12CLiability of trustee for loss on improper investments

12C Liability of trustee for loss on improper investments

[Section 12C Inserted by No. 64 of 1997, s. 4, Applied:01 Apr 1998]

(1)  If a trustee improperly lends trust money on a security that would have been a proper investment if the amount lent had been smaller than the actual amount lent, the security is to be taken to be a proper investment in respect of the smaller amount, and the trustee is liable only to make good the difference between the amount advanced and the smaller amount, with interest.

(2)  This section applies to investments made before or after the commencement of this section.