Trustee's ADI account
19 Trustee's ADI account
Trustees, unless prohibited by the instrument creating the trust, and, if expressly authorised by the power of attorney so to do, their attorneys, appointed under section 17 of this Act, may, by writing signed by them, authorise any ADI to honour cheques, bills, promissory notes, and drafts drawn upon or made payable out of the account of the trust by any one or more of the trustees or attorneys, and to honour the endorsement of any one or more of the trustees or attorneys upon any cheque, bill, promissory note, or draft payable to the order of the trustees, and also to pay to any one or more of the trustees or attorneys, whether before or after maturity, all or any portion of any moneys deposited on fixed deposit.
Every trustee who, in person or by attorney, gives or joins in giving any such authority shall be liable for the acts and defaults of every trustee or attorney acting thereunder as if they were his own acts and defaults.
No revocation or avoidance (whether by operation of law or otherwise) of any such authority shall be effectual as against any ADI acting or paying money in good faith under or in pursuance of such authority in ignorance of such revocation.
This section and sections 17 and
18 of this Act apply only to trusts created after the twenty-first December, 1907.
The statute text is free to read above. View subscription options to unlock the case-law research tools for each provision.