Page:United States Statutes at Large Volume 47 Part 1.djvu/1286

 1262 Degree of care and diligence. Ante, p .1269. Duty as to appoint- ment of successor . Post, p .1264. Investment of money by. Trustea'sliabillty for Interest. Ante, p. 1260. Ante, p. 1269. Trustee's powers. As agent. All must act. 72d C ONGR ESS . SESS. II. CH. 123 . FEBRUARY 27, 1933 . Cross REFERENCE Authority of trustee, generally, see section 1021. SEC. 1016 . DEGREE OF CARE AND DILIGENCE IN E%Et,ulIONT OF TRUST. - A trustee, whether he receives any compensation or not e must use at least ordinary care . and diligence in the execution of his trust. Cros s Rss asurc s Obligations of trustees, see, generally, sections 996 et seq. SEC. 1017. DU TY OF TRUSTEE AS TO APPOINTMENT OF succESSOR.If a trustee procures or assents to his discharge from his office, before his trust is fully executed, he must use at least ordinary care and dil igenc e to secur e the appo intme nt of a tr ustwo rthy succe ssor befor e accepting his own final discharge. Cnoss REFERENCE Succession or appointment of new trustees, see section 1032 et seq. SEC. 1018 . INVESTMENT OF MO NEY BY TRUS TEE .-A trustee must invest mon ey received by him under the trust, as fast as he collects a suf fi cie nt am ou nt, in such manner as to afford reasonable security and interest for the same. Caoss REFESENOE Lia bilit y for inte rest or failure to invest funds, see section 1019. SEC. 1019 . INTEREST, SIM PLE OR CO MPOU ND, ON O MISS ION TO INVEST TRUST MONEYS .-If a tru st ee om its to invest the tr ust moneys ac co rd- ing to section 101 8, he m ust pay simple int er est thereon, if su ch omi ss ion is negligent merely, and compound interest if it is willful. Cro ss REFERENCE Trustee's liability for interest, compare with section 1005. ofasim e agb a t 'trot SEC. 1020. PUR CHASE BY TRU STEE OF CLAIMS AGAINST TRUST FUND.-- fund. A trustee can not enforce any claim against the trust property which he pu rchase s aft er or in c ontem plati on of his appoi ntmen t as trust ee but he may be allowed, by any competent court, to charge to the tru st property wha t he has in goo d fai th pa id for the claim ; upon discharging the same. C aoss REFERENCE Purchasing debits against the trust estate prohibited, see section 998. POWERS OF TRUSTEES SEC. 1021. TR US TEE POWER AS AGENT .-A trustee is a general agent for the tru st property. His authority is suc h as is conferred up on him by the declaration of trust and by this chapter, and no ne other. His acts, within the sc ope of his authority, bind the trust property to the s ame extent as the ac ts of an agent bin d his principal. Cr oss RE FERE NCES Poet, P. 1267 . Agent's acts binding principal, see sections 1003 et seq. Ante, p .1258. For what purposes trusts may be created, see section 991. Powers to two or more trustees, see section 1022 . SEC. 1022. ALL MusT ACT.-Where th ere are sev er al cotrustees, all m ust u nite in any act to b ind the tr ust p roper ty, u nless the decla ra- t ion of tru st ot herwi se provides.