THE CORPORATIONS LAW

CHAPTER 2L - DEBENTURES

PART 2L.1 - REQUIREMENT FOR TRUST DEED AND TRUSTEE

SECTION 260FE   REPLACEMENT OF TRUSTEE  

260FE(1)  Related party of existing trustee may be appointed as a new trustee.  

In addition to any other powers of appointment under the terms of the debentures or provisions of the trust deed, the borrower may appoint a body corporate that is related to the existing trustee as trustee in place of the existing trustee if:

(a)  the body corporate can be a trustee under section 260FC; and

(b)  the existing trustee consents in writing to the appointment.

The appointment has effect despite any terms of the debentures or provisions of the trust deed.

260FE(2)  Appointment by Court.  

The Court may:

(a)  appoint a person who may be a trustee under section 260FC as trustee on the application of the borrower, a debenture holder or ASIC if:

(i) a trustee has not been validly appointed; or

(ii) the trustee has ceased to exist; or

(b)  terminate the existing trustee's appointment and appoint a person who may be a trustee under section 260FC as trustee in the existing trustee's place on the application of the borrower, the existing trustee, a debenture holder or ASIC if:

(i) the existing trustee cannot be trustee under section 260FC; or

(ii) the existing trustee fails, or refuses, to act.