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Redeemable bond insurance policies.
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4.—(1) A trustee may effect redeemable bond insurance policies against redemption by drawing of bonds at a price less than current or cost price, and may, at his discretion and without obtaining the consent of any other person, pay the premiums on such policies—
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(a) out of the income of the bonds or out of the income of any other property subject to the same trusts,
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(b) out of the capital of the bonds or out of the capital of any other property subject to the same trusts, or
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(c) partly out of such income and partly out of such capital.
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(2) This section applies to trusts created either before or after the commencement of this Act, but nothing in this section shall authorise any trustee to do anything which he is in express terms forbidden to do, or to omit to do anything which he is in express terms directed to do, by the instrument creating the trust.
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(3) In this section “trustee”, “trust”, “property” and “instrument” have the meanings assigned to them respectively by section 50 of the Trustee Act, 1893.
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