CORPORATIONS ACT 2001
The trustee of a trust deed entered into under section 283AA must:
283DA TRUSTEE'S DUTIES
(a) exercise reasonable diligence to ascertain whether the property of the borrower and of each guarantor that is or should be available (whether by way of security or otherwise) will be sufficient to repay the amount deposited or lent when it becomes due; and
(b) exercise reasonable diligence to ascertain whether the borrower or any guarantor has committed any breach of:
(i) the terms of the debentures; or
(ii) the provisions of the trust deed or this Chapter; and
(c) do everything in its power to ensure that the borrower or a guarantor remedies any breach known to the trustee of:
(i) any term of the debentures; or
unless the trustee is satisfied that the breach will not materially prejudice the debenture holders' interests or any security for the debentures; and
(ii) any provision of the trust deed or this Chapter;
(e) notify ASIC as soon as practicable if:
(i) the borrower has not complied with section 283BE, 283BF or subsection 318(1) or (4); or
(ii) a guarantor has not complied with section 283CC; and
(f) notify ASIC and the borrower as soon as practicable if the trustee discovers that it cannot be a trustee under section 283AC; and
(g) give the debenture holders a statement explaining the effect of any proposal that the borrower submits to the debenture holders before any meeting that:
(i) the Court calls in relation to a scheme under subsection 411(1) or (1A); or
(ii) the trustee calls under subsection 283EB(1); and
(h) comply with any directions given to it at a debenture holders' meeting referred to in section 283EA, 283EB or 283EC unless:
(i) the trustee is of the opinion that the direction is inconsistent with the terms of the debentures or the provisions of the trust deed or this Act or is otherwise objectionable; and
(ii) has either obtained, or is in the process of obtaining, an order from the Court under section 283HA setting aside or varying the direction; and
(i) apply to the Court for an order under section 283HB if the borrower requests it to do so.
Note 1: Paragraph (g) - Section 411 relates to compromises and arrangements.
Note 2: Section 283DC deals with indemnification in respect of a trustee's liability to the debenture holders.
S 283DA amended by No 96 of 2010, s 3, Sch 1, Pt 2 (effective 30 January 2012).