New South Wales Consolidated Acts

TRUSTEE ACT 1925 - SECT 19

19 Loss on mortgages

(1) Where a trustee improperly advances trust money on a mortgage security which would at the time of investment be a proper investment in all respects for a smaller sum than is actually advanced, then the trustee is only liable to make good the sum advanced in excess of the smaller sum with interest.

(2) This section extends to transfers of existing mortgages as well as to new mortgages.

(3) This section applies to investments made either before or after the commencement of this Act.