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Partnership Act 1997
17Misuse of trust property
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17 Misuse of trust property
(1) A partner in a firm other than an incorporated limited partnership is
not liable for the misuse of any trust property for the firm by a
trustee of the trust who is another partner in the firm.
(2) An incorporated limited partnership or general partner in the
partnership is not liable for the misuse of any trust property for the
partnership by a trustee of the trust who is another general partner
in the partnership.
(3) Subsection (1) or (2) does not:
(a) affect any liability of a partner in the firm incurred because the
partner knew about a breach of the trust; and
(b) prevent the tracing and recovery of the trust property from the
firm.