12ALoans and investments by trustees not breaches of trust in certain circumstances

12A Loans and investments by trustees not breaches of trust in certain circumstances (1) If a trustee lends money on the security of property, the trustee is not liable for breach of trust by reason only of the proportion borne by the amount of the loan to the value of the property at the time when the loan was made if it appears to the Court— (a) that, in making the loan, the trustee was acting on a report as to the value of the property made by a person whom the trustee reasonably believed to be competent to give such a report and whom the trustee instructed and employed independently of any owner of the property; and (b) that the amount of the loan did not exceed two-thirds of the value of the property as stated in the report; and (c) that the loan was made in reliance on the report. (2) This section applies to transfers of existing securities as well as to new securities and to investments made before or after the commencement of section 4 of the **Trustee and Trustee Companies (Amendment) Act 1995**. S. 12B substituted by No. 104/1995 s. 4.