709. Payment out of capital or income; introduction.

(iv)     Payment of Annuities

709.     Payment out of capital or income; introduction.

An annuity1 may be: (1) a charge on the capital of property; or (2) a continuing charge on income either unlimited or for the annuitant's life or other duration of the annuity; or (3) a charge on the income only of the year in respect of which it is payable2.

The annuitant's rights in respect of arrears usually depend on the nature of the charge. The question whether an annuitant is entitled to have arrears satisfied out of capital or future income is always one of