834
ing drainage charges. 56 & 57 Vict. c. 53 s. 6. 9 & 10 Vict, c. 101; 10 & 11 Vict. c. 11; 11 & 12 Vict. c. 119; 13 & 14 Vict. c. 31; 19 & 20 Vict. c. 9: 10 & 11 Vict. c. 32; 27 & 29 Vict. c. 114.
Trustees not to convert inscribed stock into certificates to bearer. Ib. s. 7. 26 & 27 Vict. c. 73. 33 & 34 Vict. c. 71. 38 & 39 Vict. c. 83. 40 & 41 Vict. c. 69.
Loans and investments by trustees not chargeable as breaches of trust. Ib. s. 8.
No. 5.] THE ORDINANCES OF HONGKONG: [A.D. 1901
notwithstanding the same is charged with a rent under the powers the Public Money Drainage Acts, 1846 to 1856, or the Landed Property Improvement (Ireland) Act, 1847, or by an absolute order made under the Improvement of Land Act, 1864, unless the terms of the trust expressly provide that the land to be purchased or taken in mortgage shall not be subject to any such prior charge.
20.—(1.) A trustee, unless authorized by the terms of his trust, shall not apply for or hold any certificate to bearer issued under the authority of any of the following Acts; that is to say,-
(a.) the India Stock Certificate Act, 1863; (b.) the National Debt Act, 1870;
(c) the Local Loans Act, 1875; and (d) the Colonial Stock Act, 1877.
(2.) Nothing in this section shall impose on the Bank of England or the Bank of Ireland, or on any person authorized to issue any such certificates, any obligation to inquire whether a person applying for such certificate is or is not a trustee, or subject them to any liability in the event of their granting any such certificate to a trustee, or invalidate any such certificate, if granted.
21.-(1.) A trustee lending money on the security of any property on which he can lawfully lend shall not be chargeable with breach of trust by reason only of the proportion borne by the amount of the loan to the value of the property at the time when the loan was made, provided that it appears to the Court that, in making the loan, the trustee was acting upon a report as to the value of the property made by a person whom he reasonably believed to be an able practical surveyor or valuer instructed and employed independently of any owner of the property, whether such surveyor or valuer carried on business in the locality where the property is situate or elsewhere, and that the amount of the loan does not exceed two equal third parts of the value of the property as stated in the report, and that the loan was made under the advice of the surveyor or valuer expressed in the report.
(2.) A trustee lending money on the security of any leasehold property shall not be chargeable with breach of trust only upon the ground that, in making the loan, he dispensed either wholly or partly with the production or investigation of the lessor's title.
(3.) A trustee shall not be chargeable with breach of trust only upon the ground that, in effecting the purchase of or in lending money upon the security of any property, he has accepted a shorter title than the title which a purchaser is, in the absence of a special contract, entitled to require, if, in the opinion of the Court, the title accepted is such as a person acting with prudence and caution would have accepted.