TRUSTEE ACT 1925 - SECT 38 Raising money

TRUSTEE ACT 1925 - SECT 38

    (1)     Where a trustee is authorised by the trust instrument or by law to pay or apply capital money for any purpose or in any manner, the trustee has power to raise the money required by sale, conversion, calling in, or mortgage of all or any part of the trust property for the time being in possession held upon the same trusts as the capital money.

    (2)     If—

        (a)     a trustee holds land in relation to which an amount is owing for rates or taxes, or in relation to which the trustee is under a statutory obligation to spend an amount; and

        (b)     the trustee does not have money subject to the same trusts as the land from which the amount can be paid;

the trustee has power to raise the money necessary to pay or spend the amount by sale or mortgage of all or part of the land or by sale, conversion, calling in or mortgage of all or part of the trust property held on the same trusts as the land.

    (3)     This section shall not apply to a trustee of property held for charitable purposes.