ANNUITY

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ANNUITY

ANNUITY, contracts. An annuity is a, yearly sum of money granted by one party to another in fee for life or years, charging the person of the grantoronly. Co. Litt. 144; 1 Lilly's Reg. 89; 2 Bl. Com. 40; 5 M. R. 312; Lumleyon Annuities. 1; 2 Inst. 293; Davies' Rep. 14, 15. 2. In a less technical sense, however, when the money is chargeable onland and on the person, it is generally called an annuity. Doet. and StudDial. 2, 230; Roll. Ab. 226. See 10 Watts, 127. 3. An annuity is different from a rent charge, with which it isfrequently confounded, in this; a rent charge is a burden imposed upon andissuing out of lands, whereas an annuity is chargeable only upon the personof the grantee. Bac. Abr. Annuity, A. See, for many, regulations in Englandrelating to annuities, the Stat,. 17 Geo. III. c. 26. 3. An annuity may be created by contract, or by will. To enforce thepayment of an annuity, the common law gives a writ of annuity which may bebrought by the grantee or his heirs, or their grantees, against the grantorand his heirs. The action of debt cannot be maintained at the common law, orby the Stat. of 8 Anne, c. 14, for the arrears of an annuity devised to A,payable out of lands during the life of B, to whom the lands are devised forlife, B paying the annuity out of it, so long as the freehold estatescontinues. 4 M. & S. 113; 3 Brod. & Bing. 30; 6 Moore, 336. It has beenruled also, that if an action of annuity be brought, and the annuitydetermines pending the suit, the writ faileth forever because no such actionis maintainable for arrearages only, but for the annuity and the arrearages.Co. Litt. 285, a. 4. The first payment of an annuity is to be made at the time appointedin the instrument creating it. In cases where testator directs the annuityto be paid at the end of the first quarter, or other period before theexpiration of the first year after his death, it is then due; but in fact itis not payable by the executor till the end of the year. 3 Mad. Ch. R. 167.When the time is not appointed, as frequently happens in will, the followingdistinction is presumed to exist. If the bequest be merely in the form of anannuity as a gift to a man of "an annuity of one hundred dollars for life"the first payment will be due at the end of the year after the testator'sdeath. But if the disposition be of a sum of money, and the interest to begiven as an annuity to the same man for life, the first payment will notaccrue before the expiration of the second year after the testator's death.This distinction, though stated from the bench, does not appear to have beensanctioned by express decision. 7 Ves. 96, 97. 5. The Civil Code of Louisiana makes the following provisions inrelation to annuities, namely: The contract of annuity is that by which oneparty delivers to another a sum of money, and agrees not to reclaim it, solong as the receiver pays the rent agreed upon. Art. 2764. 6. This annuity may be perpetual or for life. Art. 2765. 7. The amount of the annuity for life can in no case exceed the doubleof the conventional interest. The amount of the perpetual annuity cannotexceed the double of the conventional interest. Art. 2766. 8. Constituted annuity is essentially redeemable. Art. 2767. 9. The debtor of a constituted annuity may be compelled to redeem thesame: 1, If he ceases fulfilling his obligations during three years: 2, Ifhe does not give the lender the securities promised by the contract. Art.2768. 10. If the debtor should fail, or be in a state of insolvency, thecapital of the constituted annuity becomes exigible, but only up to theamount at which it is rated, according to the order of contribution amongstthe creditors. Art. 2769. 11. A similar rule to that contained in the last article has beenadopted in England. See stat. 6 Geo. IV., c. 16, s. 54 and 108; note to Exparte James, 5 Ves. 708; l Sup. to Ves. Jr. 431; note to Franks v. Cooper, 4Ves. 763; 1 Supp. to Ves. Jr. 308. The debtor, continues the Code, may becompelled by his security to redeem the annuity within the time which hasbeen fixed in the contract, if any time has been fixed, or after ten years,if no mention be made of the time in the act. Art. 2770. 12. The interest of the sums lent, and the arrears of constituted andlife annuity, cannot bear interest but from the day a judicial demand of thesame has been made by the creditor, and when the interest is due for atleast one whole year. The parties may only agree, that the same shall not beredeemed prior to a time which cannot exceed ten years, or without havingwarned the creditor a time before, which they shall limit. Art. 2771. Seegenerally, Vin. Abr. Annuity; Bac. Abr. Annuity and Rent; Com. Dig. Annuity;8 Com. Dig. 909; Doct. Plac. 84; 1 Rop. on Leg. 588; Diet. de Jurisp. auxmots Rentes viageres, Tontine. 1 Harr. Dig. h.t.

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