New South Wales Consolidated Acts

PERPETUITIES ACT 1984 - SECT 9

9 Reduction of age and exclusion of class members

(1) Where:

(a) a provision of a settlement creates an interest and the vesting of the interest depends on the attainment by any person of a specified age, and

(b) it becomes apparent that the provision would, but for this subsection, infringe the rule against perpetuities but that it would not infringe that rule if the specified age had been a lesser age,

the interest shall, for all purposes, be treated as if, instead of its vesting depending on the attainment by the person of the specified age, its vesting depended on the attainment by the person of the greatest age which, if put in place of the specified age, would save the provision from infringing that rule.

(2) Where an interest to which subsection (1) applies is ulterior to any other interest created by the settlement, that other interest shall not be defeated or otherwise adversely affected by the operation of subsection (1).

(3) Where, in relation to an interest created by a provision of a settlement, different ages are specified in relation to different persons:

(a) the reference in subsection (1) to the specified age shall be construed as a reference to all the specified ages, and

(b) subsection (1) shall operate to reduce each such age so far as is necessary to save the provision from infringing the rule against perpetuities.

(4) Where a provision of a settlement creates an interest which is to be taken by a class of persons and it becomes apparent that the inclusion of a person, being a member of the class or an unborn person who at birth would become a member or potential member of the class, would, but for this subsection:

(a) cause the provision to infringe the rule against perpetuities, or

(b) prevent subsection (1) from operating to save the provision from infringing that rule,

then, upon its so becoming apparent, the person shall, unless the exclusion of the person would exhaust the class, be treated in relation to the interest as if the person were not a member of the class, and, where subsection (1) applies that subsection shall thereupon have effect accordingly.

(5) Where this section has effect in relation to a provision to which section 8 applies, the operation of this section does not affect the validity of any thing previously done in relation to the interest created by the provision.