61Common fund guarantee and reserve account

61 Common fund guarantee and reserve account (1) The public trustee and guardian shall establish and maintain an account to be called the common fund guarantee and reserve account. (2) The common fund guarantee and reserve account shall not form part of a common fund. (3) If, after distribution of capital and income under section 59, a balance remains in an income account, the public trustee and guardian must transfer from the account to the common fund guarantee and reserve account the amount decided by the public trustee and guardian having regard to any advice given by the board.

(5) Subject to this section, the common fund guarantee and reserve account may be applied by the public trustee and guardian for any of the following purposes: (a) payment to a common fund of an amount equal to the amount of any loss sustained on the realisation of an investment made from the common fund; (b) payment of costs and expenses incurred in protecting investments made from a common fund; (c) payment of any other expenses or charges incurred in connection with— (i) the maintenance or administration of a common fund; or (ii) investments made from a common fund; not being expenses or charges that are properly chargeable against a particular estate or trust; (d) payment of costs and expenses incurred in legal proceedings involving an estate or trust in respect of which moneys are held in a common fund, other than— (i) costs and expenses ordered by the court to be charged against a particular estate or trust; and (ii) in the case of costs and expenses properly chargeable against a particular estate or trust—so much of those costs and expenses as are able to be met by the estate or trust;

(e) payment of the costs and expenses or part of the costs and expenses incurred by the public trustee and guardian in obtaining legal advice or in, or in connection with, legal proceedings in which the public trustee and guardian is a party where, by reason of general interest in, and importance of, the subject matter of the advice or proceedings, it is not appropriate for any or all of those costs and expenses to be charged against a particular estate or trust. (6) If there is an amount at credit in the common fund guarantee and reserve account that is not for the time being required to be applied for any of the purposes mentioned in subsection (5), the amount must be invested by the public trustee and guardian. (7) Capital or income received in respect of investments made under subsection (6) shall be paid into the common fund guarantee and reserve account. (8) The public trustee and guardian is entitled to charge a management fee for the administration of moneys held in the common fund guarantee and reserve account. (9) The management fee must be the amount determined by, or worked out in accordance with the rate or scale determined by, the Minister for this section. (10) A determination is a disallowable instrument. (11) A management fee shall be deducted on the last day of each month.