effect of section 84 of the Act of 1835 is preserved in this clause. Arable and meadow lands beyond a limit of 200 yards from a street or continuous line of houses are not liable to a special rate. Soo Hallett v. Churchwardens of Brighton (7 E & B., 342; S.C. 26 L.J., M.C., 61). As to the taxing and rating of municipal property, see Coomber v. Justices of Berkshire and the Mersey Docks Board v. Lucas, 44 L.T.R., N.8. 645 & 687 (in respect of income tax); and Mayor of Lincoln v. Holmes, Common L. R. 2 Q.B., 482 and Reg. v. Mayor of

Oldham, L.R.,3 Q.B. 474 (as to rating)). Misapplication

Misapplication of Corporate Property*. of Corporate Property. 124*.-(1.) It shall not be lawful for a municipal corporation, Prohibition of or the council of a borough, or a corporate officer, or a trustee, expenditure of corporate or other person acting for a municipal corporation, to pay or funds on parliamentary apply any money, stocks, funds, securities, or personal property,

of or held in trust for the corporation, in payment of any expenses occasioned by a parliamentary election or incurred by any person offering himself as a candidate at or before a parliamentary election.

(2.) Any bond, covenant, recognisance, or judgment given by a corporation, council, officer, trustee, or person as aforesaid, for securing payment of such expenses, shall be void.

(3.) Any payment, application, bond, covenant, recognisance, or judgment made or given by a corporation, council, officer, trustee, or person as aforesaid, for inducing any person to labour in a parliamentary election at a future time, or to pay or incur expenses as aforesaid at a future time, shall be deemed to be forbidden and declared void by this section, although colourably made or given for any other cause or consideration.

(4.) Any mortgage or other disposition of corporate land for securing or satisfying any expenses or engagements incurred or to be incurred as aforesaid, and any estate or charge thereby created, shall be void.

(5.) Any resolution, bye-law, or other proceeding of a council, purporting to direct or authorize any payment or thing forbidden by this section, or made or adopted for evading the provisions thereof, shall be void.

(6.) If any member of a municipal corporation authorizes or directs any payment or application forbidden by this section, or

By section 75 of the Local Government (England and Wales) Act, 1888, this section is directed to apply to county councils. See Appendix.

assents to, or concurs or participates in, any affirmative vote Misapplication or proceeding relating thereto, or signs or seals in his individual of Corporate

Property. capacity, or affixes the corporate seal to, any instrument by this section declared void, he shall be guilty of a misdemeanour, * and, on conviction thereof in the High Court, shall, in addition to such punishment as the court awards, be for ever disabled to take, hold, or exercise any office in the same corporation.

(7.) If any corporate officer, trustee, or other person as aforesaid, makes, or concurs in making, any payment or application of money or property as aforesaid, he shall be deemed to have done so in his own wrong, and he shall be individually liable to repay and make good the amount or value thereof to the corporation, notwithstanding any release or pretended indemnity given to him in the name or on behalf of the corporation.

(8.) Any two or more burgesses may bring and prosecute any action in the name of the corporation against any officer, trustee, or person making any illegal payment or application as aforesaid, as if they, their executors and administrators, were jointly and severally appointed the irrevocable attorneys of the corporation for that purpose ; but the plaintiffs shall, on the application of the defendant, give reasonable security, as the court directs, for costs, as between solicitor and client.

(9.) Nothing in this section shall affect the provisions of the Ballot Act, 1872, or of any other Act for the time being in force regulating the payment by the returning officer or otherwise of expenses † relating to parliamentary elections.

[As regards boroughs within this Act, c. 69 of 2 & 3 Will. 4 (1833) is reproduced in this clause).

Transitory Provisions.

Transitory

Provisions. 125.-(1.) In the several cases following:

Transfer of

investments (a.) Where before the fifteenth of May one thousand eight made beforo hundred and sixty I the Treasury on approving of a mortgage of of trustees. corporate land had required a sinking fund in names of trustees;

(6.) Where before the same day the Treasury, on approving of the payment to a corporation or their treasurer of purchase money for or compensation in respect of corporate land, or of money arising from sale of Government securities in which the

• The severe penalties following hereon have been noted at page 111 ante (footnote). + See as to these, section 8 of 35 & 36 Vict. c. 33 (The Ballot Act, 1872) and section 2 of 38 & 39 Vict. c. 84.

The date of passing of the Municipal Corporations Mortgages Act, 1860.

Transitory Provisions.

same had been invested, had required provision for raising by investments in names of trustees an amount equivalent to the awɔunt so paid;

(c.) Where before the same day the Treasury, on approving of a sale or alienation of corporate land, had required the investment of the proceeds in names of trustees;

The Treasury, if they have not so done before the commencement of this Act, may require any securities in which any such investments had been made to be transferred into the name of the corporation in the matter of this Act, or may require any money applicable for the purposes of such sinking fund to be invested in the purchase of Government annuities in the name of the corporation and in the matter of this Act.

(2.) The order in writirg of the Treasury for that purpose shall be a sufficient discharge to the trustees from all claims in respect of the transfer of the securities in pursuance of the order.

(3.) The Treasury may, in the cases aforesaid, give such directions as they might give in the analogous cases in this part provided for, arising after the commencement of this Act, or as near thereto as circumstances require, and the provisions of this Part shall apply accordingly.

(4.) Where any such transfer as aforesaid has before the commencement of this Act been made into the name of the corporation in the matter of any Act repealed by this Act, this Act shall, if the Treasury so direct, be substituted in the title of the account for that Act.

[The effect of section 6 of 25 & 24 Vict. c. 16 (1860) is preserved in this clause).

Bcheme redpecting

incurred before 1800.

126.—Where in a borough any mortgage debt had been before mortgic debts the fifteenth of May one thousand eight hundred and sixty in

curred, for discharge of which no adequate provision then existed, the council, if they have not so done before the commencement of this Act, may submit to the Treasury any scheme for the discharge thereof by instalments, or a sinking fund, or both, extending over any term of years, and if the Treasury approve of the scheme, the sums required for discharge of the debt as proposed therein shall, by virtue of this Act, become charged on all or any part of the corporate land, or the borough fund, or borough rate, or any other rate applicable to discharge of the debt, or on all or any of those securities, as the Treasury

Provisions.

direct, and the provisions of this part applicable for repayment Transitory of money borrowed on mortgage by a sinking fund, or instalments, or both, except the limitation to a period of thirty years, shall apply for discharge of the debt.

[The effect of section 10 of 23 & 24 Vict. c. 16 (1860) is preserved in this clause).

а

of

127.—Where in a borough debts had from time to time before consolidation the fifteenth of May one thousand eight hundred and sixty, incurred befor, been incurred under Acts of Parliament, with different periods assigned for discharge thereof, the council, if they have not so done before the commencement of this Act, may, with the consent of the Treasury, and with the previous consent in writing of the persons or bodies corporate to whom the debts are owing, consolidate the debts into one, and provide for discharge of the consolidated debt by annual instalments, or a sinking fund, or both, extending over a period not exceeding thirty years, and make the instalments or payments a charge on the borough fund, or borough rate, or any other rate applicable to the discharge of the debts, or on all or any of those securities, as the Treasury direct.

[The effect of section 11 of 23 & 24 Vict. c. 16 (1860) is preserved in this clause. See also note to section 118, page 111 ante).

sales, &c., un

past con

128.-Nothing in this Act shall affect any power to sell, Saving for mortgage, alienate, or lease corporate lands in pursuance of an pursuance of agreement made on or before the fifth day of June one thousand truets and eigbt hundred and thirty-five, or of a resolution entered in the books of a body corporate on or before that date.

[The effect of section 94 of the Act of 1835 is preserved in this clause).

resolutions,

rates in respect

129.—Nothing in this Act shall prevent the levying or Saving for collection of any rate for the purpose of paying any debt of part debts. contracted before the commencement of this Act or any interest thereon.

[The effect of the proviso to section 85 of the Act of 1835 is preserved in this clause).

rights of

130.-It shall not be lawful for the council of a borough of Saving for which the body corporate had before the passing of the Municipal creditors in Corporations Act, 1835, contracted any lawful debt chargeable tolls or dues, on any tolls or dues belonging or payable to that body corporate,

of

Transitory I'rovisions.

or to any member or officer thereof in his corporate capacity, or towards the satisfaction whereof such tolls or dues or any part thereof were or was applicable before the passing of that Act, to alter or reduce the amount to be levied and payable of such tolls or dues, or to grant for any consideration any remission thereof or exemption therefrom or of or from any part thereof, except with the consent in writing, under the hands of a majority in number and amount, of the creditors to whom the debt is due, until after the debt and all arrears of interest due thereon have been fully paid and satisfied.

[The effect of the proviso of section 92 of the Act of 1835 is preserved in this clause).

Saving for
lawful debts
contracted
before
5 & 6 Will. 4,
c. 76.

131.-(1.) Notwithstanding anything in this Act, the application of the borough fund to the several payments specified in the Fifth Schedule or otherwise authorized by this Act shall be subject to the payment of any lawful debt due from the municipal corporation to any person which was contracted before the passing of the Municipal Corporations Act, 1835, and is unredeemed, or of so much thereof as the council from time to time are required or deem it expedient to redeem, and to the payment from time to time of the interest on so much thereof as remains un redeemed.

(2.) The council may from time to time execute under the corporate seal any deed or obligation in the name of the corporation for securing repayment and satisfaction of any such debt or obligation contracted by or on behalf of the corporation before the passing of the Municipal Corporations Act, 1835.

[As to obligations-In Reg. v. Corporation of Lichfield (4 Q. B., 893) the council elected under 5 & 6 Will. 4, c. 76, borrowed the sum of $200 to repay their treasurer certain sums which he had paid to creditors of the old unreformed corporation. They gave a promissory note to the party lending the money. They did not, however, hand over this money to the treasurer, but allowed him to receive their then accruing income in reduction of what was due to him, and applied the £200 to purposes to which the income would have been applicable. It was held, that the corporation had no right to give the promissory note, for it was not given to secure a debt contracted before the passing of 5 & 6 Will. 4, c. 76. This led to the passing of 7 Will. 4 and 1 Vict. c. 78, section 20 of which is reproduced in the following subsection (3)].

(3.) Money borrowed by a council for the purpose of being applied, and applied in or towards satisfaction and discharge of any such pre-existing debt or obligation, shall be deemed to be a debt contracted by or on behalf of the corporation before the passing of the Municipal Corporations Act, 1835.

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