101Bankers acting on trustees' authority, protection of

##### 101. Bankers acting on trustees’ authority, protection of (1) Where there are 2 or more trustees of a trust and the trustees by writing under their hands authorise a banker — (a) to pay bills of exchange drawn upon the banking account of the trustees by the trustee or trustees named in that behalf in the authority; or (b) to recognise as a valid endorsement upon any bill of exchange payable to the order of the trustees the endorsement thereon by the trustee or trustees named in that behalf in the authority; or (c) to pay money out of any account of the trust in a savings bank, on presentation of withdrawal forms signed in the manner specified in the authority, the banker acting in pursuance of that 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 instrument (if any) by which the trust was created did not contain any express power to give such an authority. (2) The protection afforded to bankers by subsection (1) does not apply in the case of anything done by a banker, in pursuance of an authority given under that subsection, after the banker has received notice in writing of the revocation, by death or otherwise, of the authority. (3) This section does not affect any question of the liability of any trustee for breach of trust in authorising a banker as provided by subsection (1) thereof. (4) Nothing in this section or in any rule of law prevents trustees opening a bank account named as an imprest account and authorising any one or more of their number or any other person or persons to operate upon the imprest account. (5) In this section, bill of exchange has the same meaning as in the *Bills of Exchange Act 1909* (Commonwealth). [Section 101 amended: No. 8 of 2009 s. 126.]