Section 302B — Bankruptcy Act 1966 (Cth)

(1) A provision of a trust deed is void to the extent that it has the effect of:

(a) cancelling, reducing or qualifying a beneficiary’s interest under the trust; or

(b) allowing the trustee to exercise a discretion to the detriment of a beneficiary’s interest;

if the beneficiary becomes a bankrupt, commits an act of bankruptcy or executes a personal insolvency agreement under this Act.

(2) This section does not apply to a provision that facilitates compliance with:

(a) section 128B; or

(b) section 128C; or

(c) a notice under section 128E; or

(d) an order under paragraph 128K(1)(b); or

(e) a notice under section 139ZQ; or

(f) an order under subsection 139ZT(2); or

(g) an order under section 139ZU.

Related sections

• s 302 — Certain provisions in bills of sale etc. to be void
• s 302A — Certain provisions in governing rules of superannuation funds and approved deposit funds to be void
• s 302AB — Certain provisions in RSA’s terms and conditions to be void
• s 303 — Applications to Court
• s 304 — Parts of dollar to be disregarded in determining majority in value of creditors etc.
• s 304A — Indexation

Research how courts apply s 302B

BriefBridge searches Australian caselaw by meaning — every answer cited to the paragraph.