113Common Funds

113 Common Funds S. 113(1) amended by Nos 52/1998 s. 311(Sch. 1 item 88.2), 30/2004 s. 3(1), 13/2019 s. 221(Sch. 1 item 52.2). (1) Subject to section 179 of the **Guardianship and Administration Act 2019** and section 51A of this Act, all money paid into court under an order of the Court or under any Act or the Rules is to be held by the Senior Master. S. 113(2) amended by No. 30/2004 s. 3(2). (2) In addition to Common Fund No. 1 and the other Common Funds established before the commencement of this Act by or under the **Supreme Court Act 1958** and Common Fund No. 3 established by section 113A of this Act, there may be established, by and in accordance with the Rules or under subsection (26), more Common Funds, each to be identified by an appropriate distinguishing number. (3) Unless the Senior Master otherwise determines, no money is to be invested in Common Fund No. 1 after the commencement of this Act. S. 113(4) amended by No. 30/2004 s. 3(3). (4) Money held by the Senior Master, including money forming part of a Common Fund (except Common Fund No. 3), may be invested— S. 113(4)(a) repealed by No. 11/2001 s. 3(Sch. item 71.1(a)). S. 113(4)(b) substituted by No. 55/1987 s. 57(3)(Sch. 5 item 54), amended by No. 45/1994 s. 42(Sch. item 9). (b) on deposit with the State Trust for investment in such common fund as the Court specifies; or S. 113(4)(c) repealed by No. 18/1994 s. 66(Sch. 2 item 24.1). (d) in any manner in which trust money may be invested by a trustee under the **Trustee Act 1958** or any other Act. S. 113(5) amended by No. 30/2004 s. 3(4). (5) Money forming part of a Common Fund (except Common Fund No. 3) may be invested in any class of investment authorised under the Rules. (6) Subject to the Rules and to any order of the Court, the Senior Master must transfer any money received by the Senior Master on behalf of any person, estate or trust to a Common Fund, unless the Senior Master considers it desirable for any special reason to invest it on separate account. (7) Investments made from money forming part of a Common Fund are not made on account of, and do not belong to, any particular person, estate or trust. (8) Subject to subsection (26), the Senior Master must cause to be kept in the books of the Senior Master an account showing at all times the current amount held by the Senior Master or at credit in a Common Fund on behalf or account of each person, estate or trust and of any investments made of the money of a Common Fund or on behalf of a person, estate or trust. (9) The Senior Master may sell or call in investments belonging to a Common Fund and may withdraw any of the money forming part of a Common Fund if necessary in the performance of his or her duties or the exercise of his or her powers and authorities. (10) The Senior Master may at any time withdraw from a Common Fund any amount at credit in the Common Fund on the account of any person, estate or trust and may invest that amount on separate account or transfer it to another Common Fund. (11) Amounts withdrawn from a Common Fund cease, from the date of withdrawal, to have any claim for interest or otherwise from the Common Fund. S. 113(12) amended by No. 30/2004 s. 3(5). (12) Subject to section 113A and unless otherwise expressly provided by the rules under which a Common Fund is constituted— (a) no capital appreciation or depreciation in the value of any investments made or taken to have been made from a Common Fund are to be taken to increase or diminish the amount at credit in the Common Fund on the account of any person, estate or trust; and (b) on the withdrawal from the Common Fund of any amount transferred to it, the person, estate or trust in question is entitled to be credited with the actual amount so transferred without regard to any capital appreciation or depreciation. S. 113(13) amended by No. 30/2004 s. 3(6). (13) Interest received from the investment of money forming part of a Common Fund (except Common Fund No. 3) is to be paid into an account to be called the "Interest Suspense Account" of that Common Fund and to be allocated as provided in subsection (14). S. 113(14) amended by No. 30/2004 s. 3(7). (14) On each amount at credit in a Common Fund (except Common Fund No. 3) interest at the appropriate rate fixed from time to time by the Senior Master, with the approval of the Chief Justice, must at such times and intervals as are prescribed by the Rules be allocated and paid out of the Interest Suspense Account of that Common Fund to the credit of the person, estate or trust entitled for the time being to the interest. (15) The Senior Master, with the approval of the Chief Justice, may fix different rates of interest according to— S. 113(15)(a) amended by No. 30/2004 s. 3(8). (a) the source and nature of the different amounts transferred to a Common Fund (except Common Fund No. 3); (b) the periods for which those amounts will probably remain in the Fund; (c) such other factors as they consider relevant. (16) At such time or times in each year as the Senior Master determines, such amount of the money at credit in each Interest Suspense Account as the Senior Master considers necessary must, after providing for all interest payable to the credit of persons, estates and trusts, be carried to the credit of an account to be called the "Common Funds Guarantee and Reserve Account". S. 113(17) amended by No. 30/2004 s. 3(9). (17) All capital profit made on the realization of investments from a Common Fund (except Common Fund No. 3) must also be carried to the credit of the Common Funds Guarantee and Reserve Account. (18) Money standing to the credit of the Common Funds Guarantee and Reserve Account may be applied for all or any of the following purposes: (a) Payment to a Common Fund of an amount equivalent to any capital loss incurred on realization of any investment made from the Common Fund; (b) Payments of any costs and expenses incurred in protecting investments made from a Common Fund; S. 113(18)(ba) inserted by No. 30/2004 s. 3(10). (ba) Payments of any costs, expenses and charges incurred in respect of staff employed in connection with the administration of a Common Fund as in the opinion of the Senior Master are properly chargeable against the Common Funds Guarantee and Reserve Account; S. 113(18)(bb) inserted by No. 30/2004 s. 3(10). (bb) Payments of any costs, expenses and charges incurred in respect of— (i) legal advice obtained in relation to a person, estate or trust; or (ii) legal proceedings to which a person, estate or trust is a party— as in the opinion of the Senior Master are properly chargeable against the Common Funds Guarantee and Reserve Account and not against a particular person, estate or trust because of the general interest and importance of the subject matter of the advice or proceedings; (c) Payments of such other costs, expenses and charges incurred in respect of a Common Fund or investments made from a Common Fund as in the opinion of the Senior Master are properly chargeable against the Common Funds Guarantee and Reserve Account. (19) Any money standing to the credit of the Common Funds Guarantee and Reserve Account which is not for the time being required for any of the purposes referred to in subsection (18) may be invested— S. 113(19)(a) amended by No. 11/2001 s. 3(Sch. item 71.1 (b)(i)). (a) in any manner in which trust money may be invested by a trustee under the **Trustee Act 1958** or any other Act— S. 113(19)(b) repealed by No. 11/2001 s. 3(Sch. item 71.1(b) (ii)). and all interest received from that investment must be paid into the Common Funds Guarantee and Reserve Account. (20) If it appears to the Senior Master that the amount standing to the credit of the Common Funds Guarantee and Reserve Account on 1 June last past (after allowing for all ascertained and known contingent liabilities of that Account) is in excess of 1% of the amount to the credit of the Common Funds on that day, the Senior Master may pay out of that Account into the Interest Suspense Accounts of the Common Funds such amount as is in excess of that 1% as the Senior Master thinks fit and in such proportions as he or she thinks fit. (21) If it appears to the Senior Master that the amount of capital gains transferred to the Common Funds Guarantee and Reserve Account for the period of 12 months ending on 31 May in each year (after allowing for all ascertained and known contingent liabilities of that Account) is in excess of 0⋅10% of the amount to the credit of the Common Funds on that day, the Senior Master may, until the amount standing to the credit of that Account on 1 June next reaches 1% of the amount to the credit of the Common Funds on that day, pay out of that Account into the Interest Suspense Accounts of the Common Funds such amounts as is in excess of that 0⋅10% as the Senior Master thinks fit and in such proportions as he or she thinks fit. (22) Any amount paid into an Interest Suspense Account under subsection (20) or (21) is to be allocated from that Account in the same manner as interest received from the investment of the money forming part of the Common Fund. S. 113(23) amended by No. 30/2004 s. 3(11). (23) If at any time a Common Fund (except Common Fund No. 3) is insufficient to meet a proper claim on it, the amount of that claim, so far as it cannot be met from the Common Fund, must be paid out of the Consolidated Fund, which is hereby to the necessary extent appropriated accordingly. S. 113(24) amended by No. 11/2001 s. 3(Sch. item 71.1(c)). (24) In order to admit of the money in a Common Fund being kept closely invested, the Senior Master may obtain advances to the Common Fund from any authorised deposit-taking institution within the meaning of the Banking Act 1959 of the Commonwealth by the deposit by way of equitable mortgage of any securities held by the Senior Master in respect of investments from the Common Fund. S. 113(25) amended by No. 11/2001 s. 3(Sch. item 71.1(d)). (25) The aggregate amount of advances made to the Common Funds by any authorised deposit-taking institution within the meaning of the Banking Act 1959 of the Commonwealth and outstanding at any one time must not exceed $1 000 000. S. 113(26) amended by Nos 55/1987 s. 57(3)(Sch. 5 item 55), 11/2001 s. 3(Sch. item 71.1(e)). (26) Subject to the Rules, the Senior Master may, with the consent of the Treasurer and the Chief Justice, enter into arrangements with the State Trust for or with respect to all or any of the following matters— (a) to undertake the management and investment of money held by the Senior Master; (b) to maintain the accounts required to be kept by subsection (8); (c) the establishment and management of one or more Common Funds in which money held by the Senior Master may be invested. S. 113A inserted by No. 30/2004 s. 4.