Div 4Miscellaneous powers and liabilities

Division 4—Miscellaneous powers and liabilities 24—Power to authorise receipt of money by banker or solicitor (1) A trustee may appoint a solicitor to be his agent to receive and give a discharge for any money or valuable consideration or property receivable by the trustee under the trust, by permitting the solicitor to have the custody of, and to produce, a deed having in the body thereof or endorsed thereon a receipt for such money, consideration, or property, the deed being executed or the endorsed receipt signed by the trustee. (2) A trustee shall not be chargeable with breach of trust by reason only of his having made or concurred in making any such appointment. The producing of any such deed by the solicitor shall be sufficient authority to the person liable to pay or give the consideration, or transfer or deliver the property, for his paying, giving, transferring, or delivering the same to the solicitor, without the solicitor producing any separate or other direction or authority from the trustee. (3) A trustee may appoint an ADI or a solicitor to be his agent to receive and give a discharge for any money payable to the trustee under or by virtue of a policy of assurance, by permitting the ADI or solicitor to have the custody of and to produce the policy of assurance with a receipt signed by the trustee, and a trustee shall not be chargeable with a breach of trust by reason only of his having made or concurred in making any such appointment. (4) If a trustee permits any such money, valuable consideration, or property to remain in the hands or under the control of the ADI or solicitor for a period longer than is reasonably necessary to enable the ADI or solicitor (as the case may be) to pay or transfer the same to the trustee, nothing in this section shall exempt him from any liability which he would have incurred if this Act had not been passed. (5) This section applies only where the money or valuable consideration or property is received after the twenty-third day of December, 1893. (6) Nothing in this section shall authorise a trustee to do anything which he is in express terms forbidden to do, or to omit anything which he is in express terms directed to do, by the instrument creating the trust. 25—Powers of trustee as to insurance (1) A trustee may insure any building or other insurable property against loss or damage whether by fire or otherwise and against any risk or liability against which it would be prudent for a person to insure if he were acting for himself. (2) The amount for which any property is insured (including any amount of insurance already on foot) shall not exceed the full value of the property: Provided that the full value shall not be limited for the purposes of this section to the sale value of the property but shall include the replacement cost as at times material as well as indemnity against loss of rent and other collateral risks. (3) A trustee may pay the premiums for such insurance out of any income from the property insured or out of the income of any other property subject to the same trusts, without obtaining the consent of any person, notwithstanding that there may be a person entitled wholly or partly to such income. (4) If there is no such income or to the extent to which such income is deficient (for which purpose all other outgoings payable from such income whether discretionary or not may be brought into account by the trustee) the trustee may borrow the necessary money for paying the premiums and may give security over the property insured or over any other property subject to the same trusts. The principal of the money so borrowed and the interest thereon shall be repaid out of any income from the property insured or out of the income of any other property subject to the same trusts, if there is any such income available for the purpose; and if there is no such income, or if such income is insufficient, the said principal and interest, or, as the case may be, that part of the said principal and interest which is in excess of the income available for payment thereof, shall be repaid out of the capital of any property subject to the same trusts. (5) Where a policy of insurance against the loss or damage of any property subject to a trust, whether by fire or otherwise, has been kept up under any trust in that behalf, or under any power statutory or otherwise, or in performance of any obligation statutory or otherwise, the money receivable by a trustee under the policy shall except to the extent to which it is receivable in respect of loss of rent or other collateral risk as aforesaid, be capital money for the purposes of the trust. (6) If the money is receivable in respect of property held upon trust for sale, it shall be held upon the trusts and subject to the powers and provisions applicable to money arising by a sale under the trust. (7) In any other case the money shall be held upon trusts corresponding as nearly as may be with the trusts affecting the property in respect of which it was receivable. (8) Notwithstanding subsection (6) of this section, and whether the property in respect of which the money is receivable is held upon trust for sale or not, the money or any part thereof may also be applied by the trustee, or, if in Court, under the direction of the Court, in rebuilding, reinstating, replacing, or repairing the property lost or damaged. (9) Any such application by the trustee shall be subject to the consent of any person whose consent is required by the instrument, if any, creating the trust to the investment of money subject to the trust. (10) Nothing in this section shall prejudice or affect the right of any person to require the money or part thereof to be applied in rebuilding, reinstating or repairing the property lost or damaged. (11) Nothing in this section shall prejudice or affect the rights of any mortgagee lessor or lessee, whether under any statute or otherwise. (12) This section applies only if and as far as a contrary intention is not expressed in the instrument, if any, creating the trust, and shall have effect subject to the terms of that instrument and to the provisions therein contained. (13) This section applies to trusts created and to policies issued either before or after the commencement of the Trustee Act Amendment Act 1941 but only to money received after that commencement. 25A—Repairs to trust property (1) Unless prohibited by the terms of the trust the trustee at his discretion may— (a) execute or cause to be executed all repairs to any buildings erections or fixtures being part of the trust property which repairs in the opinion of the trustee are necessary or proper for the preservation of the buildings erections or fixtures or to render them tenantable: (b) pay and satisfy all rates taxes charges assessments or impositions (including arrears) assessed or imposed on or in respect of the trust property or any part thereof whether payable by the landlord or tenant or owner or occupier in respect thereof: (c) pay the moneys required for the purposes mentioned in paragraphs (a) and (b) out of any moneys whether capital or income which are subject to the same trusts as the property repaired or in respect whereof the said rates taxes charges assessments or impositions are paid: (d) debit the moneys so paid to capital or income or adjust the same between capital and income in such manner as to the trustee shall seem equitable. (2) Upon the application of an interested party of which application notice shall be given to the trustee and to such other parties as the Supreme Court may think to have a sufficient interest in the subject matter of the application, the Supreme Court in its discretion may review any such debit or adjustment and may direct how the payments made as aforesaid shall be borne between the parties interested in the trust property. On any such application there shall be no presumption that the trustee has exercised his discretion under paragraph (d) of subsection (1) of this section properly. (3) On the application of the trustee, of which notice shall be given to the person intended to be affected, the Supreme Court may in its discretion order that the whole or any portion of the moneys paid by the trustee under this section shall be paid by any beneficiary under the trust who the court in its discretion thinks should be made personally liable therefor. (4) Nothing in this section shall relieve a trustee from any liability in respect of any breach of trust: Provided that a trustee shall not be liable for any breach of trust because of an honest although erroneous exercise of discretion under paragraph (d) of subsection (1) of this section. 25B—Power of Court to authorise alterations and repairs (1) The Supreme Court may on the application of a trustee or of a beneficiary interested in the trust property authorise or direct the expenditure by the trustee of such sum or sums as the court thinks fit out of the capital or income of the trust property or both or out of any part or parts thereof in and for building or rebuilding or repairing, reinstating, altering, adding to or in any way improving the trust property or any part thereof. (1a) The Supreme Court may require that notice be given of an application under subsection (1) to any person who has, in the opinion of the Court, a proper interest in the matter (but an order may be made, if the Court thinks fit, although no notice has been given of the application). (2) If there is no ready money available for the said purposes or to the extent that the ready money is insufficient, the Supreme Court may authorise or direct the trustee to sell any part of the trust property or to raise money upon loan by mortgage of the whole or any part or parts of the trust property for the purpose of securing such loans or otherwise and in either case upon or subject to such terms and conditions as the Court may by order authorise or direct. (3) The Supreme Court may give directions for the debiting of the expenditure (including the costs of the application to the court) incurred for the purposes of this section to capital or income or for the adjustment of the same between capital and income in such manner as the Court in its discretion thinks just. (4) This section does not apply to any building or property which a trustee is bound forthwith to convey absolutely to any beneficiary upon being requested to do so. (5) This section applies to trusts created either before or after the commencement of the Trustee Act Amendment Act 1941; but nothing in this section shall authorise the trustee to do anything which he is in express terms forbidden to do, or to omit to do anything which he is in express terms directed to do, by the instrument creating the trust. 25C—Power of trustee as to granting leases (1) A trustee may make a lease of land in possession in any of the following cases, that is to say— (a) where he holds the land with power to manage it, or upon trust for sale with an express power to postpone the sale, the lease may be for any term not exceeding ten years; (b) where he holds the land without power to manage it, or upon trust for sale, without any express power to postpone the sale, the lease may be for any term not exceeding five years. (2) A trustee shall not be deemed to hold land with power to manage it within the meaning of this section by reason only of the fact that it is proper to postpone the sale in order to sell to the best advantage and in the meantime to manage the land. (3) Any lease which a trustee is authorised to make under this section or under the instrument, if any, creating the trust or power may— (a) provide for a rent increasing at such times as are specified in the lease; (b) give an option of renewal, provided that the duration of the lease and any such renewal shall not in the aggregate exceed the term for which the trustee is authorised to make the lease. (4) If the land is the subject of a settlement within the meaning of the Settled Estates Act 1880 and there is any other person authorised by the settlement or by that Act to demise the land or any part thereof, this section shall not apply unless that person in writing authorises the trustee to make the lease. (5) This section shall not apply to a bare trustee, where the beneficiary, or all the beneficiaries (if more than one) is or are entitled in possession and free of any incapacity. (6) This section applies only if and as far as a contrary intention is not expressed in the instrument, if any, creating the trust or power, and shall have effect subject to the terms of that instrument and to the provisions therein contained. (7) This section applies to trusts created either before or after the commencement of the Trustee Act Amendment Act 1941. 26—Power of trustees of renewable leaseholds to renew and raise money for the purpose (1) A trustee of any leaseholds for lives or years which are renewable from time to time, either under any covenant or contract, or by custom or usual practice, may, if he thinks fit, and shall, if thereto required by any person having any beneficial interest present or future or contingent, in the leaseholds, use his best endeavours to obtain from time to time a renewed lease of the same hereditaments on the accustomed and reasonable terms, and for that purpose may from time to time make or concur in making a surrender of the lease for the time being subsisting, and do all such other acts as are requisite: Provided that, where by the terms of the settlement or will, the person in possession for his life or other limited interest is entitled to enjoy the same without any obligation to renew or to contribute to the expense of renewal, this section shall not apply, unless the consent in writing of that person is obtained to the renewal on the part of the trustee. (2) If money is required to pay for the renewal, the trustee effecting the renewal may pay that money out of any money then in his hands in trust for the persons beneficially interested in the lands to be comprised in the renewed lease, and if he has not in his hands sufficient money for the purpose, he may raise the money required by mortgage of the hereditaments to be comprised in the renewed lease, or of any other hereditaments for the time being subject to the uses or trusts to which those hereditaments are subject; and no person advancing money upon a mortgage purporting to be under this power shall be bound to see that the money is wanted, or that no more is raised than is wanted for the purpose. (3) This section applies to trusts created either before or after the commencement of this Act; but nothing in this section shall authorise any trustee to do anything which he is in express terms forbidden to do, or to omit to do anything which he is in express terms directed to do, by the instrument creating the trust. 26A—Power to surrender leases with onerous covenants (1) Where a lease is vested in a trustee or in a trustee with others and the lease or the property comprised in the lease is subject to onerous covenants or obligations of such a nature that it would not be in the interests of the beneficiaries to retain the property, the trustee may surrender or concur in surrendering the lease. (2) A trustee may, in respect of any lease, exercise any power conferred on trustees by this section, notwithstanding that the reversion of the lease is vested in him or in him with others as trustee or trustees under a different trust. (3) Where the trustee has acted in good faith and on the advice of a person whom he reasonably believed to be a competent valuer instructed and employed independently of the lessor whether the valuer carried on business in the locality where the property is situate or elsewhere, the trustee shall not be chargeable with breach of trust nor shall the surrender be impeached by any beneficiary upon the ground only that the covenants or obligations were not of the nature mentioned in subsection (1) of this section. (4) Any person who acquires bona fide for value any estate or interest in the property previously subject to such lease shall not be concerned to inquire whether the surrender was authorised by this section. (5) This section applies whether the leasehold vested in the trustee before or after the commencement of the Trustee Act Amendment Act 1941. 27—Power of trustee to give receipts (1) The receipt in writing of any trustee for any money, securities, or other personal property or effects payable, transferable, or deliverable to him under any trust or power shall be a sufficient discharge for the same, and shall effectually exonerate the person paying, transferring, or delivering the same from seeing to the application or being answerable for any loss or misapplication thereof. (2) This section applies to trusts created either before or after the commencement of this Act. 28—Power for executors and trustees to compound etc (1) An executor or administrator may pay or allow any debt or claim on any evidence that he thinks sufficient. (2) An executor or administrator, or two or more trustees acting together, or a sole acting trustee, where, by the instrument (if any) creating the trust, a sole trustee is authorised to execute the trusts and powers thereof, may, if and as he or they may think fit— (a) accept any composition or any security, real or personal, for any debt or for any property, real or personal, claimed; and (b) allow any time for payment of any debt; and (c) compromise, compound, abandon, submit to arbitration, or otherwise settle any debt, account, claim, or thing whatever relating to the testator's or intestate's estate or to the trust; and (d) for any of those purposes enter into, give, execute, and do such agreements, instruments of composition or arrangements, releases, and other things, as to him or them seem expedient, without being responsible for any loss occasioned by any act or thing so done by him or them in good faith. (3) This section applies only if and as far as a contrary intention is not expressed in the instrument (if any) creating the trust, and shall have effect subject to the terms of that instrument and to the provisions therein contained. (4) This section applies to executorships, administratorships, and trusts constituted or created either before or after the commencement of this Act. 28A—Power to release equity of redemption in satisfaction of mortgage debt (1) Where an equity of redemption is vested in a trustee and the mortgaged property is not of greater value than the amount of the mortgage debt, the trustee may release the equity of redemption to the mortgagee in discharge of the mortgage debt or part thereof. (2) The trustee shall not be chargeable with breach of trust nor shall the release be impeached by any beneficiary upon the ground only that the mortgaged property was of greater value than the amount of the mortgage debt or of the part thereof discharged, provided that the trustee has acted in good faith and on the advice of a person whom he reasonably believed to be a competent valuer instructed and employed independently of the mortgagee, whether the valuer carried on business in the locality where the property is situate or elsewhere. (3) This section applies whether the equity of redemption vested in the trustee before or after the commencement of the Trustee Act Amendment Act 1941. 28B—General power of trustee to raise money (1) Where a trustee is authorised by the instrument, if any, creating the trust or by law to pay or apply capital money for any purpose or in any manner, he shall have and shall be deemed always to have had power to raise the money required by sale, conversion, calling in, or mortgage of all or any part of the trust property for the time being in possession held upon the same trusts as the capital money. (2) Where a trustee holds land in respect of which moneys are due and payable for rates or taxes or in respect of which the trustee is under a statutory obligation to expend moneys and the trustee has no moneys subject to the same trusts as such land wherewith to pay such rates or taxes or discharge such statutory obligation the trustee shall have and shall be deemed always to have had power to raise the money required to make such payment or discharge such obligation by sale or mortgage of the whole or part of such land or by sale, conversion, calling in or mortgage of all or any part of the trust property for the time being in possession held upon the same trusts as such land. (3) This section shall apply notwithstanding anything to the contrary contained in the instrument, if any, creating the trust but shall not apply to a trustee of property held for charitable purposes. (4) This section applies to trusts created either before or after the commencement of the Trustee Act Amendment Act 1941. 28C—Application of income by trustee-mortgagee in possession (1) Where a trustee is entitled whether severally or as a co-mortgagee to a debt secured by a mortgage of land in trust as to the whole or part of such debt for persons by way of succession, and such trustee is at the commencement of the Trustee Act Amendment Act 1941 or at any time after such commencement becomes mortgagee in possession of the mortgaged land, the trustee shall apply the net income of the mortgaged land received by him after such commencement or after he becomes mortgagee in possession, as the case may be, as follows, namely— (a) in discharge of all rents, taxes, rates and outgoings affecting the mortgaged land; (b) in payment of the premiums on any insurances properly payable under the mortgage instrument or under the Trustee Act Amendment Act 1941 and the cost of executing necessary repairs; (c) in keeping down all periodical payments whether of principal or interest charged upon the mortgaged land and having priority to the mortgage in right whereof he is in possession. (1a) Subject to the rights of the mortgagor such trustee shall hold the residue of the income so received by him upon the trusts to which such mortgage debt is subject. (2) The rents, taxes, rates, outgoings, premiums, costs, annual sums, payments and interest so to be discharged, kept down and paid shall be those accruing due— (a) after the commencement of the Trustee Act Amendment Act 1941 where the trustee is in possession of the mortgaged land at such commencement; (b) after the date of possession by the trustee, where the entry into possession is after the commencement of the Trustee Act Amendment Act 1941. (2a) However, if at the commencement of the Trustee Act Amendment Act 1941 or on the date of possession by the trustee, as the case may be, any rents, taxes, rates, outgoings, annual sums, payments, interest or premiums mentioned in paragraphs (a), (b) or (c) of subsection (1) of this section were or are due and unpaid, and such of those rents, taxes, rates, outgoings, annual sums, payments and premiums as are periodical payments, were payable wholly or in part in respect of any period subsequent to such commencement or to such date of possession, as the case may be, then such last mentioned rents, taxes, rates, outgoings, annual sums, payments and premiums shall, for the purpose of this section, be considered as accruing from day to day and shall be apportionable in respect of time accordingly. (3) On the recovery of the moneys secured by the mortgage whether in whole or in part, and whether by repayment or on realisation of the security or otherwise, such part of the income applied by the trustee in the payments specified in paragraph (a), (b), and (c) of subsection (1) of this section as would otherwise have been payable as interest to the person entitled to the interest of the mortgage debt shall as between the persons respectively entitled to the income and capital of the mortgage debt be deemed to be arrears of interest and the amount received by the trustee shall be apportioned accordingly. (4) Notwithstanding anything in this section contained, the trustee may, if in the administration of the trust he deems it necessary so to do, apply income of the mortgaged property received by him after the commencement of the Trustee Act Amendment Act 1941 in payment of any rents, taxes, rates, outgoings, premiums, costs, annual sums, payments and interest affecting the mortgaged land other than those specified in subsection (2) of this section but the person entitled to the interest on the mortgage debt shall be entitled to recoupment out of the capital of the mortgage debt of all payments made by the trustee under the authority conferred by this subsection. 29—Distribution of estate after notice by representative or trustee (1) Where a representative or trustee has given notices such as would have been given by the court in an administration action for creditors, beneficiaries, and others to send in to the representative or trustee their claims against the estate of the deceased person or against the trust property, the representative or trustee may, at the expiration of the time named in the notices, distribute the estate of the deceased person or the trust property or any part thereof amongst the persons entitled thereto, having regard only to the claims of which he then has notice, and shall not be liable for the estate or property or any part thereof so distributed to any person of whose claim he had no notice at the time of the distribution. (2) Where a representative or trustee has received a claim or notice of claim against the estate of a deceased person or against a trust property, and he disputes the claim, that representative or trustee may give to the person making the claim, or giving the notice, a notice in writing that the claim is disputed, and requiring the claimant either to withdraw the claim or to institute proceedings to enforce it within six months of the service of the last-mentioned notice; and if the claim is not so withdrawn or prosecuted, the representative or trustee may apply by summons in chambers to any judge of the Supreme Court, on affidavit setting out the facts for an order that, as against such representative or trustee, the claim shall be absolutely barred, and any such judge may make such order as he deems just, and the order shall bind all persons whom it purports to affect. (3) Nothing in this section shall prejudice the right of any person to follow the estate or property or any part thereof into the hands of any person who has received it. (4) A representative or trustee desirous of giving notices under this section may, on application, obtain the direction of the Supreme Court, or of the Master thereof, as to what notices are proper to be given, and as to the mode of service. (5) The Supreme Court may require that notice be given of an application under subsection (4) to any person who has, in the opinion of the Court, a proper interest in the matter (but an order may be made, if the Court thinks fit, although no notice has been given of the application). 30—Liability of trustee in respect of rents, covenants etc (1) Where a trustee liable as such under any instrument or agreement entered into before the creation of the trust or before the trust became operative for or in respect of— (a) any rent, covenant or agreement reserved by or contained in any lease; or (b) any rent, covenant or agreement payable under or contained in any grant made in consideration of a rentcharge; or (c) any indemnity given in respect of any such rent covenant or agreement, satisfies all liabilities under the lease or grant which have accrued and been claimed as against him up to the date of the conveyance hereinafter mentioned, and where necessary, sets apart a sufficient fund to answer any future claim that may be made in respect of any fixed or ascertained sum which the lessee or grantee agreed to lay out on the property demised or granted, although the period for laying out that sum may not have arrived, then and in any such case the trustee may convey the property demised or granted, to a purchaser, legatee, devisee or other person entitled to call for conveyance thereof, and thereafter— (d) he may distribute the estate or the residue of the estate other than the fund (if any) set apart as aforesaid as the case may be to or amongst the persons entitled thereto without appropriating any part, or any further part, of the estate to meet any future liability under the said lease or grant; (e) notwithstanding such distribution he shall not be personally liable in respect of any claim that may be subsequently made under the said lease or grant except a claim for application of the fund set apart. (2) This section shall not— (a) affect the right to follow assets into the hands of any person or persons to or amongst whom the assets may have been transferred or distributed for the purpose of recovering payment of any amount for which the trustee is liable as mentioned in paragraphs (a), (b) and (c) of subsection (1) of this section: (b) apply where the trustee is himself an original party to such lease grant or indemnity or a party otherwise than as trustee. (3) This section applies notwithstanding anything to the contrary in the will or other instrument if any creating the trust. (4) This section applies to trusts created either before or after the commencement of the Trustee Act Amendment Act 1941. (5) In this section— lease includes an underlease and an agreement for a lease or underlease and any instrument giving any such indemnity as aforesaid or varying the liabilities under the lease or underlease; grant includes a grant whether the rent is created by limitation, grant, reservation, or otherwise, and includes an agreement for a grant and any instrument giving any such indemnity as aforesaid or varying the liabilities under the grant; lessee and grantee include persons respectively deriving titles under them. 31—Shares with contingent liability (1) Where trust property includes shares not fully paid up in any company in respect of which there is a contingent liability to contribute, then so soon as the trustee has procured registration of those shares in the name of some other person he may transfer and distribute the trust property without retaining any portion thereof for payment of calls made on those shares after the date of the registration whether made by the company or its directors or by its liquidator in a winding up or by a receiver or manager on behalf of the holders of any debenture or otherwise, and the trustee shall not in such case be personally liable to pay any call after the registration except to the extent of trust property which, at the time when the call is made remains, or should in the due course of administration have remained, in his hands and is, or should have been, available for paying such calls. (2) This section shall not affect the right to follow assets into the hands of any person or persons to or amongst whom the assets may have been transferred or distributed for the purposes of recovering payment of any such call. (3) This section applies to trusts created either before or after the commencement of the Trustee Act Amendment Act 1941. 32—Powers of two or more trustees (1) Where a power or trust is given to or vested in two or more trustees jointly, then, unless the contrary is expressed in the instrument (if any) creating the power or trust, the power or trust may be exercised or performed by the survivor or survivors of them for the time being. (2) This section applies only to trusts constituted after or created by instruments coming into operation after the twenty-third day of December, 1893. 33—Powers of trustees as to maintenance and accumulation (1) Where property is held in trust for any person— (a) who is for the time being an infant; or (b) subject to his attaining a specified age; or (c) contingently upon the happening of any event, the trustee may in his discretion— (i) in the case of an infant, pay to the parent or guardian of the infant or to the person having the custody or control of the infant or otherwise apply for or towards the maintenance, education, benefit or advancement of the infant; or (ii) in the case of any beneficiary not an infant, pay to that beneficiary or on his behalf or for his maintenance or benefit or to some person (selected or approved by the trustee), the whole or any part of the income of the property held in trust as aforesaid. (2) The power conferred by this section may be exercised at any time or from time to time in the discretion of the trustee and whether there is any other property or fund applicable for the same purpose or any person bound by law to provide and capable of providing for such infant or beneficiary or not. (3) The power conferred by this section shall not be capable of being exercised so as to prejudice any interest in or charge over the property which is prior to that of the infant or other beneficiary: Provided that where the interest of the infant or other beneficiary is not vested, and would not apart from the power given by this section permit any participation in the intermediate income, but such intermediate income is not specially disposed of and would pass to some other person only under a residuary or general gift of property in the instrument (if any) creating the trust or in the absence of such gift as upon intestacy or as upon a resulting trust, then the intermediate income shall be available for the exercise of the power given by this section and the interest of such person as lastly mentioned in the intermediate income shall not be deemed prior to that of the infant or other beneficiary for the purposes of this section. (4) To the extent that the intermediate income is not paid or applied pursuant to the power conferred by this section or otherwise the trustee may accumulate that income within the limits allowed by law by investing it and the income resulting therefrom from time to time in securities authorised by law or by the trust instrument (if any). (5) Such accumulations of income may in any year be paid or applied pursuant to the powers conferred by this section as if they were income arising in that year. (6) Notwithstanding that an infant or other beneficiary may participate in intermediate income by reason of the exercise of the power conferred by this section the trustee shall hold the accumulations or the residue thereof as an accretion to the corpus of the property from which the accumulations arose as one fund therewith for all purposes other than those hereinbefore particularised. (7) This section shall be deemed to apply to a vested annuity as if the annuity were income of property held by a trustee upon trust to pay that income to the annuitant for the same period as that for which the annuity is payable save that in any case accumulations as hereinbefore provided shall be held in trust for the annuitant absolutely. (8) This section applies only if and as far as a contrary intention is not expressed in the instrument (if any) creating the trust and shall have effect subject to the terms of that instrument and to the provisions therein contained. (9) This section only applies where the trust was created after the commencement of the Trustee Act Amendment Act 1941. (10) Notwithstanding the repeal of section 33 of this Act as in force before the passing of the Trustee Act Amendment Act 1941 that repealed section shall, in relation to trusts created before the passing of that Act be deemed to continue in force, and to have continued in force as if it had not been repealed. 33A—Power to apply capital towards advancement and benefit (1) Where under a trust a person is entitled to the capital of the trust property or any share thereof, the trustee may from time to time pay or apply any capital money subject to the trust, not exceeding altogether in amount one half of the value of the property or share for the advancement, maintenance, education, or benefit of such person in such manner as the trustee shall in his absolute discretion think fit. (2) The power conferred by this section may be exercised whether the person is entitled absolutely or contingently on his attaining any specified age or on the happening of any event, or whether his interest is subject to a gift over on his death under any specified age or on the happening of any other event, and notwithstanding that the interest of the person so entitled is liable to be defeated by the exercise of a power of appointment or revocation, or to be diminished by the increase of the class to which he belongs or whether the person is entitled in possession or in remainder or reversion. (3) If the person is or becomes absolutely and indefeasibly entitled to a share in the trust property, the money so paid or applied for his advancement, maintenance, education or benefit shall be brought into account as part of such share. (4) No such payment or application shall be made so as to prejudice any person entitled to any prior life or other interest, whether vested or contingent, in the money paid or applied, unless such person is in existence and under no disability and consents in writing to the payment or application. (5) This section applies only where the trust property consists of money or securities or property held upon trust for sale calling in and conversion, and the money or securities or the proceeds of the sale calling in and conversion are not by statute or in equity considered as land. (6) This section applies only and if and as far as a contrary intention is not expressed in the instrument, if any, creating the trust, and shall have effect subject to the terms of that instrument and to the provisions therein contained. (7) This section only applies where the trust was created after the commencement of the Trustee Act Amendment Act 1941. 34A—Notice where trustee acts in two or more trusts (1) A trustee acting for the purpose of more than one trust or estate shall not, in the absence of fraud, be affected by notice of any instrument, matter, fact or thing in relation to any particular trust or estate if he has obtained notice thereof merely by reason of his acting or having acted for the purposes of another trust or estate. (2) This section applies whether the trusts were created before or after the commencement of the Trustee Act Amendment Act 1941. 35—Liability of trustees (1) A trustee is accountable only for trust property actually received by him unless he wilfully or negligently failed, in breach of his obligations under the trust, to take possession of the trust property. (1a) A trustee is not liable for any loss of trust property unless— (a) the loss occurred as a result of his own wrongful or negligent act or omission; or (b) the loss occurred as a result of circumstances that the trustee could reasonably be expected to have foreseen and to have avoided. (2) A trustee may reimburse himself, or pay or discharge out of the trust premises, all expenses incurred in or about the execution of his trusts or powers. 35A—Investment of pecuniary bequest (1) A trustee may set aside and invest the amount of any pecuniary bequest in any investments authorised by law or by the will or codicil of the testator and thereafter the investments so made or the proceeds thereof and the interest or other income arising therefrom shall be taken in full satisfaction and discharge of such bequest and all persons interested or entitled or who may become interested or entitled to the estate of the testator or any part thereof shall be bound by such setting aside and investment and any gain or loss consequent thereupon shall accrue to or be borne by the persons interested or entitled or who shall become interested or entitled to such legacy and the interest or income arising therefrom according to their respective rights or interests. (2) A trustee may set aside and invest in any investments authorised by law or by the trust instrument a fund to answer an annuity or annuities by means of the income of the fund or otherwise, provided that at the time of appropriation the fund would be sufficient if it were invested in Government securities of the Commonwealth of Australia at par to provide an income exceeding the annuity or annuities by at least twenty-five per centum thereof and thereafter the annuitant or annuitants shall be limited to the income or if the annuity or annuities were originally payable out of or charged upon corpus the income and corpus of the fund so set apart and the trustee shall not be personally liable for the deficiency of any such annuity over and above the income or the corpus and income of such fund as the case may be. (3) A trustee shall have power from time to time to transpose any investments made under this section for other like investments. (4) This section applies only if or to the extent a contrary intention is not expressed in the instrument (if any) creating the trust. (5) This section applies to trusts created either before or after the commencement of the Trustee Act Amendment Act 1941. 35B—Variation of employees' benefit fund (1) The trustees of any employees' benefit fund may vary the instrument creating the fund as they think fit, subject to the observance of the following conditions: (a) the consent of the beneficiaries shall be obtained to the variation; (b) the consent shall be obtained by a vote of beneficiaries at a meeting called and held pursuant to not less than four weeks' notice in that behalf stating the details of the proposed variation to be submitted to the meeting and served personally or by post on every beneficiary. If the notice is served by post it shall be sufficient to address it to the usual or last known place of abode or business of the beneficiary; (c) the consent of the beneficiaries shall not be deemed to have been given unless three-fourths of the beneficiaries present and voting at a meeting held as aforesaid consent to the variation. (2) A person nominated in that behalf by the trustees of the employees' benefit fund shall preside as chairman at a meeting held under this section unless and until some other person is proposed and seconded by beneficiaries and elected as chairman by a majority of the beneficiaries present and voting at the meeting, in which case that person shall preside as chairman. (3) A person voting at a meeting under this section shall do so by marking his vote on a ballot-paper provided by the trustees; and the meeting shall be so conducted as to ensure that the voting shall be secret. (4) A certificate in writing under the hand of any person who was chairman of a meeting held under this section at the time the beneficiaries voted on the variation shall be prima facie evidence that the meeting was duly called and the consent of the beneficiaries to the variation was duly obtained. (5) Where the instrument creating an employees' benefit fund is varied pursuant to this section, the property of the fund shall be held on the trusts contained in the instrument as varied. (6) The benefits to which any person is entitled in possession under an employees' benefit fund shall not be prejudiced or diminished in any way by any variation under this section of the instrument creating the fund without the consent in writing of that person. (7) This section shall apply unless the instrument creating the employees' benefit fund expressly provides that it shall not apply. (8) Subject to subsection (7) of this section, where the instrument creating an employees' benefit fund provides for the variation of the instrument, the instrument may be varied in accordance with its terms or in accordance with this section. (9) This section shall apply to any employees' benefit fund whether created before or after the passing of the Trustee Act Amendment Act 1953. (10) In this section— benefit means all or any of the following benefits, namely, pensions, retiring allowances, sickness or hospital benefits, payments during unemployment, death or funeral benefits or other like benefits, allowances or payments; beneficiary means a person who is entitled or prospectively entitled to a benefit under an employees' benefit fund by virtue of his employment and who is actually in that employment at the time that the meeting is held pursuant to paragraph (b) of subsection (1) of this section; employees' benefit fund means any fund established, provided, or contributed to, by any employer for the purpose of providing any benefit to his employees during or after the determination of their employment or to both those employees and any other persons; vary includes add to and variation includes addition.