1340
Application by trustees
of income of property of infant for
maintenance,
etc.
No. 5 of 1901.
TRUSTEES.
38.-(1) Where any property is held by trustees in trust for an infant, either for life or for any greater interest and whether absolutely or contingently on his attaining the age of twenty-one years or on the occurrence of any event before his attaining that age, the trustees may, at their sole discretion, pay to the infant's parent or guardian, if any, or otherwise apply for or towards the infant's maintenance, education, or benefit, the income of that property or any part thereof, whether there is any other fund applicable to the same purpose or any person bound by law to provide for the infant's maintenance or education or not.
44 & 45 Vict. c. 41, s. 43.
Validity of payment by trustee under power of attorney without
notice of death, etc.
c. 41, s. 47; 56 & 57 Vict. c. 53, s. 23.
(2) The trustees shall accumulate all the residue of that income in the way of compound interest, by investing the same and the resulting income thereof from time to time on securities on which they are, by the settlement, if any, or by law authorised to invest trust money, and shall hold those accumulations for the benefit of the person who ultimately becomes entitled to the property from which the same arise; but so that the trustees may at any time, if they think fit, apply those accumulations, or any part thereof, as if the same were income arising in the then current year.
(3) This section applies only if and as far as a contrary intention is not expressed in the instrument under which the interest of the infant arises, and shall have effect subject to the terms of that instrument and to the provisions therein contained.
(4) This section applies whether that instrument comes into operation before or after the commencement of this Ordinance.
39.—(1) A trustee making or doing any payment or act, in good faith, in pursuance of a power of attorney, shall not be liable in respect of the payment or act by reason that before the payment or act the donor of the power had died, or become lunatic, of unsound mind, or bankrupt, or had revoked the power, if the fact of death, lunacy, unsoundness of mind, bankruptcy, or revocation was not, at the time of the payment or act, known to the trustee.
(2) This section shall not affect any right against the payee of any person interested in any money so paid; and that person shall have the like remedy against the payee as he would have had against the trustee if the payment had not been made by him.