Victorian Consolidated Legislation

Instruments Act 1958 - SECT 109

Powers of attorney given as security

109. Powers of attorney given as security



(1) Where a power of attorney is expressed to be irrevocable and is granted to
secure-

   (a)  a proprietary interest of the attorney under the power; or

   (b)  the performance of an obligation owed to the attorney-

then, so long as the attorney has that interest or the obligation remains
undischarged, the power shall not be revoked-

   (c)  by the donor without the consent of the attorney; or

   (d)  by the death or incapacity or bankruptcy of the donor or, if the donor
        is a body corporate, by its winding up or dissolution.

(2) A power of attorney given to secure a proprietary interest may be given to
the person entitled to the interest and the persons deriving title under him
to that interest, and those persons shall be duly constituted attorneys under
the power for all purposes of the power but without prejudice to any right to
appoint substitutes given by the power.