New South Wales Consolidated Acts

PERPETUITIES ACT 1984 - SECT 14

14 Determinable interests

(1) In this section:

"determinable interest" means an interest created by a settlement, being an interest which is, by a provision of the settlement, determinable on a contingency.

"subsequent interest" , in relation to a determinable interest created by a settlement, means an interest, whether vested or contingent:

(a) created by the settlement, or remaining undisposed of by the settlement, or taking effect by way of reverter, resulting trust, residuary gift or otherwise on a possibility arising under the settlement, and

(b) as regards which the determinable interest is a prior interest.

(2) The rule against perpetuities applies to render invalid the provision for determination of a determinable interest created by a settlement in the same manner as the rule would apply to render invalid a condition subsequent in the settlement for defeasance of the determinable interest on the same contingency, and where that rule does so apply:

(a) the determinable interest shall not be so determinable, and

(b) a subsequent interest not itself rendered invalid by that rule shall be postponed or defeated to the extent necessary to allow the determinable interest to have effect free from the provision for determination.

(3) For the purposes of this section, an interest created by, or a provision in, an appointment or other exercise of a power in a settlement (except a general power of appointment) shall be treated as an interest created by, or a provision in, the settlement.

(4) Notwithstanding subsection (2), the rule against perpetuities shall not apply to a gift over from one charity to another.