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A Quick glance of Trust/NGO

Sections related to Trust from texts of India Code according to Indian Trust Act - Section 20

Section 20 (Indian Trust Act) Where the trust-property consists of money and cannot be applied immediately or at an early date to the purposes of the trust, the trustee is bound (subject to any direction contained in the instrument of trust) to invest the money on the following securities, and on no others:--

(a) in promissory notes, debentures, stock or other securities 1[of any State Government or] of the Central Government, or of the United Kingdom of Great Britain and Ireland:

2[Provided that securities, both the principal whereof and the interest whereon shall have been fully and unconditionally guaranteed by any such Government, shall be deemed, for the purposes of this clause, to be securities of such Government;]

(b) in bonds, debentures and annuities 3[charged or secured by the 4 [Parliament of the United ]Kingdom 5[before the fifteenth day of August, 1947] on the revenues of India or of the 6[GovernorGeneral in Council]7 or of any Province]8:

8[Provided that, after the fifteenth day of February, 1916, no money shall be invested in any such annuity being a terminable annuity unless a sinking fund has been established in connection with such annuity; but nothing in this proviso shall apply to investments made before the date aforesaid;]

9[(bb) in India three and a half per cent. stock, India three per cent. stock, India two and a half per cent. stock or any other capital stock 10[which before the 15th day of August, 1947, was] issued issued by the Secretary of State for India in Council under the authority of an Act of Parliament 11[of the United Kingdom] and charged on the revenues of India] 12[or which 13[was] issued by the Secretary of State on behalf of the Governor-General in Council under the provisions of Part XIII of the Government of India Act, 1935;]

(c) in stock or debentures of, or shares in, Railway or other Companies the interest whereon shall have been guaranteed by the Secretary of State for India in Council 10 or by the Central Government 14[or in debentures of the Bombay 15[Provincial] Co-operative Bank, Limited, the interest whereon shall have been guaranteed, by the Secretary of State for India in Council] 13[or the State Government of Bombay;]

16[(d) in debentures or other securities for money issued, under the authority of 17[any Central Act or 16[Provincial] Act or State Act, by or on behalf of any municipal body, port trust or city improvement trust in any presidency-town or in Rangoon Town, or by or on behalf of the trustees of the port of Karachi:]

18Provided that after the 31st day of March, 1948, no money shall be invested in any securities issued by or on behalf of a municipal body, port trust or city improvement trust in Rangoon Town, or by or on behalf of the trustees of the port of Karachi; (e) on a first mortgage of immoveable property situate in 19[any part of the territories to which this Act extends:] Provided that the property is not a leasehold for a term of years and that the value of the property exceeds by one-third, or, if consisting of buildings, exceeds by one-half, the mortgage-money; 20***

18[(ee) in units issued by the Unit Trust of India under any unit scheme made under section 21 of the Unit Trust of India Act, 1963 (52 of 1963); or]br (j) on any other security expressly authorised by the instrument of trust, 21 or by the Central Government by notification in the Official Gazette, or by any rule which the High Court may from time to time prescribe in this behalf:

Provided that, where there is a person competent to contract and entitled in possession to receive the income of the trust-property for his life, or for any greater estate, no investment on any security mentioned or referred to in clauses (d), (e) and (f) shall be made without his consent in writing.

Section 20A. Power to purchase redeemable stock at a premium.-- (1) A trustee may invest in any of the the securities mentioned or referred to in section 20, notwithstanding that the same may be redeemable and that the price exceeds the redemption value:

Provided that a trustee may not purchase at a price exceeding its redemption value any security mentioned or referred to in clauses (c) and (d) of section 20 which is liable to be redeemed within fifteen years of the date of purchase at par or at some other fixed rate, or purchase any such security as is mentioned or referred to in the said clauses which is liable to be redeemed at par or at some other fixed rate at a price exceeding fifteen per centum above par or such other fixed rate.

(2) A trustee may retain until redemption any redeemable stock, fund or security which may have been purchased in accordance with this section.]