TRUSTEE ORDINANCE, 1901

TRUSTEE ORDINANCE, 1901

No. 5 of 1901.

To consolidate and amend the Laws relating to Trustees.
1. The Trustee Ordinance, 1901.

2. In this Ordinance,-

[1st July, 1901.]

Contingent right,- as applied to land, includes a contingent or
executory interest, a possibIlity coupled with an interest, whether
the object of the gift or limitation of the interest or possibility is
or is not ascertained, also a right of entry, whether immediate or
future and whether vested or contingent :
- Convey - and - conveyance applied to any person, include
the execution by that person of every necessary or suitable
assurance for conveying, assigning, appointing, surrendering, or
otherwise transferring or disposing of land whereof he is seized or
possessed or wherein he is entitled to a contingent right, either for

As amended by No. 2 of 1912.
As amended by No. 1 of 1912.
As amended by No. 50 of 1911.





his whole estate or for any less estate, together with the perform-
ance of all formalities required by law to the validity of the
conveyance, including the acts to be perforined by rnarried women
in accordance with the provisions of the Married Wornen's
(Disposition of Property) Ordinance, 1885;
' Devisee - Includes the heir ol a devisee and the devisee of an
heir, and any person who rnay claini right by devolution of title of a
similar description:

- Instrument - includes Act of Parliament and Ordinance.

'Land- includes incorporeal as well as corporeal liereditalnents,
and any interest therein, and also an undivided share of land :

Mortgaee - and - Mortgagee' include and relate to every
estate and interest regarded in equity as nierely a security
and every person deriving title onder the original niortgagee :

Pay - and - payment as applied in relation to stoellis and
securities and in connexion -with the expression - into Court,'
include the deposit or transfer of the sanic in or into Court :

Possessed ' applies to receipt of Meorne of, and to any vested
estate less than a life estate, legal or equitable, in possession or in
expectancy, in any land:

Property, - includes inovable and uninovable property, and any
estate and interest in any proerty, movable or immovabl, and
any debt, and any thing In action, and ans, other rigbt or interest,
whether in possession or not.,

- Rights - includes estates and interests:

- Securities ' include stocks, funds, and shares, and, so far as
relates to pavn-ients into Court, include Iniperial Governinent
securitites, and any security of ans. foreign State, any British pos-
session, or any body corporate or cmpany or standing in books
kept by any body corporate, company, or person in the United
Kingdom or in this ColonY, and all stocks, funds, and effects:

- Stock ' includes fully paid up shares; and, so far is relates to
vesting orders made by the Court under this Ordinance, includes
any fund, annuity, or security transferable in books kept by any
company or seciety, or by instrument of transfer, either alone or
accompanied by other formalities, and any share or interest
therein

The Court ' means the Supreme Court:





---Transfer,' in relation to stock, includes the performance and
execution of every deed, power of attorney, act, and thing on the
part of the transferor to effect and complete the title in the trains-
feree :

---Trust--- does not include the duties incident to an estate,
conveyed by way of mortgage; but with this exception ---trust---
and ---trustee--- include implied and constnictlive trusts, and cases
where the trustee bas a beneficial interest in. the trust property, and
the diities incident to the office of personal representative of a de-
ceased person.

PART I.

THE OFFICIAT, TRUSTEE.

3.-(.1) For the purpose of carrying into effect the provisions of
this Part, it shall be lawful for the Governor to appoint a fit and
proper person to be Official Trustee.

(2) The sald office shall have perpetual succession, and all lands
or any interest therein, and all moneys, stocks, and securities and
land which may be vested in the Official Trustee under this Part
shall be deenied to be vested in the Official Trtiste for the time
being, without any further transfer or conveyance.

4. Trustees, or the majority of trustees, having in their hands or
under their control any moneys belonging to any trust, shall be at
liberty, on filing in the Registry of the Court an affidavit shortly
describing the instrurtient creating the trust, according to the best
of their knowledge and belief, to pay the sarne, with the privity of
the Official Trustee and in accordance with such directions as they
may receive for the purpose from him, into the Court; and the said
trust moneys shall be paid through the Treasury into a bank
authorised by the Governor on deposit bearing interest, or other-
wise, to the account of the Official Trustee (by his official designa-
tion) in the matter of the particular trust (describing the same by
the names of the parties, as accurately as may be, for the purpose
of distinguishing it), in trust to attend the orders of the Court.

5. Trustees, or the niajority of trustees, having any securities
standing in their names in the books of any public company or
corporation established in the Colony, or in the names of any

As amended by No. 50 of 1911 and No. 1 of 1912.
As amended by No. 50 of 1911 and No. 2 of 1912.





deceased Persons of whom they. are personal representatives, upon
any trust, shall be at lilberty, on filing such affidavit as aforesaid, to
transfer such securities, with such privity and in accordance with
such directions as aforesaid, into the naine of the Official Trustee
(by his official designation) or to deposit the same in his name
in such bank as aforesaid in the matter of the particular trust
(describing the same as aforesaid), in trust to attend the orders of
the Court.

6. Trustees, or the rnajority of trustees, in whoin any land within
the Colony is or becomes vested upon any trust, shall be at liberty,
on filing such affidavit, to aforesaid, to convey such land', with such
privity and in accordance with such directions as aforesaid, to the
Official Trustee, in trust to attend the orders ol the Court.


7. In every such case as aforesaid, the certificate of the Official
Trustee. for the inoneys so paid, or of the transfer or deposit of such
securities, or of the conveyance ol such land shall be a sutlicient
discharge to such trustees or other persons for the moneys so paid,
or the stocks or securities so transferred or deposited, or the land
so conveyed as aioresald.

8.-(.1) Where any moneys or securities, or any land, are or is
vested in any persons as trustees, and the majority of them are
desirous of paving, transiferring, depositing, or conveying the same
as aforesaid, but the concurrence. the other or others cannot be
obtained, the Court may order the payment, transfer, deposit, or
conveyance to be made by the majority without the. concurrence of
the other or others; and where any such niones's or securities are
deposited with any banker, broker, or other depositary, the Court
may order payment or delivery of the moneys or securities to the
majority of the trustees for the purpose of payment into Court.

(2) Every payment, transfer, deposit, delivery, and conveyance
made in pursuance oi any such order shall be valid and take effect
as if the same had been made on the authority or by the act of all
the persons entitled to the moneys, securities, or land so paid,
transferred, deposited, delivered, or conveyed.

9..-0.) Such orders as may seem fit shall be made by the Court
in respect ol the trust estate and for the investment and payment
of any such moneys or of any dividends or interest on any such

As amendedby No. 50 of 1911.





securities, and for the transfer and delivery out of any such securi-
ties, and for the administration of any such trust generally, upon
a petition to be presented in a summary way to the Court by such
party or parties as to the Court may appear to be competent and
necessary in that behalf, and service of such petition shall be made
on such person or persons as the Court may see fit and direct.

(2) Every order made upon any such petition shall have the same
authority and effect, and shall be enforced in the same.manner, as
if the same had been made in an action regularly instituted in the
Court.

(3) If in any case it, appears that the trust estate cannot be safely
adininistered without the institution of one or more action or
actions, the Court may direct any such action or actions to be
instituted.

10.-(1) There shall be imposed and levied for the use of the
Crown upon every trust. estate administered under this Part a charge
equivlent to the following percentage on the net value of the trust
estate:-2 per cont. Where the value of the trust estate does not
exceed 10,000 dolloars and 1 per cent. on the excess.
per cent. on the first 10,000 dollars and 1 per cent. on the excess.

(2) The sald charge shall constitute a priniary lien upon the trust
estate, and shall be levied, in the case of trust moneys deposited in
a bank, by an order of the Court, authorising the payment thereof
to the Official Trustee for the use of the Crown, and, in the case of
secur t, es or land, by sale, mortgage, or otherwise as the Court may
direct., and in case of any such sale or mortgage, the Court may, by
the same or any further order, empower the Official Trustee to
execute all instruments necessary for carrying out this provision,
and instruments so executed shall be as valid and effectual to all
intents and purposes as if the same had been executed by all persons
who, but for this provision, would have been necessary parties
thereto.

(3) There shall also be, imposed and levied for the use of the
Crown upon every such estate a charge equivalent to 2 per cent.
on the annual revenue of the trust estate. The Official Trustee shall
dednet Euch charge in making up the annual accounts of the estate.


11. In the administration of any trust estate, the Official Trustee
shall have and may exercise all the rights and powers conferred upon

As amended by No. 1 of 1912.





trustees by this Ordinance, so far as they are applicable to such trust
estate.

12. The Official Trustee shall incur no personal liability by reason
of any securities being transferred into his name as aforesaid, or by
reason of any land being conveyed to hirn as aforesaid, or by reason
of any loss accruing to any trust estate in his hands, otherwise than
by his own wilful neglect or default : Provided that nothing in this
Part shall be deemed to aFfect any rights or reniedles acrainst the
trust estate or any cestni que trust or any person other than the
Official Trustee and the trustee so discharged as aforesaid.

13. The rules contained in the schedule shall be observed in pro-
ceedings under the provisions of this Part relating to the surnmary
administration of trust funds, subject to the repeal or variatiou
thereof under the powers vested in the Court in relation to the
makin.g of general rules and orders.

PART Il.

INVESTMENTS.

14. A trustee may, unless expressly forbidden by the instrument,
if any, creating the trust, invest any trust funds in his hands,
whether at the time in a state of investment or not, in manner
following-

(1) in any of the parliamentary stocks, or public funds, or govern-
ment securities of the United Kingdom;

(2) on real or heritable securities in Great Britain or Ireland or
this Colony;

(3) in the stock of the Bank of England or the Bank of Ire ' land

(4) in India 31- per cent. stock and India 3 per cent. stock, or in
any other capital stock which may at any tin-ie hereafter be issued
by the Secretary of State in Council of India under Lhe authority of
any Act of Parliament and charged on the revenues of India;

(5) in any securities the interest of which I's for the time being
guaranteed by Parliament;

* As amended by No. 5() of 1911 and No. 1 of 1912.
As amendfd by No. 50 of 1911,





(6) in consolidated stock created by the Metropolitan Board of
'Works or by the London County Council, or in debenture stock
created by the Receiver for the Metropolitan Police District;

(7) in the debenture, or renteharYe, or guaranteed, or preference
stock of any railway company M Great Britain or Ireland incorpor-
ated by special Act of Parliament, arid having, during each of the
10 years last past before the (late oll linvestment, paid a dividend at
the rate of Dot less than 3 per cent per annum on its ordinary stock;

(8) in the stock of any railway or canal company in Great Britain
or Ireland whose undertaking is leased in perpetuity, or for a term
of not less than 200 years, at a. fixed rental to any such railway
company as is mentioned in sub-section (7), either alone or jointly
with any other railway
(9) in the debentore stoch. of any railway company in India the
interest on which is paid or guaranteed by the Secretary of State
in Council ol India;

(10) in the - B - annuities of the Eastern Bengal, the East
Indian, and the Scinde, Punjaub, and Delhi Railways, and any like
annuities which rnav at any time hereafter be created on the
purchase of any otherby the Secretary of State in Council
oF India, and charged on the revenues of India, and which may be
authorised by Act o' Parlianient to be accepted by trustees in lieu
of any stock held by them in the purchased railway; also in deferred
annuities comprised in the register of holders of annuity Class D
and annuities comprised in the register of annuitants Class C of the
East Indian Railway Company
(11) in the stock of any railway company in India upon which a
fixed or inimmurn dividend in sterling is paid or guaranteed by the
Secretary of State in Council of India or upon the capital of which
the interest is so guaranteed;

(12) in the debenture or guaranteed or preference stock of any
company in Great Britain or Ireland established for the supply of
water for profit, and incorporated by special Act of Parliament or
by Royal Chater, and having, during each of the 10 years last past
before the date of investment, paid a dividend of not less than
per cent. on its ordinary stock;

(13) in nominal or inscribed stock issued, or to be issued, by the
corporation of any municipal borough in the United Kingdom
having, a&ording to the returns of the last census prior to the date





of investment, a population exceeding 50,000, or by any County
Council in the United Kingdom, under the authority of any Act of
Parliament or Provisional Order;
(14) in nominal or inscribed stock issued, or to be issued, by any
commissioners in 1 corporated by Act of Parliament lor the
of supplying water, arid having a compulsory power of levying rates
over an area having, according to the returns of the last census prior
to the date of investment, a population exceeding 50,000, provided
that, during each of the 10 years last past before the date of invest-
ment, the rates levied by such commissioners have not exceeded 80
per cent. of the amount authorised by law to be levied;
(15) in any colonial stock which is registered in the United
Kingdom in accordance with the provisions of the Colonial Stock
Acts, 1877 to 1900, and with respect to which all conditions pre-
scribed by the Imperial Treasury, by order notified in the Lwidon
Gazette, have been observed ;
(16) in any of the securities for the time being authorised for the
investment of cash under the control or subject to the order of the
High Court of Justice in England; and
(17) in any securities authorised by the Court, on summary
application for that purpose made, in Chambers,
and may also vary any such investment.

15.-(1) trustee may, under the powers of this Ordinance,
invest in any of the securities nientioned or referred to in the last
section, notwithstanding that the saine may be redeemable arid that
the price exceeds the redemption value.
(2) Provided that a trustee may not, under the powers of this
Ordinance, purchase at a. price exceeding its redemption value any
stock mentioned or referred to in sub-sections (7), (9), (11), (12),
1(13), and (15) of the last section which is liable to be redeemed
within 15 years of the date of purchase at par or at some other fixed
rate, or purchase any such stock as is mentioned or referred to in
the sub-sections aforesaid which is liable to be redeemed at par or
at some other fixed rate, at a price exceeding 15 per cent. above
par or such other fixed rate.
(3) A trustee may retain until redemption any redeemable stock,
fund, or security which may have been purchased in accordance
with the powers of this Ordinance.

* As anierided by No. 50 of 1911.





16. Every power conferred by the preceding sections of this Part
shall be exercised according to the discretion of the trustee,
but subject to any consent required by the instrument, if any,
creating the trust with respect to the investment of trust funds.

17. The preceding sections of this Part shall apply as well
to trusts created before as to trusts created after the commencement
of this Ordinance, and the powers thereb conferred shall be in
addition to the powers conferred by the instrument, if any, creating
the trust,

18.-(1) A trustee having power to invest in real securities,
unless expressly forbidden b the instrument creating the trust,
may invest, and shall be deemed to have always had power to
invest,-

(a) on mortgage of property in the United Kingdorn held for an
unexpil-ed terni of not less tban 200 years, and not subJect to a
reservation of rent greater than a, shilling a year, or to any right of
redemption, or to any condition for re-entry, except for non-pay-
rnent of rent ;

(b) on mortgage of property in this Colony held under Crown
lease for an unexpired term of not less than 50 years ; and


(c) on any charge, or on niortga of any charge, made under
the Improvement of Land Act, 1864.

(2) A trustee having power to invest in the mortgages or bonds
of any railway company or of any other description of company
may, unless the contrary is expressed in the instrument authorising

the investment, invest in the debenture stock of a railway company
or such other company as aforesaid.

(3) A trustee having power to invest money in the debentures or
debenture stock of any railway or other company may, unless the
contrary is expressed in the instrument authorising the investment,
invest in any nominal debentures or nominal debenture stock issued
tinder the Local Loans Act, 1875.

(4) A trustee having power to itivest nioney in securities in the
Isle of Man, or in securities of the Government of a British Colony,
may, unless the contrary is expressed in the instrument authorising
the investment, invest in any securities of the Government of the
Isle of Man under the Isle of Man Loans Act, 1880.





(5) A trustee having a general power to invest trust moneys in or
upon the security of shares, stock, mortgages, bonds, or debentures
of companies incorporated bv or acting under the authority of an
Act of Parliament or Ordinance may invest in, or upon the security
of, mortgage debentures duly issued under and in accordance with
the provisions of the Mortgage Debenture Act, 1865.

19. A trustee having power to invest in the purchase of land oi-
on mortgage of land inay invest in the purchase or on 1 lortg ge
of am, land, notwithstandinfr the same charged with a rent tinder
the powers of the Public Money drainage Acts, 1846 to 18.56, or
the Landed Property Improvement (Ireland) Act, 1847, or by an
absolute order made tinder the linprovenient of Land Act, 1864,
unless the terms of the trust expressly provide that the land to be
purchased or taken in niortgage shall not be subject to any such
prior charge.

20-(1) A trilstec, unless authorised by the terins of his trust,
shall not apply for or hold arily certificate to beaxer issued tinder the
authority of any of the following Acts:-
(a) the India Stock Certificate Act, 1863
(b) the National Debt Act, 1870;
(c) the Local Loan Act, 187,5 ; and
(d) the Colonial Stock Act, 1877.

(2) Nothing in this section shall linpose on the Bank of England
or the Bank of Ireland, or on any person authorised to issue any
such certificates, any obligation to inquire wliether a person apply-
ing for such a certificate is or is not a trustee, or subJect them fo
any liability in the event of their granting any such certificate to
trustee, or invalidate any such certificate, if granted.

21-(1) A trustee lending inoney 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 aniount of
the loan to the value of the properts- at the tline when the loan was
made, provided that it appears to the Court that, in inakin 'a the
loan, the trustee was acting upon a report as to the value of the
property made by a person whom lie reasonably believed to be an

* See however the subsequent Ordinance IN70. 20 of 1901,





able practical surveyor or valuer instructed and employed indepen-
dently of any owner of the property, whether such surveyor Or
valuer carried on business in the localit where the property is
situate or elsewhere, and that the amount of the loan does
not exceed two equal third parts or 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 trtist only upon the
ground that, in making the loan, lie 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 effectincr 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 opinlon of the Court, the
title accepted is such as a. person ac,Ong with prudence and caution
would have accepted.
(1) This section applies to transfers of exisiting securities as well
as to new securities, and to investments made its m-ell before as after
the coniniencei-nent of this Ordinallee.

22.-(1) Where a trustee improperly advances trust money on a
mortgage security which would, at the tinic of the investnient, be a
proper investment in all respects for a sinaller sum than is actually
advanced thereon, the security shall he deemed an autliorised
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 hs 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 POWEI1S AND DUTIPS op TntuSTEES.
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 12 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 by the instrument, if any, creating the
trust, or, if there is no such person or no sucli person able
and willing to act, then the surviving or continuing trustees or
trustee for the tline being or the personal representatives of the last
surviving or continuing trustee, may, by writing, appoint another
person or other persons to be a trustee or trustees in the place of
the trustee dead, remaining out of the Colony, desiring to be
discharged, refusing, or being unfit, or being incapable, as afore-
said.

(2) On the appointment of a. new, trustee for the whole or any
part of trust property,-

(a) the number of trustees niav be increased ; and

(b) a separate set of trustees may be appointed, for any part of
the trust property held on triists distinct froln those relating to any
other part or parts of the trust property, not withstanding that no
new trustees or trustec are or is to be appointed for other parts of
the trust property, and any existing trustee inay be appointed or
remain one of such separate set of trustees ; or, if only one trustee
was originally appointed, then one separate trustee may be so
appointed for the first-mentioned part ; and

(c) it shall not be obligatory to appoint niore than one new
trustee where only one trustee was originally appointed, or to fill
up the original number of trustees -where niore than two trustees
were originally appointed; but, except where only, one trustee was
originally appointed, a trustee shall not be discharged under this
section froin his trust unless there wIll be at least two trustees to
perform the trust, and

(d) any assurance or thing requisite for vesting the trust
property, or any part thereof, jointly in the persons who are the
trustees shall be executed or done.

(3) Every new trustee so appointed, as well before as after all
the trust property beconies by law, or by assurance or otherwise,
vested in him, shall have the same powers, authorities, and dis-
cretions, and may in all respects act, as if he had been originally
appointed a trustee by tge instrument, if any, creating the trust.





(4) The provisions of this section relative to a trustee who
is dead include the case of a person nominated trustee in a will but
dying before the testator, and those relative to a continuing trustee
include a refusing or retiring trustee, if willinga to act in the
execution of the provisions of this section.

(5) This section applies only if and as far as a contrary intention
is not expressed in the instrument, if any, creating the trust, and
shall have effect subject to the terms of that instrument and to any
provisions therein contained.

(6) This section applies to trusts created before or after the com-
mencement of this Ordinance.

24.-(1) Where there are more than two trustees, if one of them
by deed declares that he is desirous of being discharged from the
trust, and if his co-trustees, and such other person, if any, as is
empowered to appoint trustees, by deed consent to the discharge of
the trustee and to the vesting in the co-trustees alone of the trust
property, then the trustee desirous of being discharged shall be
deemed to have retired from the trust, and shall, by the deed, be
discharged therelrom tinder this Ordinance, without any new
trustee being appointed in his place.

(22) Any assurance or thing requisite for vesting the trust property
in the continuing trustees alone shall be executed or done.

(3) This section applies only if and as far as a contrary intention
is not expressed in the instruments, if any, creating the trust, and
shall have effect subject to the terms of that instrument and to any
provisions 'therein contained.

(4) This section applies to trusts created either before or after the
commencement of this Ordinance.

25.-(1) Where a. deed by which a new trustee is appointed to
perform any trust contains a declaration by the appointor to the
effect that any estate -or interest in any land subject to the trust
or in any chattel so subject, or the right to recover and receive any
debt or other thing in action so subject, shall vest in the persons who
by virtue oi the deed become and are the trustees for performing
the trust, that declaration shall, without any conveyance or assign-
ment, operate to vest in those persons, as joint tenants and for the
purposes of the trust, that estate, interest, or right.





(2) Where a deed by which a retiring trustee is discharged under
this Ordinance contains such a declaration as is mentioned in this
section by the retiring and continuing trustees, and by the other
person, if any, empowered to appoint trustees, that declaration
shall, without any conveyance or assignment, operate to vest in the
continuing trustees alone, as joint tenants and for the purposes of
the trust, the estate, interest, or right to which the declaration
relates.
(3) This section does not extend to land conveyed by way of
mortgage for securing money subject to the trust, or to any such
share, stock, annuity, or property as is only transferable in books
kept by a company or other body, or in manner directed by or under
any Act of Parliament or Ordinance.
(4) For the purposes of registration of the deed in any registry,
the person or persons making, the declaration shall be deemed the
conveying party or parties, and the conveyance shall be deemed to
be made by him or them under a power conferred by this Ordinance.
(.5) This section applies only to deeds executed after the com-
niencement of this Ordinance.

Purchase and Sale.
26.-(1) Where a trust for sale or a power of sale of property is
vested ill a trustee, he may sell or concur with any other person in
selling all or any part of the property, either subject to prior charges
or not and either together or in lots, by public auction or by private
contract, subject to any such conditions respecting title or evidence
of title or other matter as the trustee thinks fit, with power to vary
any contract for sale and to buy in at any auction, or to'rescind any
contract for sale and to re-sell, without being answerable for any
loss.

(2) This section applies only if and as far as a contrary intention
is not expressed in the instrument creating the trust or power, and
shall have ellect subject to the terms of that instrument and to the
provisions therein contained.
(3) This section applies only to a trust or power created by an
instrument coming into operation after the coromencement of this
Ordinance.

27.-M No sale made by a trustee shall be impeached by any
beneficiary upon the ground that any of the conditions subject to






which the sale was made may have been unnecessarily depreciatory,
unless it appears that the consideration for the sale was thereby
rendered inadequate.
(2) No sale made by a trustee shall, after the execution of the
conveyance, be impeached as against the purchaser upon the
ground that any of the conditions subject to which the sale was
made may have been unnecessarily depreciatory, unless it appears
that the purchaser was acting, in collusion with the trustee at tbe
time when the contract for sale was made.

(3) No purchaser, upon any sale made by a trustee, shall be at
liberty to make any objection against the title upon the ground
aforesaid.

(4) This section applies only to sales inade after the commence-
ment of this Ordinance.

28. When any land is vested in a married woman as a bare
trustee, she may convey or surrender it as if she were a feine sole.

Various Powers and Liabilities.
29.-(1) A trustee may appoint a solicitor to be his agent to
receive and give a discharge for any money or valuable consideration
or property receivable by the trustee under the trust, by permitting
the solicitor to have the custody of and to produce a deed having in
the body thereof or indonsed thereon. a receipt for consideration
money or other consideration, the deed being executed or the in-
dorsed receipt being signed by the trustee: and a trustee shall not
be chargeable with a breach of trust by reason only of his having
made or concurred in making any such appointment. The pro-
duching of any stich deed by the solicitor shall have the same validity
and effect as if the person appointing the solicitor had not been a
trustee.

(2) A trustee may appoint a banker or solicitor to be his agent to
receive or give a discharge for aDy money payable to the trustee
under orby virtue of a policy of assurance, by permitting the banker
or solicitor to have the custody of and to produce the policy of
assurance with areceipt signed by the trustee; and a trustee shall
not be chargeable with a breach of trust by reason only of his having
made or concurred in making any such appointment.
(3) Nothing in this section shall exempt a trustee from any
liability Which he would have incurred if this Ordinance had not





been passed, in case he permits any such money, valuable considera-
tion, or property to remain in the hands or tinder the control of the
solicitor or banker for a period longer than is reasonably necessary
to enable the solicitor or banker, as the case may be, to pay or
transfer the same to the trustee.

(4) This section applies only where the money or valuable con-
sideration or property is received after the commencement of this
Ordinance.

(5) Nothing in this section shall authorise a trustee to do any-
thing which he is in express terms forbidden to do, or to omit to do
anything which he is in express terms directed to do, by the instril-
ment creating the trust.

30-(1) A trustee may insure against loss or damage by fire any
building or other insurable property to any amount (including the
amount of any insurance already on foot) not exceeding three equal
fourth parts of the full value of such building or property, wid pay
the premiums for such insurance out of the inconte thereof or out
of the income of an other person subject to tbe sairle trusts,
without obtaining the consent. of any person who inay be entitled
wholly or partly to such income.

(2) This section does not apply to any building or property which
a trustee is bound forthwith to convey absolutely to any beneficiary
upon being requested to do so.

(3) This section applies to trusts created either before or after the
commencement of this Ordinance, but nothing in this section shall
authorise any trustee to do anything which he is in express terms
forbidden to do, or to ornit to do anything which he is in express
terms directed to do, by the instrument creating the trust.

31-(1) A trustee of any leaseholds for lives or Years which are
renewable from time to time, either tinder any covenant or contract
or by custom or usual practice, may, if he thinks fit, and shall, if
thereto required by any person having any beneficial interest, pre-
sent or future or contingent, in the leaseholds, use his best
endeavours. to obtain from time to time a renewed lease of the
same hereditaments on the accustomed and reasonable terms, and
for that purpose may from time to time make or concur in making
a surrender of the lease for the time being subsisting, and do all
such other acts as may be requisite : Provided that where, by the
terms of the settlemenf or will, the person in possession for his life





or other limited interest is entitled to enjoy the same without any
obligation to renew or to contribute to the expense of renewal, this
section shall not apply unless the consent in writing of that person
is obtained to the renewal on the part of the trustee.

(2) If money is required to pay for the renewal, the trustee
effecting the renewal may pay the same out of any money then in
his hands in trust for the persons beneficially interested in the lands
to be comprised in the renewed lease; and if he has not in his hands
sufficient money for the purpose, he may raise the money required
by mortgage of the hereditaments to be comprised in the renewed
lease or of any other hereditaments for the time being subject to
the uses or trusts to which those hereditanients are subject; and no
person advancing money upon a mortgage purporting to be under
this power shall be botind to see that the money is wanted or that no
more is raised than is wanted for the ptirpose.

(3) This section applies to trusts created either before or after the
commencement of this Ordinance, but nothing in this section shall
authorise any trustee to do anything which he is in express tdrms
forbidden to do, or to omit to do anything which he is in express
terms directed to do, by the instrument creating the trust.

32. In all cases where by any will, deed, or other instrument of
settlement it is expressly declared that trustees or other persons
therein named or indicated shall have a power of sale, either
generally or in any particular event, over any land named or re.
ferred to in or from time to time subject to the trusts of such will,
deed, or other instrument, it shall be lawful for such trustees or
other persons, whether the land is vested in them or not, to exercise
the power of sale by selling the land either together or in lots, and
either by public auction or private contract, and either at one time
or several times, and (in case the power expressly authorises an
exchange) to exchange any land which for the time being may be
subject to the trusts aforesaid for any other land in the Colony, as
the case may be, and upon such exchange to give or receive any
money for equality of exchange.


33. It shall be lawful for the persons making any such sale or
exchange to insert any such special or other stipulations, either as
to title or evidence of title or otherwise, in any conditions of sale,
or contract for sale or exchange, as-they may think fit, and also to
buy in the land or any part thereof at any sale by public auction,





and to rescind or vary any contract for sale or exchange, and to
resell the land which is so bought in or as to which the contract is
so rescinded, without being responsible for any loss which may be
occasioned thereby : and no purchaser under any such sale shall be
bound to inquire whether the persons making the same may or may
not have in contemplation any particular re-investinent of the
purchase money in the purchase of any other land or otherwise.

34. For the purpose of completing any such sale or exchange as
aforesaid, the persons empowered to sell or exchange as aforesaid
shall have lull power to convey or otherwise dispose of the land in
question, as may be necessary.

35.-(1)The receipt in writing of any trustee for any money,
securities, or other ersonal property or effects payable, transfer-
able, or deliverable to hlin under any trust or power shall. be a
sufficient discharge for the sarne, and shall effectually exonerate the
person paying, transferring, or delivering the same from seeing to
the application or being answerable, for any loss or misapplication
thereof.

(2) This section applies to trusts created either before or after the
commencement of this Ordinance.

36.-(1) -An executor or administrator inay pay or allow any debt
or claim on any evidence that he thinks sufficient.
(2) An executor or administrator, or two or more trustees, acting
together, or a sole acting trustee where by the instrument, if any,
creating the trust a sole trustee is authorised to execute the trusts
and powers thereof, may, if and as he or they may think fit, accept
any composition or any security, movable or immovable, for any
debt or for any property, movable or irninovable, cialined, and may
allow any time for payment of any debt, and may compromise,
compound, abandon, submit to arbitration, or otherwise settle any
debt, account, claim, or thing whatever relating to the testator's or
intestate's estate or to the trust, and for any of those purposes may
enter into crive, execute, and do such agreements, instruments of
composition or arrangement, releases, and other things as to him
or them may seem expedient, without being responsible for any loss
occasioned by any act or thing so done by him or them in good faith.
(.3) This section applies only if and as far. as a contrary intention
is not expressed in thdinstrument, if any, creating the trust, and





shall have effect subject to the terms of that instrument and to the
provisions therein contained.

(4) This section applies to executorships, administratorships, and
trusts constituted or created either before or after the commence-
ment of this Ordinance.

37.-(1) Where an executor or administrator, liable as such to
the rents, covenants or agreements: cuntained in any lease or agree-
ment for a lease granted, or assigned to the testator or intestate
whose estate is being administered, has satisfied all such liabilities
under the lease or agreement for a lease as may have accrued due
and been claimed up to the time of the assignment hereinafter
mentioned, and has set apart a sufficient fund to answer any future
claim that may be made in respect of any fixed and ascertained sum
covenanted or agreed by the lessee to be laid out on the property
demised or agreed to be denlised, although the period for laying out
the same may not have arrived, and has assigned the. lease or
agreement for a lease to a purchaser thereof, he shall be at liberty
to distribute the residuary personal estate of the deceased to and
amongst the parties entitled thereto respectively, without appro-
priating any part or any further part, as the case may be, of the
personal estate of the deceased to meet any future liability under
the lease or agreement for a lease; and the executor or administrator
so distributing the residuary estate shall not, after having assigned
the lease or aureement for a lease and having, where necessary, set
apart such sufficient fund as aforesaid, be personally liable in respect
of any subsequent claim under the lease or agreement for a lease.

(2) Nothing in this section shall prejudice the right of the lessor
or those claiming under him to follow the assets of the deceased into
the hands of the person or persons to or amongst whom the said
assets may have been distributed.

38-(1) Where any property is held by trustees in trust for an
infant, either for life or for any greater interest and whether
absolutely or contingently on his attaining the age of 21 years or
on the occurrence of any event before his attaining that age, the
trustees may, at their sole discretion, pay to the infant's parent or
guardian, if any, or otherwise apply for or towards the infant's
maintenance, education, or benefit, the income of that property or
any part thereof whether there is any other fund applicable to the





same purpose or any person bound by law to provide for the infant's
maintenance or education or not.
(2) The trustees shall accumulate all the residue of that income
in the way of compound interest, by investing the same and the
resulting income thereof from time to time on securities on which
they are, by the settlement, if any, or by law authorised to invest
trust money, and shall hold those accumulations for the benefit of
the person who ultimately becomes entitled to the property from
which the same arise ; but so that the trustees may at any time, if
they think fit, apply those accumulations, or any part theueof, as if
the same were income arising in the then current year.
(3) This section applies only if and as far as a contrary intention
is not expressed in the instrument under which the interest of the
infant arises, and shall have effect subject to the terms of that
instrument and to the provisions therein contained.
(4) This section applies whether that instrument comes Into
operation before or after the commencement of this Ordinance.

39.-(1) A trustee making or doing any payinet or act, in good
faith, in pursuance of a power of attorney, shall not be liable in
respect of the payment or act by reason that before the payment
or act the donor of the power had died, or become lunatic, of un-
sound mind, or bankrupt, or had revoked the power, if the fact of
death, lunacy, unsoundness of mind, bankruptcy, or revocation was
not, at the time of the payment or act, known to the trustee.
(2) This section shall not affect any right against the payee of
any pe rson interested in any money so paid; and that person shall
have the like remedy against the payee as he would have had against
the trustee if the payment had not been made by him.

40.-(1) Where a power or trust is given to or vested in two or
more trustees Jointly, then, unless the contrary is expressed in the
instrument, if any, creating the power or trust, the same may be
exercised or performed by the survivor or survivors of them for the
time being.
(2) This section applies only to trusts constituted after, or created
by instruments coming into operation after, the commencement of
this Ordinance.

41. A trustee shall, without prejudice to the provisions of the
instrument, if any, creating the trust, be chargeable only for money
and securities actually feceived by him notwithdanding his signing





any receipt for the sake of conformity, and shall be answerable and
accountable only for his own acts, receipts, neglects, or defaults,
and not for those of any other trustee, nor for any banker, broker,
or other person with whom any trust moneys or securities may be
deposited, nor for the insufficiency or deficiency of any securities,
nor for any other loss, unless the same happens through his own
wilful default; and may reimburse himself, or pay or discharge out
of the trust premises, all expenses incurred in or about the execu-
tion of his trusts or powers.

PART IV.

POWERS OF THE COURT.
Appointment of New Trustees and Vesting Ordersl
42.-(1) The Court may, whenever it is expedient to appoint a
new trustee or new trustees, and it is found inexpedient, difficult,
or impracticable to do so without the assistance of the Court, make
an order for the appointment of a new trustee or new trustees,
either in substitution for or in addition to any existing trustee or
trustees or although there is no existing trustee. In particular and
without prejudice to the generality of the preceding provision, the
Court may make an order for the appointment of a new trustee in
substitution for a trustee who is convicted of felony or is a bankrupt.
(2) An order under this section, and any consequential vesting
order or conveyance, shall not operate further or otherwise as a
discharge to any former or continuing trustee than an appointment
of new trustees under any power for that purpose contained in any
instrument would have operated.
(3) Nothing in this section shall give power to appoint an
executor or administrator.

43. In the following cases, namely,-
(1) where the Court appoints or has appointed a new trustee; and
(2) where a trustee entitled to or possessed of any land, or en-
titled to a contingent right therein, either solely or jointly with any
other person,-
(a) is an infant; or
(b) is out of the jurisdiction of the Court; or
(c) cannot be found; and





(3) where it is uncertain who was the survivor of two or more
trustees jointly entitled to or possessed of any land ; and
(4) where, as to the last trustee known to have been entitled to
or possessed of any land, it is uncertain whether he is living or dead;
and

(5) where there is no heir or personal representative of a trustee
who was entitled to or possessed of land and has died intestate as
to that land, or where it is uncertain who is the heir or personal
representative or devisee of a trustee who was entitled to or
possessed of land and is dead; and
(6) where a trustee jointly or solely entitled to or possessed of any
land, or entitled to a contingent right therein, has been required, by
or on behalf of a person entitled to require a conveyance of the land
or a release of the right, to convey the land or to release the right,
and has wilfully refused or neglected to convey the land or release
the right for 28 days after the date of the requirement,
the Court may make an order (in this Ordinance called a - vesting
order -) vesting the land in any such person, in any such manner,
and for any such estate as the Court may direct, or releasing or
disposing of the contingent right to such persons as the Court may
direct :
Provided that-
(a) where the order is consequential on the appointment of a new
trustee, the land shall be vested for such estate as the Court may
direct in the persons who, on the appointment, are the trustees, and
(b) where the order relates to a trustee entitled jointly with
another person, and such trustee is out of the jurisdiction of the
Court or cannot be found, the land or right shall be vested in such
other person, either alone or with some other person.

44. When any land is subject to a contingent right in an unborn
person or class of unborn persons who, on cominy into existence,
would, in respect thereof, become entitled to or possessed of the
land on any trust, the Court may make an order releasing the land
from the contingent right, or may make an order vesting in any
person the estate to or of which the unborn person or class of unborn
persons would, on coming into existence, be entitled or possessed
in the land.

45. Where any person entitled to or possessed of land, or entitled
to a contingent right inland, by way of security for money, is an





infant, the Court may make an order vesting or releasing or dis-
posing of the land or rlight in like manner as in the case of an infant
trustee.

46. Where a mortgagee of land has died without having entered
into the possession or into the receipt of the rents and profits
thereof, and the money due in the respect of the mortgage has been
paid to a person entitled to receive the same, or that last-mentioned
person consents to any order for the reconveyance of the land, then
the Court may make an order vesting the land in such person or
persons, in such manner, and for such estate is the Court may direct
in any of the following cases, namely,-
(1) where an heir or personal representative or devisee of the
mortgagee is out of the jurisdiction of the Court or cannot be found;
(2) where an heir or personal representative or devisee of the
mortgagee, on demand inade by or on behalf of a person entitled to
require a conveyance of the land, has stated in writing that lie will
not convey the same or does not convey the same for the space of
28 days next after a proper deed for conveying the land has been
tendered to him by or on behalf of the person so entitled;
(3) where it is uncertain which of several devisees of the mort-
gagee was the survivor;
(4) where it is uncertain as to the survivor of several devisees of
the mortgagee, or as to the heir or personal representative of the
mortgagee, whether he is living or dead; and
(5) where there. is no heir or personal representative of a mort-
gagee who has died intestate as to the land, or where the mortgagee
has died and it is uncertain who is his heir or personal representa-
tive or devisee.

47. Where the Court gives a judgment or makes an order direct-
ing the sale or mortgage of any land, every person who is entitled
to or possessed of the land or entitled to a contingent right therein,
and is a party to the action or proceeding in which the judgment
or order is given or made or is otherwise bound by the, judgment
or order, shall be deemed to be so entitled or possessed, as the case
may be, as a trustee within the meaning of this Ordinance, and the
Court may', if it thinks fit, make an order vesting the land or any
part thereof for such estate as the Court thinks fit in the purchaser
or mortgagee or in any other person.



* As arnended b~ No. 43 of 1912 Supp. Sched.





48. Where a judgment is given for the specific peformance of a
contract concerning any land, or for the partition, or sale in lieu of
partition, or exchange of any land, or generally where any judgment
is given for the conveyance of any land either in cases arising out
of the doctrine of election or otherwise, the Court inay declare that
any of the parties to the action are trustees of the land or any part
thereof within the meaning of this Ordinance, or inay declare that
the interests of unborn persons who might claim under any party
to the action, or under the will or voluntary settleinont of any
person deceased who was, during Ins lifetime, a party to the con-
tract or transactions ewicerning whicb the judgnient is given, are
the interests of persons who on coming into existence, would be
trustees within the riieariliiy of this Ordinance, and thereupon the
Court may make a vesting order relatinIty to the rights of those
persons, born and unborn, as if they had been trustees.

49. A vesting order under any of the preceding provisions shall,
in the case of a vestirw. order consequential on. the appointment of
a new trustee, have the same eflect as lif the persons who before the
appointment ~vere the trustees, if any, had duly executed all proper
conveyances of the land for such estate as the Court directs, or if
there is no such person, or no such person of full capacity, then as
if such person had existed and been of full capacity and had duly
executed 9,11 proper conveyances of the land for such estate as the
Court directs, and shall in every other case have the same effect as
if the trustee or other person or description or class of persons to
whose rights or supposed rights the said provisions respectively re-
late had been an ascertained and existing person of full capacity,
and had executed a conveyance or release to the effect intended by
the order.

50. In all cases where a vesting order can be made under any of
the preceding provisions, the Court may, if it is more convenient,
appoint a person to convey the land or release the contingent right,
and a conveyance or release by that person in conformity with the
order shall have the same effect as an order under the appropriate
provision.

51.-(1) In any of the following cases, namely,-
(a.) where the Court appoints or has appointed a new trustee; and

* As amende 0 d by No. 22 of 1912,





(b) where a trustee entitled alone or jointly with another person
to stock or to a chose in action-

(i) is an infant; or

(ii) is out of the jurisdiction of the Court; or
(iii) cannot be found; or

(iv) refuses or neglects to transfer stock or receive the dividends
or income thereof or to sue for or recover a chose in action, accord-
ing to the direction of the person absoluitely entitled thereto, for 28
days next after a request in writing has been made to him by the
person so entitled; or
(v) refuses or neglects to transfer stock or receive the dividends
or income thereof, or to sue for or recover a chose in action, for 28
days next after an order of the Court for the purpose has been served
on him; or
(c) where it is uncertain whether a trustee entitled alone or joint-
ly with another person to stock or to a chose in action is living or
dead,
the Court may make an order vesting the right to transfer or call
for a transfer of stock, or to receive the dividends or income thereof,
or to sue for or recover a chose in action in any such person as the
Court may appoint :

Provided that-

(a) where the order is consequential on the appointment by the
Court of a new trustee, the right shall be vested in the persons who,
on the appointment, are the trustees ; and
(b.) where the person whose right is dealt with by the order was
entitled jointly with another person, the right shall be vested in that
last-mentioned person, either alone or jointly with any other person
whom the Court may appoint.

(2) In all cases where a vesting order can be made under this
section the Court, may, if it is more convenient, appoint some proper
person to make or join in making the transfer.

(3) The person in whom the right to transfer or call for the
transfer of any stock is vested by an order of the Court under this
Ordinance may transfer the stock to himself or any other person,
according to the order, and all banks and companies shall obey every
order under this section according to its tenor.





(4) After notice in writing of an order under this section it shall
not be lawful for any bank or company to transfer any stock to
which the order relates or to pay any dividends thereon except in
accordance with the, order.

(5) The Court may make declarations and give directions con-
cerning the manner in which the right to any stock or chose in
action vested tinder the provisions of this Ordinance is to be
exercised.

(6) The provisions of this Ordinance as to vesting orders shall.
apply to shares in ships registered under the enactments relating to
merchant shipping as if they yvere stock.


52 -(1) An order under this Ordinance for the appointment of
a new trustee, or concerning any land, stock, or chose in action
subject to a trust, may be made on the application of any person
beneficially interested in the land, stock, or chose, in action, whether
under disability or not, or on the application of any person duly
appointed trustee thereof.
(2) An order under this Ordinance concerning any land, stock,
or chose in action subi . ect to a mortgage may be made on the
application of any person beneficially interested in the equity of
redemption, whether under disability or not, or of any person
interested in the money secured by the mortgage.

53. Every trustee appointed by a Court of competent jurisdiction
shall, as well before as after the trust property becomes by law or
by assurance or otherwise vested in him, have the same powers,
authorities, and discretions, and may in all respects act, as if he had
been originally appointed a trustee by the instrument, if any,
creating the trust.

54. The Court may order the costs and expenses of and incident
to any application for an order appointing a new trustee or for a
vesting order, or of and incident to any such order or any convey-
ance or transfer in pursuance thereof, to be paid or raised out of the
land or personal estate in respect whereof the same is made or out
of the income thereof, or to be borne and paid in such manner and
by such persons as to the Court may seem just.

55. The powers conferred by this Ordinance as to vesting orders
may be exercised for vesting any land, stock, or chose in action in
any trustee of a charity or society over which the Court would have






jurisdiction upon action duly instituted, whether the appointment
of the trustee was made by instrument under a power or by the
Court under its. general or statutory jurisdiction.

56. Where a vesting order is made as to any land under this Ordi-
nance, or under any Ordinance relating to lunacy, founded on an
allegation of the personal incapacity of a trustee or mortga;gee, or
on an allegation that a trustee or the heir or personal representative
or devisee of a mortgagee is out of the Jurisdiction of the Court or
cannot be found, or that it is uncertain which of several trustees or
which of several devisees of a mortgages was the survivor, or
whether the last trostee or the heir or personal representative or
last surviving devisee of a, mortgagee is living or dead, or on an
allegation that any trustee or mortgagee has died intestate without
an. heir or has died and it is not known who is his heir or personal
representative or devisee, the fact that the order has been so made
shall be conclusive evidence of the matter so alleged in any Court
upon any question as to the validity of the order; but this section
shall not prevent the Court from directing a reconveyance or the
payment of costs occasioned by any such order, if improperly
obtained.

Giving Judgaient in Absence of Trustee, etc.
57. Where in any actioii the Court is satisfied that diligent search
has been inade for any person who, in the character of trustee, is
made a defendant in any action, to serve him with a process of the
Court, and that he cannot be found, the Court may hear and de-
terminc the action and give judgment therein against that person
in his character of a trustee, as if he had been duly served or had
entered an appearance in the action, and had also appeared by his
counsel and solicitor at the hearing, but without prejudice to any
interest which he may have in the matters in question in the action
in any other character.

58-(1) Where a trustee or other person is for the time being
authorised to disp6se of land by way of sale, exchange, or partition,
the Court may sanction his so disposing of the land with an excep-
tion or reservation of any minerals, and with or without rights and
powers of or incidental to the working, getting, or carrying away of
the minerals, or so disposing of the minerals, with or without the
said rights or powers, separately from the residue of the land.





(2) Any such trustee or other person, with the said sanction
previously obtained, may unless forbidden by the instrument creat-
ing the trust or direction, from time to time, without any further
application to the Court, so dispose of any such land or minerals.
(3) Nothing in this section shall derogate from any power which
a trustee may have under any other Ordinance.

59-(1) Where a trustee commits a breach of trust at the
instigation or request or with the consent in writing of a beneficiary,
the Court may, if it thinks fit, and notwithstanding that the bene-
ficiary may be a married woman entitled for her separate use and
restrained from anticipation, make such order as to the Court may
seem just for impounding all or any part of the interest of the bene-
ficiary in the trust estate by way of indemnity to the trustee or
person claiming through him.
(2) This section shall apply to breaches of trust committed as well
before as after the commencement of this Ordinance.

PART V.
MISCFLLANEOUS AND SUPPLEXIENTAL PROVISIONS.
60. Property vested in any person on any trust or by way of
mortgage shall, in case of that person being convicted of treason
or felony, remain in the trustee or mortgagee, or survive to his
co-trustee, or descend to his representative as if lie had not been so
convicted : Provided that this enactment shall not affect the, title
to the property so far as relates to any beneficial interest therein of
any such trustee or mortgagee


61.-(1) Any trustee, executor, or administrator shall be at
liberty, without the institution of an action, to apply by petition
to the Court, or upon a written statement by summons in Cham-
bers, for the opinion, advice, or direction of the Court on any
question respecting the management or administration of the trust
property or the assets of any testator or intestate.
(2) The petition or statement shall be signed by counsel, and the
Court may require the petitioner or applicant to attend by counsel
either in Court or in Chambers, where the Court deems it necessary
to have the assistance of counsel.

. * As amenled by No. 1 of 1912.





(3) The application shall be served on, or the hearing thereof
shall be attended by, all persons interested in such application, or
such of them as the Courtmay think expedient.
(4) The trustee, executor, or administrator acting upon the
opinion, advice, or direction given by the Court shall be deemed, so
far as regards his own responsibility, to have discharged his duty as
such trustee, executor, or administrator in the subject-matter of the
application : Provided, nevertheless, that this section shall not
extend to indemnify any trustee, executor, or administrator in
respect of any act done in accordance with such opinion, advice,
or direction, if such trustee, executor, or administrator has been
guilty of any fraud or wilful concealment or misrepresentation in
obtaining such opinion, advice, or direction.

62. If it appears to the Court that a trustee is or may be per-
sonally liable for any breach of trust, whether the transaction
alleged to be a breach of trust occurred before or after the
commencement of this Ordinance, but has acted honestly and
reasonably, and ought fairly to be excused for the breach. of trust
and for omitting to obtain the directions of the Court in the matter
in which he committed such breach, then the Court may relieve the
trustee, either wholly or partly, from personal liability for the same.

63.-(1) In any action or other proceediDg against a trustee or
any person claiming through him, except where the claim is found-
ed upon any fraud or fraudulent breach of trust to which the trustee
was party or privy, or is to recover trust property, or the proceeds
thereof, still retained by the trustee or previously received by the
trustee and converted to his use, the foilowing provisions shall apply :
(a) all rights and privileges conferred by any statute of limitations
shall be enjoyed in the like manner and to the Ilke extent as they
would haye been enjoyed in such action or other proceeding if the
trustee or person claiming through him had not been a trustee or
person claiminer through him; and
(b) if the action or other proceeding is brought to recover money
or other property, and is one to which no existing statute of limita-
tions applies, the trustee or person claiming through him shall be
entitled to the benefit of and be at liberty to plead the lapse of time
as a bar to such action or other proceeding in the like manner and
to the like extent as if the claim had been against him in an action
of debt for money had and received, but so, nevertheless, that the





statute shall run against a married woman entitled in possession for
her separate use, whether with or without a restraint upon anti-
cipation, but shall not begin to run against any beneficiary unless
and until the interest of such beneficiary shall be an interest in
possession.

(2) No beneficiary, as against whom there would be a good de-
fence by virtue of this section, shall derive any greater or other
benefit from a judgment or order obtained by another beneficiary
than he could have obtained if he had brought such action or other
proceeding and this section had been pleaded.

(3) For the purposes of this section, the expression ---trustee
shall be deemed to include an executor or administrator and a
trustee whose trust arises by construction or implication of law as
well as an express trustee, but not the Official Trustee.

(4) The provisions of this section shall apply as well to several
joint trustees as to a sole trustee.

(5) This section shall apply only to actions or other proceedings
commenced on or after 1st January1902, and shall not deprive any
executor or administrator of any right or defence to which lie is
sentitled under any existing statute of limitations.

64. This Ordinance, and every order purporting to be made under
this Ordinance, shall be a complete indemnity to any bank and to
all persons for any acts done pursuant thereto; and it shall not be
necessary for any bank or person to inquire concerning the propriety
of the order or whether the Court had jurisdiction to make the sanie.

Is. 6-5, rep. No. 1 of 1912.]

SCHEDULE.

Is. 13. ]
RULES RELATING TO THE SUMMARY ADMINISTRATIOX OF TRUST FUNDS.
1. Any trustee desiring to pay money to the account of, or to transfer
or deposit shares, stock, or securities into or in the name of, the
Official Trustee under the provisions of the Trustee Ordinance, 1901,
relating to the summary administration of trust funds, shall file an
affidavit setting forth-
(1) his own name and address;
(2) the place where he is to be served with any petition or any notice
of any proceeding or order of the Court, or of the Judge in Chambers,
relating to the trust fuild;





(3) the amount of money, shares, stock, or securities, which he pro-
poses to pay or transfer into or deposit in Court, to the credit of the
trust;
(4) a short description of the trust and of the instrument creating it;
(5) the nanie of the persons interested in or entitled to the fund, to
the best of the knowledge and belief of the trustee; and
(6) the submission of the trustee to answer all such inquiries relating
to the application of the money, shares, stock, or securities paid in,
transferred, or deposited under the Ordinance as the Conri or a Judge
in Chambers may think proper to make or direct.
2. The Official Trustee, on production of an office copy of the
affidavit, shall give the necessary directions for payment, transfer, or
deposit, and place the money, shares, stock, or securities, to the
account of the particular trust; and shall gran a certifcate of such
payment, transfer, or deposit.

3. Where it is deemed unnecessary to bave the money, or the
dividends or interest of the shares, stock, or securities, invested in the
meantime, the affidavit shall further contain a statement to that effect.
But where the affidavit contains no such statement, the Official
Trustee sliall be at libert to invest, as soon as conveniently may be,
the money paid in or the dividends or interest on the shares, stock, or
securities transferred, and all accumulations thereof, in or upon such
investments and securities as the Court, may direct or approve, and
every such investment shall be made in the matter of the particular
trust: Provided that where at any time a request in writing, by or
on behalf of any party claiming to be entitled, that such investment
may be discontinued is left with the Official Trustee, he shall be at
liberty to cease making any further investment in the matter of the
particular trust until the Court has made some ordier in that behalf.

4. The trustee, having made the payment, transfer, or deposit, shall
forthwith give notice thereof to the several persons named in his
affidavit as interested in or entitled to the fund.

5. Such persons, or any of them, or the trustee may apply by
petition, or, in a case where the fund does not exceed 2,000 dollars in
value, by summons, respecting the investment, payment out, or dis-
tribution of the fund or of the dividends or interest thereof.

6. The trustee shall be served with notice of any application made
to the Court or in Chambers respecting the fund, or the dividends or
interest thereof, by any person interested therein or entitled thereto.

7. The persons interested in or entitled to the fund shall be served
with notice of any application made by the trustee to the Court or in
Chambers respecting the fund or the dividends or interest thereof.

8. No petition shall be set down to be heard, and no summons shall
be sealed, until the petitioner or applicant has first named in his peti-
tion or Summons a place where he may be served with any petition
or summons or notice of any proceeding or order of the Court relating
to the fund.
9. Every petition presented, summons issued, and affidavit filed
under tile said provisions shall be entitled in the inatter of tbe Ordi-
nance and in the inatter of the particular trust.
Short title. Interpretation of terms.[56 & 57 Vict.c.53 s.50.] No.5 of 1885. Appointment of Official Trustee. Payment of trust moneys into bank to credit of Official Trustee.[10 & 11 Vict.c.96 s.1;56 & 57 Vict.c.53 s.42.] Transfer of trust securities into name of Official Trustee.[10 & 11 Vict.c.96 s.1.] Conveyance of land in trust to Official Trustee.[10 & 11 Vict.c.96 s.1.] Certificate to be given by Official Trustee.[ib.] Order for payment,etc., by ,ajority of trustees without concurrence of others.[56 & 57 Vict.c.53 s.42.] Administration of trust estate.[10 & 11 Vict.c.96 s.2.] Charges upon trust estate administered by Official Trustee. General rights and powers of Official Trustee. Limitation of liability of Official Trustee. Rules for summary administration of trust funds. Authorised investments.[56 & 57 Vict.c.53 s.1.;63 & 64 Vict.c.62 s.2.] [40 & 41 Vict.c.59;55 & 56 Vict.c.62.][cf.No.20 of 1901.] Purchase at premium of redeemable stock.[56 & 57 Vict.c.53 s.2.] Discretion of trustee.[56 & 57 Vict.c.53 s.3.] Application of preceding sections of Part II.[ib.s.4.] Enlargement of express powers of investment.[ib.s.5.] [27 & 28 Vict.c.114.] [38 & 39 Vict.c.83.] [43 & 44 Vict.c.8.] [28 & 29 Vict.c.78.] Power to invest,notwithstanding 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 & 28 Vict.c.114.] Trustees not to convert inscribed stock into certificates to bearer.[56 & 57 Vict.c.53 s.7;26 & 27 Vict.c.73;33 & 34 Vict.c.71;38 & 39 Vict.c.83;40 & 41 Vict.c.59.] Loans and investments by trustees not chargeable as breaches of trust.[56 & 57 Vict.c.53 s.8.] Liability for loss by reason of improper investment.[56 & 57 Vict.c. 53 s.9;57 & 58 Vict.c.10 s.4.] Power of appointing new trustees.[56 & 57 Vict.c.58 s.10.] Retirement of trustee.[56 & 57 Vict.c.53 s.11.] Vesting of trust property in new or continuing trustees.[ib.s.12.] Power of trsutee for sale to sell by public auction,etc.[56 & 57 Vict.c.53 s.13.] Power to sell subject to de[reciatory conditions.[ib.s.14.] Case of married woman bare trustee.[56 & 57 Vict.c.53 s.16.] Power to authorise receipt of money by solicitor or banker.[ib.s.17.] Insurance of building and payment of premiums.[56 & 57 Vict.c.53 s.18.] Power of trustee of renewable leaseholds to renew and raise money for the purpose.[ib.s.19.] Power under settlement to sell or exchange land.[23 & 24 Vict.c.145 s.1.] Power to make special stipulations on sale or exchange.[ib.s.2.] Power to convey on sale or exchange.[23 & 24 Vict.c.145 s.3.] Power of trustee to give receipts.[56 & 57 Vict.c.53 s.20.] Power for executor or trustee to compound debt,etc.[ib.s.21.] Liability of executor in respect of rents,etc., in lease.[22 & 23 Vict.c.35 s.27.] Application by trustees of income of property of infant for maintenance,etc.[44 & 45 Vict.c.41 s.43.] Validity of payment by trustee under power of attorney without notice of death,etc.[44 & 45 Vict.c.41 s.47;56 & 57 Vict.c.53 s23.] Powers of two or more trustees.[ib.s.22.] Implied indemnity of trustee.[ib.s.24.] Power of the Court to appoint new trustees.[56 & 57 Vict.c.53 s.25.] Vesting order as to land.[ib.s.26.] Order as to contingent right of unborn person.[56 & 57 Vict.c.53 s.27.] Vesting order in place of conveyance by infant mortgagee.[56 & 57 Vict.c.53 s.28.] Vesting order in place of conveyance by heir,or devisee of heir,etc., or personal representative of mortgagee.[ib.s.29.] Vesting order consequential on judgment for sale or mortgage of land.[ib.s.30.] Vesting order consequential on judgment for specific performance,etc.[56 & 57 Vict.c.53 s.31.] Effect of vesting order.[ib.s.32.] Power to appoint person to convey.[ib.s.33.] Vesting order as to stock and chose in action.[ib.s.35.] [cf.No.10 of 1899.] Persons entitled to apply for orde.[56 & 57 Vict.c.53 s.36.] Powers of new trustee appointed by Court.[ib.s.37.] Power to charge costs of order,etc.,on trust estate.[ib.s.38.] Trustees of charities.[ib.s.39.] Order made upon certain allegations to be conclusive evidence.[56 & 57 Vict.c.53 s.40.] Power to give judgment in absence of trustee.[ib.s.43.] Power to sanction sale of land or minerals separately.[ib.s.44;57 & 58 Vict.c.10 s.3.] Power to make beneficiary indemnify trustee for breach of trust.[56 & 57 Vict.c.53 s.45.] Trust estate not affected by trustee becoming a convict.[ib.s.48.] Power for trustee,etc., to apply to the Court for advice as to management of trust property.[22 & 23 Vict.c.35 s.30.] Jurisdiction of the Court,to give relief in case of breach of trust.[59 & 60 Vict.c.35 s.3.] Right of trustee to plead statute of limitations.[51 & 52 Vict.c.59 ss.1,8.]See No.2 of 1901 s.5. Indemnity.[56 & 57 Vict.c.53x s.49.] Affidavit to be filed by trustee desiring to pay money to account of,or to deposit shares,etc., in name of,Official Trustee. Directions for payment of money,etc. Investment of moneys. Notice of payment,etc.,to cestuis que trustent.Applications relating to fund. Notice to trustee of application by cestui que trust. Notice to cestuis que trustent of application by trustee. Place for service on applicant. Title of petition,etc.

Short title. Interpretation of terms.[56 & 57 Vict.c.53 s.50.] No.5 of 1885. Appointment of Official Trustee. Payment of trust moneys into bank to credit of Official Trustee.[10 & 11 Vict.c.96 s.1;56 & 57 Vict.c.53 s.42.] Transfer of trust securities into name of Official Trustee.[10 & 11 Vict.c.96 s.1.] Conveyance of land in trust to Official Trustee.[10 & 11 Vict.c.96 s.1.] Certificate to be given by Official Trustee.[ib.] Order for payment,etc., by ,ajority of trustees without concurrence of others.[56 & 57 Vict.c.53 s.42.] Administration of trust estate.[10 & 11 Vict.c.96 s.2.] Charges upon trust estate administered by Official Trustee. General rights and powers of Official Trustee. Limitation of liability of Official Trustee. Rules for summary administration of trust funds. Authorised investments.[56 & 57 Vict.c.53 s.1.;63 & 64 Vict.c.62 s.2.] [40 & 41 Vict.c.59;55 & 56 Vict.c.62.][cf.No.20 of 1901.] Purchase at premium of redeemable stock.[56 & 57 Vict.c.53 s.2.] Discretion of trustee.[56 & 57 Vict.c.53 s.3.] Application of preceding sections of Part II.[ib.s.4.] Enlargement of express powers of investment.[ib.s.5.] [27 & 28 Vict.c.114.] [38 & 39 Vict.c.83.] [43 & 44 Vict.c.8.] [28 & 29 Vict.c.78.] Power to invest,notwithstanding 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 & 28 Vict.c.114.] Trustees not to convert inscribed stock into certificates to bearer.[56 & 57 Vict.c.53 s.7;26 & 27 Vict.c.73;33 & 34 Vict.c.71;38 & 39 Vict.c.83;40 & 41 Vict.c.59.] Loans and investments by trustees not chargeable as breaches of trust.[56 & 57 Vict.c.53 s.8.] Liability for loss by reason of improper investment.[56 & 57 Vict.c. 53 s.9;57 & 58 Vict.c.10 s.4.] Power of appointing new trustees.[56 & 57 Vict.c.58 s.10.] Retirement of trustee.[56 & 57 Vict.c.53 s.11.] Vesting of trust property in new or continuing trustees.[ib.s.12.] Power of trsutee for sale to sell by public auction,etc.[56 & 57 Vict.c.53 s.13.] Power to sell subject to de[reciatory conditions.[ib.s.14.] Case of married woman bare trustee.[56 & 57 Vict.c.53 s.16.] Power to authorise receipt of money by solicitor or banker.[ib.s.17.] Insurance of building and payment of premiums.[56 & 57 Vict.c.53 s.18.] Power of trustee of renewable leaseholds to renew and raise money for the purpose.[ib.s.19.] Power under settlement to sell or exchange land.[23 & 24 Vict.c.145 s.1.] Power to make special stipulations on sale or exchange.[ib.s.2.] Power to convey on sale or exchange.[23 & 24 Vict.c.145 s.3.] Power of trustee to give receipts.[56 & 57 Vict.c.53 s.20.] Power for executor or trustee to compound debt,etc.[ib.s.21.] Liability of executor in respect of rents,etc., in lease.[22 & 23 Vict.c.35 s.27.] Application by trustees of income of property of infant for maintenance,etc.[44 & 45 Vict.c.41 s.43.] Validity of payment by trustee under power of attorney without notice of death,etc.[44 & 45 Vict.c.41 s.47;56 & 57 Vict.c.53 s23.] Powers of two or more trustees.[ib.s.22.] Implied indemnity of trustee.[ib.s.24.] Power of the Court to appoint new trustees.[56 & 57 Vict.c.53 s.25.] Vesting order as to land.[ib.s.26.] Order as to contingent right of unborn person.[56 & 57 Vict.c.53 s.27.] Vesting order in place of conveyance by infant mortgagee.[56 & 57 Vict.c.53 s.28.] Vesting order in place of conveyance by heir,or devisee of heir,etc., or personal representative of mortgagee.[ib.s.29.] Vesting order consequential on judgment for sale or mortgage of land.[ib.s.30.] Vesting order consequential on judgment for specific performance,etc.[56 & 57 Vict.c.53 s.31.] Effect of vesting order.[ib.s.32.] Power to appoint person to convey.[ib.s.33.] Vesting order as to stock and chose in action.[ib.s.35.] [cf.No.10 of 1899.] Persons entitled to apply for orde.[56 & 57 Vict.c.53 s.36.] Powers of new trustee appointed by Court.[ib.s.37.] Power to charge costs of order,etc.,on trust estate.[ib.s.38.] Trustees of charities.[ib.s.39.] Order made upon certain allegations to be conclusive evidence.[56 & 57 Vict.c.53 s.40.] Power to give judgment in absence of trustee.[ib.s.43.] Power to sanction sale of land or minerals separately.[ib.s.44;57 & 58 Vict.c.10 s.3.] Power to make beneficiary indemnify trustee for breach of trust.[56 & 57 Vict.c.53 s.45.] Trust estate not affected by trustee becoming a convict.[ib.s.48.] Power for trustee,etc., to apply to the Court for advice as to management of trust property.[22 & 23 Vict.c.35 s.30.] Jurisdiction of the Court,to give relief in case of breach of trust.[59 & 60 Vict.c.35 s.3.] Right of trustee to plead statute of limitations.[51 & 52 Vict.c.59 ss.1,8.]See No.2 of 1901 s.5. Indemnity.[56 & 57 Vict.c.53x s.49.] Affidavit to be filed by trustee desiring to pay money to account of,or to deposit shares,etc., in name of,Official Trustee. Directions for payment of money,etc. Investment of moneys. Notice of payment,etc.,to cestuis que trustent.Applications relating to fund. Notice to trustee of application by cestui que trust. Notice to cestuis que trustent of application by trustee. Place for service on applicant. Title of petition,etc.

https://oelawhk.lib.hku.hk/items/show/914

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