TRUSTEE ACT (NORTHERN IRELAND) 1958 - SECT 10 Powers supplementary to powers of investment.

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TRUSTEE ACT (NORTHERN IRELAND) 1958 - SECT 10

Powers supplementary to powers of investment.

10.(1) Trustees lending money on the security of any property on which they
can lawfully lend may contract that the 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 for the maintenance and protection of the property.

(2) On a sale of land for an estate in fee simple or for a term having at
least two hundred years to run by trustees or by a tenant for life, the
trustees, or the tenant for life on behalf of the trustees of the settlement,
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 a mortgage of the land sold, with or without the security of any other
property, such mortgage, if any buildings are comprised in the mortgage, to
contain a covenant by the mortgagor to keep them insured against loss or
damage by fire to the full value thereof.

(3) The trustees shall not be found 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; and the trustees of the settlement shall be bound to give effect to
such contract made by the tenant for life.

(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;

(5) If any conditional or preferential right to subscribe for any securities
in any company is offered to any trustees in respect of any holding in the
company, they may as to all or any of the securities

(a)exercise the right and apply capital money subject to the trust in payment
of the consideration; or

(b)renounce the right; or

(c)assign for the best consideration that can be reasonably obtained the
benefit of the right or the title thereto to any person, including any
beneficiary under 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.

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Northern Irish Legislation

TRUSTEE ACT (NORTHERN IRELAND) 1958 - SECT 10