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Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.*
* Amended in committee-see
table at end of volume.
Clause 2 provides that the proposed Act will commence on the date on
which the Governor assents to it.
Clause 3 gives effect to Schedule I, which amends the Trustee Act 1925.
Schedule 1
Amendment
Schedule l amends section 82A of the Trustee Act 1925, which enables a
trustee to spend trust money on improving or repairing buildings and other
structures erected on land vested in the trustee without first having to obtain
the authority of the Supreme Court. However, the maximum amount that a
trustee (other than the Public Trustee or a trustee company) can spend on
those purposes without obtaining that authority is the lesser of $1,000 and
one-third of the value of the land. The first amendment will increase that
amount to $100,000 regardless of the value of the land involved.
In the case of the Public Trustee or a trustee company, the maximum amount
of trust money that can be spent without obtaining the Supreme Court's
authority is the greater of $10,000 and an amount agreed to by the Public
Trustee, or the trustee company, and the persons beneficially interested in the
land. The second amendment will increase that amount to $100,000. It will
still be possible to vary the latter amount by means of a regulation made
under the Trustee Act 1925.
Explanatory note page 2