1953-HKRS30-8-43_Part03 — Page 40

6

Security,

9.

(1) A judicial trustce, if not an official of the court, must give security to the court for the due application of the trust properly, unless the court dispenses with security under this rule.

(2) The court may, on the appointment of a judicial trustee, or at any time during his continuance in office as judicial trustee, dispense with security on the application either of the person who is to be appointed or is judicial trustee, or of any person appear- ing to the court to be interested in the trust, and shall do so where a judicial trustee is appointed on the application of a person creating or intending to create a trust, and that person desires that security should be dispensed with, unless for special reasons the court considers that security is in such a case necessary or desirable.

(3) The security must be given, either by recognizance, bond, or otherwise, as the court directs, and with such sureties as the court approves.

(4) If the court is satisfied that sufficient provision is made for the safety of the capital of the trust property, the amount of the security shall, in ordinary cases, be an amount exceeding by twenty per centum the annual income of the trust property as estimated by the court.

(5) The court may at any time require that the amount or nature of the security given by a judicial trustee under this rule be varied, or that security be given where it has previously been dispensed with, and a judicial trustee shall comply with any such requirement.

(6) It shall be a condition of every recognizance, bond, or other form of security given under this rule that the judicial trustee shall give immediate notice to the court of the death or insolvency of any of his sureties.

(7) Any recognizance, bond, or other form of security given for the purpose of this rule may be vacated in such manner and subject to such conditions as the court may direct.

(8) Where security is not dispensed with, the appointment of a person to be judicial trustee shall not take effect until he has given the security required by the court under this rule.

(9) Any premium payable by a judicial trustee to any guarantee company on account of his security may, if the court so directs, he paid out of the trust property.

10. (1) When a judicial trustee is appointed, a separate Trust

account account for receipts and payments on behalf of the trust must be at bank kept in the name of the trustees at some bank approved by the and

custody of docu- mente.

court.

(2) All title deeds and all certificates and other documents which are evidence of the title of the trustee to any of the trust property shall be deposited either with that bank or in such other custody as the court directs.

(3) The deeds or documents must be deposited in the names of the trustees, and the judicial trustee must give notice to the body or person with whom the deeds or documents are so deposited not to deliver any of them over to any person except on a request signed by the judicial trustee and countersigned by the officer of the court, and also to allow any person authorized by the officer of the court in writing to inspect them during business hours.

(4) The judicial trustee must deposit with the court a list of all deeds or documents deposited in any custody in pursuance of this rule, and must give information to the court from time to time of any variation to be made in the list.

(5) The judicial trustee must, if at any time directed by the court, give an order to the bank at which the trust account is kept, not to pay at any one time any sum over a specified amount out of the trust account except on an order countersigned by the officer of the court.

(6) Any payments on account of the income of the trust pro- perty may be provided for by means of a standing order to the bank at which the trust account is kept.

(7) The court may give such directions to the judicial trustee as may, in the opinion of the court, be necessary of expedient for carrying this rule into effect, and for securing the safety of the trust property.

(8) Where an official of the court is judicial trustee, the court may direct that, instead of a separate account of the receipts and payments on behalf of the trust being kept at some bank approved by the court, all receipts on behalf of the trust may be dealt with, and all payments on behalf of the trust may be made, in such manner, and subject to such regulations as to the accounts to be kept of the receipts and payments and the pro- cedure to be followed in dealing therewith, as the Accountant General shall direct.