sec.57Illegal borrowing

### sec.57 Illegal borrowing Subsection (2) applies if the trust borrows an amount that it is not authorised to borrow under an Act. The members who consented to the borrowing are jointly and severally liable to repay the amount, and any interest on it, to the person from whom it was borrowed and the person may recover the amount and interest by action as for a debt in a court of competent jurisdiction. Subsection (4) applies if an amount is appropriated from the trust’s moneys to repay an amount mentioned in subsection (1) or interest on the amount. The members who consented to the appropriation are jointly and severally liable to refund the amount, together with interest on the amount at a rate decided by the Treasurer, and the Treasurer may recover the amount and interest by action as for a debt in a court of competent jurisdiction. If the Treasurer brings an action under subsection (4) — the Treasurer is entitled to costs as between solicitor and client; and any amount recovered must be paid to the trust. Subsection (2) does not apply to a member if, at the time the member consented to the borrowing, the member believed on grounds that were reasonable in all the circumstances that the trust was authorised under an Act to borrow the amount. Subsection (4) does not apply to a member if— subsection (2) does not apply to the member because of subsection (6) ; or the member did not consent to the borrowing. s 57 ins 1997 No. 79 s 60 (sec.57-ssec.1) Subsection (2) applies if the trust borrows an amount that it is not authorised to borrow under an Act. (sec.57-ssec.2) The members who consented to the borrowing are jointly and severally liable to repay the amount, and any interest on it, to the person from whom it was borrowed and the person may recover the amount and interest by action as for a debt in a court of competent jurisdiction. (sec.57-ssec.3) Subsection (4) applies if an amount is appropriated from the trust’s moneys to repay an amount mentioned in subsection (1) or interest on the amount. (sec.57-ssec.4) The members who consented to the appropriation are jointly and severally liable to refund the amount, together with interest on the amount at a rate decided by the Treasurer, and the Treasurer may recover the amount and interest by action as for a debt in a court of competent jurisdiction. (sec.57-ssec.5) If the Treasurer brings an action under subsection (4) — the Treasurer is entitled to costs as between solicitor and client; and any amount recovered must be paid to the trust. (sec.57-ssec.6) Subsection (2) does not apply to a member if, at the time the member consented to the borrowing, the member believed on grounds that were reasonable in all the circumstances that the trust was authorised under an Act to borrow the amount. (sec.57-ssec.7) Subsection (4) does not apply to a member if— subsection (2) does not apply to the member because of subsection (6) ; or the member did not consent to the borrowing. - (a) the Treasurer is entitled to costs as between solicitor and client; and - (b) any amount recovered must be paid to the trust. - (a) subsection (2) does not apply to the member because of subsection (6) ; or - (b) the member did not consent to the borrowing.