Singapore legislation
Section 11
Section 11
Powers supplementary to powers of investment
(1)
Trustees lending money on the security of any property on which they can lawfully lend may contract that such money must not be called in during any period not exceeding 5 years from the time when the loan was made, provided that —
interest be paid within a specified time not exceeding 10 days after every monthly or other day on which it becomes due; and
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 an estate in fee simple, or held under a grant issued under the State Lands Act 1920, or for a term having at least 30 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 must 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 in the mortgage, must contain a covenant by the mortgagor to keep those buildings insured against loss or damage by fire to the full value of the buildings.
(3)
Where any securities of a company are subject to a trust, the trustees may concur in any scheme or arrangement —
for the reconstruction of the company;
for the sale of any or any part of the property and undertaking of the company to another company;
for the acquisition of the securities of the company, or of control of the securities, by another company;
for the amalgamation of the company with another company;
for the release, modification, or variation of any rights, privileges or liabilities attached to the securities or any of them,in the like manner as if they were entitled to those 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 firstmentioned securities.
(4)
The trustees shall not be responsible for any loss occasioned by any act or thing so done if they have discharged the statutory duty of care, and may retain any securities so accepted as specified in subsection (3) for any period for which they could have properly retained the original securities.
(5)
If any conditional or preferential right to subscribe for any securities in any company is offered to trustees in respect of any holding in the company, they may, as to all or any of the securities, either exercise that right and apply capital money subject to the trust in payment of the consideration, or renounce that right, or assign for the best consideration that can be reasonably obtained the benefit of that right or the title to it to any person, including any beneficiary under the trust, without being responsible for any loss occasioned by any act or thing so done by them if they have discharged the statutory duty of care.
(6)
The consideration for any assignment referred to in subsection (5) must be held as capital money of the trust.
(7)
The powers conferred by this section are 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.
(8)
Where the loan mentioned in subsection (1), or the sale mentioned in subsection (2), is made under the order of the court, the powers conferred by those subsections, respectively, apply only if and as far as the court may by order direct.