Page:United States Statutes at Large Volume 47 Part 1.djvu/1284

 1260 Post, p. 1282. Post, p. 1282. 72d CONGRESS. SESS. II. CH. 128. FEBRUARY 27, 19 33& without the use of any influence on the part of the trustee, permits himtodoso; 2. When the beneficiary not having capacity to contract, the proper co urt, upon the like informat ion of th e facts, grants th e like permission ; or 3. When some of the beneficiaries having capacity to contract, and some not having it, the former grant permission for themselves, and the proper court for the latter, in the manner above prescribed. Cla ss Rm sssE NCrs Duty to inform beneficiary of adverse interest, see section 1001. Undertaking inconsistent trust, see section 1000. Trustee's Influence SE C. 999. TBUSTEE's INFLUENCE NOT TO BE USED FOR HIS AD VAN- dvan ag used for his TAGS .A trustee may not use the influence which his position gives him to obtain any advantage from his beneficiary. Trust ee not to as SEC. 1000, TRU ST EE NOT TO ASSU ME A TRUST ADVERSE TO INTR1IEgT trust a Interest ...fiay of nENERICIARY .-No trustee, so long as he remains in the trust, may undertake another trust adverse in its nature to the interest of his beneficiary in the subject of the trust, without the consent of the latter. Caoss Rmsmsm ccs Ante, p.1 259 Compare sec tion 99 8. Post, p. 1283. Removal of trustee, see sections 1030 and 1031. Trustee's duty to disclose adverse interest, see section 1001. To disclose adverse SEC. 1001. To nlsonosn ADVERSE INTEREST .-If a trustee acquires any interest, interest, or becomes charged with any duty, adverse to the interest of his beneficiary in the subject of the trust, he must immediately inform the latter thereof, and may be at once removed. Whenguiltyof fraud. SEC. 1002 . TRUSTEE GUILTY OF FRAUD, WHEN Every violation of Ante, p. 12se. the provisions of sections 996 to 1001 is a fraud against the bene- ficiary of a trust. Presumption against SEC. 1003. IoRESUM'TION AGAINST TRUSTEES .-All transactions be- trustees. tween a trustee and his beneficiary during the existence bf the trust, or while the influence acquired by the trustee remains, by which he obtains any advantage from his beneficiary, are presumed to be entered into by the latter without sufficient consideration, and under undue influence. Truste e mingling SEC. 1004. TRUSTEE MINGLING TRUST PROPERTY WITH HIS OWN .-A property. trustee who willfully and unnecessarily mingles the trust property with his own, so as to constitute himself in appearance its absolute owner, is liable for its safety in all events, and for the value of its use. Measure of liability SEC. 1005. MEASURE OF LIABILITY FOR BREACH OF TRUST .-A trustee for breach of trust. Ante, p. 12b9. who uses or disposes of the trust property, contrary to section 997, may, at the option of the beneficiary be required to account for all profits so made, or to pay the value oti its use, and, if he has disposed thereof, to replace it, with its fruits, or to account for its proceeds, with interest. CROSS REFERENCE S Degree of diligence requisite, see section 1016. Liability for noninvestment of funds, see section 1019. breac h . unintentional SEC. 1006 . SAME .'-.A trustee who uses or disposes of the trust prop- erty in any manner not authorized by the trust, but in good faith, and with intent to serve the inte rests of the be neficiary, is li able only to make goo d whateve r is lost to the b eneficia ry by his error.