sec.30Loans and investments by trustees not breaches of trust in particular circumstances

### sec.30 Loans and investments by trustees not breaches of trust in particular circumstances If a trustee lends an amount on the security of property, the trustee is not in breach of trust only on the ground of the comparison of the amount of the loan with the value of the property at the time when the loan was made— if it appears to the court that— in making the loan, the trustee was acting on a report about the value of the property made by a person whom the trustee reasonably believed to be competent to give the report and whom the trustee instructed and employed independently of any owner of the property; and the amount of the loan was not more than two-thirds of the value of the property as stated in the report; and the loan was made in reliance on the report; or if the trustee is insured by an entity prescribed under a regulation carrying on the business of insurance against all loss that may arise because of the default of the borrower. If a trustee lends an amount on the security of leasehold property, the trustee is not in breach of trust only because the trustee dispensed, either completely or in part, with the production or investigation of the lessee’s title when making the loan. This section applies to transfers of existing securities as well as to new securities and to investments whether made before or after the commencement of this section. s 30 sub 1999 No. 69 s 5 (sec.30-ssec.1) If a trustee lends an amount on the security of property, the trustee is not in breach of trust only on the ground of the comparison of the amount of the loan with the value of the property at the time when the loan was made— if it appears to the court that— in making the loan, the trustee was acting on a report about the value of the property made by a person whom the trustee reasonably believed to be competent to give the report and whom the trustee instructed and employed independently of any owner of the property; and the amount of the loan was not more than two-thirds of the value of the property as stated in the report; and the loan was made in reliance on the report; or if the trustee is insured by an entity prescribed under a regulation carrying on the business of insurance against all loss that may arise because of the default of the borrower. (sec.30-ssec.2) If a trustee lends an amount on the security of leasehold property, the trustee is not in breach of trust only because the trustee dispensed, either completely or in part, with the production or investigation of the lessee’s title when making the loan. (sec.30-ssec.3) This section applies to transfers of existing securities as well as to new securities and to investments whether made before or after the commencement of this section. - (a) if it appears to the court that— (i) in making the loan, the trustee was acting on a report about the value of the property made by a person whom the trustee reasonably believed to be competent to give the report and whom the trustee instructed and employed independently of any owner of the property; and (ii) the amount of the loan was not more than two-thirds of the value of the property as stated in the report; and (iii) the loan was made in reliance on the report; or - (i) in making the loan, the trustee was acting on a report about the value of the property made by a person whom the trustee reasonably believed to be competent to give the report and whom the trustee instructed and employed independently of any owner of the property; and - (ii) the amount of the loan was not more than two-thirds of the value of the property as stated in the report; and - (iii) the loan was made in reliance on the report; or - (b) if the trustee is insured by an entity prescribed under a regulation carrying on the business of insurance against all loss that may arise because of the default of the borrower. - (i) in making the loan, the trustee was acting on a report about the value of the property made by a person whom the trustee reasonably believed to be competent to give the report and whom the trustee instructed and employed independently of any owner of the property; and - (ii) the amount of the loan was not more than two-thirds of the value of the property as stated in the report; and - (iii) the loan was made in reliance on the report; or