Part 3: Part 3: Choice of Governing Law; Place of Administration
Article 9 – Governing Law(1) If the
Trust Instrumentexplicitly specifies the law of a particular jurisdiction as the Trust's governing law, that specification is conclusive unless the specified law is incapable of applying.(2) If the Trust Instrumentcontains no such explicit specification or if the specified law is incapable of applying, but the instrument necessarily implies that the law of a particular jurisdiction is the Trust's governing law, that so implied law is the governing law of the Trust.(3) If the Trust Instrumentcontains no such explicit specification or if the specified law is incapable of applying, and there is no such necessary implication from the instrument or the implied law is incapable of applying, the Trust's governing law is the law of the jurisdiction that is most closely connected with the Trust.(4) In deciding what jurisdiction is most closely connected with the Trust, the following may be taken into account:(A) where the Trustis to be administered;(B) where the Trust Propertyis located;(C) the domicile and usual address of the Settlorand the Trustee;(D) the domicile and usual address of the Beneficiary;(E) the objects of the Trustand where those objects are to be fulfilled; and(F) any other relevant matter.(5) A law is incapable of applying to a Trustif the law does not provide for the kind of Trust. Amended (as from 24th December 2017).
Article 10 – Provision for change of Governing Law(1) Where a term of a
Trustso provides, the Governing Lawmay be changed to or from the laws of the QFC, in the manner prescribed by the Terms of the Trust, if:(A) in the case of a change to the laws of the QFCby a Trust, such change is recognised by the Governing Lawpreviously in effect; or(B) in the case of a change from the laws of the QFCto a new Governing Law, the new Governing Lawwould recognise the validity of the Trustand either all the powers and provisions of the Trustremain enforceable, capable of being exercised and so taking effect or, prior to the change, the Trustee obtains the approval of the QFC Courtto the change.(2) Where the Governing Lawof the Trustchanges to the laws of the QFC, that Trustwill for all purposes be a QFC Trust.(3) A change in the Governing Lawwill not affect the legality or validity of, or render any Personliable for, anything done before the change.(4) If a Trust becomes a QFC Trust, the Trusteemay:(A) exercise any power conferred on the Trusteeto postpone the date of termination of the Trustwithout reference to any limitations expressed on that power by reference to a termination or perpetuity period of any other jurisdiction; and(B) if no power is conferred on the Trusteeto postpone the date of the termination of the Trust, apply to the QFC Courtfor an order to confer such power. Amended (as from 24th December 2017).
Article 11 – Matters determined by Governing Law(1) Subject to Article 11(2), all matters arising in regard to a
Trustwhich is for the time being governed by the laws of the QFCor in regard to any disposition of Propertyupon the Trustwill be determined in accordance with the laws of the QFCand without reference to any Foreign Law.(2) Subject to Articles 12, 13 and 14, Article 11(1) will:(A) not validate any disposition of Propertywhich is neither owned by the Settlornor is the subject of a power in that behalf vested in the Settlor;(B) not validate any Trustor disposition of immovable Propertysituated in a jurisdiction in which such Trustor disposition is invalid according to the laws of such jurisdiction;(C) not validate any testamentary Trustor disposition which is invalid according to the laws of the testator's last domicile;(D) not affect the recognition of Foreign Lawsin determining whether the Settloris or was the owner of the settled Propertyor is or was the holder of a power to dispose of such Property;(E) not affect the recognition of the laws of its place of incorporation in relation to the capacity of a corporation; and(F) not affect the recognition of Foreign Lawsprescribing generally, without reference to the existence or Terms of the Trust, the formalities for the disposition of Property. Amended (as from 24th December 2017).
Article 12 – Limitations in Foreign Law(1) Unless the
Settlorhas acted in bad faith, none of the matters in Article 12(2) will:(A) render void, voidable or defective:(i) a Trustgoverned by the laws of the QFC(ii) a disposition of Propertyto be held in Trustthat is valid under the laws of the QFC(B) affect the capacity of a Settloror disposition;(C) deprive a Trusteeor Beneficiary, or any other Person, of any right, under a Trustor disposition; or(D) make a Trusteeor Beneficiary, or any other Person, liable under a Trustor disposition.(2) The reasons under Article 12(1) that may not be relied on are the following:(A) that the laws of a foreign jurisdiction prohibit or do not recognise the concept of a Trust;(B) that the Trustor disposition voids or defeats any rights, claims or interest conferred by a Foreign Lawupon a Personbecause of a personal relationship with the Settloror any Beneficiaryor by way of Heirship Rights; or(C) that the Trustor disposition contravenes a Foreign Lawor a foreign judicial or administrative order, arbitration award or action intended to recognise or give effect to a right, claim or interest referred to in Article 12(2)(B). Amended (as from 24th December 2017).
Article 13 – Heirship Rights
To the extent permitted by the laws of the
QFC, an Heirship Rightconferred by Foreign Law, including laws of the State, in relation to the Propertyof a living Personwill not be recognised as affecting the ownership of immovable Propertyin the State and movable Propertywherever it is situated for the purposes of Article 11(2)(A)and(B) or for any other purpose. Amended (as from 24th December 2017).
Article 14 – Foreign Judgments
Amended (as from 24th December 2017).
Article 15 – Place of administration(1) The
Terms of the Trustdesignating the place of administration are valid and conclusive if:(A) a Trustee'sprincipal place of business is located in or a Trusteeis a resident of the designated place of administration; or(B) all or part of the administration occurs in the designated place of administration.(2) A Trusteeis under a continuing duty to administer the Trustat a place appropriate to its purposes, its administration, and the interests of the Beneficiaries or in furtherance of its purposes and in accordance with the Terms of the Trust.(3) Without precluding the right of the QFC Courtto order, approve, or disapprove a transfer in furtherance of the duty prescribed in Article 15(2), the Trusteemay transfer the Trust'splace of administration to another jurisdiction outside the QFC.(4) In connection with a transfer of the Trust'splace of administration, the Trusteemay transfer some or all of the Trust Propertyto a successor Trusteedesignated in the Terms of the Trust. Amended (as from 24th December 2017).