Related 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.
Commonwealth Numbered Acts