54Banks

54 Banks (1) Where there are more than 2 trustees or where there are 2 trustees 1 of whom is the public trustee and guardian or a trustee company, and the trustees by signed instrument authorise a bank— (a) to pay bills of exchange drawn upon the banking account of the trustees by 2 or more trustees named in that behalf in the authority or by the public trustee and guardian or a trustee company if 1 of the trustees and so named in that behalf in the authority; or (b) to recognise as a valid endorsement upon any bill of exchange or promissory note payable to the order of the trustees the endorsement by 2 or more trustees named in that behalf in the authority or by the public trustee and guardian or a trustee company if 1 of the trustees and so named in that behalf in the authority, or where the endorsement is for collection and credit of any account of the trustees with a bank, the endorsement by any 1 or more of the trustees named in that behalf in the authority; the bank acting under the authority shall not be deemed privy to a breach of trust on the ground only of notice that the persons giving the authority were trustees, or that the trust instrument did not contain any express power to give the authority. (2) The duration of any such authority shall be limited to a period not exceeding 3 months on any 1 occasion, except where— (a) the trustee or 1 of the trustees named in the authority is the public trustee and guardian or a trustee company; or (b) the authority is to indorse for collection and credit of any account of the trustees with a bank. (3) This section shall not affect any question of the liability of any trustee for breach of trust in giving the authority.