New South Wales Consolidated Acts

MORATORIUM ACT 1932 - SECT 36

36 Trustees protection

(1) A trustee, who holds any property being the whole or part of the estate of the deceased person or the whole or part of the estate subject to the trust as the case may be, all or any or which is subject to a mortgage of real property or to a mortgage of land as the case may be, shall not be deemed guilty of any breach of trust or breach of duty by reason only of his paying or repaying out of such property any principal moneys, or interest secured by the mortgage, where such payment or repayment would not have been improper if this Act, or the Moratorium Act, had not been enacted.

(2) If any mortgagee is a trustee, such mortgagee shall not be deemed guilty of any breach of trust by reason only of his agreeing with a mortgagor to a reduction of the rate of interest payable under any mortgage forming part of the trust estate.

(3) If any mortgagee is a trustee such mortgagee shall not be deemed guilty of any breach of trust by reason only of his agreeing with a mortgagor for the extension or renewal of a mortgage existing at the date of commencement of this Act although at the time of such renewal the loan by reason of depreciation in value of the property subject to such mortgage may exceed two-thirds of the value of such property.

(4) In this section "trustee" includes personal representative of a deceased person, committee of the estate of an insane person, manager of the estate of an incapable person, the Master in Lunacy, the Master in Equity, and any other person acting in any fiduciary capacity.

(5) Nothing in this Act shall be so construed as to render a trustee liable as for breach of trust or breach of duty where the act or agreement complained of though done or made before the commencement of this Act would not render a trustee so liable if done or made after such commencement or submit him to any liability for any act done by him prior to such commencement where such act was then lawful.