7Trust deeds

7 Trust deeds

7 Trust deeds

(1) A trust deed complies with the provisions of this Part if it—

(a) makes provision for the appointment by the vendor for such period as the Minister may approve after the date of the certificate referred to in section 4 (b) of a person as trustee for purchasers of lots in the subdivision proposed to be sold,

(b)

(i) provides for the appointment by the vendor of a new trustee approved by the Minister to act under the trust deed, where the former trustee ceases for any reason to hold office before his or her duties as trustee have been completed, and also provides that such appointment shall be made subject to such terms and conditions as the Minister may think fit and for such period as the Minister may approve, and

(ii) contains a covenant binding the trustee that the trustee will, upon ceasing to be a trustee, transfer to the trustee appointed by the vendor under subparagraph (i), or by the Minister under section 5, any money held by the trustee or on the trustee’s behalf, and any books of account kept by the trustee, in his or her capacity as such trustee,

(c) has annexed thereto a copy of the form or forms of instalment contract to be used in connection with the sale of the land comprised in the subdivision (which form or forms shall provide that all moneys payable thereunder by way of preliminary or other deposit or fifteen per centum of the purchase price (whichever is the greater) shall be paid by the purchaser to the trustee) and the form or forms of mortgage to be used for the purposes of section 13,

(d) contains a provision that all moneys received by the trustee from a purchaser under an instalment contract shall be retained by the trustee until the trustee has been authorised by the vendor to refund any such moneys, or—

(i) the trustee is satisfied that the purchaser has been given the notices prescribed in section 12, and

(ii) an instalment contract signed by both the vendor and the purchaser or their properly constituted attorneys has been presented to the trustee for inspection and the written authority of the purchaser to account to the vendor for such moneys has been furnished to the trustee,

(e) contains a covenant binding the vendor that the vendor will, upon demand made by the trustee or any registered public accountant appointed by the trustee, make available for inspection the whole of the books of the vendor relating to the subdivision to which the trust deed relates and give to the trustee or to any such registered public accountant such oral or written information as the trustee or registered public accountant requires with respect to the subdivision to which the trust deed relates where inspection of such books or such information is necessary for the proper and effective carrying out of the trustee’s powers, authorities, duties and functions under this Part and the trust deed,