Covenants to repay amounts to beneficiaries in approved deposit funds
53 Covenants to repay amounts to beneficiaries in approved deposit funds
Governing rules to contain 2 covenants
If the governing rules of an approved deposit fund (other than an excluded approved deposit fund) do not contain covenants to the effect of those set out in subsection (2), they are taken to contain covenants to that effect.
Content of the covenants
The covenants are:
that, if:
a beneficiary, by written notice given to the trustee, requests the trustee to pay to the beneficiary an amount equal to the beneficiary’s interest in the fund; and
compliance by the trustee with the request would not be inconsistent with the standards applicable to the fund under section 32;
the trustee will pay that amount within a period (not being more than 12 months) determined by the trustee; and
that each director of the trustee will ensure that the trustee gives effect to the covenant in paragraph (a).
Legal personal representatives of beneficiaries
A reference in subsection (2) to a beneficiary includes a reference to the legal personal representative of a beneficiary.
Section 15 sets out additional rules relating to the interpretation of subsection (2).
Directors taken to be parties to governing rules
The covenant in paragraph (2)(b) has effect as if each director were a party to the governing rules.
Period for payments to beneficiaries
The trustee is to determine the period within which amounts are to be paid to beneficiaries under the covenant referred to in paragraph (2)(a).
Variation of payment period
When the trustee has determined the period under subsection (4), the trustee may make a further determination varying that period if, and only if:
ASIC has consented in writing to the variation; or
the requirements of section 54 have been complied with.
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