Where there is such a term created, or where only a right of entry is given on default of payment, and arrears accrue which cannot be paid out of the annual profits, a bill may be filed in equity to have a sale or mortgage of the land decreed, in order that such a sum may be raised as will satisfy the grantee's demands. (a)

(a) Cupit v. Jackson, 13 Pri. 721; M'Clel. 495.

CHAP. VI.

OF THE SECURITY.

CHAP. VII.

OF THE VESTING OF ANNUITIES.

mences to run.

CHAPTER VII.

OF THE VESTING, EXTENT, AND EFFECT OF ANNUITIES.

When an annu- WHEN an annuity has been granted, questions will arise as ity vests or comto its commencement, and as to its extent in duration and in value. These will generally be answered by the terms of the instrument by which it is granted, and which discloses the intention of the parties. It is most usual for the annuity to commence from the day of the execution of the deeds, though of course any other arrangement may be made that the parties may deem fit. A. granted a rent charge to B., to begin when I. S. died without issue of his body. I. S. died, having issue, which died sine prole. Dyer said " the grant shall not take effect, for I. S. at the time of his death had issue, therefore the grant shall not then begin; and if not then, then not at all." Manwood observed: "If the words had been, 'To begin when I. S. is dead sine prole of his body,' then such a grant would have taken effect when the issue of I. S. died without issue." (a) This was indeed a contingent grant, which will be considered again in the next chapter.

In cases of legacies.

When an annuity is bequeathed by will, it seems that it commences at the death of the testator, and therefore an annual annuity would be payable at the end of a year after the testator's death; and the reason given is, that the will is the language of the testator at the time of his decease. Some doubt has been expressed whether this be a correct rule, because it is assimilated to the cases of legacies for life, in which case interest is not allowed till after a year from the testator's death. (b) But the rule is established

(a) Anon. 3 Leo. 103; 4 Leo. 232.

(b) Gibson v. Bott, 7 Ves. 967; Fearns v. Young, 9 Ves. 553; Storer v. Prestage, 3 Madd. 167.

OF THE VESTING OF ANNUITIES.

by the last authority, (a) in which an annuity being given CHAP. VII. by will, with direction that it should be paid monthly, the Vice Chancellor held that the first payment was to be made at the end of one month from the testator's death.

Where the testator expressly appoints the commencement of the annuity, that will of course be attended to; as if he say that it is to be payable at the end of a quarter of a year after his death, it will be so paid.

Two points are yet unsettled in reference to this question in these bequests. The first is where a sum of money is directed to be placed out to produce an annuity. Lord Eldon states that it is doubted whether this is to be considered as a legacy payable at the end of a year, or as an annuity payable from the death. (b) The other is mentioned by the Vice Chancellor in Storer v. Prestage, (c) where he says: "When annuities are given out of a residue, and there is no time of payment mentioned in the will, it may be questioned whether the principle must not be the same as if there were one tenant for life of the residue, and the annuities be payable only from the end of one year after the testator's death."

It may be noticed, that when an existing annuity is assigned or sold, the assignee or purchaser is entitled to the payment that falls due immediately after the assignment or purchase is completed. Though when it is sold for a sum of money to be paid by instalments, it has been held that the purchaser's title commences from the time when the last instalment is to be paid. (d) An annuity sold before the Master takes effect from the confirmation of the report, and interest is payable on the purchase money from the earliest day on which it can be confirmed. (e) But the purchaser of a life interest in stock, sold before the Master, is entitled to the dividends due on the day following the sale, though the report be not then confirmed. Lord

On the assign

ment or sale of an annuity.

OF THE

CHAP. VII. Eldon observed in such a case, (a) "The report, I think, when confirmed, must have relation back to the purchase, and the contract, I apprehend, was made the moment the purchaser's name was entered in the Master's book."

VESTING OF
ANNUITIES.

testator.

A legacy of an Whatever doubt may exist as to the time of paying an annuity vests on the death of the annuity which is bequeathed, yet it vests in the legatee at the death of the testator, and the legatee has immediately thereon a vested interest in it. Hence where a testator directs that a certain sum of money shall be laid out in the purchase of an annuity, or that an annuity of a certain amount shall be purchased for a particular person, that sum of money, or the value of that annuity, becomes forthwith the property of the legatee, who may elect to take it, or have it invested as directed; and if he die before the annuity be purchased, that sum will belong to his personal representative, however short may have been the time that he survived the testator. (b) Neither does it signify that the purchase is deferred till after the determination of a life and the legatee dies previously, it still becomes the property of his representative.

At what day the

is payable.

Where an annuity is bequeathed to be purchased by the testator's executor, it is his duty to purchase it forthwith, that is, after the expiration of one year from the death, and not pay it out of the income of the estate, (c) unless indeed the legatee waives the annuity and agrees to take a payment from the executor (d) or residuary legatee.

It

When annuities are granted by deed, it is the ordinary rent or annuity and proper course to specify on what day the payments shall be made, and from which day they will be in arrear. has been held that an annuity payable at the Annunciation, or within twenty days after, was not due before the expiration of the twenty days after the 25th of March. (e) But

(a) Anson v. Towgood, 1 J. & W. 637.

(b) Yates v. Compton, 2 P. W. 308; Barnes v. Rowley, 3 Ves. 305; Palmer v. Craufurd, 3 Swa. 482; 2 Wils. 79; Livesey v. Livesey, 3 Russ. 287, 542; Dawson v. Hearn, 1 Russ. & M. 607.

(c) Brown v. Spooner, 1 Ves. jun. 291.

(d) Brown v. Ross, cited in Dawson v. Hearn, 1 Russ. & M. 608.

(e) Blunden's C. Cro. El. 565.

OF THE EXTENT IN

a bond to pay an annuity at Michaelmas and Lady-day, CHAP. VII. with a power to distrain if in arrear for ten days, was held to be broken by non-payment on the first day without DURATION OF demand. (a)

It is to be observed that where rent is payable on a certain day, the party has the whole of that day before midnight to pay it in. But if a demand is to be made by the grantee to entitle him to a right of entry or other penalty, he should make that demand at a convenient time before sunset of that day. The payment, however, may be made at any time of that day by the grantor, and will be available, though by extreme accident the grantee should die before the expiration of the day, and another person succeeds to the rent or annuity. (b)

THE GRANT.

The next subject, namely, the Extent of the Grant, Extent of the grant. requires more examination, and will lead into more dis- I. As to the cussion. The extent of the grant embraces two inquiries. quantity of interest granted. First, as to the quantity of interest granted; and, secondly, as to the amount of the value. Now the quantity of interest granted is to be considered as it affects the grantor, and as it affects the grantee.

ence to the grantor.

He must bind his heirs expressly or they will not be

liable.

The grantor will himself be bound according to the 1. With referterms of his grant, but as no obligation will extend beyond the obligor himself, without express covenant, it is laid down in Roll's Abr. (c) that if a man grant an annuity to one and his heirs, and does not say for him and his heirs, this is determined by the death of the grantor. Nor does it signify that he binds himself and his heirs to warranty, because such a covenant cannot enlarge the grant. But an heir cannot object to the grant of annuity that it is made to commence after the death of the grantor, if he be bound by the terms of the grant, and have assets. (d)

Where a corporate body grants an annuity in its cor- Corporations

(a) Glover v. Creed, 2 Keb. 415.

(b) Clun's C. 10 Co. 127; Duppa v. Mayo, 1 Saund. 287, and the notes

thereon.

(c) Annuties, B. 1. See also Co. L. 144 b.

(d) Tewkley v. Clotworker, Litt. R. 245; Het. 137.

continue bound.