New South Wales Consolidated Acts

TRUSTEE COMPANIES ACT 1964 - SECT 29

29 Borrowing by trustee company

(1) A trustee company shall not:

(a) accept a deposit of money with, or a loan of money to, the trustee company from any estate under its administration or management, or

(b) except as provided by this Act, accept a deposit of money with, or a loan of money to, the trustee company in its own behalf from any other person.

Maximum penalty: 20 penalty units.

(2) Notwithstanding subsection (1), a trustee company may borrow money if:

(a) the money is:

(i) borrowed from a financial institution, or

(ii) a subordinated loan from a related corporation (if any) of the trustee company, and

(b) the total of all borrowings and liabilities of the trustee company (other than contingent liabilities) and the amount of the proposed loan together do not exceed an amount equal to three times the total amount of the net tangible assets of the trustee company specified in the last financial statement provided by the trustee company under section 29D.

(3) Nothing in this section shall affect or limit the investment of money of any estate by a trustee company in a common trust fund constituted under this Act.