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Loans and investments by trustees not charge- able as breaches of trust.
15 Geo. 5, c. 19, s. 8.
Liability for loss by reason of improper investment.
15 Geo. 5, c. 19, s. 9.
Powers supple- inentary to powers of investment. 15 Geo. 5, c. 19, s. 10.
(4) A trustee shall not be responsible for any loss incurred by reason of such deposit, and any sum payable in respect of such deposit and collection shall be paid out of the income of the trust property.
9.-(1) A trustee lending money on the security of any property on which he can properly 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, if it appears to the court-
(a) that in making the loan the trustee was act- ing upon a report as to the value of the property made by a person whom he reason- ably believed to be an able practical surveyor or valuer instructed and employed indepen- dently of any owner of the property, whe- ther such surveyor or valuer carried on business in the locality where the property is situate or elsewhere; and
(b) that the amount of the loan does not exceed two third parts of the value of the property as stated in the report; and
(c) that the loan was made under the advice of the surveyor or valuer expressed in the re- port.
(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 such 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, 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 be 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 invest- ments made before as well as after the commence- ment of this Ordinance.
10.-(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) This section applies to investments made before as well as after the commencement of this Ordinance.
11.-(1) Trustees lending money on the security of any property on which they can lawfully lend may contract that such money shall not be called in during any period not exceeding seven years from the time when the loan was made, provided interest be paid within a specified time not exceeding thirty days after every half-yearly or other day on which it becomes due, and provided there be no breach of any covenant by the mortgagor contained in the instrument of mort- gage or charge for the maintenance and protection of the property.
(2) On a sale by trustees of land for a term having at least sixty years to run, the trustees may, where the proceeds are liable to be invested, contract that