New South Wales Consolidated Acts

TRUSTEE ACT 1925 - SECT 49

49 Compounding

(1) The trustee or the majority acting together, or a sole trustee where by the instrument, if any, creating the trust, or by statute, a sole trustee is authorised to execute the trusts and powers thereof, may, if and as the trustees or the majority, or the sole trustee, may think fit--

(a) accept any property before the time at which it is made transferable or payable,

(aa) sever and apportion any blended trust funds or property,

(b) accept any composition or any security, real or personal, for any debt or for any property claimed,

(c) allow any time for payment for any debt,

(d) compromise, compound, abandon, submit to arbitration, or otherwise settle any debt, account, claim, or thing whatever relating to the estate or trust,

(e) for any of those purposes enter into, give, execute, and do such agreements, instruments of composition or arrangements, releases, and other things, as to the trustees or the majority, or the sole trustee, seem expedient.

(2) An executor or administrator may pay or allow any debt or claim on any evidence that the executor or administrator thinks sufficient, and may, if and as the executor or administrator may think fit, do any of the things mentioned in paragraphs (a) (b) (c) (d) and (e) of subsection (1).

(3) The trustees trustee executor or administrator shall not be responsible for any loss occasioned by any act or thing so done by the trustees, trustee, executor or administrator in good faith.

(4) This section applies only if and as far as a contrary intention is not expressed in the instrument, if any, creating the trust, and shall have effect subject to the terms of that instrument, and to the provisions therein contained.

(5) This section applies to trusts created either before or after the commencement of this Act.