Statute of Limitations 1957

Appropriation of payment in respect of debts.

69

69. (1) Where—

( a) there exists a number of debts, and

( b) the person liable therefor (in this section referred to as the debtor) makes any payment, whether on account or generally, to the person to whom he is liable (in this section referred to as the creditor), and

( c) neither the debtor nor the creditor appropriates the sum paid to any particular debt or debts,

the following provisions shall have effect:—

(i) if some of or all the debts are not statute-barred debts, the payment shall, for the purposes of this Chapter, unless the circumstances in which it was made indicate otherwise, be deemed to be appropriated pari passu in respect of each of the debts which are not statute-barred debts;

(ii) if all the debts are statute-barred debts, the payment shall, for the purposes of this Chapter, unless the circumstances in which it was made indicate otherwise, be deemed to be appropriated pari passu in respect of each of the debts.

(2) Nothing in subsection (1) of this section shall, where the debtor does not appropriate, operate to prevent the creditor from appropriating a payment made on account or generally to a particular debt or to particular debts or to all the debts (whether statute-barred debts or not), but such appropriation shall not by reason only of its being made by the creditor operate to make the payment a payment for the purposes of this Chapter in respect of such debt or debts, unless the circumstances in which the payment was made by the debtor so indicate.

(3) Where, under section 16 of the Land Law (Ireland) Act, 1896, a tenant against whom an ejectment has been brought pays two years’ rent, the payment shall, for the purposes of this Chapter, unless the circumstances in which it was made indicate otherwise, be deemed to be a payment in respect of all arrears which, at the date of the commencement of the proceedings in the ejectment, are not statute-barred debts.