CO129-548-9 Trustee Ordinance 1934 21-7-1934 - 1-8-1934 — Page 8

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the payment of any part, not exceeding two-thirds, of the purchase money shall be secured by mortgage of the land sold, with or without the security of any cther property, but such mortgage, if any buildings are comprised therein, shall contain a covenant by the mortgagor to keep such buildings insured against loss or damage by fire to the full value thereof.

(3) The trustees shall not be bound to obtain any report as to the value of the land or other property to be comprised in such mortgage, or any advice as to the making of the loan, and shall not be liable for any loss which may be incurred by reason only of the security being insufficient at the date of the mortgage.

(4) Where any securities of a company are subject to a trust, the trustees may concur in any scheme or arrangement—

(a) for the reconstruction of the company;

(b) for the sale of all or any part of the property and undertaking of the company to another

company;

(c) for the amalgamation of the company with

another company;

(d) for the release, modification, or variation of any rights, privileges or liabilities attached to the securities or any of them;

in like manner as if they were entitled to such securi- ties beneficially, with power to accept any securities of any denomination or description of the reconstruct- ed or purchasing or new company in lieu of or in exchange for all or any of the first-mentioned securi- ties; and the trustees shall not be responsible for any loss occasioned by any act or thing so done in good faith, and may retain any securities so accepted as aforesaid for any period for which they could have properly retained the original securities.

(5) If any conditional or preferential right to sub- scribe for any securities in any company is offered to trustees in respect of any holding in such company, they may as to all or any of such securities, either exercise such right and apply capital money subject to the trust in payment of the consideration, or re- nounce such right, or assign for the best consideration that can be reasonably obtained the benefit of such right or the title thereto to any person, including any beneficiary under the trust, without being responsible for any loss occasioned by any act or thing so done by them in good faith:

Provided that the consideration for any such assign- ment shall be held as capital money of the trust.

(6) The powers conferred by this section shall be exercisable subject to the consent of any person whose consent to a change of investment is required by law or by the instrument, if any, creating the trust.

(7) Where the loan referred to in sub-section (1), or the sale referred to in sub-section (2), is made under the order of the court, the powers conferred by those sub-sections respectively shall apply only if and as far as the court may by order direct.

12.-(1) Trustees may, pending the negotiation and Power to preparation of any mortgage or charge, or during any deposit at other time while an investment is being sought for,

Bank and to pay any trust money into a bank to a deposit or other 15 Geo. 5, pay calls. account, and all interest, if any, payable in respect c 19, s. 11. thereof shall be applied as income.

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