23 Possibilities Of Reverter And Conditions Subsequent

• 23 (1) In the case of

• (a) a possibility of reverter on the determination of a determinable fee simple, or
• (b) a possibility of a resulting trust on the determination of any determinable interest in property,

• the rule against perpetuities as modified by this Act applies in relation to the provision causing the interest to be determinable as it would apply if that provision were expressed in the form of a condition subsequent giving rise on its breach to a right of re-entry or an equivalent right in the case of personal property.
• (2) For subsection (1), if the event that determines the determinable interest does not occur within the perpetuity period, the provision must be treated as void for remoteness and the determinable interest becomes an absolute interest.
• (3) Subsections (1) and (2) do not apply if the event which determines the prior interest, or on which the prior interest could be determined, is the cessation of a charitable purpose, but in that case if the cessation of the charitable purpose takes place after the expiration of the perpetuity period the property must be treated as if it were the subject of a charitable trust to which section 13 applies.
• (4) This section does not apply to a gift over from one charity to another.
• (5) The rule against perpetuities does not apply to a gift over from one charity to another.

1979-321-20.