CONVEYANCING, DRAFTING & DEEDS [Ch. 25
of the company were not sufficient to pay the amount of interest was held was
as a bond securing periodical payment and chargeable to Stamp duty accord-
ingly?Electric Railways Co. of London Ltd. v Commissioners (1914)3 KB 210,
affirmed in (1916)1 KB 306 CA].
FORMS
1
Agreement to grant an annuity out of a life interest
AN AGREEMENT made the………. day of………… BETWEEN [grantor] of
[address, etc.] (hereinafter called the vendor) of the one part and [annuitant] of
[address, etc.] (hereinafter called the purchaser) of the other part.
WHEREAS under a settlement dated……….. and made between [parties] for
under the will of [testator] dated………. and proved on…………. in the………. court]
the vendor is entitled to receive during his life the interest and income of the
several securities and investments mentioned in the first schedule hereto and
any investments hereafter substituted for or representing the same.
NOW IT IS HEREBY AGREED as follows:
1. The vendor shall sell and the purchaser shall purchase at the price of Rs.
………. an annuity of Rs………… to commence on the……….. day of………… next
and to be payable during the life of the vendor by equal quarterly instalments
on the usual quarter days free from all deductions except income tax the first
of such instalments [being a proportionate amount from the………. day of………
next to the………… day of……….. next] to be paid on the ………. day of …….. next
such annuity to be a first charge on the said life interest of the vendor.
2. Completion shall take place and the purchase money shall be paid on
the………. day of…………… next at the office of Messrs……………………….. the
solicitors of the vendor at… If completion shall be delayed from any cause
whatever (other than the wilful default of the vendor) the purchaser shall as from
the date aforesaid pay to the vendor interest on the purchase money at the rate
of Rs……….. per cent per annum but shall be entitled to set off any instalments
of the said annuity that may have become payable against the purchase money
and interest.
3. The title of the vendor to the said life interest shall commence with the said
settlement [or will].
4. The vendor will provide statutory declarations made by competent
declarants verifying the identity and age of the vendor, the identity of the present
trustees of the settlement [or will], the death of [previous trustees] and [ any other
matters of pedigree affecting the title or the trusteeship], and such statutory
declarations will exhibit certificates in the long form of the vendor?s birth and of
all other material births marriages or deaths. The vendor will make the saidstatutory declarations at his own expense and also at his own expense will
himself make a statutory declaration in support of his title to the said life interest
in such form as the purchaser shall reasonably require. The purchaser shall
accept such statutory declarations as aforesaid as sufficient evidence of the
matters therein stated.
5. The vendor hereby authorises the purchaser to make such inquiries as the
purchaser thinks fit of the trustees of the said settlement [or will] regarding the
constitution of the trust fund, any dealings therewith, or any dealings with or
matters affecting the said life interest. The purchaser shall be satisfied with the
answers of one only of the trustees to any such inquiries.
[6. The vendor will deliver an abstract of title within…….. days hereof.]
7. Any requisitions on the title shall be sent to the vendor?s solicitors within
……… days after the delivery of the abstract and subject thereto the title shall
be deemed to be accepted.
8. If the purchaser shall take any objection or make any requisition which the
vendor shall be unable or on reasonable grounds unwilling to remove or comply
with and the purchaser shall not withdraw such objection or requisition within
ten days after being required so to do the vendor may by notice in writing
delivered to the purchaser or his solicitors (notwithstanding any intermediate
negotiation or litigation) rescind this agreement and the purchaser shall
thereupon return all abstracts and papers in his possession belonging to the
vendor and make no claim for costs or otherwise.
9. Upon payment of the purchase money at the time and place aforesaid the
vendor shall by a proper instrument grant the said annuity to the purchaser out
of and by way of a first charge on the said life interest of the vendor.
10. The said instrument shall contain provisions to the effect set forth in the
second schedule hereto and such other powers and provisions as are usual in
grants of the like nature.
11. All expenses of and incidental to the preparation and execution by both
parties and completion of the said instrument and the costs of the trustees of
answering any inquiries shall be paid by the purchaser.
AS WITNESS etc.
FIRST SCHEDULE
[Particulars of investments]
SECOND SCHEDULE
[Special provisions to be contained in the grant]
[Signatures of both parties]
Ch. 25] ANNUITIES?FORMS 587588 CONVEYANCING, DRAFTING & DEEDS [Ch. 25
2
Covenant to pay a monthly sum as annuity
THIS DEED OF COVENANT made the……….. day of………… BETWEEN [settlor]
of [address, etc.] (hereinafter called the settlor) of the One Part and [beneficiary]
of [address, etc.] (hereinafter called the beneficiary) of the Other Part.
WITNESSETH as follows:
1. [In consideration of the natural love and affection of the settlor for the
beneficiary ] the settlor hereby covenants with the beneficiary that he will pay
to the beneficiary for the period of………. years from the…….next or during the
joint lives of the settlor and the beneficiary whichever period shall be the shorter
such a monthly sum of Rs……….. the first payment to be made on…….. next and
subsequent payments on the……….. day of each month during the said period.
2. The settlor further covenants with the beneficiary that he will on request
deliver to the beneficiary a certificate or certificates of all payments made by him
hereunder during the year and the amounts or total amount of the grossed
payments, so made by him.
IN WITNESS etc.
[Signature of Settlor]
3
Deed of covenant to pay a monthly sum to a beneficiary for
life with a separate covenant in favour of his widow
THIS DEED OF COVENANT made the day of………….. BETWEEN [settlor] of
[address, etc.] (hereinafter called the settlor) of the First Part [beneficiary] of
[address, etc.] (hereinafter called the beneficiary) of the Second Part and [name]
wife of the beneficiary (hereinafter called the wife) of the Third Part.
WITNESSETH as follows:
1. The settlor hereby covenants with the beneficiary that the settlor or his
personal representatives will during the life of the beneficiary pay to him on
the………. day of each month a sum of Rs…………
2. The settlor hereby covenants with the wife that the settlor or his personal
representatives will from and after the death of the beneficiary and so long as
the wife shall remain the widow of the beneficiary pay to her on the………. day
of each month a sum of the same amount as aforesaid.
IN WITNESS etc.
[Signatures of Settlor and the beneficiaries]4
Deed of covenant to pay monthly sum during joint lives
of settlor and beneficiary or during life of grantor
or beneficiary
THIS DEED OF COVENANT made the……. day of……. BETWEEN [settlor] of
[address, etc.] (hereinafter called the settlor) of the One Part and [beneficiary]
of [address, etc.] (hereinafter called the beneficiary) of the Other Part.
WITNESSETH that the settlor hereby covenants with the beneficiary that the
settlor [or his personal representatives] will pay to the beneficiary during the joint
lives of the settlor and the beneficiary [or the life of the settlor or the life of the
beneficiary] such a monthly sum as after deducting therefrom income-tax
thereon at the rate for the time being in force will amount to Rs………. the first
payment to be made on………. next and subsequent payments on the…….. day
of each month but to be deemed to accrue from day to day.
IN WITNESS etc.
[Signature and seal of Settlor]
5
Deed of covenant on purchase of an annuity payable during
annuitant?s life (with power to redeem)
THIS DEED OF COVENANT made the……… day of………. BETWEEN [grantor]
of [address, etc.] (hereinafter called the grantor) of the One Part and [annuitant]
of [address, etc.] (hereinafter called the annuitant) of the Other Part.
WITNESSETH as follows:
1. In consideration of the sum of Rs………. now paid by the annuitant to the
grantor (the receipt whereof the grantor hereby acknowledges) the grantor
hereby covenants with the annuitant that the grantor or his personal represen-
tatives will pay to the annuitant or his assigns during the life of the annuitant an
annuity or Rs……… free of all deductions by equal quarterly payments on the
usual quarter days the first quarterly payment [being a proportionate amount
from the date hereof up to the day of payment] to be made on the……. day of…….
2. If the grantor or his personal representatives shall at any time hereafter
be desirous of redeeming the annuity hereby granted and shall give the annuitant
or his assigns one month?s notice in writing of such desire then the grantor or
his personal representatives may redeem the annuity by paying to the annuitant
or his assigns on the expiration of such notice or within fourteen days thereafter
[…….per cent of] such a sum as would at the date of payment suffice to purchase
from [insurance company] or some other public company approved by the
annuitant (such approval not to be unreasonably withheld) an annuity of an
amount equal to the annuity hereby granted and payable during the residue of
Ch. 25] ANNUITIES?FORMS 589590 CONVEYANCING, DRAFTING & DEEDS [Ch. 25
the life of the annuitant and upon the grantor or his personal representatives
making such payment and paying the annuity hereby granted up to the date of
redemption the said annuity shall cease to be payable.
IN WITNESS etc.
[Signature of grantor]
6
Grant of annuity out of grantor?s life interest in property,
the annuitant insuring life of grantor?power to redeem
THIS DEED is made the……… day of……… BETWEEN [grantor] of [address,
etc.] (hereinafter called the grantor which expression shall where the context so
admits include his personal representatives and assigns) of the One Part and
[annuitant] of [address, etc.] (hereinafter called the annuitant which expression
shall where the context so admits include his personal representatives and
assigns) of the Other Part.
WHEREAS :
(1) Under a settlement (hereinafter called the settlement) dated the .. day of..
and made between [parties] the trust funds thereby settled are held upon trust
for payment of the income thereof to the grantor during his life.
(2) The said trust funds are now represented by the securities and invest-
ments mentioned in the schedule hereto standing in the names of [trustees] the
trustees of the said settlement.
(3) The grantor has agreed to sell to the annuitant at the price of Rs……. the
annuity hereinafter granted and secured as hereinafter mentioned.
NOW THIS DEED made in pursuance of the said agreement and in consid-
eration of the sum of Rs…….. now paid by the annuitant to the grantor (the receipt
whereof the grantor hereby acknowledges) WITNESSETH as follows:
1. The grantor as beneficial owner hereby grants unto the annuitant an annuity
of Rs…….. to commence from the date hereof and to continue payable during
the life of the grantor to be payable by equal half yearly payments the first to be
made on the……….. day of………… next and future payments on the………. day
of………. and the……… day of……… in each year such annuity to be a first charge
upon all the dividends interest and income henceforth to arise during the life of
the grantor from the securities and investments mentioned in the schedule
hereto and any investments or property hereafter substituted for or representing
the same.
2. The grantor hereby covenants with the annuitant as follows:
(a) To inform the annuitant forthwith of any change of the grantor?s address;
(b) On the……….. day of……….. in every year to give notice to the annuitantof the grantor?s being alive and informing the annuitant of any changes
in the trustees of the settlement during the preceding year.
(c) That the personal representatives of the grantor will give notice of his
death to the annuitant.
3. The grantor further covenants with the annuitant as follows:
(a) To do all things necessary or proper to enable the annuitant to effect
an insurances on the life of the grantor;
(b) That the grantor will not do or suffer anything whereby the said
insurance or any substituted insurance hereinafter mentioned may
become void or voidable or the annuitant be hindered from receiving
all or any of the monies assured or to become payable thereunder;
(c) That if any such insurance shall become voidable as a result of any
breach of these stipulations the grantor will immediately at his own
expense do all things necessary to restore the same and that if any
such insurance shall become void as a result of any breach of these
stipulations the grantor will immediately at his own expense effect (or
enable the annuitant to effect) a new policy or policies of insurance on
his life for an amount equal to the sum which would have been payable
under the void insurance if it had not become void and the grantor had
died at the time when it became void and every such new policy and
the monies to become payable thereunder shall be the absolute
property of the annuitant.
(d) To repay to the annuitant on demand in writing all costs and expenses
incurred by him in restoring any such voidable insurance or effecting
any such new policy with interest as from the date of the same being
incurred at the rate of Rs…….. per cent per annum;
(e) That until repayment the amount of the said costs and expenses and
the interest thereon shall be a charge on the said life interest of the
grantor.
4. In case the grantor shall at any time hereafter be desirous of redeeming
the said annuity hereby granted and shall give to the annuitant one month?s notice
in writing of such desire then the grantor may redeem the said annuity by paying
to the annuitant on the expiration of such notice or within fourteen days thereafter
[…….per cent of] such a sum as would at the date of payment suffice to purchase
from [insurance company] or some other public company approved by the
annuitant (such approval not to be unreasonably withheld) an annuity equal in
amount to the said annuity hereby granted and payable during the life of the
grantor and upon the grantor making such payment and paying the said annuity
hereby granted up to the date of redemption the annuitant shall at the request
and cost of the grantor release the said annuity to the grantor or deal with the
same as the grantor shall direct.
IN WITNESS etc.
Ch. 25] ANNUITIES?FORMS 591592 CONVEYANCING, DRAFTING & DEEDS [Ch. 25
SCHEDULE
[Particulars of the securities and investments subject to
the trusts of the settlement]
[Signatures of both parties]
7
Grant of annuity for two lives and assignment of policy of
assurance to secure payment, a surety joining to covenant
for payment of premiums?power to redeem
THIS ANNUITY DEED is made the……. day of……… BETWEEN [grantor] of
[address, etc.] (hereinafter called the grantor which term shall where the context
so admits include his personal representatives) of the First Part [surety] of
[address, etc.] of the Second Part (hereinafter called the surety) [annuitant] of
[address, etc.] (hereinafter called the annuitant which term shall where the
context so admits include his personal representatives and assigns) of the Third
Part and [trustee] of [address, etc.] (hereinafter called the trustee) of the Fourth
Part.
WHEREAS:
(1) The grantor has agreed with the annuitant for the sale to him of an annuity
of Rs……… to be paid during the lives of beneficiaries and the life of the survivor
of them for the sum of Rs………..
(2) By a policy of assurance (hereinafter called the policy) dated…….. and
numbered………. issued by the………. Life Insurance Corporation the sum of
Rs…….. is assured to be paid out of the funds of the said corporation to the
personal representatives or assigns of the grantor within six months next after
proof of his death at the annual premium of Rs……….payable on……….. in every
year.
NOW THIS DEED made in consideration of Rs………. paid by the annuitant to
the grantor (the receipt whereof is hereby acknowledged).
WITNESSETH as follows:
1. The grantor hereby covenants with the annuitant that the grantor will during
the lives of the said beneficiaries and the life of the survivor of them [or as the
case may be] pay to the annuitant and the grantor hereby grants to the annuitant
accordingly an annuity of Rs……. to be paid by equal quarterly payments on the
usual quarter days in every year without any deduction except for income tax
the first payment thereof to be made on the…….. day of……… next if the survivor
of them the said beneficiaries shall be then living and if such survivor shall die
on any other than one of the said quarterly days of payment a proportional part
of the said annuity to be paid to the annuitant immediately after the decease of
such survivor.2. The grantor as beneficial owner hereby assigns to the trustee the policy
and the monies thereby secured and all the benefit thereof TO HOLD the same
unto the trustee upon trust to receive the said sum of Rs……… or other the monies
to become due under or by virtue of the policy and to stand possessed thereof
upon the trusts hereinafter declared And it is hereby declared that the receipt
of the trustee alone shall be a good discharge to the said society for the monies
to be received under or by virtue of the policy.
3. The grantor and the surety as the surety for the grantor hereby jointly and
severally covenant with the annuitant that the grantor will during the life of the
grantor if the said beneficiaries or the survivor of them shall so long live pay the
said Corporation the said sum of Rs………. on the………….. day of…………… in
every year and will immediately on making every such yearly payment from time
to time deliver up to the annuitant the receipt for such annual premium and that
the grantor will not do any act whatsoever whereby the policy may become void
or voidable PROVIDED that the surety shall not be released by time being given
to the grantor or by any other matter by which but for this proviso the surety would
as a surety be released.
4. It is hereby declared that if at any time hereafter default shall be made in
the payment of the said annual premium on the policy according to the aforesaid
covenant it shall be lawful for the annuitant to pay the said premium and to do
all acts whatsoever necessary for keeping the said policy on foot.
5. It is hereby declared that the trustee shall stand possessed of the monies
to be received as aforesaid in respect of the policy (hereinafter called the policy
monies) upon the trusts following that is to say:
(a) To pay to the annuitant all arrears of the said annuity if any and also
all expenses which the annuitant may have incurred by reason of the
non-payment of the said annuity and all such sum or sums of money
which the annuitant may have advanced in respect of the annual
premiums of the said policy or otherwise pursuant to the last preceding
clause together with interest from the time of advancing the same at
the rate of……….. per cent per annum:
(b) To invest the residue of the policy monies (if any) in some or one of
the forms of investment for the time being authorised by statute for the
investment of trust money with power from time to time to vary the same
for others of a like nature and out of the dividends or income of such
investments or in case of deficiency out of the capital thereof to pay
to the annuitant the outstanding instalments of the said annuity together
with such proportional part as aforesaid and together with all such
expenses as aforesaid if and so often as the same shall not be
punctually paid by the grantor;
(c) Subject as aforesaid to hold the policy monies and investments and
dividends thereof in trust for the grantor or his personal representatives
or assigns.
6. In case the grantor shall at any time hereafter be desirous of redeeming
G : CDD (Vol. 2) ? 38
Ch. 25] ANNUITIES?FORMS 593594 CONVEYANCING, DRAFTING & DEEDS [Ch. 25
the said annuity hereby granted and shall give to the annuitant one month?s notice
in writing of such desire then the grantor may redeem the said annuity by paying
to the annuitant upon the expiration of such notice or within fourteen days
thereafter […….per cent of] such a sum as would at the date of payment suffice
to purchase from the Life Insurance Corporation or some other public company
approved by the annuitant (such approval not to be unreasonably withheld) an
annuity equal in amount to the said annuity hereby granted and payable during
the residue of the period for which the said annuity would have been payable
and upon the grantor making such payment and paying the said annuity hereby
granted up to the date of redemption the annuitant and the trustee shall at the
request and cost of the grantor release and re-assign to the grantor or as he
shall direct the said annuity and the said policy or policy monies or the
instruments representing the same and without prejudice to any claim which the
annuitant may have against the grantor or the surety for breach of the covenants
herein contained the grantor and the surety shall cease to be liable to observe
those covenants.
IN WITNESS etc.
[Signatures of all the parties]
8
Grant of annuity during life of grantor payable under
personal covenant and secured by charge on life
interest in immovable properties
THIS ANNUITY DEED is made the………. day of………. BETWEEN [grantor] of
[address, etc.] (hereinafter called the grantor) of the one part and [annuitant] of
[address, etc.] hereinafter called the annuitant) of the other part.
WHEREAS:
(1) Under a deed of settlement (hereinafter called the settlement) dated
the……. day of………. and made between [parties] and a trust instrument of even
date therewith and made between the same parties the property specified in the
schedule hereto is vested in the grantor free from encumbrances upon trust for
the grantor during his life with remainders over and by the said deed [trustees]
are declared to be the trustees for the purposes of the said settlement.
(2) The grantor has agreed with the annuitant for the sale to the annuitant
of an annuity of Rs………. to be paid during the life of the grantor and to be secured
in the manner hereinafter appearing at the price of Rs..
NOW THIS DEED made in consideration of the sum of Rs…….. now paid by
the annuitant the grantor (the receipt whereof is hereby acknowledged) WITNES-
SETH as follows:
1. The grantor hereby covenants with the annuitant that the grantor will pay
to the annuitant and the grantor hereby grants to the annuitant accordingly anannuity of Rs……… to be payable during the life of the grantor by equal half yearly
payments on the………. day of……….. and the……… day of……….. in every year
the first half yearly payment to be made on the………… day of………. next.
2. The grantor as beneficial owner hereby charges the grantor?s life interest
in the property specified in the schedule hereto with the payment to the annuitant
of the said annuity of Rs……… during the grantor?s life.
3. If default shall be made in payment of any half yearly instalment of the said
annuity for twenty-one days next after the time appointed for payment thereof
the annuitant shall be entitled after giving notice to the grantor to sell or appoint
a receiver of the grantor?s life interest in the said property with all the powers
in that behalf conferred on mortgagees by sections 69 and 69 A of the Transfer
of Property Act, 1882 as if the annuitant were a mortgagee within that section.
4. The expressions ?the grantor? and ?the annuitant? as hereinbefore used
shall where the context permits include their respective heirs, successors,
personal representatives and other persons claiming under them respectively.
IN WITNESS etc.
SCHEDULE
[Description of property of which the grantor is tenant for life.]
[Signature of grantor]
9
Deed of covenant to pay an Annuity to a person other than
the Unmarried Minor Child of the settlor, not being for a
period which cannot exceed six years
THIS DEED OF COVENANT made the……….. day of……….. BETWEEN A. B. of
etc. (?the settlor?) of the One Part and C.D. of etc. (?the Beneficiary?) of the Other
Part.
WITNESSES as follows:?
1. THE SETTLOR HEREBY COVENANTS with the Beneficiary that he [or his
personal representatives] shall pay to the Beneficiary the yearly sum of Rs…….
in equal quarterly [or monthly or weekly] payments of Rs…….. the first payment
to be made on…….. but such payment shall be deemed to accrue from day to
day.
2. THE SAID SUM shall be payable for the shortest one of the following periods:
(a) The period of the joint lives of the settlor and the Beneficiary, provided
always that the settlor may at any time after the expiration of seven
years from the date of the first payment to be made hereunder revoke
this deed.
(b) The period from the date hereof until such time as the Beneficiary is
adjudicated insolvent.
Ch. 25] ANNUITIES?FORMS 595596 CONVEYANCING, DRAFTING & DEEDS [Ch. 25
(c) The period from the date hereof until the date on which the beneficiary
executes any assignment of or charge upon the said [weekly] payments
or any of them.
IN WITNESS etc.
[Signature of Settlor]
10
Deed of Covenant by sons for payment of a monthly
sum to their mother
THIS DEED made the……… day of………… BETWEEN C.B. of etc. of the First
Part D.B. of etc. of the Second Part E.B. of etc. of the Third Part and A.B. of etc.
(?the Mother?) of the Fourth Part.
WHEREAS the said C.B., D.B and E.B. (?the sons?) are the sons of the Mother
and are desirous of making the provision for her hereinafter contained.
NOW THIS DEED made in consideration of their natural love and affection for
the Mother WITNESSES AS FOLLOWS:
1. THE SONS hereby jointly and severally COVENANT with her to pay to her
during her life on the……… day of each month the sum of Rs…….. the first payment
thereof to be made on……… the……… day of………..
2. IF THE MOTHER becomes insolvent or does permits or suffers anything
whereby the said monthly sum if payable to her would become receivable by
any other person then the said monthly sum shall forthwith cease to be payable.
3. AS BETWEEN the sons the said monthly sum shall be paid in the following
proportions namely the sum of Rs………. by the said C.B. the sum of Rs………
by the said D.B. and the sum of Rs……… by the said E.B. and in consideration
of the joint and several covenant with the Mother hereinbefore contained and
of the mutual covenants following each of the sons hereby covenants with the
others and as a separate covenant with each of them that he or his represen-
tatives shall at all times duly and punctually pay to the Mother that proportion
of the said monthly sum by this clause apportioned to him.
IN WITNESS, etc.
[Signatures of all the parties]
11
Release of an annuity in consideration of a lump sum
THIS RELEASE is made the………… day of……….. BETWEEN [annuitant] of
[address, etc.] (hereinafter called the annuitant ) of the One Part and [settlor of
annuity] of [address, etc.] (hereinafter called the settlor) of the Other Part.(1) By an annuity deed (hereinafter called the principal deed) dated…….. and
made between the settlor of the one part and the annuitant of the other part the
settlor covenanted to pay and granted to the annuitant during his life an annuity
of Rs…….. and charged the same on the life interest of the settlor in certain
investments therein more particularly mentioned and held subject to the trusts
of a settlement dated…….. and made between [parties] [or subject to the trusts
of the will of [testator] dated……… and proved on………. in the Court or on a policy
of assurance on the life of the settlor therein more particularly mentioned].
(2) The said annuity has been fully paid up to the date hereof as the annuitant
hereby admits and the settlor has agreed with the annuitant for the redemption
and release thereof at the price of Rs……….
NOW THIS DEED WITNESSETH that in pursuance of the said agreement and
in consideration of the sum of Rs………. now paid by the settlor to the annuitant
(the receipt whereof the annuitant hereby acknowledges) the annuitant as
beneficial owner hereby releases unto the settlor ALL THAT the said annuity of
Rs………. payable during the life of the annuitant TO HOLD unto the settlor
absolutely free from all claims and demands of the annuitant in respect thereof
to the intent that the same may merge and be extinguished in the said life interest
of the settlor under the settlement [or will].
IN WITNESS etc.
[Signature of annuitant]
12
Covenant by surviving partner with widow of deceased
partner who has by will exercised power of appointing
annuity to her out of profits
THIS DEED OF COVENANT is made the………. day of………. BETWEEN
[surviving partner] of [address, etc.] of the First Part [executors of deceased
partner] of [address, etc.] (hereinafter called the executors) of the Second Part
and [widow of deceased partner] of [address, etc.] of the Third Part.
WHEREAS:
(1) By a deed dated………. and made between the said [surviving partner]
of the one part and [deceased partner] of the other part the parties thereto agreed
to carry on the business of………. in partnership from the………… day of………. for
an indefinite time [or as the case may be] and by the deed now in recital it was
agreed that it should be lawful for the said [deceased partner] in the event of
his dying during the continuance of the said partnership by will to provide an
annuity payable to his widow out of the net profits of the said business during
the joint lives of such widow and the said [surviving partner] equal to [three-eighth
parts] of such net profits from time to time such annuity to commence from the
date of his death with such ancillary provisions as are herein contained.
Ch. 25] ANNUITIES?FORMS 597598 CONVEYANCING, DRAFTING & DEEDS [Ch. 25
(2) The said [deceased partner] by his will dated…….. appointed the executors
to be executors thereof and in execution of the aforesaid power directed that there
should be paid to the said [widow] out of the net profits of the said business an
annuity during the joint lives of the said [widow] and the said [surviving partner]
equal to [ three-eighth parts] of such net profits from time to time such annuity
to commence from the date of his death.
(3) The said [deceased partner] died on………. leaving the said [widow] his
widow him surviving and his said will was proved by the executors in the………
Court on………..
(4) The executors have requested the said [surviving partner] to enter into
the covenants hereinafter contained with the said [widow] which he has agreed
to do accordingly.
NOW THIS DEED WITNESSETH as follows:
1. In pursuance and consideration of the premises the said [surviving partner]
hereby covenants with the said [widow] as follows:
(a) To pay during the joint lives of himself and the said [widow] [three equal
eighth parts] of the net profits of the said business in every year by way
of annuity and without any deduction (except income tax) to the said
[widow] such payment to be made within one month after the……. day
of……… [i.e.. the annual account day] in each year. The amount payable
on the……. day of……… next shall bear the same proportion to [three
equal eighth parts] of the net profits for the current year as the period
between the date of the death of the said [deceased partner] and the
said…….. day of…….. bears to one whole year.
(b) Within one week after the said……… day of……… in each year to furnish
the said widow with a balance sheet and profit and loss account of the
said business audited by a chartered accountant approved by the said
widow (such approval not to be unreasonably withheld) but appointed
and paid by the said (surviving partner).
(c) To permit and afford every facility to the said widow from time to time
(but not more often than once on every twelve months) at her own cost
to have the books of account of the said business examined and
reported on by a chartered accountant appointed by her.
(d) Subject as hereinafter mentioned to use his best endeavour to maintain
or increase the net profits of the said business at all times so long as
either of the said annuities shall remain payable.
(e) Not at any time during the said period to assign part with or discontinue
any part of the said business nor to assign part with or discontinue the
said business as a whole except that the said business may be
assigned as a whole upon the said (surviving partner) obtaining the
consent in writing of the said (widow) (such consent not to be
unreasonably withheld) and procuring the assignee to enter into
covenants similar to those contained in this deed with the said (widow).(f) Without prejudice to the generality of the foregoing, not at any time
during the said period to take any new partner into the said business
unless such new partner shall enter into covenants similar in all
respects to those contained in this deed with the said (widow).
2. Provided always and it is hereby expressly agreed that nothing herein
contained shall make the said (widow) a partner with the said (surviving partner)
in the said partnership business or confer on them the rights or impose upon
them the liabilities of partners.
3. Any dispute hereunder shall be referred to a single arbitrator in accordance
with the provisions of the Arbitration Act, 1940 and any statutory modifications
or re-enactments thereof for the time being.
IN WITNESS etc.
[Signatures of parties]
13
Covenant by surviving partner with widow and only child of
deceased intestate partner for payment of annuities out
of profits of business
THIS DEED OF COVENANT is made the……… day of………. BETWEEN [surviv-
ing partner] of [address, etc.] of the First Part [widow of deceased partner] of
[address, etc.] of the Second Part and [daughter of deceased partner] of
[address, etc.] of the Third Part.
WHEREAS:
(1) By a deed dated……… and made between the said [surviving partner] of
the One Part and [deceased partner] of the other part the parties thereto agreed
to carry on the business of…….. in partnership from the……… day of……….. for
an indefinite time.
(2) The said [deceased partner] died on the……… day of……… intestate
leaving him surviving the said [widow] his widow and the said [daughter] his only
child.
(3) On the……….. day of………. letters of administration to the estate and
effects of the said [deceased partner] were duly granted to the said [widow] and
the said [daughter] by and out of the………….. Court.
(4) The said [surviving partner] has agreed with the said [widow] and
[daughter] as such administration as aforesaid and as the only person benefi-
cially entitled to the estate of the said [deceased partner] to buy all the share
and interest of the said [deceased partner] of and in the goodwill assets property
and effects of the said partnership in consideration of an annuity for the joint lives
of the said [widow] and [daughter] and a further annuity for the life of the survivor
of them as hereinafter provided.
Ch. 25] ANNUITIES?FORMS 599600 CONVEYANCING, DRAFTING & DEEDS [Ch. 25
(5) By a deed of even date herewith and made between the said [widow] and
[daughter] of the One Part and the said [surviving partner] of the Other Part in
pursuance of the said agreement the said [widow] and [daughter] as such
administration as aforesaid duly assigned all the share and interest of the said
[deceased partner] of and in the goodwill assets property and effects of the said
partnership business to the said [surviving partner].
NOW THIS DEED WITNESSETH as follows:
1. In pursuance of the said agreement and in consideration of the premises
the said [surviving partner] hereby covenants with the said [widow] and
[daughter] as joint and several covenantees as follows:
(a) To pay to the said [widow] and [daughter] jointly in every year during
their joint lives one equal fourth part of the net profits for the year of
the said business or Rs…….. whichever shall be the greater and by way
of a separate annuity to pay the like sum to the survivor of them in every
year during the residue of the life of such survivor both such annuities
to be paid without any deduction except income tax and to be paid within
one month after the………. day of………. in each year the first payment
of the joint annuity to be made within one month after the……….. day
of…….. next and the first payment of the survivor?s annuity to be made
within one month after the next……… day of……… following the death
of the first to die of the said [widow] and [daughter].
(b) Within one week after the said……… day of………. in each year to furnish
the said [widow] and [daughter] or the survivor of them with a balance
sheet and profit and loss account of the said business audited by a
chartered accountant approved by the said [widow] and [daughter] or
the survivor of them (such approval not to be unreasonably withheld)
but appointed and paid by the said [surviving partner].
(c) To permit and afford every facility to the said [widow] and [daughter]
or the survivor of them from time to time (but not more often than once
in every twelve months) at their or her own cost to have the books of
account of the said business examined and reported on by a chartered
accountant appointed by them or her.
(d) Subject as hereinafter mentioned to use his best endeavours to
maintain or increase the net profits of the said business at all times so
long as either or the said annuities shall remain payable.
(e) Not at any time during the said period to assign part with or discontinue
any part of the said business nor to assign part with or discontinue the
said business as a whole except that the said business may be
assigned as a whole upon the said [surviving partner] obtaining the
consent in writing of the said [widow] and [daughter] or the survivor of
them (such consent not to be unreasonably withheld) and procuring
the assignee to enter into covenants similar to those contained in this
deed with the said [widow] and [daughter] or the survivor of them.
(f) Without prejudice to the generality of the foregoing, not at any timeduring the said period to take any new partner into the said business
unless such new partner shall enter into covenants similar in all
respects to those contained in this deed with the said [widow] and
[daughter] or the survivor of them.
2. Provided always and it is hereby further agreed and declared that during
the joint lives of the said [widow] and [daughter] and the life of the survivor of
them:
(i) if the said [surviving partner] shall die then if and so long as his personal
representatives shall continue to carry on the said business they shall
pay to the said [widow] and [daughter] or to the survivor of them as the
case may be such an annuity as she said [surviving partner] if alive
would have been liable to pay under the provisions of clause 1(a) hereof
and shall be subject to the same liabilities in all respects to furnish
accounts and permit the inspection of books under clause 1(b), (c)
hereof as the said [surviving partner] would have been subject to if alive
and so that any accountant appointed under clause 1(b) hereof shall
be appointed and paid by the personal representatives.
(ii) if at any time the said business shall case either wholly or in part to
be carried on either by the said [surviving partner] or his personal
representatives or by a person to whom an assignment has been duly
made or who has duly been taken into partnership in accordance with
clause 1(e) or clause 1(f) hereof or the personal representatives of such
a person then without prejudice to any claim which the said [widow]
and [daughter] or either of them may have for damages for breach of
any covenant contained in this deed (including any breach by reason
of which the business shall have so ceased to be carried on) the said
[surviving partner] shall thenceforth to be liable to perform and observe
the covenants for the payment of annuities or otherwise contained in
clause 1 hereof but the [surviving partner] or his personal represen-
tatives shall thenceforth in every year pay to the said [widow] and
[daughter] jointly during their joint lives and from and after the death
of either of them pay by way of separate annuity to the survivor of them
during the life of such survivor a sum equal to the average amount
annually paid hereunder during the three years immediately preceding
the said business so ceasing to be carried on or if this deed has then
been in operation for less than three years calculated by reference to
the average yearly amounts which have accrued due under the
provisions for payment hereinbefore contained such respective sub-
stituted annuities to be paid in all respects in the same manner as the
annuities covenanted to be paid by clause 1(a) hereof.
3. Provided always and it is hereby expressly agreed that nothing herein
contained shall make the said [widow] or [daughter] or the survivor of them a
partner with the said [surviving partner] in the said partnership business or confer
on them the rights or impose upon them the liabilities of partners.
4. Any dispute hereunder shall be referred to a single arbitrator in accordance
Ch. 25] ANNUITIES?FORMS 601602 CONVEYANCING, DRAFTING & DEEDS [Ch. 25
with the provisions of the Arbitration Act, 1940 and any statutory modifications
or re-enactments thereof for the time being in force.
IN WITNESS etc.
[Signatures of all parties]
14
Deed of covenant to pay pension for limited period to widow
of director who dies while holding office
THIS DEED OF COVENANT made the……… day of……… BETWEEN [company]
having its registered office situate at……….. (hereinafter called the company) of
the One Part and [directors] of [addresses, etc.] (hereinafter called the directors)
of the Other Part.
WHEREAS the directors are directors of the company [and each of them is
by clause………. of the company?s articles of association entitled to hold office
until he dies or resigns or ceases to hold………… shares in the company].
NOW THIS DEED WITNESSETH that in consideration of services rendered to
it by the directors the company hereby covenants with each of the directors and
his respective personal representatives that if he shall die whilst holding office
as a director of the company the company will pay to his personal representatives
as trustees for any widow whom he may leave him surviving the monthly sum
of Rs………. during the period of……….. years from his death or the period of her
widowhood whichever is shorter.
IN WITNESS etc.
[Seal of the company]
15
Deed of covenant to pay a monthly sum to a former mis-
tress secured by a charge on a policy of assurance
THIS DEED OF COVENANT AND CHARGE is made the……….. day of………
BETWEEN settlor of [address, etc.] (hereinafter called the settlor) of the One Part
and [beneficiary] of [address,etc.]{hereinafter called the beneficiary) of the Other
Part.
WHEREAS the settlor in consideration of the past services of the beneficiary
and from motives of concern for her interest is desirous of securing to her a
monthly sum of Rs……… to commence immediately.
NOW THIS DEED WITNESSETH as follows:
1. The settlor for the consideration aforesaid hereby covenants with thebeneficiary that the settlor and his personal representatives will pay to the
beneficiary during her life or until she shall become insolvent or do anything or
permit or suffer anything to be done whereby the same if payable to her would
become receivable by some other person and the settlor hereby grants to the
beneficiary accordingly a monthly sum of Rs…….. to be paid on the first day of
each month the first payment to be made on the first day of…………. next.
2. In consideration of the premises the settlor hereby charges all that policy
of assurance on the life of the settlor for the sum of Rs……… effected in the
[Insurance Company] dated……… numbered……….. and under the annual
premium of Rs…….. and the said sum of………… assured thereby and all bonuses
additions and monies to become payable under said policy and the full benefit
thereof with the payment to the beneficiary of the said monthly sum.
3. The settlor hereby further covenants with the beneficiary?
(a) That if and whenever the said monthly sum shall be in arrear in the
whole or in part for the space of forty days next after the time
hereinbefore appointed for payment thereof the settlor or his personal
representatives will upon the request of the beneficiary and at the cost
of the settlor or his personal representatives execute to the beneficiary
a formal assignment of the said policy in such form with such powers
and provisions as the beneficiary may reasonably require for further
securing the said monthly sum including power to surrender the said
policy or to convert the same into a fully paid up policy upon such terms
as the beneficiary shall think fit.
(b) That the settlor will not do or suffer anything whereby the said policy
or any policy substituted under paragraph (c) of this clause may
become void or voidable or the beneficiary be hindered from receiving
all or any of the monies assured or to become payable under the same.
(c) That if any such policy shall become voidable the settlor will immedi-
ately and at his own expense do all things necessary to restore the
same and that if any such policy shall become void the settlor will
immediately at his own expense effect (or enable the beneficiary to
effect) a new policy or policies on his life for an amount equal to the
sum which would have been payable under the void policy if it had not
become void the settlor had died at the time when it became void and
every such new policy and the monies to become payable thereunder
shall be subject to the like charge covenants and provisions as the
original policy.
(d) That the settlor will punctually pay all premiums necessary for keeping
the said policy or any such substituted policy or policies as aforesaid
on foot and produce all receipts for such premiums to the beneficiary
on demand.
(e) That if the beneficiary shall pay any premiums necessary for keeping
the said policy or any such substituted policy or policies as aforesaid
on foot the settlor will on demand repay all sums so paid with interest
Ch. 25] ANNUITIES?FORMS 603604 CONVEYANCING, DRAFTING & DEEDS [Ch. 25
at the rate of………. per cent per annum and that until repayment the
same shall remain charged on the said policy or such substituted policy
or policies as aforesaid.
4. If the beneficiary shall make any attempt to communicate either personally
or by letter with the settlor except through his solicitors Messrs……… of [address,
etc.] or shall communicate or attempt to communicate either personally or by
letter with his wife or intended wife for the time being or any of his relatives or
friends or any of the relatives or friends of his wife or intended wife for the time
being or shall hold herself out as the wife of the settlor or call herself by the
surname [settlor?s surname] or come to reside within……. miles of the settlor?s
residence for the time being or in any other way molest or annoy the settlor then
and in any such case and notwithstanding anything hereinbefore contained or
implied the monthly sum hereby granted shall cease and determine as if the
beneficiary were dead.
IN WITNESS etc.
[Signatures of settlors and annuitant]
16
Settlement of shares upon trust to pay an annuity to
the settlor for fifteen years and subject thereto
upon trust for a donee
THIS DEED OF GIFT is made the………. day of………. BETWEEN [settlor] of
[address, etc.] (hereinafter called the settlor) of the One Part and [trustees] of
[addresses, etc.] (hereinafter called the trustees) of the Other Part.
WHEREAS:
(1) The settlor is desirous of conferring bounty on [donee] of [address, etc.]
(hereinafter called the donee) to the extent hereinafter appearing and no further.
(2) The settlor has prior to the date hereof transferred into the joint names
of the trustees the investments specified in the schedule hereto.
NOW THIS DEED made in consideration of the premises WITNESSETH as
follows:
1. The trustees shall hold the investments transferred into their joint names
as hereinbefore recited upon trust at their discretion either to retain the same
as at present invested or from time to time to sell all or any part thereof and
invest the proceeds in any investments hereby authorised with power to vary
such investments for any others hereby authorised and to hold the trust fund
so constituted upon the following beneficial trusts that is to say:
(a) Upon trust to pay to the settlor an annuity of Rs……. clear of all
deductions to commence from the date hereof and to continue payable
for the term of fifteen years certain such annuity to be paid by equalhalf yearly payments on the……… day of………. and the………. day of…….
in each year, and subject thereto.
(b) Upon trust as to both capital and income for the donee absolutely.
2. Monies to be invested under the trusts hereof may at the discretion of the
trustees be invested in or upon any of the following (as well as in or upon any
investments for the time being authorised by law for the investments of trust
funds):
(a) In any investments of whatsoever nature which at the date of the
purchase are or on allotment will be dealt in or quoted upon any stock
exchange or in any government securities:
Provided always that no such money shall be invested in partly paid
up shares except shares of banking and insurance Companies
incorporated in India.
(b) In the purchase of freehold and leasehold land provided that leasehold
land shall be purchased only if at the date of purchase the unexpired
term exceeds fifty years.
(c) The units of the Unit Trusts of India.
(d) The shares or deposits of any other Company incorporated in India.
3. Any trustee hereof being a solicitor or other person engaged in a profession
or business shall be entitled to be paid out of the trust fund for all acts done and
time expended in or about the business of the trusts hereof by himself or his
firm (including acts or business which might be done or transacted by the trustee
personally and not requiring the employment of a solicitor or person engaged
in such profession or business for the transaction thereof).
4. No discretionary trust or power hereby or by law vested in any trustees
or trustee hereof shall be exercisable in favour of the settlor, and save as
hereinbefore expressly provided the settlor shall at all times hereafter be entirely
excluded from the said trust fund and from any benefit in any way arising
therefrom.
5. The power of appointing new trustees or a new trustee hereof shall be
vested in the settlor during his life.
IN WITNESS etc.
SCHEDULE
[Particulars of investments transferred]
[Signatures of settlor and trustees]
17
Covenant by persons entitled to residue with executors to
provide substituted security for annuity payable under will
THIS DEED OF COVENANT is made the………. day of…………. BETWEEN
Ch. 25] ANNUITIES?FORMS 605606 CONVEYANCING, DRAFTING & DEEDS [Ch. 25
[residuary legatees] of [addresses, etc.] [or [life tenant] of [address, etc.] and
[remaindermen] of [addresses, etc.]] (hereinafter [collectively] called the
covenantors) of the One Part and [executors] of [addresses, etc.] (hereinafter
called the executors) of the Other Part.
WHEREAS :
(1) [Testator] late of [address, etc.] hereinafter called the testator) by his will
dated…….. appointed the executors to be the executors and trustees thereof and
among other legacies and gifts gave to [annuitant] of [address, etc.] (hereinafter
called the annuitant) an annuity of Rs.. a year during the life of the annuitant and
devised and bequeathed all his property not otherwise disposed of to the
executors upon trust for sale and conversion as therein mentioned and upon trust
out of the proceeds thereof to pay expenses debts and legacies and to provide
for the said annuity (which the executors were empowered to do by appropriating
and setting aside a fund as therein mentioned) and subject thereto to hold the
residue in trust for the covenantors in equal shares [or, for the said [life tenant]
during his life and subject thereto in trust for the said [remaindermen] in equal
shares].
(2) The testator died on the…….. day of………. and his said will was proved
by the executors on the………. day of………. in the Court.
(3) The covenantors have agreed to sell and the executors have agreed to
buy from them by way of reinvestment of the testator?s residuary estate an
annuity of Rs……… for the life of the annuitant secured by the personal covenant
of the covenantors in manner hereinafter appearing in consideration of a
purchase price of Rs…….. it being the intention of the executors with the consent
(which the executors have obtained [or will obtain]) of the annuitant to appropriate
and hold such annuity as the sole security for the annuity of Rs……… given to
the annuitant by the said will and in exoneration of the remainder of the testator?s
residuary estate.
(4) The executors have already paid or transferred cash investments or
property to the value of Rs……… (being the agreed consideration) to the
covenantors [such payment or transfer having been made as to Rs………. part
thereof to the said [life tenant] and as to Rs……… part thereof to the said
[remaindermen] as they hereby acknowledge].
NOW THIS DEED made in consideration of the premises WITNESSETH as
follows:
1. The covenantors hereby jointly and severally covenant with the executors
that they, the covenantors or their personal representatives will during the life
of the annuitant pay to the executors an annuity of Rs…….. clear of all deductions
to commence as from the……… day of………. last and to be payable by equal
quarterly payments on the usual quarter days.
2. As between the said [life tenant] on the one hand and the said [remain-
dermen] on the other hand the following provisions shall have effect:
(a) During the life of the said [life tenant] the primary liability to pay the saidannuity of Rs.. hereinbefore covenanted to be paid shall be borne by
him in exoneration of the said [remaindermen] and their personal
representatives.
(b) After the death of the said [life tenant] the said primary liability shall be
borne by the said [remaindermen] or their respective personal repre-
sentatives in equal shares in exoneration of the estate of the said [life
tenant].
The provisions of this clause shall not however in any way affect the executors
nor in any way prevent the executors from enforcing payment of the said annuity
at any time or times as against all or any of the covenantors.
IN WITNESS etc.
[Signatures of all parties]
18
Deed of gift to parents of an annuity out of a life
interest in a trust fund
THIS DEED OF GIFT is made the………. day of………… BETWEEN [donor] of
[address, etc.] (hereinafter called the beneficiary) of the One Part and [trustees
of trust fund] of [addresses, etc.] (hereinafter called the trustees) of the Other
Part.
WHEREAS:
(1) Under the will dated……… and proved on……… in…….. Court of……… of
[testator] late of…….. who died on……… the beneficiary is entitled during his life
to the income of a fund created by the said will and hereinafter referred to as
the residuary trust fund.
(2) The residuary trust fund is now represented by the investments mentioned
in the schedule hereto which are standing in the joint names of the trustees who
are the present trustees of the said will.
(3) The beneficiary is desirous of making such provision as is hereinafter
expressed for his father [name] and his mother [name] (hereinafter together
called the parents).
NOW THIS DEED WITNESSETH as follows:
1. The beneficiary hereby irrevocably direct the trustees out of the income
arising from the residuary trust fund during his life to pay to the parents or the
survivor of them the annual sum of Rs…….. commencing from the date hereof
and continuing for so long as there shall be living both the beneficiary and one
or other of the parents the said annual sum to be payable by equal quarterly
payments on [dates] in every year and the first of such payments to be made
on……… day of………. next, and subject as aforesaid to pay the said income to
the beneficiary in accordance with the trusts of the said will.
Ch. 25] ANNUITIES?FORMS 607608 CONVEYANCING, DRAFTING & DEEDS [Ch. 25
2. The parents and the survivor of them shall stand possessed of the said
annual sum in trust for themselves during their joint lives in equal shares and
after the death of the first to die of the parents in trust for such survivor absolutely.
3. The trustees hereby accept the trusts aforesaid and declare that henceforth
during the residue of the life of the beneficiary the trustees will hold the residuary
trust fund upon trust to pay the income thereof accordingly.
4. The expression ?the trustees? hereinbefore contained shall where the
context so admits include the trustees or trustee or for the time being of the said
will.
IN WITNESS etc.
SCHEDULE
[Particulars of investments representing the trust fund.]
[Signatures of all parties]
19
Seven-year covenant in favour of trustees for minors (not
being unmarried minor children of the settlor)
THIS DEED OF COVENANT made the………. day of………. BETWEEN [settlor]
of [address, etc.] (hereinafter called the settlor) of the One Part and [trustees]
of [address, etc.] (hereinafter called the trustees) of the Other Part.
WITNESSETH as follows:
1. The settlor hereby covenants with the trustees that he will make the
following series of monthly payments to them namely:
(i) during the joint lives of the settlor and [first minor] or the period of seven
years from the……….. next whichever period shall be the shorter such
a monthly sum of Rs…………
(ii) during the joint lives of the settlor and [second minor] or the period of
seven years from the……….. next whichever period shall be the shorter
a monthly sum of Rs..
2. The first payment of each series shall be made on the………. day of……….
next and subsequent payments on the………… day of each month during the
respective periods aforesaid.
3. The trustees shall hold the first mentioned series of payments subject to
the powers hereinafter conferred upon the trustees upon trust for the said [first
minor] absolutely and shall hold the secondly mentioned series of payments
subject as aforesaid upon trust for the said [second minor] absolutely, and the
settlor hereby declares that the provision hereby made for the said [first minor]
and [second minor] is in addition to and not in substitution for any other provision
for their benefit which the settlor or any other person may have made at any time
prior to the date hereof.4. During the respective minority of the said [first minor] and [second minor]
the trustees may either:
(i) pay the said respective sums to the parent or guardian of the said [first
minor] or the said [second minor] respectively without being under any
liability to see to the application thereof and the receipt of such parent
or guardian shall be a full discharge to the trustees in respect of the
sums so paid;
(ii) in their absolute and uncontrolled discretion apply any of the series of
payments mentioned in clause 1(i) hereof or any part hereof or any part
thereof for the maintenance education advancement or benefit in any
form whatsoever of the said [first minor] or in the like discretion apply
any of the series of payments mentioned in clause 1(ii) hereof or any
part thereof for the maintenance education advancement or benefit in
any form whatsoever of the said [second minor]: PROVIDED ALWAYS
that no such discretionary application shall be made of any payment
or part of a payment except in the year of assessment for tax purposes
in which the same became payable to the trustees but no trustee hereof
shall incur any personal liability by reason only of his having made such
an application otherwise than in such year of assessment.
5. The trustees shall not be bound to enforce the covenant herein contained
for payment of the said sums unless the person for the time being beneficially
entitled thereto or his or her parent or guardian shall in writing require the trustees
to enforce the said covenant and shall give the trustees such security for costs
as the trustees may require and no trustee shall be responsible for any breach
of trust by reason of the said covenant not having been enforced except when
so required as aforesaid.
6. The settlor hereby further covenants with the trustees and as a separate
covenant with each of them that the settlor will on the………. day of……… next
and thereafter on the……… day of each month pay to the trustees for the time
being hereof for their services and responsibilities in relation to the trusts hereof
a further monthly sum equal to……… per cent of the sums or sum payable on
that date