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TRUSTEE ACT (NORTHERN IRELAND) 1958 - SECT 8

Loans and investments by trustees not chargeable as breaches of trust.

8.(1) A trustee lending money on the security of any property on which he can
properly lend shall not be chargeable with breach of trust by reason only of
the proportion borne by the amount of the loan to the value of the property at
the time when the loan was made, if it appears to the court

(a)that in making the loan the trustee was acting upon a report as to the
value of the property made by a person whom he reasonably believed to be an
able practical surveyor or valuer instructed and employed independently of any
owner of the property, whether such surveyor or valuer carried on business in
the locality where the property is situate or elsewhere; and

(b)that the amount of the loan does not exceed two third parts of the value of
the property as stated in the report; and

(c)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 trust only upon the ground that in making
such loan he 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 effecting the purchase, 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 opinion of the court the title accepted be such as a person acting with
prudence and caution would have accepted.

(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 Act.

© 1958 Crown Copyright

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