Trustee Bill - continued        House of Lords
PART IV, AGENTS, NOMINEES AND CUSTODIANS - continued
Review of and liability for agents, nominees and custodians etc. - continued

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Liability for agents, nominees and custodians etc.     23. - (1) A trustee is not liable for any act or default of the agent, nominee or custodian unless he has failed to comply with the duty of care applicable to him, under paragraph 3 of Schedule 1-
 
 
    (a) when entering into the arrangements under which the person acts as agent, nominee or custodian, or
 
    (b) when carrying out his duties under section 22.
      (2) If a trustee has agreed a term under which the agent, nominee or custodian is permitted to appoint a substitute, the trustee is not liable for any act or default of the substitute unless he has failed to comply with the duty of care applicable to him, under paragraph 3 of Schedule 1-
 
 
    (a) when agreeing that term, or
 
    (b) when carrying out his duties under section 22 in so far as they relate to the use of the substitute.
 
Supplementary
Effect of trustees exceeding their powers.     24. A failure by the trustees to act within the limits of the powers conferred by this Part-
 
 
    (a) in authorising a person to exercise a function of theirs as an agent, or
 
    (b) in appointing a person to act as a nominee or custodian,
  does not invalidate the authorisation or appointment.
 
Sole trustees.     25. - (1) Subject to subsection (2), this Part applies in relation to a trust having a sole trustee as it applies in relation to other trusts (and references in this Part to trustees- except in sections 12(1) and (3) and 19(5)- are to be read accordingly).
 
      (2) Section 18 does not impose a duty on a sole trustee if that trustee is a trust corporation.
 
Restriction or exclusion of this Part etc.     26. The powers conferred by this Part are-
 
 
    (a) in addition to powers conferred on trustees otherwise than by this Act, but
 
    (b) subject to any restriction or exclusion imposed by the trust instrument or by any enactment or any provision of subordinate legislation.
Existing trusts.     27. This Part applies in relation to trusts whether created before or after its commencement.
 
 
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