Part 11 — Trust Indentures Division 1 Interpretation and Application
254 Compliance with trust indentures
issued under a trust indenture must provide the trustee with
evidence of compliance with the conditions in the trust indenture
before undertaking
(a) the issue, certification and delivery of debt obligations under
the trust indenture,
(b) the release, or release an d substitution, of property subject to
a security interest constituted by the trust indenture, or
(c) the satisfaction and discharge of the trust indenture.
(2) On the demand of a trustee, the issuer or guarantor must
provide the trustee with evidence of compliance with the conditions
in the trust indenture by the issuer or guarantor in respect of any act
to be done by the trustee at the request of the issuer or guarantor.
(3) The following documents constitute evidence of compliance
for the purposes of subsections (1) and (2):
(a) a statutory declaration ma de or certificate issued by a
director or an officer of the issuer or guarantor stating that
the conditions referred to in subsections (1) and (2) have
been complied with,
(b) if the trust indenture requ ires compliance with conditions
that are subject to review by legal counsel, an opinion of
legal counsel that the conditions of the trust indenture
requiring review by legal counsel have been complied with,
and
(c) if the trust indenture requ ires compliance with conditions
that are subject to review by an auditor or accountant, an
opinion or report of the auditor of the issuer or guarantor, or
any other accountant that the trustee selects, that those
conditions have been complied with.
(4) The evidence of compliance described in subsection (3) must
include a statement by the person giving the evidence
(a) declaring that the person has read and understands the
conditions of the trust indenture referred to in subsections
(1) and (2),
(b) describing the nature and scope of the examination or
investigation on which the person based the statutory
declaration, certificate, opinion or report, and
(c) declaring that the person has made any examination or
investigation that the person believes necessary to enable
the statements to be made or the opinions contained or
expressed in the statement to be given.