Trustee (Authorised Investments) Act, 1958

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Number 8 of 1958.

TRUSTEE (AUTHORISED INVESTMENTS) ACT, 1958.

ARRANGEMENT OF SECTIONS

SCHEDULE.

Enactments Repealed

Number 8 of 1958.

TRUSTEE (AUTHORISED INVESTMENTS) ACT, 1958.

AN ACT TO PROVIDE FOR THE INVESTMENTS IN WHICH TRUST FUNDS MAY BE INVESTED, TO PROVIDE FOR INVESTMENT IN THOSE INVESTMENTS OF MONEY UNDER THE CONTROL OR SUBJECT TO THE ORDER OF ANY COURT AND TO PROVIDE FOR MATTERS RELATED TO THE MATTERS AFORESAID. [2nd April, 1958.]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:—

Authorised investments.

1.—The following section is hereby substituted for section 1 of the Trustee Act, 1893:

“1.—A trustee may, unless expressly forbidden by the instrument (if any) creating the trust, invest any trust funds in his hands, whether at the time in a state of investment or not, in manner following, that is to say:

(a) in securities of the Government (including Savings Certificates);

(b) in securities guaranteed as to capital and interest by the Minister for Finance;

(c) in the stock of the Bank of Ireland;

(d) in securities of the Electricity Supply Board;

(e) in securities of the Agricultural Credit Corporation, Limited;

(f) in securities of Bord na Móna;

(g) on real securities in the State;

(h) in securities or mortgages of any of the following authorities in the State:

(i) the council of a county,

(ii) the corporation of a county borough,

(iii) the corporation of Dun Laoghaire,

(iv) the Dublin Port and Docks Board,

(v) the Cork Harbour Commissioners,

(vi) the Limerick Harbour Commissioners,

(vii) the Waterford Harbour Commissioners;

(i) in debentures or debenture stock, quoted on a Stock Exchange, of any industrial or commercial company registered in the State, provided that the total of the debentures, debenture stock or debentures and debenture stock of the company does not exceed the paid-up share capital (including payments in respect of share premiums) and that a dividend of not less than five per cent. has been paid on the ordinary shares of the company in each of the five years last past before the date of investment;

(j) in an interest bearing deposit account with any of the following banks:

(i) Bank of Ireland,

(ii) Guinness & Mahon,

(iii) Hibernian Bank, Ltd.,

(iv) Munster & Leinster Bank, Ltd.,

(v) National Bank, Ltd.,

(vi) National City Bank, Ltd.,

(vii) Northern Bank, Ltd.,

(viii) Provincial Bank of Ireland, Ltd.,

(ix) Royal Bank of Ireland, Ltd.,

(x) Ulster Bank, Ltd.,

(xi) the Post Office Savings Bank,

(xii) a Trustee Savings Bank in the State;

(k) in British Government securities inscribed or registered in the State,

and may also from time to time vary any such investment.”

Variation by order of authorised investments·

2.—(1) The Minister for Finance may by order vary by addition or deletion—

(a) the investments specified in section 1 of the Trustee Act, 1893, as amended by section 1 of this Act, or

(b) where those investments have been varied by order under this subsection, those investments as so varied.

(2) Where an order is proposed to be made under this section, a draft thereof shall be laid before each House of the Oireachtas and the order shall not be made until a resolution approving of the draft has been passed by each such House.

(3) Before laying, pursuant to subsection (2) of this section, a draft before each House of the Oireachtas, the Minister shall consult—

(a) a Judge of the High Court nominated by the Chief Justice,

(b) the Governor of the Central Bank,

(c) the Public Trustee,

(d) the Chairman of the Irish Banks' Standing Committee,

(e) the President of the Incorporated Law Society of Ireland,

(f) the President of the Dublin Stock Exchange, and

(g) the President of the Cork Stock Exchange in regard to the terms of the proposed order.

Investment of money under control or subject to order of Court.

3.—(1) Money under the control or subject to the order of any Court may be invested in—

(a) any of the investments specified in section 1 of the Trustee Act, 1893, as amended by section 1 of this Act, or

(b) where those investments have been varied by order under section 2 of this Act, any of those investments as so varied,

and shall not be invested in any other manner.

(2) This section shall have effect notwithstanding anything to the contrary contained in any other Act or any rule of court.

(3) This section shall not affect the jurisdiction of any court to direct or permit money under its control or subject to its order to be used for the benefit of any person entitled thereto or having an interest therein—

(a) in making payments in connection with the acquisition, use or management of any land or business, or any share in any business, or

(b) in subscribing for securities offered on advantageous terms to holders of the same kind of securities.

Redeemable bond insurance policies.

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—

(a) out of the income of the bonds or out of the income of any other property subject to the same trusts,

(b) out of the capital of the bonds or out of the capital of any other property subject to the same trusts, or

(c) partly out of such income and partly out of such capital.

(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.

(3) In this section “trustee”, “trust”, “property” and “instrument” have the meanings assigned to them respectively by section 50 of the Trustee Act, 1893.

Saver for certain investments.

5.—Notwithstanding anything contained in this Act, where trust funds within the meaning of the Trustee Act, 1893, or money under the control of or subject to the order of any Court stand or stands invested in a manner which was authorised by law when the investment was effected but which, apart from this section, has ceased to be so authorised, authority is hereby given to continue to keep the funds or money invested in that manner.

Repeals.

6.—The enactments specified in the Schedule to this Act are hereby repealed to the extent specified in the third column of that Schedule.

Short title, collective citation and commencement.

7.—(1) This Act may be cited as the Trustee (Authorised Investments) Act, 1958.

(2) The Trustee Acts, 1888 to 1931, and this Act may be cited together as the Trustee Acts, 1888 to 1958.

(3) This Act shall come into operation on the expiration of the period of three months beginning on the day of the passing of this Act.

SCHEDULE.

Enactments Repealed.

Section 6 .