17Restrictions on operation of conditions of forfeiture

17 Restrictions on operation of conditions of forfeiture (1) If a person is entitled to income (including an annuity or other periodical income) or any other property subject to a condition of forfeiture on alienation, whether voluntary or involuntary and whether with or without words of futurity: (a) unless the instrument containing the condition expressly provides to the contrary – no alienation (whether by way of charge or otherwise) of the income or other property made or occurring before the person becomes entitled to receive payment of the income or to call for a conveyance or delivery of the other property is to operate to create forfeiture under the condition unless the alienation is in operation at the time the person becomes entitled to the income or property; and (b) despite any provision to the contrary in the instrument containing the condition – no voluntary alienation made by the person in accordance with an order of the Court authorising the alienation is to operate to create forfeiture under the condition. (2) Subsection (1) applies whether the condition of forfeiture is contained in an instrument executed, made or coming into operation before or after the commencement of this Act, but only if: (a) the person becomes entitled to receive payment of the income or to call for a conveyance or delivery of the other property; or (b) the income or other property is alienated, after that commencement.