In re Yates v [1994] JLR 221 (16 June 1994)

In re Yates v [1994] JLR 221 (16 June 1994)

The court may permit the mortgage of trust property to a trustee if it is in the best interest of the trust, justified by the circumstances, and no other source of funds is available, even if a conflict of interest may arise.

Citation
[1994] JLR 221
Parties
Applicant: Yates
Jurisdiction
Jersey
Judgment Date
16 June 1994
Procedural Posture
Trusts / Application for Court Sanction of Mortgage of Trust Property
Outcome
application granted
Legal Topics
Powers and Duties of Trustees, Mortgage of Trust Property, Conflict of Interest
Trusts Powers and Duties of Trustees Mortgage of Trust Property Conflict of Interest

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Parties

Yates

Applicant

Procedural Posture

Trusts / Application for Court Sanction of Mortgage of Trust Property

Legal Issues

  1. 1 Whether the court may sanction the mortgage of trust property to a trustee in circumstances where speed is essential and no other source of funds is available

Ratio Decidendi

The court may permit the mortgage of trust property to a trustee if it is in the best interest of the trust, justified by the circumstances, and no other source of funds is available, even if a conflict of interest may arise.

Court Disposition

application granted

Orders

  • Trust property may be mortgaged to the trustee as sanctioned by the court.