Cap. 16 Art. 1124HObligations of the beneficiary towards the fiduciary.

(1)The beneficiary shall be bound towards the fiduciary:

(a) to perform all such obligations as are agreed by him in writing or as may be established in the relative instrument under which the fiduciary obligations arise or as may arise under the applicable law;

(b) to pay the remuneration to, and all expenses incurred by, the fiduciary as may be established in the relative instrument under which the fiduciary obligations arise or are governed;

(c) subject to the provisions of any special law or this Code which exclude remuneration, where not expressly agreed in the relevant instrument:

(i) to pay such fees as are reasonable as is established in agreement with all beneficiaries who are of age or as may be established by the Court; and

(ii) the fiduciary may reimburse himself or pay out of the property subject to fiduciary obligations all expenses properly incurred by him in connection with his duties, in which case the fiduciary shall notify the beneficiary, or the persons required to be notified in the relevant instrument or applicable law, of such reimbursement in the manner and at the time established by applicable law.

(2) The beneficiary must at all times act in good faith towards the fiduciary irrespective of the manner by which or by whom the fiduciary has been appointed.

(3) Subject to the terms of the instrument governing the fiduciary obligations, the beneficiary shall, to the extent of the property unless the beneficiary has agreed otherwise, indemnify the fiduciary for any liabilities the fiduciary may incur in the carrying out of his fiduciary duties except to the extent that the fiduciary is guilty of negligence, wilful misconduct or fraud.

(4) Nothing in this article shall limit the rights or remedies of the fiduciary under this Code or any other law arising from bad faith or other harmful acts on the part of a beneficiary.