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Legal Terms - capital money
Proceeds obtained from the sale, mortgage, or other transactions involving land that is held under a trust or settled land. It is crucial to pay capital money to at least two trustees of land. If it is paid to only one trustee, the equitable interests in the land may not be overridden, and the purchaser may be legally obligated to abide by them (Williams & Glyn’s Bank Ltd v Boland [1981] AC 487). The trustees of the settlement, rather than the tenant for life, must receive the capital money generated from settled land.
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