Trustees Act 1967 · 2020 Revised Edition · Part 2 · Investments
10. Liability for loss by reason of improper investment
Feedback & supportWhere a trustee improperly advances trust money on a mortgage security which would at the time of the investment be a proper investment in all respects for a smaller sum than is actually advanced on the security, the security is deemed to be an authorised investment for the smaller sum, and the trustee is only liable to make good the sum advanced in excess of the smaller sum with interest.
mortgage
“mortgage”, “mortgagee” and “mortgagor” include “charge”, “chargee” and “chargor” respectively, and further include and relate to every estate and interest regarded in equity as merely a security for money, and every person deriving title under the original mortgagee;
This section applies to investments made before, on or after 26 June 1992.