Renewals.

56.

Not sooner than three years and six months and not later than one year before the end of the term for which the lease is granted a valuation shall be made by arbitration of the then value of the fee-simple of the lands then included in the lease, and also a valuation of all substantial improvements of a permanent character made by the lessee during the term and then in existence on the land then comprised in the lease.

In the case of a lease granted under section eight of this Act, then, for the purposes of this and the four next following sections, improvements paid for under the provisions of the said section 8, and which are in existence at the time of the valuation required by this section, shall be deemed to have been made by the lessee during the term.

After the making and publishing of the above-mentioned awards, which shall be effected by serving a copy of the same on the lessee and another copy on the Public Trustee, but not later than three months before the expiry of the term for which the lessee then holds the lands, the lessee shall elect, by notice in writing delivered to page 18the Public Trustee, whether he will accept a fresh lease of the said lands for a further term of twenty-one years from the expiration of the then term, at a rental equal to five pounds per centum on the gross value of the lands after deducting therefrom the value of the substantial improvement of a permanent character as fixed respectively by the arbitration.

57.	If the lessee shall not elect to accept a renewal as above mentioned, or shall refuse or neglect to execute a lease within seven days after the same is tendered to him for the purpose, then a new valuation of the substantial improvements of a permanent character then on the said land shall be at once made by arbitration, in like manner and subject to the same provisions in all respects as the arbitration before referred to, and a lease of the said lands shall, not later than one month before the end of the term for which the terminating lease was granted, be put up to public competition by public tender for such term of twenty-one years, on the following terms and conditions:— (1.) The upset rent shall be such rent as shall be fixed by the Public Trustee, not being a greater sum than that at which the lease was offered to the outgoing lessee under the last-preceding section. (2.) The amount of such upset rent shall be stated in the advertisements calling for tenders. (3.) If any person other than the outgoing lessee be declared the purchaser he shall, within seven days after the day fixed for opening the tenders, pay over to the Public Trustee the amount of the value of the substantial improvements of a permanent character as fixed by the arbitration referred to in this section. (4.) When the day has arrived on which the terminating lease expires, or there-after, if the Public Trustee shall have satisfied himself that the outgoing lessee has let the new lessee into quiet possession of the lands to be leased, and that none of the improvements on the lands which were thereon when the valuation mentioned in this section was made have been destroyed or appreciably damaged, the Public Trustee shall pay over to the outgoing lessee the amount received by him from the incoming lessee as aforesaid. (5.) If any of the improvements as mentioned in the preceding subsection have been destroyed or appreciably damaged as in the said subsection referred to, then the value of the improvements so destroyed, or the cost of repairing such damage, shall be decided by the Public Trustee or some person appointed by him, and the amount so fixed, with the costs attending such decision, shall be deducted from the amount payable as aforesaid to the outgoing lessee, and, save the amount deducted for costs, shall be returned to the incoming lessee.
58.	If such lease shall not be sold as above mentioned to some person other than the lessee, or if such person fails to execute the lease in triplicate within fourteen days, or to pay the sum offered by him as aforesaid within fourteen days from the day on which the tenders were opened, then the lessee may again, within fourteen days after the day fixed for the opening of the tenders, elect in manner aforesaid whether he will accept a fresh lease as aforesaid; and, if he does not elect to accept the same, or refuses or neglects to execute such lease for fourteen days as aforesaid, then he may continue as lessee of the said lands from year to year, so long as he shall pay the rent reserved by his lease and observe and perform the covenants and conditions contained in the same or in this Act, or until the Public Trustee shall succeed in finding a purchaser of the new lease, unless, prior to the finding of such purchaser by the Public Trustee, he shall elect to accept a new lease for the said further period of twenty-one years as aforesaid.
59.	The Public Trustee, in selling a renewed lease to a purchaser, may make provision that the right to take possession under such new lease shall always commence on the first day of January or of July in any year, and no such sale shall be made without giving to the then actual lessee one month's notice of the intention to sell, and allowing him during such month to elect to accept such new lease as aforesaid.
60.	All the provisions of this Act (except the provisions as to cultivation) as regards the tenders for sale, form, and conditions of first leases made under this Act, and otherwise howsoever as regards such leases, shall, mutatis mutandis, apply to the sale, form, and conditions of the new or renewal leases above mentioned, and to the lessees thereunder, and otherwise howsoever, and except as herein is otherwise expressly provided.