Commonwealth Consolidated Acts

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Liability of the Official Trustee

  (1)   The Official Trustee is subject to the same personal liability in respect of an act done, or omitted to be done, by it as:

  (a)   the trustee of the estate of a bankrupt; or

  (b)   the trustee of the estate of a deceased debtor; or

  (c)   the trustee of a composition or scheme of arrangement accepted under Division   6 of Part   IV; or

  (d)   the controlling trustee in relation to a debtor whose property is subject to control under Division   2 of Part   X; or

  (e)   the trustee of a personal insolvency agreement;

as an individual would be subject if the individual had done, or omitted to do, that act as such a trustee.

  (2)   The Commonwealth is by force of this subsection liable to indemnify the Official Trustee against any personal liability, including any personal liability as to costs, incurred by it:

  (a)   by reason of subsection   (1); or

  (b)   for any act done, or omitted to be done, by it in carrying out, or purporting to carry out, a direction given, or an order made, by the Court under section   50; or

  (c)   for any act done, or omitted to be done, by the Official Trustee:

  (i)   under Part   IX; or

  (ii)   under the authority contained in a debt agreement to deal with the property of the person who is a party (as debtor) to the agreement.

  (3)   Nothing in subsection   (2) affects any right that the Official Trustee has, apart from that subsection, to be reimbursed in respect of any personal liability referred to in that subsection or any other indemnity given to the Official Trustee in respect of any such liability.

  (4)   Where the Commonwealth makes a payment in accordance with the indemnity referred to in subsection   (2), the Commonwealth has the same right to reimbursement in respect of the payment (including reimbursement under another indemnity given to the Official Trustee) as the Official Trustee would have if the Official Trustee had made the payment.

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