TRUSTEES.
No. 5 of 1901.
1331
(2) A trustee lending money on the security of any lease-hold 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.
(4) This section applies to transfers of existing securities as well as to new securities, and to investments made as well before as after the commencement of this Ordinance.
reason of investment.
22.-(1) Where a trustee improperly advances trust money on a mortgage security which would, at the time of the investment, be a proper investment in all respects for a smaller sum than is actually advanced thereon, the security shall be deemed an authorised investment for the smaller sum, and the trustee shall only be liable to make good the sum advanced in excess thereof, with interest.
(2) A trustee shall not be liable for breach of trust by reason only of his continuing to hold an investment which has ceased to be an investment authorised by the instrument creating the trust or by the general law.
(3) This section applies to investments made as well before as after the commencement of this Ordinance.
PART III
VARIOUS POWERS AND DUTIES OF TRUSTEES.
Appointment of new trustees.
23. (1) Where a trustee, either original or substituted, and whether appointed by a court or otherwise, is dead, or remains out of the Colony for more than twelve months, or desires to be discharged from all or any of the trusts or powers reposed in or conferred on him, or refuses or is unfit to act therein, or is incapable of acting therein, then the person or persons nominated for the purpose of appointing new trustees