12EHousing loans by trustees

12E Housing loans by trustees

(1) If a trustee lends money on a real security in accordance with the provisions of this Act, or had made such a loan in accordance with the provisions of this Act as in force immediately before the commencement of section 4 of the Trustee and Trustee Companies (Amendment) Act 1995, the trustee is not chargeable with breach of trust by reason only of the proportion borne by the amount of the loan to the value of the property on which the loan is secured if—

(a) the trustee was not expressly forbidden by the instrument (if any) creating the trust to lend money on a real security; and

(b) the loan was a housing loan; and

(c) the loan is secured by a contract of insurance in the prescribed form entered into with an authorised insurer.

(2) The Minister may by notice published in the Government Gazette—

(a) declare a corporation that is lawfully carrying on the business of insuring mortgages in Victoria to be an authorised insurer for the purposes of this section;

(b) revoke a declaration made under paragraph (a).

(3) The Minister may by notice published in the Government Gazette—

(a) specify terms and conditions to which an authorised insurer is authorised to enter into contracts of insurance for the purpose of this section; or

(b) vary or revoke any such terms and conditions.

(4) An authorised insurer who fails to comply with any terms or conditions subject to which it is authorised to enter into contracts of insurance for the purpose of this section shall be guilty of an offence against this Act.

1. 50 penalty units.

(5) For the purposes of this section—

(a) a declaration in force under section 8A(2) of this Act as in force immediately before the commencement of section 4 of the Trustee and Trustee Companies (Amendment) Act 1995 is deemed to be a declaration under subsection (2) of this section; and

(b) terms and conditions applying under section 8A(3) of this Act as so in force are deemed to be terms and conditions applying under subsection (3) of this section—

and may be revoked or varied under this section.

(6) In this section—

authorised insurer means a corporation that has been declared to be an authorised insurer under subsection (2);

dwelling-house includes—

(a) any building that consists, or any buildings that consist, in whole or in substantial part, of residential accommodation, whether constituting a single unit of accommodation or two or more such units; and