POWERS OF TRUSTEES

Otago Daily Times, Issue 22057, 13 September 1933, Page 5

POWERS OF TRUSTEES

INVESTMENTS UNDER WILL DECLARATORY order made, (Per United Press Association.) WELLINGTON, September 12. Reserved judgment was given by Mr Justice Reed in the Supreme Court today in a case which raised the question whether the trustees of the estate of Edward William Lowe could be permitted to invest in mortgages of land in view of the fact that as a result of the recent legislation the securities stipulated in the will of the deceased no longer yielded 5 per cent. His Honor held that there was an express prohibition against investment in mortgages of land and there had been no such state of emergency shown as would justify the court in authorising disregard of such prohibition. His Honor made the following declaratory order:—“The Public Trustee may invest moneys which may hereafter be in his hands as trustee of the will in investments of a nature authorised by the will which produce on the investments a return of less than 6 per cent, provided that at the time of investment such moneys cannot be invested on security of a nature authorised by the will producing on investment a return of 5 per cent, or more.”