Indian Trusts Act,1882
Act No : 2
Section : Investment of trust-money
20. Investment of trust-money.-Where the trust-property consistsof money and cannot be applied immediately or at an early date to thepurposes of the trust, the trustee is bound (subject to any directioncontained in the instrument of trust) to invest the money on thefollowing securities, and on no others:- (a) in promissory notes, debentures, stock or other securities 1*[of any State Government or] of the Central Government or of the United Kingdom of Great Britain and Ireland: 2*[Provided that securities, both the principal whereof and the interest whereon shall have been fully and unconditionally guaranteed by any such Government shall be deemed, for the purposes of this clause, to be securities of such Government;] (b) in bonds, debentures and annuities 3*[charged or secured by the 4*[Parliament of the United Kingdom] 5* [before the fifteenth day of August, 1947] on the revenues of India or of the 6*[Governor-General in Council] or of any Province]: 7*[Provided that, after the fifteenth day of February, 1916, no money shall be invested in any such annuity being a terminable annuity unless a sinking fund has been established in connection with such annuity; but nothing in this proviso shall apply to investments made before the date aforesaid;]---------------------------------------------------------------------1 Ins. by Act 31 of 1920, s. 2 and Sch. I.2 Added by Act 18 of 1934, s. 2.3 Subs. by the A. O. 1937 for "charged by the Imperial Parliament on the revenues of India".4 Subs. by the A. O. 1950 for "Imperial Parliament".5 Ins. by the A. O. 1948.6 Subs. by the A. O. 1948 for "Federation".7 Added by Act 1 of 1916, s. 2.27 1*[(bb) in India three and a half per cent. stock, India three per cent. stock, India two and a half per cent. stock or any other capital stock 2*[which before the 15th day of August, 1947, was] issued by the Secretary of State for India in Council under the authority of an Act of Parliament 3*[of the United Kingdom] and charged on the revenues of India] 4*[or which 5*[was] issued by the Secretary of State on behalf of the Governor- General in Council under the provisions of Part XIII of the Government of India Act, 1935]; (26 Geo. 5, Ch. 2.) (c) in stock or debentures of, or shares in, Railway or other Companies the interest whereon shall have been guaranteed by the Secretary of State for India in Council 1*[or by the Central Government] 6*[or in debentures of the Bombay 7*[Provincial] Co-operative Bank, Limited, the interest whereon shall have been guaranteed, by the Secretary of State for India in Council] 4*[or the State Government of Bombay]; 8*[(d) in debentures or other securities for money issued, under the authority of 9*[any Central Act or Provincial Act or State Act], by or on behalf of any municipal body, port trust or city improvement trust in any Presidency-town, or in Rangoon Town, or by or on behalf of the trustees of the port of Karachi:] 10*[Provided that after the 31st day of March, 1948, no money shall be invested in any securities issued by or on behalf of a municipal body, port trust or city improvement trust in Rangoon town, or by or on behalf of the trustees of the port of Karachi.]---------------------------------------------------------------------1 Ins. by Act 1 of 1916, s. 2.2 Subs. by the A. O. 1950 for "which may at any time hereafter be".3 Ins. by the A. O. 1950.4 Ins. by the A. O. 1937.5 Subs. by the A. O. 1950 for "may be".6 Ins. by Act 21 of 1917, s. 2.7 Subs. by Act 37 of 1925, s. 2 and Sch. I, for "Central".8 Subs. by Act 3 of 1908, s. 2, for the original clause.9 The words "any Act of a Legislature established in British India"have been successively amended by the A. O. 1948, the A. O. 1950 andAct 3 of 1951 to read as above.10 Ins. by the A. O. 1948.28 (e) on a first mortgage of immoveable property situate in 1*[any part of the territories to which this Act extends]: Provided that the property is not a leasehold for a term of years and that the value of the property exceeds by one-third, or, if consisting of buildings, exceeds by one-half, the mortgage-money;4*** 4*(ee) in units issued by the Unit Trust of India under any unit scheme made under section 21 of the Unit Trust of India Act, 1963; or; (f) on any other security expressly authorized by the instrument of trust 4* [or by the Central Government by notification in the Official Gazette,] or by any rule which the High Court may from time to time prescribe in this behalf: Provided that, where there is a person competent to contract andentitled in possession to receive the income of the trust-property forhis life, or for any greater estate, no investment on any securitymentioned or referred to in clauses (d), (e) and (f) shall be madewithout his consent in writing.
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