Acts and Regulations

2015, c.21 - Trustees Act

Section 55
Disposition versions

Full text
Allocation of insurance proceeds
55(1)This section only applies to proceeds under a contract of insurance that are payable after this section comes into force.
55(2)The trustees shall allocate insurance proceeds to the capital of the trust if
(a) the trustees entered into a contract of insurance against loss of, or damage to, any trust property,
(b) the trustees paid the premiums owing under the contract, and
(c) insurance proceeds under the contract are paid to the trustees.
55(3)If a beneficiary of a trust enters into a contract of insurance against loss of, or damage to, any trust property, whether or not the beneficiary is required by the trust instrument or by a third party to obtain the insurance, and insurance proceeds under the contract are paid to the beneficiary,
(a) the beneficiary shall pay the insurance proceeds to the trustees,
(b) the trustees shall allocate the insurance proceeds to the capital of the trust, and
(c) the trustees shall reimburse the beneficiary for expenses incurred by the beneficiary in entering into the contract of insurance, in the amount the trustees consider to reflect the interests of the other beneficiaries in the trust property.
55(4)The trustees may apply all or part of the insurance proceeds received under subsection (2) or (3) to the rebuilding, reinstatement, replacement or major repair of the trust property that has been lost or damaged.
55(5)Nothing in this section affects the rights of a secured party, lessor, lessee or other person
(a) to receive insurance proceeds, or
(b) to require that the insurance proceeds be applied to the rebuilding, reinstatement, replacement or major repair of the trust property that has been lost or damaged.
Allocation of insurance proceeds
55(1)This section only applies to proceeds under a contract of insurance that are payable after this section comes into force.
55(2)The trustees shall allocate insurance proceeds to the capital of the trust if
(a) the trustees entered into a contract of insurance against loss of, or damage to, any trust property,
(b) the trustees paid the premiums owing under the contract, and
(c) insurance proceeds under the contract are paid to the trustees.
55(3)If a beneficiary of a trust enters into a contract of insurance against loss of, or damage to, any trust property, whether or not the beneficiary is required by the trust instrument or by a third party to obtain the insurance, and insurance proceeds under the contract are paid to the beneficiary,
(a) the beneficiary shall pay the insurance proceeds to the trustees,
(b) the trustees shall allocate the insurance proceeds to the capital of the trust, and
(c) the trustees shall reimburse the beneficiary for expenses incurred by the beneficiary in entering into the contract of insurance, in the amount the trustees consider to reflect the interests of the other beneficiaries in the trust property.
55(4)The trustees may apply all or part of the insurance proceeds received under subsection (2) or (3) to the rebuilding, reinstatement, replacement or major repair of the trust property that has been lost or damaged.
55(5)Nothing in this section affects the rights of a secured party, lessor, lessee or other person
(a) to receive insurance proceeds, or
(b) to require that the insurance proceeds be applied to the rebuilding, reinstatement, replacement or major repair of the trust property that has been lost or damaged.