CAP. 29]
[8. 9 cont.]
Liability
for loss by reason of improper investment. 15 Geo. 5, c. 19, s. 9.
Powers supple- mentary to powers of investment. 15 Geo. 5, c. 19, s. 10.
Trustee.
(4) This section applies to transfers of existing securities as well as to new securities and to investments made before as well as after the commencement 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 authorized 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 mortgage 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 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 other 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.
466-
CAP. 29]
[8. 9 cont.]
Liability
for loss by reason of improper investment. 15 Geo. 5, c. 19, s. 9.
Powers supple- mentary to powers of investment. 15 Geo. 5, c..19, s. 10.
Trustee.
(4) This section applies to transfers of existing securities as well as to new securities and to investments made before as well as after the commencement 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 authorized 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 instru- ment of mortgage or charge for the maintenance and protec- tion 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 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 other property, but such mortgage, if any buildings are comprised therein, shall con- tain 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.
466-
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