sec.79Limitation of liability of trustee for loss on improper investment

sec.79 Limitation of liability of trustee for loss on improper investment

This section applies if— a trustee improperly lends trust funds on the security of property; but the loan would have been a proper investment if a lesser amount had been lent. For the trustee’s liability in relation to the investment— the security is taken to be a proper investment in relation to the lesser amount; and the trustee is liable only for the difference between the actual amount lent and the lesser amount, with interest. (sec.79-ssec.1) This section applies if— a trustee improperly lends trust funds on the security of property; but the loan would have been a proper investment if a lesser amount had been lent. (sec.79-ssec.2) For the trustee’s liability in relation to the investment— the security is taken to be a proper investment in relation to the lesser amount; and the trustee is liable only for the difference between the actual amount lent and the lesser amount, with interest.

• (a) a trustee improperly lends trust funds on the security of property; but
• (b) the loan would have been a proper investment if a lesser amount had been lent.
• (a) the security is taken to be a proper investment in relation to the lesser amount; and
• (b) the trustee is liable only for the difference between the actual amount lent and the lesser amount, with interest.