CO129-548-9 Trustee Ordinance 1934 21-7-1934 - 1-8-1934 — Page 15

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Protection

in regard

to notice.

15 Geo. 5, c, 19, s. 28.

Exoneration

of trustees in respect of certain powers of attorney.

15 Geo. 5, c. 19, s. 29.

Implied indemnity of trustees.

15 Geo. 5,

c. 19, s. 30.

Power to

—

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30. A trustee or personal representative acting for the purposes of more than one trust or estate shall not, in the absence of fraud, be affected by notice of any instrument, matter, fact or thing in relation to any particular trust or estate if he has obtained notice thereof merely by reason of his acting or having acted for the purposes of another trust or estate.

31. A trustee acting or paying money in good faith under or in pursuance of any power of attorney shall not be liable for any such act or payment by reason of the fact that at the time of the act or payment the person who gave the power of attorney was sub- ject to any disability or bankrupt or dead, or had done or suffered some act or thing to avoid the power, if this fact was not known to the trustee at the time of his so acting or paying:

Provided that—

(a) nothing in this section shall effect the right of any person entitled to the money against the person to whom the payment is made;

(b) the person so entitled shall have the samo remedy against the person to whom the pay- ment is made as he would have had against the trustee.

32. (1) A trustee shall be chargeable only for money and securities actually received by him not- withstanding his signing any receipt for the sake of conformity, and shall be answerable and accountable only for his own acts, receipts, neglects, or defaults, and not for those of any other trustee, or of any banker, broker, or other person with whom any trust money or securities may be deposited, nor for the insufficiency or deficiency of any securities, nor for any other loss, unless the same happens through his own wilful default.

(2) A trustee may reimburse himself or pay or dis- charge out of the trust premises all expenses in- curred in or about the execution of the trusts or powers.

Maintenance, Advancement and Protective Trusta.

33.-(1) Where any property is held by trustees in apply income trust for any person for any interest whatsoever, whe- ther vested or contingent, then, subject to any prior interests or charges affecting that property-

for

maintenance

and to

accumulate

surplus income during a minority,

15 Geo. 5, c. 19, s. 31.

(i) during the infancy of any such person, if his interest so long continues, the trustees may,

at their sole discretion, pay to his parent or guardian, if any, or otherwise apply for or towards his maintenance, education or bene- fit, the whole or such part, if any, of the income of that property as may, in all the circumstances, be reasonable, whether or not there is-

(a) any other fund applicable to the

same purpose; or

(b) any person bound by law to provide for his maintenance or education; and

(ii) if such person on attaining the age of twenty. one years has not a vested interest in such income, the trustees shall thenceforth pay the income of that property and of any ac- cretion thereto under sub-section (2) of this section to him, until he either attains a vested interest therein or dies, or until failure of his interest:

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Provided that, in deciding whether the whole or any part of the income of the property is during a minority to be paid or applied for the purposes afore- said, the trustees shall have regard to the age of the infant and his requirements and generally to the cir cumstances of the case, and in particular to what other income, if any, is applicable for the same pur- poses; and where trustees have notice that the income of more than one fund is applicable for those purposes, then, so far as practicable, unless the entire income of the funds is paid or applied as aforesaid or the Court otherwise directs, a proportionate part only of the income of each fund shall be so paid or applied.

(2) During the infancy of any such person, if his interest so long continues, the trustees shall accumu- late all the residue of that income in the way of com- pound interest by investing the same and the result- ing income thereof from time to time in authorised investments, and shall hold those accumulations as follows:-

(If any such person-

(a) attains the age of twenty-one years,

or inarries under that age, and his interest in such income during his infancy or until his marriage is a vested interest; or

(b) on attaining the age of twenty-one years or on marriage under that age becomes entitled to the property from which such income arose absolutely;

the trustces shall hold the accumulations in trust for such person absolutely, and so that the receipt of such person after marriage, and though still an infant, shall be a good discharge; and

(ii) In any other case the trustees shall, notwith- standing that such person had & vested interest in such income, hold the accumula- tions as an accretion to the capital of the property from which such accumulations arose, and as one fund with such capital for all purposes;

but the trustees may, at any time during the infancy of such person if his interest so long continues, apply those accumulations, or any part thereof, as if they were income arising in the then current year.

(3) This section applies in the case of a contingent interest only if the limitation or trust carries the in- termediate income of the property, but it applies to a future or contingent legacy by the parent of, or a person standing in loco parentis to, the legatee, if and for such period as, under the general law, the legacy carries interest for the maintenance of the legatee, and in any such case as last aforesaid the rate of interest shall (if the income available is sufficient, and subject to any rules of court to the contrary) be five dollars per centum per annum.

(4) This section applies to a vested annuity in like manner as if the annuity were the income of property held by trustees in trust to pay the income thereof to the annuitant for the same period for which the an- nuity is payable, save that in any case accumulations made during the infancy of the annuitant shall be held in trust for the annuitant or his personal repre- sentatives absolutely.

(5) This section does not apply where the instru- ment, if any, under which the interest arises came into operation before the commencement of this Ordinance.

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