Page:United States Statutes at Large Volume 76A.djvu/761

–665– -665(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 grants permission for the latter, in the manner above prescribed. § 3534. Influence to obtain advantage A trustee may not use the influence which his position gives him to obtain an advantage from his beneficiary. § 3535. Undertaking trust adverse to interest of beneficiary A trustee, so long as he remains in the trust, ma;^ not 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. § 3536. Disclosure of adverse interest; removal If a trustee acquires an interest, or becomes charged with a duty, adverse to the interest of his beneficiary in the subject of the trust, he shall immediately inform the latter thereof, and may be at once removed. § 3537. Violations as fraud A violation of section 3531, 3532, 3533, 3534, 3535, or 3536 of this title is a fraud against the beneficiary of a trust. § 3539. Mingling trust property with that of trustee A transaction between a trustee and his beneficiary during the existence of the trust, or while the influence acquired by the trustee remains, by which he obtains an advantage from his beneficiary, is presumed to be entered into by the latter without sufficient consideration, and under undue influence. § 3539. Mingling trust property with that of trustee A 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. § 3540. Measure of liability for breach of trust (a) A trustee who uses or disposes of the trust property, contrary to section 3532 of this title, may, at the option of the beneficiary, b>e required to account for all profits so made, or to pay the value of its use, and, if he has disposed thereof, to replace it, with its fruits, or to account for its proceeds, with interest. (b) A trustee who uses or disposes of the trust property in any manner not authorized by the trust, but in good faith, and with intent to serve the interests of the beneficiary, is liable only to make good whatever is lost to the beneficiary by his error. § 3541. Liability of cotrustee for acts of others A trustee is responsible for the wrongful acts of a cotrustee to which he consented, or which, by his negligence, he enabled the latter to commit, but for no others. Subchapter III—Obligations of Third Persons § 3561. Third persons as involuntary trustees A person to whom property is transferred in violation of a trust, holds the property as an involuntary trustee under the trust, unless he purchased it in good faith, and for a valuable consideration.

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