Land bonds

Land bonds are financial bonds used in many countries to satisfy, in whole or in part, the compensation payable by the government for compulsory acquisition of any land from private landowners.

Land bonds are normally issued under the provisions of land bonds act of a state government or the central government. The bonds define the terms and conditions for the issuance of the bonds, negotiability of such bonds, principal amount per bond, payment of interest, ability to trade the bonds in open market, tax exemptions granted if any, and redemption of such bonds.

Guyana passed a Land Bonds Act in 1959. The act allows the Government of Guyana to acquire land from any person or entity who owns the land or to whom compensation is payable in respect to the purchase or acquisition of the land. The payment for the land may be made in land bonds with the consent of the person or entity, and at the discretion of the government.

The land bonds have the following features:

Ireland has several statutes relating to land bonds.

Ireland's Land Commission may, under its Land Acts, acquire land and pay vendors (landowners) for the acquired land with new land bonds equal in nominal amount to the purchase money and carrying interest as from the date on which the land purchased. The law mandates that new land bonds issued to a vendor for the acquired land, be accepted by such vendor as the equivalent of the corresponding amount of purchase money, and any person having power to sell, may enter into a subsequent purchase agreement notwithstanding that the purchase money under the laws of Ireland is paid in new land bonds instead of cash.

Jamaica passed its Land Bonds Act in 1955.

The act allows the Government of Jamaica to pay with bonds any land acquired from any person or entity who owns the land or to whom compensation is payable.

The land bonds have the following features:

The constitution of Brazil has several articles covering the use of bonds to compensate for land acquisition. Some of these articles are:

South Korea enacted its Land Reform Act in 1949. Under this Act, the government acquired land from landlords, and compensated them in government bonds worth 1.5 times the annual output on the land.

In Taiwan, the Equalization of Land Rights Act explains the use of bonds for land acquisition. The Taiwan law provides the following:

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