Document ID: chunk:federal_register_of_legislation:C2007A00074:clause:1_24
Version: federal_register_of_legislation:C2007A00074
Segment Type: clause
Provision Reference: sch 1 cl 24
Character Range: 13338–14695

24  Subsection 601AE(1)
Repeal the subsection, substitute:

Trust property vested in the Commonwealth

 (1) If property vests in the Commonwealth under subsection 601AD(1A), the Commonwealth may:
 (a) continue to act as trustee; or
 (b) apply to a court for the appointment of a new trustee.

Note: Under paragraph (1)(a), the Commonwealth may be able to transfer the property to a new trustee chosen in accordance with the trust instrument.

 (1A) If the Commonwealth continues to act as trustee in respect of the property, subject to its obligations as trustee, the Commonwealth:
 (a) in the case of money—must credit the amount of the money to a Special Account (within the meaning of section 5 of the Financial Management and Accountability Act 1997); or
 (b) otherwise:
 (i) may sell or dispose of the property as it thinks fit; and
 (ii) if the Commonwealth does so—must credit the amount of the proceeds to a Special Account (within the meaning of section 5 of the Financial Management and Accountability Act 1997).

Note: ASIC may, for and on behalf of the Commonwealth, perform all the duties and exercise all the powers of the Commonwealth as trustee in relation to property held on trust by the Commonwealth (see subsection 8(6) of the ASIC Act).

Note: The heading to section 601AE is altered by inserting "the Commonwealth or" after "What".