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Scotch Annuity

land, lands and heritable

ANNUITY, SCOTCH. The 53 Geo. III. c. 131, does not extend to Scotland. In that part of the country a fixed sum per annum paid periodically, though se cured on heritable property, is called an annuity. Such an annuity is generally secured for life, and it may either be created by reservation in a transfer of the absolute property of the lands, thus con stituting a burden on the new proprietor's title, or it may be granted by the abso lute proprietor, the annuitant making his title real, as in the case of an absolute estate in land, by an " infeftment." Pro visions to widows and children may be thus secured. This species of security on land is to be distinguished from an an nual-rent right, which has a reference to a capital sum, and was generally the form in which the payment of the interest of money lent on heritable security was made a real burden on the lands before the more effective security was devised of making a redeemable disposition of the lands themselves to the creditor. The

annual-rent right had its origin in the laws against usury. The taking of in terest on a sum borrowed was illegal, but an irredeemable annuity was not affected by the law ; and thus the lender was invested with a perpetual estate in the land. The form used for this purpose was afterwards, as above stated, brought in to aid of the heritable bond, but it is now seldom employed. When the obligor of an annuity became bankrupt, there was until lately no statutory provision in Scotland for ranking the annuity creditor, i. e. for enabling him to prove. The Court of Session was in use to inter pose equitably to allow the annuitant to draw a dividend on the value of the an nuity. By 2 & 3 Viet. c. 41, 40 and 41, provisions similar to those of the 6 Geo. IV. c. 16, 54 and 55, relative to the claims of annuitants against the bank rupt estate of the principal debtor, and ' against sureties, were applied to Scot land.