Victorian Consolidated Legislation

Trustee Companies Act 1984 - SECT 31

Borrowing by trustee company

31. 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.

Penalty: 50 penalty units.

(2) Despite subsection (1), a trustee company may borrow money-

   (a)  if-

   (i)  the money is borrowed from a financial institution or is a
        subordinated loan from a related corporation of the trustee company;
        and

   (ii) the total of all borrowing and liabilities of the trustee company
        (other than contingent liabilities) and the amount of the proposed
        loan together do not exceed the total amount of the net tangible
        assets of the trustee company specified in the last declaration made
        by the trustee company under section 52; or

   (b)  if the money is a subordinated loan from a related corporation of the
        trustee company-

   (i)  for the purposes of meeting the trustee company's obligations under
        Part VI; and

   (ii) the terms of which include a condition that it is not repayable except
        with the approval of the Commissioner.

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