sec.58BFailures and defects do not affect validity

### sec.58B Failures and defects do not affect validity The failure of a trustee to comply with an obligation relating to a project trust or retention trust does not affect the validity of the trust. If a trustee’s failure to comply with an obligation relating to a project trust or retention trust would prevent another person (the affected person ) from taking action under this chapter, the trustee is taken to have complied with the obligation to the extent it enables the affected person to take the action. A defect in a document relating to a project trust or retention trust does not affect the validity of the trust or the ability of a beneficiary to rely on the document, as it would be without the defect, for the purpose of exercising a right under this chapter. If an amount must be deposited into a trust account under section 19 or 35 , the failure of a person to deposit the amount does not release the amount from the relevant project trust or retention trust. Nothing in this section prevents action being taken against a trustee for the trustee’s failure to comply with an obligation relating to a project trust or retention trust, nor relieves the trustee of the obligation. In this section— obligation means an obligation under this chapter. trustee means— the trustee of a project trust or retention trust; or a person who would, if not for a failure to comply with an obligation to establish a project trust or retention trust, be the trustee of that trust. s 58B ins 2020 No. 24 s 63 (sec.58B-ssec.1) The failure of a trustee to comply with an obligation relating to a project trust or retention trust does not affect the validity of the trust. (sec.58B-ssec.2) If a trustee’s failure to comply with an obligation relating to a project trust or retention trust would prevent another person (the affected person ) from taking action under this chapter, the trustee is taken to have complied with the obligation to the extent it enables the affected person to take the action. (sec.58B-ssec.3) A defect in a document relating to a project trust or retention trust does not affect the validity of the trust or the ability of a beneficiary to rely on the document, as it would be without the defect, for the purpose of exercising a right under this chapter. (sec.58B-ssec.4) If an amount must be deposited into a trust account under section 19 or 35 , the failure of a person to deposit the amount does not release the amount from the relevant project trust or retention trust. (sec.58B-ssec.5) Nothing in this section prevents action being taken against a trustee for the trustee’s failure to comply with an obligation relating to a project trust or retention trust, nor relieves the trustee of the obligation. (sec.58B-ssec.6) In this section— obligation means an obligation under this chapter. trustee means— the trustee of a project trust or retention trust; or a person who would, if not for a failure to comply with an obligation to establish a project trust or retention trust, be the trustee of that trust. - (a) the trustee of a project trust or retention trust; or - (b) a person who would, if not for a failure to comply with an obligation to establish a project trust or retention trust, be the trustee of that trust.