120Payment of liabilities

120 Payment of liabilities

120 Payment of liabilities

(cf PT Act, s 37)

(1) If the NSW Trustee is required to pay an amount to discharge a liability that the NSW Trustee would be personally liable to discharge if it were a private trustee, the NSW Trustee may elect to make the payment from—

(a) the Reserve Fund, or

(b) the Consolidated Fund.

(1A) If the NSW Trustee elects to make the payment from the Consolidated Fund, the Consolidated Fund is appropriated for that purpose.

(2) An amount is not payable under this section for a liability, and the NSW Trustee is not subject to a liability, if the liability—

(a) does not arise out of any act or omission of the NSW Trustee or a member of staff of the NSW Trustee, and

(b) could not have been reasonably avoided by the exercise of reasonable diligence by the NSW Trustee or a member of staff of the NSW Trustee.

s 120: Am 2020 No 24, Sch 1.10[1] [2].