Trustee Ordinance

(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 7 years from the time when the loan was made, provided interest be
                paid within a specified time not exceeding 30 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 60 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 if the trustees have discharged the statutory duty of care,
                the trustees are not liable for any loss which may be incurred by reason only of the
                security being insufficient at the date of the mortgage.
(Amended
13 of 2013 s. 9
)
(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,
in like manner as if they were entitled to such securities beneficially, with
                power to accept any securities of any denomination or description of the
                reconstructed or purchasing or new company in lieu of or in exchange for all or any
                of the
first-
mentioned securities.
(Amended
13 of 2013 s. 9
)
(4A)
The trustees are not responsible for any loss occasioned by an act or thing
                done under subsection (4) if they have discharged the statutory duty of care in
                doing so.
(Added
13 of 2013 s. 9
)
(4B)
The trustees may retain any securities accepted under subsection (4) for a
                period for which they could have properly retained the original securities.
(Added
13 of 2013 s. 9
)
(5)
If a conditional or preferential right to subscribe for securities in a company
                is offered to trustees for any holding in the company, the trustees may, for all or
                any of the
securities—
(a)
exercise the right and apply the trust funds in payment of the
                    consideration;
(b)
renounce the right;
(c)
assign for the best consideration that can be reasonably obtained the
                    benefit of the right, or the title to the right, to any person, including a
                    beneficiary under the trust.
(Replaced
13 of 2013 s. 9
)
(5A)
The trustees are not responsible for any loss occasioned by an act or thing
                done under subsection (5) if they have discharged the statutory duty of care in
                doing so.
(Added
13 of 2013 s. 9
)
(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 subsection (1), or the sale referred to in
                subsection (2), is made under the order of the court, the powers conferred by those
                subsections respectively shall apply only if and as far as the court may by order
                direct.
[cf. 1925 c. 19 s. 10 U.K.]