1870: 33 & 34 Victoria c.34: Charitable Funds Investment

1870: 33 & 34 Victoria c.34: An Act to amend the Law as to the Investment on Real Securities of Trust Funds held for public and charitable purposes.

[1st August 1870.]

WHEREAS it is expedient to amend the law relating to the investment on real securities of trust funds held for public and charitable purposes:

Be it enacted by the Queen’s most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:

[Corporations and trustees holding money in trust for any public or charitable purpose may invest the same in real securities.]

1. It shall be lawful for all corporations and trustees in the United Kingdom holding moneys in trust for any public or charitable purpose to invest such moneys on any real security authorised by or consistent with the trusts on which such moneys are held, without being deemed thereby to have acquired or become possessed of any land within the meaning of the laws relating to mortmain, or of any prohibition or restraint against the holding of land by such corporations or trustees contained in any charter or Act of Parliament; and no contract for or conveyance of any interest in land made bona fide for the purpose only of such security shall be deemed void by reason of any non-compliance with the conditions and solemnities required by an Act passed in the ninth year of King George the Second, intituled “An Act to restrain the disposition of lands whereby the same become unalienable.”

[Proviso for cases in which the equity of redemption of the premises may be barred or released.]

2. Provided always, that in every case in which the equity of redemption of the premises comprised in any such security shall become liable to foreclosure, or otherwise barred or released, the same shall be thenceforth held in trust to be sold and converted into money, and shall be sold accordingly; and if any decree shall be made in any suit for the purpose of redeeming or enforcing such security, such decree shall direct a sale (in default of redemption) and not a foreclosure of such premises.

[Interpretation of Terms.]

3. The words “real security” in this Act shall include all mortgages or charges, legal or equitable, of or upon lands or hereditaments of any tenure, or of or upon any estate or interest therein or any charge or encumbrance thereon; and the word “conveyance” shall include all grants, releases, transfers, assignments, appointments, assurances, orders, surrenders, and admissions whatsoever operating to pass or vest any estate or interest, at law or in equity, in the premises comprised in any real security.

Source: Public General Statutes, 1870.