Northern Territory Consolidated Acts

THE TRUSTEE ACT 1893 AND SHALL COME INTO OPERATION ON A DAY TO BE FIXED BY THE GOVERNOR, - SECT 50AA

    (1)     Subject to this section, where:

        (a)     the Supreme Court has, under section 21A, declared a disposition of property to be invalid; or

        (b)     it appears to the Court that a disposition, whether made before or after the commencement of this section, would be invalid solely on the ground that it conflicts with the rule against perpetuities,

and the general intentions originally governing the disposition can be ascertained, the Court shall reform the disposition so as to give effect as far as possible to those general intentions within the limits permitted under the rule against perpetuities as affected by this section.

    (2)     A disposition of property made before the commencement of this section shall not be reformed under subsection (1):

        (a)     where the disposition has been declared invalid before that commencement by an order or judgment made or given in legal proceedings;

        (b)     where any property comprised in the disposition has, before that commencement, been paid or transferred to, or applied for the benefit of, or set apart for, a person entitled by reason of the invalidity of the disposition; or

        (c)     so as to prejudice a person who has, before that commencement, reasonably altered his or her position in reliance on the invalidity of the disposition where, in the opinion of the Supreme Court, having regard to all possible implications in respect of other persons, it is inequitable to reform the disposition wholly or in part.

    (3)     In hearing an application to reform a disposition under this section, the Supreme Court:

        (a)     may admit extrinsic evidence of the general intentions originally governing the disposition and shall apply liberal rules of construction for the purpose of ascertaining them; and

        (b)     shall have no regard to the rights of a person other than:

            (i)     a person born or en ventre sa mere when the disposition was made; and

            (ii)     a person entitled on the death of a such person,

and in reforming the disposition the Court may specify the perpetuity period in accordance with section 187 of the Law of Property Act 2000 .

    (4)     An application for reformation under this section may be made by:

        (a)     a trustee of property comprised in the disposition;

        (b)     the settlor or the settlor's personal representative; or

        (c)     a person having an interest, whether vested or contingent, under the disposition or the personal representative of the person to whom the interest passes.

    (5)     Where a trustee of property comprised in a disposition becomes aware that the disposition requires to be reformed under subsection (1), the trustee has a duty to make an application under this section.

    (6)     A disposition that has been reformed under this section:

        (a)     is valid notwithstanding that it would have been invalid under a rule of law or construction if it had been effected in any other way; and

        (b)     shall be construed as if it had not been effected under this section.