Hong Kong Regulations

JUDICIAL TRUSTEE RULES - RULE 9

Security

(1) A judicial trustee, if not an official of the court, shall give security
to the court for the due application of the trust property, unless the court
dispenses with security under this rule.

(2) The court may, on the appointment of a judicial trustee, or at any time
during his continuance in office as judicial trustee, dispense with security
on the application either of the person who is to be appointed or is judicial
trustee, or of any person appearing to the court to be interested in the
trust, and shall do so where a judicial trustee is appointed on the
application of a person creating or intending to create a trust, and that
person desires that security should be dispensed with, unless for special
reasons the court considers that security is in such a case necessary or
desirable.

(3) The security shall be given, either by recognizance, bond, or otherwise,
as the court directs, and with such sureties as the court approves.

(4) If the court is satisfied that sufficient provision is made for the safety
of the capital of the trust property, the amount of the security shall, in
ordinary cases, be an amount exceeding by twenty per cent the annual income of
the trust property as estimated by the court.

(5) The court may at any time require that the amount or nature of the
security given by a judicial trustee under this rule be varied, or that
security be given where it has previously been dispensed with, and a judicial
trustee shall comply with any such requirement.

(6) It shall be a condition of every recognizance, bond, or other form of
security given under this rule that the judicial trustee shall give immediate
notice to the court of the death or insolvency of any of his sureties.

(7) Any recognizance, bond, or other form of security given for the purpose of
this rule may be vacated in such manner and subject to such conditions as the
court may direct.

(8) Where security is not dispensed with, the appointment of a person to be
judicial trustee shall not take effect until he has given the security
required by the court under this rule.

(9) Any premium payable by a judicial trustee to any guarantee company on
account of his security may, if the court so directs, be paid out of the trust
property.