New South Wales Consolidated Acts

BAPTIST CHURCHES OF NEW SOUTH WALES PROPERTY TRUST ACT 1984 - SECT 23

23 Power of Trust to invest money separately or in common fund

(1) The Trust may, in its discretion, deal with any money in its hands, whether or not it is subject to any trust, in either of the following ways:

(a) on the separate account of any trust the property of which it forms part,

(b) as part of a common fund established and kept in the books of the Trust, except where the money is required to be invested in some other specified manner and investment in a common fund is specifically prohibited by the terms of the trust governing dealings with the money.

(2) The Trust, except to the extent, if any, that it is expressly forbidden so to do by the terms of any trust to which the Trust is subject, may invest any funds subject to its control, whether at the time in a state of investment or not and whether forming part of the common fund referred to in subsection (1) or not, in the following forms of investment:

(a) in any manner in which trust money may be invested by a trustee under the Trustee Act 1925 , or any other Act or any Act or Ordinance of the Commonwealth or of any State or Territory thereof,

(b) on deposit with any bank carrying on business within the Commonwealth,

(c) in accordance with such terms, provisions and conditions as are prescribed by or under any general or special order of the Supreme Court of New South Wales, in any manner authorised by any such order,

(d) in the debentures or debenture stock or the preference stock or shares of any company incorporated under the law of any State of the Commonwealth, being a company which is listed on a stock exchange within the Commonwealth and which has a paid up capital of not less than $5,000,000 and which has paid dividends upon its ordinary capital at the rate of at least 5 per cent per annum for at least the 10 years next preceding the time of investment (of which fact a letter certifying to that fact and purporting to be signed by the secretary of the company shall be sufficient evidence),

(e) in loans, either secured or unsecured, being loans to any Baptist Church or District Association or to the Baptist Union and being loans made upon such terms and conditions as to the making of loans as the Trust thinks fit.

(3) The Trust shall not make any investment pursuant to subsection (2) (d) which would result, when the investment is made, in the total of the money invested by the Trust pursuant to that paragraph exceeding one quarter of the total amount of the funds subject to its control at that time.

(4) Any sum advanced by the Trust by way of a loan made pursuant to subsection (2) shall bear interest at a rate fixed by the Trust or, at the discretion of the Trust, may be advanced free of interest.

(5) Investments made with money forming part of the common fund shall not be made on account of, or belong to, any particular trust, but the Trust shall cause to be kept in the books of the Trust an account showing at all times the current amount in the common fund to the credit of each trust.

(6) Subject to this Act, the Trust may sell investments belonging to the common fund and apply the money for the purpose of attaining its objects.

(7) The Trust may at any time withdraw from the common fund any amount at credit in the common fund on the account of any trust and may invest, pursuant to subsection (2), any such amount on the account of that trust otherwise than as part of the common fund.

(8) Subject to section 24 (2), no capital appreciation or diminution in the value of any investments made from the common fund shall increase or diminish the amount at credit in the common fund on the account of any particular trust and, on the withdrawal from the common fund of any amount invested therein, the trust in question shall be entitled to be credited with the actual amount which was so invested without regard to any such appreciation or diminution.

(9) In its administration of the common fund, the Trust shall be subject to the control and direction of the Executive Committee.