Repeal of Trustee Act

(1) The Trustee Act, 1923, Cap. 163, R. E. 1980-1990 is hereby repealed. (2) Notwithstanding its repeal, the said Act shall continue to apply to trusts created prior to 23rd April, 1992. (3) For the purposes of this section, a trust shall be regarded as created at the time at which property is first received by or vested in the trustee to be held by him in accordance with the terms of the trust. 67 SCHEDULE I TRUSTS ACT Authorised Trustee Investments [Sections 32 (2), (3) and (4)] 1. The following shall be regarded as authorised trustee investments– (a) securities issued by, or the payment of interest on which is guaranteed by, the Government of Belize; (b) securities issued by, or the payment of interest on which is guaranteed by, any of the following– (i) the government of the United Kingdom; (ii) the government of the United States of America; (iii) the government of any territory within the Commonwealth; or (iv) the African Development Bank, the Asian Development Bank, the Caribbean Development Bank, the European Economic Community, the European Investment Bank, the International Finance Corporation, the International Monetary Fund, or the International Bank for Reconstruction and Development; CAP. 250. CAP. 263. 68 Trusts (c) deposits with a company registered under the Companies Act that is a licensed financial institution within the meaning of the Banks and Financial Institutions Act; (d) debentures issued by a quoted company; (e) units in a quoted unit trust; (f) quoted shares; or (g) freehold property situated in Belize and leasehold property situated in Belize of which the unexpired term at the time of the investment is not less than forty years, and mortgages of such freehold or leasehold property. 2. In this Schedule, unless the context otherwise requires, the following expressions have the following meanings“approved stock exchange” means The International Stock Exchange of the United Kingdom and Republic of Ireland Limited (including the Unlisted Security Market of the International Stock Exchange), the New York Stock Exchange, the American Stock Exchange and the National Association of Security Dealers Automated Quotation System of the United States of America; “debentures” includes debenture stock and bonds, whether constituting a charge on assets or not, and loan stock or notes; “quoted company” means a company the ordinary shares in which are quoted on an approved stock exchange; “quoted shares” means shares quoted on an approved stock exchange; Trusts 69 “quoted unit trust” means a unit trust the units in which are quoted on an approved stock exchange; “securities” includes shares, debentures, treasury bills and tax reserve certificates; and “shares” include stock. 70 Trusts SCHEDULE II TRUSTS ACT Implied Powers of Trustees [Section 33] Trust for Sale and Investment 1.-(1) The trustee shall hold real or immovable property included in the trust property on trust for sale with power to postpone the sale of the whole or any part of it for such period as he thinks fit and shall hold all other investments included in the trust property on trust either, at his discretion, to retain them for such period as he thinks fit or to sell or otherwise dispose of the whole or any part of them. (2) The trustee shall hold all money received or held by him as capital money, including the net proceeds of such sale, on trust to invest it in any manner authorised by the terms of the trust as he thinks fit. (3) The trustee may change investments included in the trust property into others authorised by the terms of the trust. Powers Respecting Trustee Investments 2.-(1) Where, in the event that any land, building or chattel were producing income, the whole of such income would or might be payable to any person under the terms of the trust, the trustee may permit such person together with the members of his household to reside in and occupy such land or buildings or to enjoy the use or benefit of such chattels either gratuitously or on such terms as the trustee shall think fit. (2) The trustee shall have power to purchase any land, building or chattel or any interest therein for the use or Trusts 71 occupation of any one or more persons, such use or occupation to be only in accordance with the preceding sub-paragraph of this paragraph, or partly for such use and partly as an investment. (3) The trustee shall have power to employ any capital of the trust property or to take such other steps as may from time to time be requisite to insure, protect, maintain or preserve or to improve the value of or to guard against any loss of value of the trust property or the income thereof. Corporations 3.-(1) The trustee may promote or incorporate any corporation to carry on any trade or hold any investments. (2) Where all or any part of the capital of a corporation is included in the trust property the assets of such corporation shall not be impressed with any of the trusts but the trustee may nevertheless cause or procure such corporation to do any act or thing as regards the assets of the corporation as he is empowered to do as regards the trust property. Appropriation 4. The trustee shall have power to appropriate any investments or property from time to time forming part of the trust property in its actual state of investment in or towards the satisfaction of the beneficial interest of any person interested in the trust property upon making such valuation if any as the trustee may think fit and without the necessity of obtaining the consent of any person. Holding and Custody of Investments 5. Investments included in the trust property may be held by or in the name of or under the control of any person, whether or not a trustee, as nominee or bailee for the trustee and in that 72 Trusts case the trustee shall not be responsible for any default of such nominee or bailee of good standing appointed in good faith. Land 6. Where the trust property includes any land (in this paragraph called “the Land”)– (a) the trustee may sell, exchange, whether or not with payment of equality money, lease, mortgage, charge, grant any licence over, whether exclusive or not, and otherwise dispose of the Land or any interest therein; (b) the trustee may spend capital money on erecting buildings on the Land or on demolishing and rebuilding or on altering or improving buildings on it or otherwise on improving the Land as he thinks fit, and any certificate of any architect or surveyor employed by the trustee or of any trustee who is qualified as an architect or surveyor that the work specified in such certificate consists only of alteration or improvement shall be conclusive as between the trustee and all persons interested under the trust that any capital money spent on such work was properly spent by the trustee in exercise of the powers conferred by this sub-paragraph; (c) the trustee may observe and perform all obligations imposed on or incurred by him as owner or lessor or lessee of the Land and shall be entitled to be indemnified out of every part of the trust property against all personal liability imposed on him by or by any breach of any one or more of such obligations and in this sub-paragraph “obligations” includes Trusts 73 every obligation whether imposed by contract or by general law or otherwise; or (d) the trustee may employ any of the capital of the trust property in repairing, developing, enlarging, equipping, furnishing, insuring and maintaining the Land and buildings and fixtures on it. Chattels 7. Where the trust property includes any chattel, the trustee may employ any of the capital of the trust property in repairing or insuring such chattel and may store, lend or hire it on such terms as he thinks fit. Borrowing 8.-(1) The trustee may borrow on such terms as he thinks fit and for such purpose may mortgage or charge all or any of the assets included in the trust property. (2) The trustee shall hold any borrowed money as capital of the trust property and as one fund with other money and investments included in the trust property or as a separate fund as he shall think fit and shall invest, advance, distribute, pay or otherwise deal with such money in accordance with the trusts and powers relating to the capital of the trust property. (3) The trustee may repay borrowed money and pay interest out of the capital of the trust property. Insurance 9. The trustee may effect and maintain out of the capital of the trust property any policy of insurance or assurance upon the life of any person or under which the death of any person is one of the events under which money becomes payable. 74 Trusts Loans to Beneficiaries 10. Where in the event that any money forming part only of the trust property were producing income the whole of such income would or might be payable to any person under the terms of the trust the trustee may lend such money to that person either free of interest or upon such terms relating to interest and to repayment and either with or without security as the trustee in his absolute discretion thinks fit. Release of Powers 11. The trustee may in his absolute discretion at any time and from time to time by instrument in writing release or restrict the future exercise of any powers conferred on him by the terms of the trust or by the general law either wholly or to the extent specified in any such instrument. Trustees Appointed as Directors 12. Any trustee who shall be or become a director or the holder of any other office or employment in any company any of whose shares shall form part of the trust property shall be entitled to retain for his own use and benefit any reasonable fees or remuneration received by him in connection with such office or employment notwithstanding that his appointment to or retention of such office or employment may be directly or indirectly due to the exercise or non-exercise of any votes in respect of any of the shares forming part of the trust property. Associated Parties 13. If the trustee places or causes to be placed any banking, broking or other business with an associated or other person so that, but for this paragraph, he would be liable to account in any manner to the trust property he shall ensure that such business is done on such terms as that person would make with an un- associated customer or client and if he does so he shall not be Trusts 75 required to account for any receipt from or profit of such person from such business. Sundry Powers 14.-(1) The powers of the trustee shall extend to any and every act or omission of the trustee which is necessary or desirable for the due execution of the trust and the protection and realization and the due administration of the investments in the trust property and the cost of and incidental to every act of the trustee shall be met out of income or capital of the trust property or partly out of each, as the trustee thinks fit. (2) In addition to all the powers vested in the trustee by the terms of the trust or the general law the trustee shall have and may exercise from time to time the following powers– (a) to compromise and settle for such consideration and upon such terms and conditions as the trustee may consider advisable all matters arising in relation to the trust; (b) to pay out of the income or capital of the trust property all the costs of and incidental to the preparation and execution of the trust instrument; and (c) to receive any property from any person as an addition to the trust property either by gift inter vivos or by will or under the provisions of any other trust or otherwise. Revocable Appointments 15. Any revocable appointment, decision or resolution of the trustee may be treated by him for any purpose as irrevocable unless and until it is revoked.