Messrs Simmons, Crisp and Simmons, Solicitors, of Hobart, have written to Messrs Allen, Allen and Hemsley, Sydney, Solicitors to the Commonwealth Bank, drawing attention to the provisions of section 5 of The Trustee Act 1898 of Tasmania as amended by section 2 of the amending Act passed in 1907⁽²⁾, by which it is provided that a trustee (unless expressly forbidden by the instrument creating the trust) may in-vest trust funds on fixed deposit at interest in any incorporated bank after the passing of the last-mentioned Act proclaimed by the Governor in Council as a bank in which deposits may be made by trustees.

This letter has been referred by the Governor of the Commonwealth Bank to the Treasurer, who desires to be advised whether it is necessary for the Commonwealth Bank to be gazetted a bank in which deposits may be made by trustees in Tasmania.

The Commonwealth Bank Act 1911 contains no provision empowering trustees to invest trust funds on deposit with the Commonwealth Bank.

It is doubtful also whether the Commonwealth could legislate so as to empower trustees to invest money in any particular manner.

If it is considered desirable that trustees in Tasmania should have power to invest money by deposit in the Commonwealth Bank, it would be desirable to take steps to have the necessary proclamation issued under State law.

[Vol. 11, p. 45]

(1)Date in Openion Book Incomplete.

(2)The Trustee act 1907.(Tas.).

(3)This openion is unsigned in the Openion Book, but it is attributed to Mr Hughes.