### Perpetuities and Accumulations Ordinance 《財產恆繼及收益累積條例》

1. Short title
This Ordinance may be cited as the Perpetuities and Accumulations Ordinance.

2. Interpretation
(1) In this Ordinance, unless the context otherwise requires—
2013 amending Ordinance (《2013年修訂條例》) means the Trust Law (Amendment) Ordinance 2013 (13 of 2013); (Added 13 of 2013 s. 45)
disposition (產權處置) includes the conferring of a power of appointment and any other disposition of an interest in or right over property, and references to the interest disposed of shall be construed accordingly;
in being (在世的) means living or en ventre sa mere;
power of appointment (指定受益的權力) includes any discretionary power to transfer a beneficial interest in property without the furnishing of valuable consideration;
will (遺囑) includes a codicil.
(2) For the purposes of this Ordinance a disposition contained in a will shall be deemed to be made at the death of the testator.
(3) For the purposes of this Ordinance a person shall be treated as a member of a class if in his case all the conditions identifying a member of the class are satisfied, and shall be treated as a potential member if in his case some only of those conditions are satisfied but there is a possibility that the remainder will in time be satisfied.
[cf. 1964 c. 55 s. 15(2) & (3) U.K.]

### Perpetuities and Accumulations Ordinance 《財產恆繼及收益累積條例》

3. Application
(1A) Part 2 applies in relation to an instrument taking effect on or after the commencement date* of the 2013 amending Ordinance, except that—
(a) Part 2 does not apply in relation to a will executed before that date; and 
(b) Part 2 applies in relation to an instrument made in the exercise of a special power of appointment only if the instrument creating the power takes effect on or after that date. (Added 13 of 2013 s. 46)
(1) Part 3 does not affect the operation of the rule of law rendering void for remoteness certain dispositions under which property is limited to be applied for purposes other than the benefit of any person or class of persons in cases where the property may be so applied after the end of the perpetuity period.
(2) Subject to subsection (2A), Part 3 applies (except as provided in subsection (2) of section 13 and section 18) only in relation to instruments taking effect on and after 13 March 1970, and in the case of an instrument made in the exercise of special power of appointment applies only where the instrument creating the power takes effect on and after that date: (Amended 13 of 2013 s. 46)
Provided that section 12 applies in all cases for construing the foregoing reference to a special power of appointment.(2A) Part 3 does not apply in relation to an instrument taking effect on or after the commencement date* of the 2013 amending Ordinance but Part 3 still applies in relation to an instrument so taking effect if—
(a) it is a will executed before that date; or 
(b) it is an instrument made in the exercise of a special power of appointment, and the instrument creating the power took effect before that date. (Added 13 of 2013 s. 46)
(3) This Ordinance applies in relation to a disposition made otherwise than by an instrument as if the disposition had been contained in an instrument taking effect when the disposition was made.
(4) This Ordinance binds the Crown.
(Amended 13 of 2013 s. 46)[cf. 1964 c. 55 s. 15(4)-(7) U.K.] Editorial Note:
* Commencement date: 1 December 2013.

### Perpetuities and Accumulations Ordinance 《財產恆繼及收益累積條例》

3A. Rule against perpetuities etc. have no effect
(1) The rule against perpetuities (or remoteness of vesting) and the rule against excessive accumulations have no effect in relation to an instrument to which this Part applies (as provided in section 3(1A)).
(2) A trust (whether created by an instrument or otherwise) may continue in existence for an unlimited period unless the terms of the trust provide to the contrary. 

3B. Restriction on accumulations for charitable trusts
(1) This section applies to an instrument to the extent to which its terms (other than a term of a court order) provide for property to be held on trust for charitable purposes. 
(2) If—
(a) the terms of the instrument impose or confer on the trustees a duty or power to accumulate income; and
(b) apart from this section the duty or power would last beyond the end of a period of 21 years beginning on the first day when the income must or may be accumulated, 

then subject to subsection (3), the duty or power ceases to have effect at the end of that 21-year period. 
(3) Subsection (2) does not have effect in relation to the instrument if its terms provide for the duty or power to accumulate income to cease to have effect—
(a) on the death of the settlor; or 
(b) on the death of one of the settlors, as determined by name or by the order of their deaths. 
(4) If a duty or power to accumulate income ceases to have effect under subsection (2), the income to which the duty or power would have applied apart from this section must—
(a) go to the person who would have been entitled to it if there had been no duty or power to accumulate income; or 
(b) be applied for the purposes for which it would have had to be applied if there had been no such duty or power to accumulate income. 
(5) This section applies whether or not the duty or power to accumulate income extends to income produced by the investment of income previously accumulated.

3C. Rule as to duration of non-charitable purpose trust not affected
This Part does not affect any rule of law that limits the duration of non-charitable purpose trusts.

4. Abolition of the double possibility rule
The rule of law prohibiting the limitation, after a life interest to an unborn person, of an interest in land to the unborn child or other issue of an unborn person is hereby abolished, but without prejudice to any other rule relating to perpetuities.
[cf. 1925 c. 20 s. 161 U.K.]

### Perpetuities and Accumulations Ordinance 《財產恆繼及收益累積條例》

5. Restrictions on the perpetuity rule
For removing doubts, it is hereby declared that the rule of law relating to perpetuities does not apply and shall be deemed never to have applied—
(a) to any power to distrain on or to take possession of land or the income thereof given by way of indemnity against a rent, whether charged upon or payable in respect of any part of that land or not; or
(b) to any grant, exception, or reservation of any right of entry on, or user of, the surface of land or of any easements, rights, or privileges over or under land for the purpose of—
(i) executing repairs, alterations, or additions to any adjoining land, or the buildings and erections thereon;
(ii) constructing, laying down, altering, repairing, renewing, cleansing, and maintaining sewers, watercourses, cesspools, gutters, drains, water-pipes, gas-pipes, electric wires or cables or other like works.
[cf. 1925 c. 20 s. 162 U.K.]

6. Power to specify perpetuity period
(1) Subject to subsection (2) of section 14 and subsection (2) of this section, where the instrument by which any disposition is made so provides, the perpetuity period applicable to the disposition under the rule against perpetuities, instead of being of any other duration, shall be of a duration equal to such number of years not exceeding eighty as is specified in that behalf in the instrument.
(2) Subsection (1) shall not have effect where the disposition is made in exercise of a special power of appointment, but where a period is specified under that subsection in the instrument creating such a power the period shall apply in relation to any disposition under the power as it applies in relation to the power itself.
[cf. 1964 c. 55 s. 1 U.K.]