Article 51 - Liability for breach of trust
(1) Subject to these
Regulations and to the Terms of the Trust, a Trustee is liable for a breach of trust committed by the Trustee or in respect of which the Trustee has granted its approval.
Trustee who is liable for a breach of trust is liable for:
(A) the loss or depreciation in value of the
Trust Property resulting from such breach; and
(B) the profit, if any, which would have accrued to the
Trust Property if there had been no such breach.
(3) Where there are two or more breaches of trust, a
Trustee must not set off a gain from one breach of trust against the loss resulting from another breach of trust.
Trustee is not liable for a breach of trust committed prior to its appointment, if such breach of trust was committed by some other Person.
Trustee is not liable for a breach of trust committed by a co-Trustee unless:
(A) he becomes aware or ought to have become aware of the commission of such breach or of the intention of the co-
Trustee to commit a breach of trust; and
(B) he actively conceals such breach or such intention or fails within a reasonable time to take proper steps to protect or restore the
Trust Property or prevent such breach.
(A) relieve a
Trustee of liability to it for a breach of trust; or
(B) indemnify a
Trustee against liability for a breach of trust.
(7) Article 51(6) will not apply unless the
(A) has legal capacity;
(B) has full knowledge of all material facts; and
(C) is not improperly induced by the
Trustee to take action under Article 51(6).
(8) Where two or more
Trustees are liable in respect of a breach of trust, they must be liable jointly and severally.
Trustee who becomes aware of a breach of trust under Article 51(4) must take all reasonable steps to have such breach remedied within a reasonable time of becoming aware of the breach of trust.
(10) Nothing in the
Terms of the Trust must relieve, release, or exonerate a Trustee from liability for breach of trust arising from its own fraud, wilful misconduct or gross negligence.
|Amended (as from 24th December 2017).|