Trustee Act 1956

20 Power to compound liabilities

• A trustee may, if and as he thinks fit,—

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

  • (b) sever and apportion any blended trust funds or property; or

  • (c) pay or allow any debt or claim on any evidence that he thinks sufficient; or

  • (d) accept any composition or any security, real or personal, for any debt or for any property, real or personal, claimed; or

  • (dd) [Repealed]

  • (e) allow any time for payment of any debt; or

  • (f) surrender any leasehold property subject to onerous covenants of such a nature that it would not be to the advantage of the person beneficially interested to retain the property; or

  • (g) compromise, compound, abandon, submit to arbitration, or otherwise settle any debt, account, claim, or thing whatever relating to the trust or to the trust property,—

  and for any of those purposes may enter into, give, execute, and do such agreements, instruments of composition or arrangement, releases, and other things as to him seem expedient, without being responsible for any loss occasioned by any act or things so done by him in good faith.

  Compare: 1908 No 200 s 110; 1924 No 33 s 2(2); 1925 No 14 s 35 (NSW); Trustee Act 1925 s 15 (UK)

  Section 20(dd): repealed, on 6 April 1974, by section 8(2)(a) of the Trustee Amendment Act 1974 (1974 No 15).