VERSIONS.
Annuities are frequently granted by parishes, trusts, and public societies, for the purpose of raising money for the erec tion or repair of churches, chapels, work houses, bridges, or other expensive build. ings, it being often found practicable to obtain money in this way, when it could not be procured at the ordinary rate of interest ; it has likewise the recommenda Aim of gradually extinguishieg the debt, which might otherwise often remain a permanent 'nuttiest. Life annuities are also frequently granted, for money bor rowed by persons possessing life estates, and who, therefore, cannot give the lender a permanent security. As such annuities depend on the life of the grantor, few persons are disposed to purclitae them, unless they can he obtained on such tern, as, after allowing for the expense of 10 suring the grantor's life, leases an incooe somewhat greater than the common rite of interest. It also frequently happels that the annuities are not very punctualy paid, which, with other risks attetidag them, causes annuities of this descriptisn always to sell considerably under tteir real value; and in some instances the ne cessities of the borrowers have led tlieni to make grants of this kind on the most exorbitant terms. To throw, howe7er, some check upon improvident transac tions of this kind, which arc usually :tar ried on with great privacy, the statute 17 Geo. III. e. 26, usually called the Anntity Act, has directed, that upon the sale of any life annuity of more than the vain! of 10/. (unless on a sufficient pledge of lands in fee simple, s. stock in the public fuLds) the true consideration, which sltall be in money only, and the names of the parties, shall be set forth and described in the se curity itself, in words at leng-th ; led a memorial of the date, the names of the parties, ancl of all the witnesses, and of the consideration money,- shall, stitItin twenty- days after its execution, be enrol led in the Court of Chancery, else the se entity shall be null and void. All con
tracts for the purchase of annuities front persons under 21 years of age are utterly void, and incapable of confirmation after the party becomes of age. Procuring or soliciting a minor to grant ally life annuity., or to promise or engage to ratify it when he becontes of age, is an indictable mis demeanor, and punishable by fine and im prisonment ; as is likewise the taking more than ten shillings per cent for procuring money to be advanced for any life annui ty. This act does not extend to annuities granted by any body corporate, or under any authority or trust created by act or parliament.
Notwithstanding these regulations, per sons having occasion to raise money by the grant of life annuities were obliged to submit to the most disadvantageous terms, as it seldom happened that iildividual pur chasers svould give tbr such annuities more than eight years purchase, on fives above 30 years of age ; or 7 years pars chase on lives above 40; while, on the other hand, persons desirous of investing money in an arinuity on their own life were generally tinder the necessity of ac cepthig private security, or of wakting till an opportunity offered of obtaining the security of some local toll or rates. To remedy these inconveniences, an act was ?assed in 1793, authorising the Royal Ex change Assurance Company to grant and itirchase annuities on lives, either imme date or in reversion: the rates according to which transactions of this kind are. re gulated necessarily vary, in proportion to tie current rate of interest at which mo ney can be improved: a short specimen tierefore of the present (1808) rates, at vbich the Royal Exchange Assurance grant life annuities, will be sufficient.
Several other societies, as the Globe Insurance, the Albion, the Rock, and the Eagle Insurance Companies, have lately granted life annuities, bait is presumed they vary their grants according to cir cumstances, as they none issue a printed table of their rates. •