110Advances

110 Advances

110 Advances

(PT Act, s 36F, PE Act, s 59)

(1) The NSW Trustee may make advances from a common fund for any purpose of or relating to a trust matter or estate of a managed person.

(2) The NSW Trustee may, on application by a person beneficially entitled to a trust or estate (including an estate of a managed person) managed or administered by the NSW Trustee, make an advance to the person of an amount not exceeding half of the value (as estimated by the NSW Trustee) of the person’s beneficial interest.

(3) Any advance bears interest at the rate fixed by the NSW Trustee.

(4) The advance, and any interest on the advance, are a charge on the assets of the trust or estate, or on the specific asset or the beneficial interest, in respect of which the advance was made.

(5) If the advance is applied towards the discharge of any debt or liability, the charge under this section ranks in the same order of priority as the debt or liability.

(6) Any sum advanced from a common fund under this section is, for the purposes of the rules for the fund, taken to be invested in a class of investments in which money to the credit of the fund may be invested.