Blacks Law Dict. 1st ed

1192

TRUSTEE IN BANKRUPTCY

TRUST

the purpose of regulating the supply and price of commodities, etc. TRUST-DEED. 1. A species of mort gage given to a trustee for the purpose of se curing a numerous class of creditors, as the bondholders of a railroad corporation, with power to foreclose and sell on failure of the payment of their bonds, notes, or other claims. 2. In some of the states, and in the Dis trict of Columbia, a trust-deed is a security re sembling a mortgage, being a conveyance of lands to trustees to secure the payment of a debt, with a power of sale upon default, and upon a trust to apply the net proceeds to pay ing the debt and to turn over the surplus to the grantor. TRUSTEE. The person appointed, or required by law, to execute a trust; one in whom an estate, interest, or power is vested, under an express or implied agreement to ad minister or exercise it for the benefit or to the use of another. "Trustee" is also used in a wide and per haps inaccurate sense, to denote that a per son has the duty of carrying out a transaction, in which he and another person are interested, in such manner as will be most for the bene fit of the latter, and not in such a way that he himself might be tempted, for the sake of his personal advantage, to neglect the inter ests of the other. In this sense, directors of companies are said to be "trustees for the shareholders." Sweet. TRUSTEE ACTS. The statutes 13 & 14 Viet. c. 60, passed in 1850, and 15 & 16 Viet. c. 55, passed in 1852, enabling the court of chancery, without bill filed, to appoint new trustees in lieu of any who, on account of death, lunacy, absence, or otherwise, are un able or unwilling to act as such; and also to make vesting orders by which legal estates and rights may be transferred from the old trustee or trustees to the new trustee or trustees so appointed. Mozley & Whitley. TRUSTEE EX MALEFICIO. A per son who, being guilty of wrongful or fraudu lent conduct, is held by equity to the duty and liability of a trustee, in relation to the subject-matter, to prevent him from profiting by his own wrong. TRUSTEE IN BANKRUPTCY. A trustee in bankruptcy is a person in whom the property of a bankrupt is vested in trust for the creditors.

active) and simple,(or passive, or dry.) The special trust is where the machinery of a trustee is introduced for the execution of some purpose particularly pointed out, and the trustee is not, as before, a mere passive depositary of the estate, but is called upon to exert himself actively in the execution of the settlor's intention; as where a conveyance is to trustees upon trust to sell for payment of debts. Lewin, Trusts, 18. A simple trust is one which requires the performance of no duty by the trustee to carry out the trust, but by force of which the mere legal title rests in the trustee. Trusts are also either voluntary or invol untary, A voluntary trust is an obligation arising out of a personal confidence reposed in, and voluntarily accepted by, one for the benefit of another. An involuntary trust is one which is created by operation of law. Civil Code Cal. §§ 2216, 2217. According to another use of the term, "vol untary trusts" are such as are made in favor of a volunteer; that is, a person who gives nothing in exchange for the trust, but re ceives it as a pure gift. And in this use the term is distinguished from "trusts for value," the latter being such as are in favor of pur chasers, mortgagees, etc. Constructive trusts are such as are found ed neither on an expressed nor on any pre sumable intention of the party, but which are raised by construction of equity without any regard to intention, and simply for the purpose of satisfying the demands of justice and good conscience. Erown. Public trusts. "By 'public' must be understood such as are constituted for the benefit either of the public at large or of some considerable portion of it answering a partic ular description. To this class belong all trusts for charitable purposes, and indeed •public trusts' and 'charitable trusts' may be considered in general as synonymous expres sions." Lewin, Trusts, 20. Private trusts. "In private trusts the beneficial interest is vested absolutely in one or more individuals, who are, or within a certain time may be, definitely ascertained, and to whom, theiefore, collectively, unless under some legal disability, it is, or within the allowed limit will be, competent to con trol, modify, or determine the trust." Lewin, Trusts, 20. For a discussion of the differences between "trust" and "use," see 50 N. H. 491. In mercantile law. An organization of persons or corporations, formed mainly for

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