Hong Kong Ordinances

TRUSTEE ORDINANCE - SECT 28

Protection against liability in respect of rents and covenants

Indemnities

(1) Where a personal representative or trustee liable as such for-

   (a)  any rent, covenant, or agreement reserved by or contained in any
        lease; or

   (b)  any rent, covenant or agreement payable under or contained in any
        grant made in consideration of a rentcharge; or

   (c)  any indemnity given in respect of any rent, covenant or agreement
        referred to in either of the foregoing paragraphs, satisfies all
        liabilities under the lease or grant which may have accrued, and been
        claimed, up to the date of the conveyance hereinafter mentioned, and,
        where necessary, sets apart a sufficient fund to answer any future
        claim that may be made in respect of any fixed and ascertained sum
        which the lessee or grantee agreed to lay out on the property demised
        or granted, although the period for laying out the same may not have
        arrived, then and in any such case the personal representative or
        trustee may convey the property demised or granted to a purchaser,
        legatee, devisee or other person entitled to call for a conveyance
        thereof and thereafter-

        (i)    he may distribute the residuary estate of the deceased testator
               or intestate, or, as the case may be, the trust estate (other
               than the fund, if any, set apart as aforesaid) to or amongst
               the persons entitled thereto, without appropriating any part,
               or any further part, as the case may be, of the estate of the
               deceased or of the trust estate to meet any future liability
               under the said lease or grant;

        (ii)   notwithstanding such distribution, he shall not be personally
               liable in respect of any subsequent claim under the said lease
               or grant.

(2) This section operates without prejudice to the right of the lessor or
grantor, or the persons deriving title under the lessor or grantor, to follow
the assets of the deceased or the trust property into the hands of the persons
amongst whom the same may have been respectively distributed, and applies
notwithstanding anything to the contrary in the will or other instrument, if
any, creating the trust.

(3) In this section "lease" (租約) includes an underlease and an agreement
for a lease or underlease and any instrument giving any such
indemnity as aforesaid or varying the liabilities under the lease; "grant"
(批地) applies to a grant whether the rent is created by limitation, grant,
reservation, or otherwise, and includes an agreement for a grant and any
instrument giving any such indemnity as aforesaid or varying the
liabilities under the grant; "lessee" (承租人) and "grantee"
(獲批地人), include persons respectively deriving title under them. [cf.
1925 c. 19 s. 26 U.K.]

"lease" (租約)

"grant" (批地)

"lessee" (承租人) and "grantee" (獲批地人)