sec.150Protection against liability for rents etc. under lease

sec.150 Protection against liability for rents etc. under lease

This section applies if— a trustee is, for any reason, liable in relation to— any rent, covenant or agreement reserved by or contained in a lease; or any indemnity given for any rent, covenant or agreement mentioned in subparagraph (i) ; and before assigning the lease as mentioned in subsection (2) , the trustee— satisfies all liabilities under the lease that may have accrued, and been claimed, up to the date of the assignment; and if necessary, sets apart a fund that is enough to pay any future claim that may be made in relation to a fixed and ascertained amount that the lessee agreed to expend on the leased property (even if the time for expending the amount has not arrived). If the trustee assigns the lease to a person entitled to call for an assignment of the lease, the trustee— is not required to appropriate any further amount from the trust property to meet any future liability under the lease; and may distribute the remaining trust property, other than any fund set apart as mentioned in subsection (1) (b) (ii) , to the persons entitled to the trust property. A trustee who acts under subsection (1) (b) and distributes the remaining trust property under subsection (2) (b) is not personally liable for any later claim under the lease. Nothing in this section affects the right of the lessor, or a person deriving title under the lessor, to follow the trust property into the hands of the persons to whom the trust property has been distributed. In this section— lease includes— an agreement for a lease; and an instrument giving an indemnity as mentioned in subsection (1) (a) (ii) or varying the liabilities under the lease. person entitled , to call for an assignment of a lease, includes a purchaser and a beneficiary under the will, or on the intestacy, of a deceased person. (sec.150-ssec.1) This section applies if— a trustee is, for any reason, liable in relation to— any rent, covenant or agreement reserved by or contained in a lease; or any indemnity given for any rent, covenant or agreement mentioned in subparagraph (i) ; and before assigning the lease as mentioned in subsection (2) , the trustee— satisfies all liabilities under the lease that may have accrued, and been claimed, up to the date of the assignment; and if necessary, sets apart a fund that is enough to pay any future claim that may be made in relation to a fixed and ascertained amount that the lessee agreed to expend on the leased property (even if the time for expending the amount has not arrived). (sec.150-ssec.2) If the trustee assigns the lease to a person entitled to call for an assignment of the lease, the trustee— is not required to appropriate any further amount from the trust property to meet any future liability under the lease; and may distribute the remaining trust property, other than any fund set apart as mentioned in subsection (1) (b) (ii) , to the persons entitled to the trust property. (sec.150-ssec.3) A trustee who acts under subsection (1) (b) and distributes the remaining trust property under subsection (2) (b) is not personally liable for any later claim under the lease. (sec.150-ssec.4) Nothing in this section affects the right of the lessor, or a person deriving title under the lessor, to follow the trust property into the hands of the persons to whom the trust property has been distributed. (sec.150-ssec.5) In this section— lease includes— an agreement for a lease; and an instrument giving an indemnity as mentioned in subsection (1) (a) (ii) or varying the liabilities under the lease. person entitled , to call for an assignment of a lease, includes a purchaser and a beneficiary under the will, or on the intestacy, of a deceased person.