Div 2Power of trustee to delegate etc

Division 2—Power of trustee to delegate etc 17—Trustee's power of delegation (1) Notwithstanding any rule of law or equity to the contrary, a trustee may, if not expressly prohibited by the instrument creating the trust, by power of attorney created by deed, delegate to any person or persons residing in the State all or any of the powers, authorities and discretions vested in him as trustee either alone or jointly with any other person or persons. (2) The persons who may be donees of a power of attorney under this section include a trustee company but not (unless a trustee company) the only other co-trustee of the donor of the power. (3) A power of attorney under this section— (a) must come into operation on or within six months after the giving of the power; and (b) shall, unless sooner terminated, terminate on the expiration of twelve months from the date on which it came into operation. (4) Before or within seven days after giving a power of attorney under this section, the donor shall give written notice of the power to— (a) each person (other than himself), if any, who under any instrument creating the trust has power (whether alone or jointly) to appoint a new trustee; and (b) each of the other trustees, if any. (5) A notice under subsection (4) must specify— (a) the date on which the power of attorney comes into operation and its duration; and (b) the donee of the power; and (c) the reason why the power is given; and (d) where some only are delegated, the powers, authorities and discretions delegated by the power of attorney. (6) Failure to comply with subsection (4) or (5) shall not invalidate any act done or instrument executed by the donee. (7) Every act done or instrument executed by the donee of a power of attorney under this section in pursuance of the power shall be as valid and effectual as if done or executed by the donor. (8) The donee of a power of attorney under this section shall, in the exercise of the powers, authorities and discretions delegated to him by the power, be regarded as a trustee. (9) The donor and donee of a power of attorney under this section shall be jointly and severally liable for any act or default of the donee. (10) This section does not limit or affect any power to appoint a new trustee in place of a trustee who has given a power of attorney under this section or any power of the Supreme Court to make any order in relation to the trustee. 17A—Power of delegation of members of fighting forces (1) Where a trustee is a member of any naval, military or air force of any part of the British Dominions the power of delegation conferred on him by section 17 of this Act shall not be limited to a term of twelve calendar months, but may be so exercised that the delegation is operative for the whole of the period of his service with any such naval, military or air force. (2) This section shall be deemed to have come into operation on the third day of September, 1939, and shall apply to any power of attorney granted on or after that day and during the continuance of any war in which the Commonwealth is engaged. Any such war shall be deemed to continue from the commencement thereof until the day of the issue of a proclamation by the Commonwealth that the war has ceased. 18—Revocation of power of attorney not effectual as against person in ignorance No revocation or avoidance (whether by operation of law or otherwise) of any such power of attorney shall be effectual as against any person dealing in good faith with the attorney in ignorance of the revocation. 19—Trustee's ADI account (1) Trustees, unless prohibited by the instrument creating the trust, and, if expressly authorised by the power of attorney so to do, their attorneys, appointed under section 17 of this Act, may, by writing signed by them, authorise any ADI to honour cheques, bills, promissory notes, and drafts drawn upon or made payable out of the account of the trust by any one or more of the trustees or attorneys, and to honour the endorsement of any one or more of the trustees or attorneys upon any cheque, bill, promissory note, or draft payable to the order of the trustees, and also to pay to any one or more of the trustees or attorneys, whether before or after maturity, all or any portion of any moneys deposited on fixed deposit. (2) Every trustee who, in person or by attorney, gives or joins in giving any such authority shall be liable for the acts and defaults of every trustee or attorney acting thereunder as if they were his own acts and defaults. (3) No revocation or avoidance (whether by operation of law or otherwise) of any such authority shall be effectual as against any ADI acting or paying money in good faith under or in pursuance of such authority in ignorance of such revocation. (4) This section and sections 17 and 18 of this Act apply only to trusts created after the twenty-first December, 1907. 19A—Power of fiduciaries as to cheques (1) Where two or more persons in a fiduciary position (other than trustees under a will, settlement or other instrument) have deposited with an ADI moneys which have been received by them as such fiduciaries, it shall be lawful for the ADI, when so authorised by those persons— (a) to pay cheques drawn on the ADI by any one or more of them or by any agent authorised by them: (b) to recognise as a valid endorsement upon any bill of exchange or promissory note payable to the order of such persons, an endorsement by any one or more of them or by any agent authorised by them. (2) Where any person in a fiduciary position (other than a trustee under a will, settlement or other instrument) has deposited with an ADI moneys which have been received by him as such fiduciary, it shall be lawful for the ADI when so authorised by that person— (a) to pay cheques drawn on the ADI by any agent authorised by the said person: (b) to recognise as a valid endorsement on any bill of exchange or promissory note payable to the order of the said person an endorsement by any agent authorised by him. (3) Nothing in this section contained shall affect any liability of any person in a fiduciary position to any person towards whom he is in a fiduciary position. (4) This section shall not be construed so as to limit in any way the operation of section 19.