SECTION 14 A trust instrument without the following particulars and statements shall be void:
(1) names of a settlor and a trustee;
(2) beneficiary identifiable by name, qualification or any character that specifies beneficiaries of trust;
(3) objectives of trust;
(4) property constituting trust property.

SECTION 15 The SEC Office may issue notifications specifying particulars and statements of trust instrument in addition to those specified in Section 14.

SECTION 16 The creation of trust in the following manners shall be void:
(1) the creation of trust in contrary to Section 11 or Section 12;
(2) the creation of trust assigning trusteeship to a person without an approval to undertake trust business under this Act, or a trustee temporarily suspended from undertaking of trust business or whose approval to undertake trust business revoked or prohibited to engage in a trust instrument.

SECTION 17 No provision in a trust instrument shall contravene this Act. Any provisions in the trust instrument that contravene this Act shall be void.

Division 2
Effects of Creation of Trust

SECTION 18 When a trust is created, rights and duties of the settlor, the trustee and the beneficiary shall be as follows:
(1) the settlor shall have rights and duties only as specified in the trust instrument;
(2) the trustee shall have legal right over trust property as an owner of the property or a person entitled to the right over the property, and shall have the duty to manage the trust property in accordance with the trust instrument and this Act;
(3) the beneficiary shall have the right to receive benefits arising from the management of trust property and any rights as specified in the trust instrument and this Act.

SECTION 19 In cases where the settlor, the trustee or the beneficiary of a trust dies, becomes insolvent, becomes dissolved or ceases to be a juristic person or where the trustee of a trust has been altered, the trust shall not be affected unless the trust instrument provides otherwise.

Division 3
Amendment to Trust Instrument and Alteration of Trustee

SECTION 20 An amendment to a trust instrument shall be made as provided by its terms and conditions. In absence of such terms and conditions, the beneficiary and the trustee may mutually agree to amend the trust instrument to the extent that it is not contrary to the purpose of the creation of trust.

SECTION 21 In cases where the SEC Office has issued notifications specifying additional particulars and statements under Section 15, the SEC Office shall have the power to direct the trustee to add such particulars and statements to the trust instrument within a reasonable period of time if it is appropriate for the benefit of the beneficiary, and not contrary to the purpose of the creation of trust.

The trustee shall amend the trust instrument as directed in the first paragraph in accordance with the procedures specified in Section 20 or with the SEC Office’s approval.

SECTION 22 An alteration of trustee shall be made as provided by the terms and conditions of the trust instrument or when any of the following causes occurs:
(1) the trustee resigns;
(2) the trustee is under receivership, ceases to be a juristic person, or ceases to be a commercial bank;
(3) the trustee is dismissed from trusteeship;
(4) the SEC temporarily suspends the trustee’s undertaking of trust business, or revokes the approval granted to the trustee to undertake trust business.

SECTION 23 A trustee may resign or be dismissed from trusteeship as provided by the terms and conditions of the trust instrument. In the absence of such terms and conditions, resignation or dismissal of trustee shall comply with the following conditions:
(1) the trustee shall, in writing, notify the beneficiary of its resignation in compliance with the rules and period as specified in the notification of the SEC Office, provided that the resignation shall not cause damages to the beneficiary;
(2) when there is evidence that the trustee fails to perform the duties specified by the trust instrument or this Act, the beneficiary may remove the trustee in accordance with the procedures and conditions as specified in the notification of the SEC Office.

SECTION 24 An appointment of a new trustee shall be made as provided by the terms and conditions of the trust instrument. In the absence of such terms and conditions, the appointment of a new trustee shall be made in accordance with the rules as specified in the notification of the SEC Office.

SECTION 25 In cases where the trust instrument appoints a sole trustee or several trustees and specifies each trustee to separately manages the trust property, if there is a cause to alter the trustee but the new trustee has not yet been appointed, unless the trust instrument provides otherwise, the trust property shall be managed during such period in compliance with the following criteria:

(1) in cases where the trustee resigns, the former trustee shall perform its duties until the trust property is completely vested in a new trustee;
(2) in cases where the trustee is dissolved or liquidated or suspended from its undertaking of any business or bankrupt, a receiver, a liquidator or any other person empowered by law to act in the similar capacity as the aforementioned persons, as the case may be, shall undertake necessary and appropriate actions until a new trustee is completely vested with the trust property;
(3) in cases where the trustee is dismissed, temporarily suspended from its undertaking of trust business or whose approval to undertake trust business revoked by the SEC, the former trustee shall perform its duties only to protect the benefits or exercise the right over the trust property to prevent the trust property from damage, depreciation or uselessness until the new trustee is completely vested with the trust property.

SECTION 26 In case of alteration of trustee, the former trustee or the surviving trustee shall undertake all actions necessary to vest the new trustee with the right over the trust property and to allow the new trustee to learn of the previous and onward management as well as deliver documents, evidence and any information relating to the management of the trust property in order to enable the new trustee to perform its duties. In so doing, the
former trustee or the surviving trustee, as the case may be, shall sign a statement certifying the correctness and completeness of things delivered to the new trustee and delivers such statement to the new trustee.

The former trustee or the surviving trustee shall undertake all actions under the first paragraph within thirty days from the date on which the new trustee takes its trusteeship.

If the former trustee or the surviving trustee fails to undertake the actions within the period specified in the previous paragraph, the new trustee shall file a motion with the court to issue an order to declare that the new trustee has been fully vested with the trust property.

In cases where the former trustee or the surviving trustee fails to undertake the actions under the first paragraph, if there is damage to the trust property or the beneficiary, the former trustee or the surviving trustee shall be liable to such damage. The beneficiary may claim compensation from the former trustee or the surviving trustee for the benefit of the trust property if damage to the trust property occurs and the new trustee has not yet been fully vested with the trust property in accordance with Section 27.

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