Trustee Investments Act 1961

SCHEDULES

Section 1.

FIRST SCHEDULE Manner of Investment

PART I Narrower-Range Investments not Requiring Advice

1 In Defence Bonds, National Savings Certificates and Ulster Savings Certificates.

2 In deposits in the Post Office Savings Bank, ordinary deposits in a trustee savings bank and deposits in a bank or department thereof certified under subsection (3) of section nine of the Finance Act, 1956.

PART II Narrower-Range Investments Requiring Advice

1 In securities issued by Her Majesty's Government in the United Kingdom, the Government of Northern Ireland or the Government of the Isle of Man, not being securities falling within Part I of this Schedule and being fixed-interest securities registered in the United Kingdom or the Isle of Man, Treasury Bills or Tax Reserve Certificates.

2 In any securities the payment of interest on which is guaranteed by Her Majesty's Government in the United Kingdom or the Government of Northern Ireland.

3 In fixed-interest securities issued in the United Kingdom by any public authority or nationalised industry or undertaking in the United Kingdom.

4 In fixed-interest securities issued in the United Kingdom by the government of any overseas territory within the Commonwealth or by any public or local authority within such a territory, being securities registered in the United Kingdom.

References in this paragraph to an overseas territory or to the government of such a territory shall be construed as if they occurred in the Overseas Service Act, 1958.

5 In fixed-interest securities issued in the United Kingdom by the International Bank for Reconstruction and Development, being securities registered in the United Kingdom.

6 In debentures issued in the United Kingdom by a company incorporated in the United Kingdom, being debentures registered in the United Kingdom.

7 In stock of the Bank of Ireland.

8 In debentures issued by the Agricultural Mortgage Corporation Limited or the Scottish Agricultural Securities Corporation Limited.

9 In loans to any authority to which this paragraph applies charged on all or any of the revenues of the authority or on a fund into which all or any of those revenues are payable, in any fixed-interest securities issued in the United Kingdom by any such authority for the purpose of borrowing money so charged, and in deposits with any such authority by way of temporary loan made on the giving of a receipt for the loan by the treasurer or other similar officer of the authority and on the giving of an undertaking by the authority that, of requested to charge the loan as aforesaid, it will either comply with the request or repay the loan.

This paragraph applies to the following authorities, that is to say—

(a) any local authority in the United Kingdom ;

(b) any authority all the members of which are appointed or elected by one or more local authorities in the United Kingdom;

(c) any authority the majority of the members of which are appointed or elected by one or more local authorities in the United Kingdom, being an authority which by virtue of any enactment has power to issue a precept to a local authority in England and Wales, or a requisition to a local authority in Scotland, or to the expenses of which, by virtue of any enactment, a local authority in the United Kingdom is or can be required to contribute;

(d) the Receiver for the Metropolitan Police District or a combined police authority (within the meaning of the Police Act, 1946);

(e) the Belfast City and District Water Commissioners.

10 In debentures or in the guaranteed or preference stock of any incorporated company, being statutory water undertakers within the meaning of the Water Act, 1945, or any corresponding enactment in force in Northern Ireland, and having during each of the ten years immediately preceding the calendar year in which the investment was made paid a dividend of not less than five per cent. on its ordinary shares.

11 In deposits by way of special investment in a trustee savings bank or in a department (not being a department certified under subsection (3) of section nine of the Finance Act, 1956) of a bank any other department of which is so certified.

12 In deposits in a building society designated under section one of the House Purchase and Housing Act, 1959.

13 In mortgages of freehold property in England and Wales or Northern Ireland and of leasehold property in those countries of which the unexpired term at the time of investment is not less than sixty years, and in loans on heritable security in Scotland.

14 In perpetual rent-charges charged on land in England and Wales or Northern Ireland and fee-farm rents (not being rent-charges) issuing out of such land, and in feu-duties or ground annuals in Scotland.

PART III Wider-Range Investments

1 In any securities issued in the United Kingdom by a company incorporated in the United Kingdom, being securities registered in the United Kingdom and not being securities falling within Part II of this Schedule.

2 In shares in any building society designated under section one of the House Purchase and Housing Act, 1959.

3 In any units, or other shares of the investments subject to the trusts, of a unit trust scheme in the case of which there is in force at the time of investment an order of the Board of Trade under section seventeen of the Prevention of Fraud (Investments) Act, 1958, or of the Ministry of Commerce for Northern Ireland under section sixteen of the Prevention of Fraud (Investments) Act (Northern Ireland), 1940.

PART IV Supplemental

1 The securities mentioned in Parts I to III of this Schedule do not include any securities where the holder can be required to accept repayment of the principal, or the payment of any interest, otherwise than in sterling.

2 The securities mentioned in paragraphs 1 to 8 of Part II, other than Treasury Bills or Tax Reserve Certificates, securities issued before the passing of this Act by the Government of the Isle of Man, securities falling within paragraph 4 of the said Part II issued before the passing of this Act or securities falling within paragraph 9 of that Part, and the securities mentioned in paragraph 1 of Part III of this Schedule, do not include—

(a) securities the price of which is not quoted on a recognised stock exchange within the meaning of the Prevention of Fraud (Investments) Act, 1958, or the Belfast stock exchange;

(b) shares or debenture stock not fully paid up (except shares or debenture stock which by the terms of issue are required to be fully paid up within nine months of the date of issue).

3 The securities mentioned in paragraph 6 of Part II and paragraph 1 of Part III of this Schedule do not include—

(a) shares or debentures of an incorporated company of which the total issued and paid up share capital is less than one million pounds;

(b) shares or debentures of an incorporated company which has not in each of the five years immediately preceding the calendar year in which the investment is made paid a dividend on all the shares issued by the company, excluding any shares issued after the dividend was declared and any shares which by their terms of issue did not rank for the dividend for that year.

For the purposes of sub-paragraph (b) of this paragraph a company formed—

(i) to take over the business of another company or other companies, or

(ii) to acquire the securities of, or control of, another company or other companies,

or for either of those purposes and for other purposes shall be deemed to have paid a dividend as mentioned in that sob-paragraph in any year in which such a dividend has been paid by the other company or all the other companies, as the case may be.

4 In this Schedule, unless the context otherwise requires, the following expressions have the meanings hereby respectively assigned to them, that is to say—

• " debenture " includes debenture stock and bonds, whether constituting a charge on assets or not, and loan stock or notes ;

• " enactment " includes an enactment of the Parliament of Northern Ireland;

• " fixed-interest securities " means securities which under their terms of issue bear a fixed rate of interest;

• " local authority " in relation to the United Kingdom, means any of the following authorities—

  (a)

  in England and Wales, the council of a county, a county, metropolitan or other borough (including a borough which has been included in a rural district), an urban or rural district or a parish, the Common Council of the City of London and the Council of the Isles of Scilly ;

  (b)

  in Scotland, a local authority within the meaning of the Local Government (Scotland) Act, 1947 ;

  (c)

  in Northern Ireland, the council of a county, a county or other borough, or an urban or rural district;

• " ordinary deposits " and " special investment " have the same meanings respectively as in the Trustee Savings Banks Act, 1954;

• " securities " includes shares, debentures, Treasury Bills and Tax Reserve Certificates;

• " share " includes stock ;

• " Treasury Bills " includes Exchequer bills and other bills issued by Her Majesty's Government in the United Kingdom and Northern Ireland Treasury Bills.

5 It is hereby declared that in this Schedule " mortgage ", in relation to freehold or leasehold property in Northern Ireland, includes a registered charge which, by virtue of subsection (4) of section forty of the Local Registration of Title (Ireland) Act, 1891, or any other enactment, operates as a mortgage by deed.

6 References in this Schedule to an incorporated company are references to a company incorporated by or under any enactment and include references to a body of persons established for the purpose of trading for profit and incorporated by Royal Charter.

7 The references in paragraph 12 of Part II and paragraphs of Part III of this Schedule to a building society designated under section one of the House Purchase and Housing Act, 1959, include references to a permanent society incorporated under the Building Societies Acts (Northern Ireland) 1874 to 1940 for the time being designated by the Registrar for Northern Ireland under subsection (2) of that section (which enables such a society to be so designated for the purpose of trustees' powers of investment specified in paragraph (a) of subsection (1) of that section).

Section 3.

SECOND SCHEDULE Modification of s. 2 in relation to property falling within s. 3 (3)

1 In this Schedule "special-range property" means property falling within subsection (3) of section three of this Act.

2 (1) Where a trust fund includes special-range property, subsection (1) of section two of this Act shall have effect as if references to the trust fund were references to so much thereof as does not consist of special-range property, and the special-range property shall be carried to a separate part of the fund.

(2) Any property which—

(a) being property belonging to the narrower-range or wider-range part of a trust; fund, is converted into special-range property, or

(b) being special-range property, accrues to a trust fund after the division of the fund or part thereof in pursuance of subsection (1) of section two of this Act or of that subsection as modified by sub-paragraph (1) of this paragraph,

shall be carried to such a separate part of the fund as aforesaid ; and subsections (2) and (3) of the said section two shall have effect subject to this sub-paragraph.

3 Where property carried to such a separate part as aforesaid is converted into property other than special-range property.—

(a) it shall be transferred to the narrower-range part of the fund or the wider-range part of the fund or apportioned between them, and

(b) any transfer of property from one of those parts to the other shall be made which is necessary to secure that the value of each of 'those parts of the fund is increased by the same amount.

Section 3.

THIRD SCHEDULE Provisions Supplementary to s. 3 (4)

1 Where in a case falling within subsection (4) of section three of this Act, property belonging to the narrower-range part of a trust fund—

(a) is invested otherwise than in a narrower-range investment, or

(b) being so invested, is retained and not transferred or as soon as may be reinvested as mentioned in subsection (2) of section two of this Act,

then, so long as the property continues so invested and comprised in the narrower-range part of the fund, section one of this Act shall not authorise the making or retention of any wider-range investment.

2 Section four of the Trustee Act, 1925, or section thirty-three of the Trusts (Scotland) Act, 1921 (which relieve a trustee from liability for retaining an investment which has ceased to be authorised), shall not apply where an investment ceases to' be authorised in consequence of the foregoing paragraph.

Section 16.

FOURTH SCHEDULE Minor and Consequential Amendments

1 (1) References in the Trustee Act, 1925, except in subsection (2) of section sixty-nine of that Act, to section one of that Act or to provisions which include that section shall be construed respectively as references to section one of this Act and as including references to section one of this Act.

(2) References in the Trusts (Scotland) Act 1921, to section ten or eleven of that Act, or to provisions which include either of those sections, shall be construed respectively as references to section one of this Act and as including references to that section.

2 (1) In the Schedule to the Building Societies Act, 1939 (which specifies the classes of additional security which may be taken into account in determining the amount of advances to members), in paragraph 4 for the words from " stocks " to the end there shall be substituted the words " narrower-range investments (within the meaning of the Trustee Investments Act, 1961), " and in paragraph 6 for the words from " stocks " to the end there shall be substituted the word " investments ".

(2) Nothing in this paragraph shall be taken to prejudice the power of the Chief Registrar under section fifteen of the Building Societies Act, 1960, to extend the classes of additional security specified in the said Schedule.

3 The following enactments and instruments, that is to say—

(a) subsection (3) of section seventy-four of the Third Schedule to the Water Act, 1945, and any order made under that Act applying the provisions of that subsection ;

(b) any local and personal Act which, or any order or other instrument in the nature of any such Act which, modifies paragraph (l) of subsection (1) of section one of the Trustee Act, 1925,

shall have effect as if for any reference to the said paragraph (l) there were substituted a reference to paragraph 10 of Part II of the First Schedule to this Act.

4 (1) In section one of the Trustee Savings Banks Act, 1954, in paragraph (a) of subsection (3), the reference to the acceptance of deposits of money for the benefit of the depositor shall include a reference to the acceptance of deposits of money by a trustee, and subsection (1) of section eight of the Post Office Savings Bank Act, 1954, and subsection (1) of section twenty of the Trustee Savings Banks Act, 1954 (which relate to the settlement of disputes), shall apply to any depositor being a body of trustees and to a person who is or claims to be the successor in the trusts of any depositor being a trustee as those subsections apply to an individual depositor and to a person who is or claims to be the personal representative of a depositor.

(2) Nothing in the foregoing sub-paragraph shall be taken to prejudice section twenty-two of the Trustee Savings Banks Act, 1954 (under which deposits may be accepted from a person acting as a trustee on behalf of the depositor, the account being in the joint names of the trustee and the depositor).

(3) Subsection (1) of section fourteen of the Post Office Savings Bank Act, 1954, and subsection (1) of section twenty-four of the Trustee Savings Banks Act, 1954 (which authorise the investment of certain charitable and provident funds in savings banks), shall cease to have effect so far as they relate to trustees.

5 For the purposes of the provisions of the Post Office Savings Bank Act, 1954, and the Trustee Savings Banks Act, 1954, limiting the amount which may be received by way of deposit or ordinary deposit or for special investment, or the provisions of the last-mentioned Act restricting the making of deposits in more than one trustee savings bank, a person who is a trustee shall be treated separately in his personal capacity and in his capacity as trustee, and in the latter capacity separately in respect of each separate trust fund.

6 For the reference in subsection (2) of section one of the House Purchase and Housing Act, 1959, to paragraph (a) of subsection (1) of that section there shall be substituted a reference to paragraph 12 of Part II and paragraph 2 of Part III of the First Schedule to this Act.

Section 16.

FIFTH SCHEDULE Repeals

Session and Chapter	Short Title	Extent of Repeal
63 & 64 Vict. c. 62.	The Colonial Stock Act, 1900	Section two.
2 Edw. 7. c. 41	The Metropolis Water Act, 1902.	In section seventeen, subsection (4).
11 & 12 Geo. 5. c. 58.	The Trusts (Scotland) Act, 1921.	Sections ten and eleven.
		In section twelve, subsections (3) and (4).
		In section twenty-seven, the words from " including such regulations" to the end of the section.
15 & 16 Geo. 5. c. 19.	The Trustee Act, 1925	Section one.
		In section two, the proviso to subsection (1).
		In section five, paragraph (a) of subsection (1) and subsections (4) to (6).
18 & 19 Geo. 5. c. 43.	The Agricultural Credits Act, 1928.	Section three.
19 & 20 Geo. 5. c. 13.	The Agricultural Credits (Scotland) Act, 1929.	Section three.
20 & 21 Geo. 5. c. 5.	The Colonial Development Act, 1929.	In section three, subsection (3).
24 & 25 Geo. 5. c. 47.	The Colonial Stock Act, 1934	The whole Act.
8 & 9 Geo. 6. c. 12.	The Northern Ireland (Miscellaneous Provisions) Act, 1945.	Sections four to six.
11 & 12 Geo. 6. c. 7.	The Ceylon Independence Act, 1947.	In the Second Schedule, paragraph 4.
12, 13 & 14 Geo. 6. c. 1.	The Colonial Stock Act, 1948	In section two, subsection (3).
2 & 3 Eliz. 2. c. 62.	The Post Office Savings Bank Act, 1954.	In section four, subsection (4).
5 & 6 Eliz. 2. c. 6.	The Ghana Independence Act, 1957.	In the Second Schedule, paragraph 4.
5 & 6 Eliz. 2. c. 60.	The Federation of Malaya Independence Act, 1957.	In the First Schedule, paragraph 8.
6 & 7 Eliz. 2. c. 47.	The Agricultural Marketing Act, 1958.	In section sixteen, in paragraph (a), the words from "or for the time" to " Act".
6 & 7 Eliz. 2. c. 55.	The Local Government Act, 1958.	Section fifty-four.
6 & 7 Eliz. 2. c. 64.	The Local Government and Miscellaneous Financial Provisions (Scotland) Act, 1958.	Section sixteen.
7 & 8 Eliz. 2. c. 33.	The House Purchase and Housing Act, 1959.	In section one, paragraph (a) of subsection (1), and subsection (5).
8 & 9 Eliz. 2. c. 52.	The Cyprus Act, 1960.	In the Schedule, in paragraph 9, sub-paragraphs (1), (3) and (4).
8 & 9 Eliz. 2. c. 55.	The Nigeria Independence Act, 1960.	In the Second Schedule, paragraph 4.
9 & 10 Eliz. 2. c. 16.	The Sierra Leone Independence Act, 1961.	In the Third Schedule, paragraph 5.

Table of Statutes referred to in this Act

Short Title	Session and Chapter
Local Registration of Title (Ireland) Act, 1891	54 & 55 Vict. c. 66.
Trusts (Scotland) Act, 1921	11 & 12 Geo. 5. c. 58.
Trustee Act, 1925	15 & 16 Geo. 5. c. 19.
Local Government Superannuation Act, 1937	1 Edw. 8 & 1 Geo. 6. c. 68.
Local Government Superannuation (Scotland) Act, 1937	1 Edw. 8 & 1 Geo. 6. c. 69.
Building Societies Act, 1939	2 & 3 Geo. 6. c. 55.
Water Act, 1945	8 & 9 Geo. 6. c. 42.
Police Act, 1946	9 & 10 Geo. 6. c. 46.
Local Government (Scotland) Act, 1947	10 & 11 Geo. 6. c. 43.
Post Office Savings Bank Act, 1954	2 & 3 Eliz. 2. c. 62.
Trustee Savings Bank Act, 1954	2 & 3 Eliz. 2. c. 63.
Finance Act, 1956	4 & 5 Eliz. 2. c. 54.
Overseas Service Act, 1958	6 & 7 Eliz. 2. c. 14.
Prevention of Fraud (Investments) Act, 1958	6 & 7 Eliz. 2. c. 45.
Local Government Act, 1958	6 & 7 Eliz. 2. c. 55.
House Purchase and Housing Act, 1959	7 & 8 Eliz. 2. c. 33.
Building Societies Act, 1960	8 & 9 Eliz. 2. c. 64.