sec.54Proceedings to be in name of custodian trustee

sec.54 Proceedings to be in name of custodian trustee

A proceeding in relation to trust property that is vested in a custodian trustee must be brought or defended, in the name of the custodian trustee, as the managing trustees, by instrument, direct. If a custodian trustee brings or defends a proceeding under a direction of the managing trustees mentioned in subsection (1) — the custodian trustee is not personally liable for the costs of bringing or defending the proceeding; but the managing trustees are personally liable for the costs of bringing or defending the proceeding, as if it had been brought or defended by the managing trustees. This section applies subject to an express contrary intention in the trust instrument. (sec.54-ssec.1) A proceeding in relation to trust property that is vested in a custodian trustee must be brought or defended, in the name of the custodian trustee, as the managing trustees, by instrument, direct. (sec.54-ssec.2) If a custodian trustee brings or defends a proceeding under a direction of the managing trustees mentioned in subsection (1) — the custodian trustee is not personally liable for the costs of bringing or defending the proceeding; but the managing trustees are personally liable for the costs of bringing or defending the proceeding, as if it had been brought or defended by the managing trustees. (sec.54-ssec.3) This section applies subject to an express contrary intention in the trust instrument.

• (a) the custodian trustee is not personally liable for the costs of bringing or defending the proceeding; but
• (b) the managing trustees are personally liable for the costs of bringing or defending the proceeding, as if it had been brought or defended by the managing trustees.