Page:United States Statutes at Large Volume 47 Part 1.djvu/1285

 72d CONGRESS. SESS. II. CH . 128 . FEBRUARY 27, 1933 . SEC. 1007 . COTRUBTEES, HOW FAR LIABLEE. FOR EACH OTHER.--A trustee is responsible for the wrongful acts of a cotrustee to which he con- sented, or which, by his negligence, he enabled the latter to commit, but for no others. Cross REFERENCE Compare with section 1022. OBLIGATIONS OF THIRD PERSONS SEC. 1008. T mRD P ERSOx s, WH EN IN voLU NTARY TRUS TEES .-Eve ry- one to whom pr operty is trans ferred in violat ion of a trust, holds the same as an involuntary trustee under such trust, unless he pur- chased it in good faith, and for a valuable consideration. Cross REFESENCE Involuntary trustees, who are, see sections 988, 994, and 995. SEC. 1009. WHEN THIRD PERSON MUST SEE TO APPLICATION- OF TRUST PROPERTY .-One who actually and in good faith transfers any money or other property to a trustee, as such, is not bound to see to the application thereof, and his rights can in no way be prejudiced by a misapplication thereof by the trustee. Other persons must, at their peril, see to the proper application of money or other property paid or delivered by them. CH APT ER 5 0 .- TRUSTS FOR BENEFIT OF THIRD PERSONS N ATURE AND CREAT ION OF THE TRU ST 1261 Cotrastsea, liability. Poet, p. 2. Obligations of third persons. When Involuntary trustees. Ante, pp . 1258, 1269. When third person must see to application of trust property. TRUSTS FOR BENEFIT OF THIRD PERSONS. Natur e and crea tion of trust. S EO. 1010 . WHO ARE TRUSTEES WITHIN S COPE OF THIS CHAPTER.- who are trustees within scope of this The provisions of this chapter apply only to express trusts, created chapter . for the benefit of another than the trustor, and in which the title to the trust property is vested in the trustee ; not including, however, those of executors, administrators, and guardians, as such. SEC. 1011 . CREATION OF TRUST .-The mutual consent of a trustor Creation of trust. and trustee creates a trust of which the beneficiary may take advan- tage at any time prior to its rescission. CROSS RE FER ENCE S Promise for benefit of third person, see section 494. Ante, P .1191. Revoking trust, beneficiary's consent necessary, see section 1028. . P. 1263. S EC. 1012. TRUSTEES APPOINTED BY covBr •.-When a trustee is court, etc., as trustor. appointed by a court or public officer, as such, such court or officer is the trustor, within the meaning of section' 1011. Declaration of trust. SEC. 1013. DECLARATION OF TRUST .-The nature, extent, and object of a trust are expressed in the declaration of trust. S EC. 1014. SAME.-All declarations of a trustor to his trustees, in relation to the trust, before its acceptance by the trustees, or any of them, are to be deemed part of the declaration of the trust, except that when a declaration of trust is made in writing, all previous declarations by the same trustor are merged therein. OBLIGATIONS OF TRUSTEES obli gation s ~, of tru s- S EC. 1015. T RUST EES MUST OBEY DECLARATION OF T RUST .-A truste e tion of true%y d eelara- must fulfill the purpose of the trust, as declared at its creation, and must follow all the di rections of the trustor given at that time, except as modified by the consent of all parties interested, in the same manner, and to the same extent, as an employee. i i