BANKRUPTCY ACT 1966

PART XVI - MISCELLANEOUS  

SECTION 302B   CERTAIN PROVISIONS IN TRUST DEEDS VOID  

302B(1)   [ Void provision of trust deed]  

A provision of a trust deed is void to the extent that it has the effect of:


(a) cancelling, reducing or qualifying a beneficiary ' s interest under the trust; or


(b) allowing the trustee to exercise a discretion to the detriment of a beneficiary ' s interest;

if the beneficiary becomes a bankrupt, commits an act of bankruptcy or executes a personal insolvency agreement under this Act.

302B(2)   [ Exception]  

This section does not apply to a provision that facilitates compliance with:


(a) section 128B ; or


(b) section 128C ; or


(c) a notice under section 128E ; or


(d) an order under paragraph 128K(1)(b) ; or


(e) a notice under section 139ZQ ; or


(f) an order under subsection 139ZT(2) ; or


(g) an order under section 139ZU .




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