TRUSTEE LAW

Evening Post, Volume CXI, Issue 98, 28 April 1931, Page 7

TRUSTEE LAW

MEETING THE DEPRESSION

Two important amendments to trustee la,w, as embodied in the Finance Bill No. 2, were agreed .to by the House of Bepresentatives on Friday afteraoon. The first amendment frees a trustee from liability for a breach of trust in the -event of his continuing to hold at any. .time before the passing of fthe Act 1 an investment which, after it (Becomes invested in him or in any yrior trustee holding under the same trust, ceased to be an investment authorised by the trust instrument or \>y the general law. The second amendincnt empowered trustees in certain cases, with the consent of' a court, to borrow moneys and apply them for the" advancement, etc., of persons entitled to .the capital of a trust-property. It was held by some of the legal members of the House that the amendments were so far-reaching. that they, should have, been referred' to' the Law Society and the Statutes Eeyision Committee. The Prime Minister's reply that the amendments had been approved by the Solici-tor-General and, the Attorney-General allayed the fears expressed by most of the members, and the clauses were passthe members, and the clauses were passed. .- .. ■. " ■ .. •

Explaining the clause freeing a trustee from liability for continuing to hold an investment which had ceased to be an authorised investment, . the Prime Minister (the Bight Hon. Gv"W. Forbes), said that the clause had been designed to meet the decline in the value, of property. The: clause giving trustees power in certain cases, ■with the consent of a Court, to borrow moneys and apply them for the advancement, etc., of persons entitled to the capital of trust property, had been inserted in the Bill as the result of representations from the Canterbury Chamber of-'Commerce and stock, and station agents, who wished to carry on mortgages on farms, but were up against the provisions of trustee law.