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Trusts Act 2019

Trustees’ powers and indemnities - Trustees’ indemnities

87: Trustee’s lien on insurance money for premiums

You could also call this:

"Trustees can claim back insurance premiums they paid, plus interest, from insurance money"

Illustration for Trusts Act 2019

If you are a trustee and you pay premiums for insurance to protect trust property, this section applies to you. You pay these premiums when you have not yet been reimbursed by the trust. You have a claim on the insurance money for the amount of premiums you paid.

You also have a claim on interest for that amount, which is calculated according to Schedule 2 of the Interest on Money Claims Act 2016.

This means you can get back the premiums you paid, plus interest, from the insurance money when you make a claim.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM7382996.

Topics:
Money and consumer rights > Banking and loans
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"When a trustee owes you money, you can claim it from the trust, but only up to the benefit the trust received."

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88: Trustee’s indemnity for rent, covenant, or agreement under lease, or

"Protection for trustees who pay rent or follow lease rules"

Part 4Trustees’ powers and indemnities
Trustees’ indemnities

87Trustee’s lien on insurance money for premiums

  1. This section applies if a trustee pays any premiums in respect of any insurance contract for trust property for which the trustee has not previously received reimbursement from the trust property.

  2. The trustee has a lien on—

  3. the insurance money for the amount of the premiums paid; and
    1. interest on that amount calculated in accordance with Schedule 2 of the Interest on Money Claims Act 2016.

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