CORPORATIONS ACT 2001
The trustee of a trust deed entered into under section
(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
(ii) a guarantor has not complied with section
(f) notify ASIC and the borrower as soon as practicable if the trustee discovers that it cannot be a trustee under section
(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
(ii) the trustee calls under subsection
(h) comply with any directions given to it at a debenture holders
meeting referred to in section
(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
setting aside or varying the direction; and
(i) apply to the Court for an order under section
if the borrower requests it to do so.
Note 1: Paragraph (g)
relates to compromises and arrangements.
Note 2: Section
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
19] (effective 30 January 2012).