Commonwealth Consolidated Acts Commonwealth Consolidated ActsRelated party of existing trustee may be appointed as a new trustee
(1) In addition to any other powers of appointment under the terms of the debentures or provisions of the trust deed, the borrower may appoint a body corporate that is related to the existing trustee as trustee in place of the existing trustee if:
(a) the body corporate can be a trustee under section 283AC; and
(b) the existing trustee consents in writing to the appointment .
The appointment has effect despite any terms of the debentures or provisions of the trust deed.
Appointment by Court
(2) The Court may:
(a) appoint a person who may be a trustee under section 283AC as trustee on the application of the borrower, a debenture holder or ASIC if:
(i) a trustee has not been validly appointed; or
(ii) the trustee has ceased to exist; or
(b) terminate the existing trustee's appointment and appoint a person who may be a trustee under section 283AC as trustee in the existing trustee's place on the application of the borrower, the existing trustee, a debenture holder or ASIC if:
(i) the existing trustee cannot be trustee under section 283AC; or
(ii) the existing trustee fails, or refuses, to act.