chhatramani/nepal_legal_text_corpus_v1 huggingface dataset:
National Civil Code 2074

Section 316, Sub-section (5): At least one-thirds of the trustees of a trust established pursuant to sub-section (4) shall be Nepali citizens having permanent residence in Nepal. Section 317: Details to be set out in memorandum of incorporation Section 317: The following matters shall be set out in the memorandum of incorporation of a trust: Section 317, Clause (a): Names, surnames and addresses of the founders of the trust, and, if a body corporate is the founder, names, surnames and addresses of the directors of such body, Section 317, Clause (b): Objects and nature of the trust, Section 317, Clause (c): Names, surnames and addresses of the trustees, details of the business to be performed by them, and, if a body corporate is a trustee, name, surname and address of the person designated by the body to act as the trustee, Section 317, Clause (d): Details of the beneficiaries, Section 317, Clause (e): Method of use of the trust property, Section 317, Clause (f): Details of the tenure of the trustee, if any, so specified, Section 317, Clause (g): If the beneficiaries are entitled to remuneration or other facilities, details thereof and limitation, Section 317, Clause (h): If the trust is intended to be established for a certain period, details of such period, Section 317, Clause (i): In the event of termination of the trust, consequences thereof, Section 317, Clause (j): Provisions relating to the operation, management and monitoring of the trust property, Section 317, Clause (k): Other necessary matters. Section 318: Trust to be registered Section 318, Sub-section (1): If an application is made for the establishment of a trust pursuant to Section 316, the Registrar shall make necessary inquiry into the objects of the trust and the details of the property proposed for the establishment of the trust, and, if it appears reasonable to register the trust, register the trust and issue the trust registration certificate, within a period of thirty-five days of the making of such application. Section 318, Sub-section (2): If a trust is registered pursuant to sub-section (1), the trust is deemed to have been established. Section 318, Sub-section (3): Notwithstanding anything contained elsewhere in this Section, a private trust may be operated even without registration. Provided that if a person so operates a private trust, the person shall give information thereof to the concerned Registrar. National Civil Code 2074
National Civil Code 2074

Section 319: Power to refuse registration of trust Section 319, Sub-section (1): Notwithstanding anything contained in Section 318, the Registrar may refuse to register a trust in any of the following circumstances: Section 319, Sub-section (1), Clause (a): If the details, documents or fees referred to in Section 316 are not mentioned or paid, Section 319, Sub-section (1), Clause (b): If the name of the trust resembles with the name of any other trust already registered prior to the registration of the trust applied for, Section 319, Sub-section (1), Clause (c): If the objects or terms of the trust appear to be inappropriate or undesirable for reasons of public interest, decency, courtesy or public order, are not lawful or are not capable of being implemented owing to their uncertainty or vagueness. Section 319, Sub-section (2): If a trust is not capable of being registered pursuant to sub-section (1), the Registrar shall give information thereof, along with the reason for refusal, to the applicant within thirty-five days. Section 319, Sub-section (3): If, upon receipt of information pursuant to sub-section Section 319, Sub-section (2): , the applicant makes necessary corrections and an application again for the registration of the trust, the Registrar shall register the trust and issue the registration certificate pursuant to sub-section (1) of Section 318, within fifteen days of the making of such an application. Section 320: Transfer of property for incorporation of trust Section 320, Sub-section (1): The trust founder shall transfer the property settled for the trust to the trustee within a period of three months of the establishment of the trust. Section 320, Sub-section (2): If the property to be transferred pursuant to sub-section Section 320, Sub-section (1): is an immovable property, such a property shall be deemed to have been duly transferred only when it is transferred in accordance with law. Section 320, Sub-section (3): A foreign person that establishes a trust in Nepal shall remit into Nepal a movable property equivalent to at least one million United States Dollars through regular banking channel and hand over the same to the trustee within a period of three months. Section 320, Sub-section (4): The information of the hand-over of the movable property pursuant to sub-section (3) shall be given to the Registrar. Section 321: Dissolution of trust on failure of transfer of property Section 321: In the event of failure to transfer the property within the time-limit referred to in Section 320, the registration of such a trust shall be deemed to be void ipso facto and the trust shall be deemed to have been dissolved. Section 322: Operation and management of trust property according to Section 322: memorandum of incorporation: (1) The trustee shall, subject to the terms and restrictions set forth in the memorandum of incorporation, operate and manage the trust property. National Civil Code 2074
National Civil Code 2074

Section 322, Sub-section (2): Except as otherwise provided for in the memorandum of incorporation, the trustee shall, in operating and managing the property pursuant to sub-section (1), not sell, mortgage, or otherwise transfer title to, the immovable property or any part thereof without prior permission of the concerned Registrar. Section 322, Sub-section (3): In asking for prior permission of the Registrar pursuant to sub-section (2), the reason for the sale, mortgage of, or transfer of title to, such property, and the reasons and grounds that it may result in more benefit to the beneficiary shall be set out. Section 323: Duty to operate and manage trust property properly Section 323, Sub-section (1): The trustee shall operate and manage the trust property properly, by exercising his or her capacity and diligence honestly. Section 323, Sub-section (2): In the operation and management of the trust property pursuant to sub-section (1), the trustee shall make arrangement to avoid any loss and damage to, and maintain sustainability of, such property. Section 323, Sub-section (3): Except as otherwise provided for in the memorandum of incorporation, in the operation and management of the trust property pursuant to sub-sections (1) and (2), income earned from the trust property which is not required immediately to accomplish the objects of trust may be invested for the accomplishment of the objects of trust. Section 323, Sub-section (4): Except as otherwise provided for in the memorandum of incorporation, in making investment pursuant to sub-section (3), it may be invested as follows, in the following proportion of the total sum: Section 323, Sub-section (4), Clause (a): At lest twenty-five percent in the purchase of bonds or treasury bills issued by the Government of Nepal or Nepal Rastra Bank or bonds guaranteed by the Government of Nepal, Section 323, Sub-section (4), Clause (b): Deposit of a maximum of twenty-five percent in a fixed account with a commercial bank, Section 323, Sub-section (4), Clause (c): Deposit of a maximum of ten percent in a fixed account with a development bank, Section 323, Sub-section (4), Clause (d): A maximum of five percent in the subscription of ordinary shares of a commercial bank, Section 323, Sub-section (4), Clause (e): Deposit of a maximum of ten percent in a fixed account with a finance company, Section 323, Sub-section (4), Clause (f): A maximum of five percent in the subscription of such ordinary shares of an enlisted public limited company as are dealt publicly. Section 323, Sub-section (5): The trustee shall, from time to time, carry out monitoring as to the investment made pursuant to sub-section (4), and if it appears from such monitoring that the returns of investment made in one sector be lesser, such investment shall be withdrawn immediately and made in another sector yielding more returns, subject to the terms and restrictions of the investment. Section 323, Sub-section (6): In making monitoring or investment pursuant to sub- section (5), opinion of an expert in the concerned sector may, as required, be obtained. National Civil Code 2074
National Civil Code 2074

Section 323, Sub-section (7): An opinion obtained pursuant to sub-section (6) may be taken as the basis for monitoring or investment. Section 323, Sub-section (8): The trustee shall maintain his or her personal property and the trust property separately and operate and mange the trust property accordingly, and in the event of a need to operate an account, separate accounts shall be maintained. Section 324: Trustee to be appointed Section 324, Sub-section (1): A trustee shall be appointed for the operation, management, protection and care of (herbichar)the trust property and for using fruits of such property to the benefit of the beneficiary or making proper arrangements thereof. Section 324, Sub-section (2): Except as otherwise provided for in the memorandum of incorporation, the founder of the trust shall appoint the trustee. Section 324, Sub-section (3): In the event of the failure to appoint or inability to appoint the trustee pursuant to sub-section (1) or (2), the founder of trust shall be deemed to be the trustee. Section 325: Disqualification of trustee Section 325: The following person shall not be qualified to be a trustee: Section 325, Clause (a): A person who is not competent to make contract, Section 325, Clause (b): A person who has embezzled a property in his or her custody, Section 325, Clause (c): A person who has been convicted by a court of the offense of corruption, Section 325, Clause (d): A person who has been sentenced for a criminal offense involving moral turpitude, Section 325, Clause (e): A person who is the sole beneficiary of the trust property. Section 326: Number of Trustees Section 326: Except as otherwise provided for in the memorandum of incorporation, the number of trustees shall, subject to the other provisions of this Chapter, be one in minimum and seven in maximum. Section 327: Body corporate being eligible to be trustee Section 327, Sub-section (1): A body corporate which is established in accordance with law may be appointed as a trustee. Section 327, Sub-section (2): If the body corporate referred to in sub-section (1) is appointed as a trustee, the person working as the chief of such a body or a person to whom the power is delegated by a decision of the board of directors of such a body shall act on behalf of such a body. Explanation: For the purposes of this Section, the term "person working as the chief" means the chairperson, director, managing director, general manager, executive director of such body or a person empowered by such a body to work as its chief. National Civil Code 2074
National Civil Code 2074

Section 328: Provisions relating to vacancy in office of trustee Section 328, Sub-section (1): The office of the trustee shall be fallen vacant in any of the following circumstances: Section 328, Sub-section (1), Clause (a): If the person is not qualified to be a trustee, Section 328, Sub-section (1), Clause (b): If the person resigns from the office of a trustee, Section 328, Sub-section (1), Clause (c): If the person dies or becomes insolvent, Section 328, Sub-section (1), Clause (d): If, in the case of a body corporate, it is dissolved, liquidated or becomes insolvent in accordance with law, Section 328, Sub-section (1), Clause (e): If a trust is established for a certain period and such a period is completed, Section 328, Sub-section (1), Clause (f): If the trustee is appointed for a certain tenure and such a tenure is completed, Section 328, Sub-section (1), Clause (g): If the trustee is removed by the trust founder or court on the ground that he or she has embezzled the trust property or has not taken a reasonable care of (herchaha) such property. Section 328, Sub-section (2): If the office of a trustee is fallen vacant pursuant to sub-section (1), such an office shall be filled in accordance with the procedures set forth in the memorandum of incorporation. Section 328, Sub-section (3): If the office of trustee cannot be fulfilled pursuant to sub-section (2), the beneficiary, if available, and the concerned Local Level, if there is no beneficiary or the beneficiary cannot be identified, shall make an application, accompanied by a list of possible candidates, to the concerned District Court for the appointment of a trustee. Section 328, Sub-section (4): If an application is made for the appointment of trustee pursuant to sub-section (3), the District Court shall appoint to the office of trustee an appropriate person from the list of candidates provided by the applicant, in consonance with the spirit of the memorandum of incorporation. Section 328, Sub-section (5): If any trustee is relieved of his or her office by virtue of the circumstance referred to in sub-section (1), he or she shall, as promptly as possible, hand over the trust property in his or her custody, control or use to other trustees, and he or she shall not get immunity from any kind of liability or legal action for any act done or action taken by him or her while in office of a trustee by the reason only that he or she has been so relieved of office. Provided that if all trustees are relieved of office, such property shall be transferred after the appointment of another trustee. Section 328, Sub-section (6): If the office of a trustee of a public trust with only one trustee falls vacant or is fulfilled pursuant to this Section, information thereof shall be given to the registrar. National Civil Code 2074
National Civil Code 2074

Section 329: To specify roll of succession of trustee Section 329, Sub-section (1): Except as otherwise provided for in as to the roll of succession of trustees in the memorandum of incorporation, after the death of a trustee, his or her eldest son, daughter-in-law or daughter shall succeed the office of a trustee according to the roll of succession, and if there is no one out of them, his or her heir shall succeed the office of trustee. Section 329, Sub-section (2): If a person who becomes the trustee pursuant to sub- section (1) is not qualified to be the trustee, his or her guardian or the person taking care of (herchaha) him or her shall perform the obligation of the trustee on his or her behalf until such a person becomes qualified. Section 329, Sub-section (3): Except as otherwise provided for in the memorandum of incorporation, if there is a provision that one's descendents are entitled to be the trustee, the descendents of such a person shall succeed the office of trustee according to the limit of their respective rights, and the provisions contained in Section 326 shall not apply to such case. Section 330: Requirement to perform obligation of trustee in special Section 330: circumstance: If there exists a situation that the office of trustee falls vacant in entirety and the office of trustee cannot be filled immediately pursuant to sub-section (2) of Section 328, the Local Level shall function as the trustee until the office is filled. Section 331: Requirement to operate trust by consensus Section 331, Sub-section (1): Except as otherwise provided for in the memorandum of incorporation, the trust with more than one trustee shall be operated by consensus decision of all the trustees as far as possible. Section 331, Sub-section (2): In the event of failure to reach consensus pursuant to sub-section (1), the trust may be operated by a majority decision of the then existing trustees, and if that is not possible, by the decision of the eldest trustee. Section 332: To carry out object of trust Section 332: The trustee shall carry out the object of trust as set forth in the memorandum of incorporation, and in so carrying out the object, the trustee shall discharge functions honestly and according to his or her capacity and diligence. Section 333: To maintain records of trust property Section 333, Sub-section (1): The trustee shall prepare an inventory of the trust property and update the records thereof, and, in the case of a public trust, a copy of such records shall be submitted to the registrar each year. Section 333, Sub-section (2): The inventory referred to in sub-section (1) shall also reflect the total assets, loans, or if such property has been invested in any business, principal, interest or other returns of such investment. National Civil Code 2074
National Civil Code 2074

Section 334: Protection of trust property Section 334, Sub-section (1): The trustee shall protect and maintain the trust property, and may also make any kind of such legal action or complete any kind of such formality with any public authority as may be required for this purpose. Section 334, Sub-section (2): In protecting or maintaining the trust property, the trustee shall take proper and reasonable care of (herbichar), and do act conducive to the enhancement of, the trustee property as if the property were his or her own. Section 335: Prohibition of possession of trust property to prejudice benefit Section 335: of beneficiary: No trustee shall so possess or use the trust property for himself or herself or other person as may be prejudicial to the benefit of the beneficiary. Section 336: Duty to prevent loss to trust property Section 336, Sub-section (1): It shall be the duty of the trustee to prevent destruction, termination of, or otherwise loss to, the trust in a manner prejudicial to the benefit of the beneficiary or contrary to the object of the trust. Section 336, Sub-section (2): If the trust property is not managed properly or is made subject to cheating or fraud or is embezzled or used for other purposes, any trustee or beneficiary may, subject to the provisions set forth in the memorandum of incorporation, file a complaint in the court for the prevention of such embezzlement. Provided that any one whosoever may file a complaint in the case of a public trust. Section 336, Sub-section (3): If, upon a complaint filed pursuant to sub-section (2), it is held that the trust property has not been managed properly or has been made subject to cheating or fraud or embezzled or used for other purposes, the court shall recover the claimed amount from the embezzler and may also order compensation to be paid by a trustee if the trustee has committed such embezzlement. Section 337: To maintain accounts of trust Section 337, Sub-section (1): The trustee shall maintain accounts in a manner to reflect clearly and actually the accounts of the trust property, and provide statements thereof available to the registrar, and trust founder or beneficiary, identified, if any, intends to inspect the same. Section 337, Sub-section (2): In the case of a public trust, the trustee shall have its accounts audited by a recognized auditor each year and submit a copy of the audit report to the registrar. Section 338: Breach of trust Section 338, Sub-section (1): If a trustee fails to fulfill the duties required to be fulfilled pursuant to this Chapter, the trustee shall be deemed to have committed a breach of trust. Section 338, Sub-section (2): In the event of a breach of trust pursuant to sub-section Section 338, Sub-section (1): , the trustee so breaching trust shall be responsible for the loss and damage caused to the beneficiary and bear liability for the same. National Civil Code 2074
National Civil Code 2074

Section 338, Sub-section (3): In bearing the liability pursuant to sub-section (2), the trustee breaching trust shall bear such profits as may be equal to the income or profits which the trust or beneficiary would have made or earned if the trust had not been breached. Section 338, Sub-section (4): If a trust has more than one trustee, all trustees who commit a breach of trust shall collectively bear the liability for the loss and damage caused from such breach of trust. Section 338, Sub-section (5): If, in relation to one portion of any trust, the trust is breached, and, in relation to another portion of the trust, benefit is derived, the trustee shall not use such benefit in the fulfillment of his or her liability. Section 338, Sub-section (6): Notwithstanding anything contained elsewhere in this Section, the trustee shall not bear the liability for the loss and damage caused from the breach of trust, in the following circumstance: Section 338, Sub-section (6), Clause (a): If the loss and damage is caused by operation of law, Section 338, Sub-section (6), Clause (b): If the loss and damage is a result of the breach of trust by any act done by the previous trustee or the consequence thereof. Section 338, Sub-section (7): Notwithstanding anything contained elsewhere in this Section, any one who does any of the following acts in relation to a trust in operation upon being incorporated in accordance with law in force for the time being prior to the commencement of this Act shall be deemed to have committed a breach of trust: Section 338, Sub-section (7), Clause (a): Failing to do acts set forth in the Donative inscription, Shilapatra of the trust or deed establishing such trust, Section 338, Sub-section (7), Clause (b): Selling, disposing of, gifting, donating or pledging or mortgaging the trust property by the trust founder or his or her offspring or heir, except for the residual property that can be possessed and used after making operation as set forth in the deeds including the Donative inscription, Shilapatra of the trust, Section 338, Sub-section (7), Clause (c): Embezzling the movable trust property by the trustee, except for reasonable wear and tear while using it for the trust purpose. Section 338, Sub-section (7): One who commits a breach of trust under sub-section Section 338, Sub-section (7): shall be liable to action in accordance with the law in force at the time of the commencement of this Act. Section 339: Deed of trust property to remain with trustee Section 339, Sub-section (1): Except as otherwise provided for in the memorandum of incorporation, the deeds, documents of the ownership and possession of the trust property and other proofs and evidences pertaining thereto shall all be in the custody of the trustee, and in the case of a public trust, the trustee shall submit copies of such deeds and documents to the registrar. National Civil Code 2074