sec.55Protection of financial institutions

### sec.55 Protection of financial institutions Where there are 2 or more trustees of a trust and the trustees by writing under their hands authorise a financial institution— to pay bills of exchange drawn upon the financial institution account of the trustees by the trustee or trustees named in that behalf in the authority; or 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 to pay money out of any account of the trust in a financial institution, on presentation of withdrawal forms signed in the manner specified in the authority; the financial institution 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. The protection afforded to financial institutions by subsection (1) does not apply in the case of anything done by a financial institution, in pursuance of an authority given under that subsection, after the financial institution has received notice in writing of the revocation, by death or otherwise, of the authority. This section does not affect any question of the liability of any trustee for breach of trust in authorising a financial institution as provided by subsection (1) . Nothing in this section or in any rule of law prevents trustees opening an account named an imprest account at a financial institution and authorising any 1 or more of their number or any other person or persons to operate upon the imprest account. In this section— bill of exchange has the same meaning as in the Bills of Exchange Act 1909 (Cwlth) . s 55 amd 1990 No. 78 s 5 ; 1997 No. 17 s 71 (sec.55-ssec.1) Where there are 2 or more trustees of a trust and the trustees by writing under their hands authorise a financial institution— to pay bills of exchange drawn upon the financial institution account of the trustees by the trustee or trustees named in that behalf in the authority; or 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 to pay money out of any account of the trust in a financial institution, on presentation of withdrawal forms signed in the manner specified in the authority; the financial institution 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. (sec.55-ssec.2) The protection afforded to financial institutions by subsection (1) does not apply in the case of anything done by a financial institution, in pursuance of an authority given under that subsection, after the financial institution has received notice in writing of the revocation, by death or otherwise, of the authority. (sec.55-ssec.3) This section does not affect any question of the liability of any trustee for breach of trust in authorising a financial institution as provided by subsection (1) . (sec.55-ssec.4) Nothing in this section or in any rule of law prevents trustees opening an account named an imprest account at a financial institution and authorising any 1 or more of their number or any other person or persons to operate upon the imprest account. (sec.55-ssec.5) In this section— bill of exchange has the same meaning as in the Bills of Exchange Act 1909 (Cwlth) . - (a) to pay bills of exchange drawn upon the financial institution 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 financial institution, on presentation of withdrawal forms signed in the manner specified in the authority;