thereof; but the company shall sell any real es- INVESTMENTS. securities held and in separate 60. The moneys and securities given, acquired or Moneys and held in trust by the company, shall always be kept in trust to be distinct from those of the company, and in separate kept distinct accounts, and so marked for each particular trust as account. always to be distinguished from any other in the registers and other books of account to be kept by the company, so that at no time shall trust moneys form part of or be mixed with the general assets of the company; and the company shall, in the receipt of rent and in the overseeing and management of trusts and other property, keep distinct records and accounts of all operations connected therewith; provided that in the management of the money and property held by the company as trustee, or in any other official capacity, under the powers conferred by this Act, the company may, unless the authority making the appointment otherwise directs, invest the trust money in a general trust fund of the company; provided always that the total amount of money of any one trust invested in the said general trust fund shall not, at any time, exceed three thousand dollars. company's 61. (1) The company may invest its own funds, Investment of including money forming part of its capital or re-funds. serve, or accumulated profits thereon, in or upon the security of, mortgages. (a) first mortgages upon improved freehold First property in Canada, and may accept personal property or covenants by way of collateral security thereto; and Municipal (b) the stock funds or government securities Government of Canada or of any province of Canada, or securities. guaranteed thereby respectively, or bonds or debentures of any municipal corporation in any such Debentures, etc., of chartered bank, etc. May acquire and hold real estate. Proportion of serve may be province, or the bonds or debentures of any school district or school corporation in any such province or the public stock, funds or government securities of the United Kingdom or of any of the colonies or dependencies thereof; (c) the debentures, bonds, stock and other securities of any chartered bank or company incorporated by or under the authority of the Parliament of Canada, or of the Legislature of any province, as the directors subject to the limitations in this Act deem expedient. (2) The company may acquire and hold real property for its actual use and occupation and the management of its business, and may sell or dispose of the same, but not more than thirty-five per cent. of the company's unimpaired paid-up capital and reserve may be laid out or expended for this purpose. (3) A sum not more than twenty-five per cent. of capital and re- the company's unimpaired paid-up capital and reinvested in serve may be invested in or upon the security of the stocks of chartered banks and incorporated companies. stocks. Company's investment limited. Loans to shareholders. Loans to directors prohibited. Provisions of (4) The amount of the company's investment under the authority of this section in or upon the security of stock of a chartered bank or in or upon the security of the debentures, bonds, stock and other securities of a company incorporated as aforesaid shall not respectively exceed twenty per cent. of the paid-up capital of such bank or twenty per cent. of the debentures, bonds, stock or other securities issued by such company. (5) The company shall not loan to a shareholder a sum greater than ten per cent. of the paid-up capital of the company. (6) The company shall not loan any of its funds to any of its directors. (7) The provisions of this section shall on and after section apply the first day of January, 1927, apply to all trust com trust heretofore incorporated. panies heretofore incorporated by Act of the Legislature of Nova Scotia. appointed to by Court. 62. In case of the appointment of the company to When company any trust or office by any court in Nova Scotia, or any trust or office judge, officer or person having lawful authority in that behalf, such court, judge, officer or person may require the company to render an account of its administration of the particular trust or office to which it has been appointed, and may appoint a suitable person to investigate the management of such particular trust by the company, and as to the security afforded to those by or for whom its engagements are held, and such person shall report thereon to such court, judge, officer or person, and the expenses of such investigation shall be borne as ordered by such court, judge or officer thereof. BORROWING POWER. powers. 63. For the purpose of carrying out the objects Borrowing and powers of the company as authorized by section 59 of this Act (or such of them as the company may be authorized to exercise), and for no other purpose, the directors of the company may, if authorized by by-law, sanctioned by a vote of not less than twothirds of the amount of the paid-up capital stock of the company, represented at a general meeting duly called for that purpose, (a) borrow money upon the credit of the com .pany; (b) hypothecate, mortgage or pledge the real or personal property of the company, or both, to secure any money borrowed under the authority of this section. (2) The company shall not borrow money by the issue of bonds or debentures. (3) The aggregate of the sums of money borrowed and of money entrusted to the company for investment, the repayment of which is guaranteed by the company, shall not exceed five times the amount of the company's unimpaired paid-up capital and re serve. tion applicable heretofore incorporated. 8, s. 3 this sec- (4) In addition to its application to companies to to companies which this Act applies, sub-section (3) of this section shall, on and after the first day of January, 1925, apply to every trust company incorporated by Act of the Legislature of Nova Scotia before the passing of this Act. Annual statement. Form. point superin ANNUAL STATEMENT. 64. (1) The company shall, on or before the first day of March in each year, prepare and transmit by registered post to the Minister a statement setting forth, as of the thirty-first day of December preceding, the capital stock of the company, the portion thereof paid up, a list of the company's shareholders, the assets of the company which are its absolute property and liabilities in respect thereof, the liabilities of the company to the public in its trustee capacity and the investments and holdings of the company on trust account, and such other information as the Minister from time to time, whether in the case of companies generally or in the case of the company in particular, requires. (2) The statement shall be in such form and verified in such manner by such officers and employees of the company as the Minister prescribes. INSPECTION. Minister to ap- 65. (1) The Minister shall from time to time aptendent. point and cause a person (in this Act called the superintendent) to visit at least once in each year, the head office of each company required by this Act to make returns to the Minister, and to examine carefully the statements of the conditions and affairs of each company, and report thereon to the Minister as to all matters requiring his attention and decision. Company to submit state litate inspec tion. (2) For the purpose of such examination, the comments and faci- pany shall prepare and submit to the superintendent such statement or statements, with respect to the business, finances or other affairs of the company, in addition to that mentioned in the last preceding section, as the superintendent may require, and the officers, agents and servants of the company shall cause their books to be open for inspection, and shall otherwise facilitate such examination as far as it is in their power. amine under (3) The superintendent may examine under oath Supt. may exthe officers, agents or servants of the company for the oath. purpose of obtaining any information which he deems necessary for the purpose of such examination. annual report. (4) The superintendent shall also prepare for the Supt. to make Minister from the said statements, an annual report, showing the full particulars of each company's busi ness. pany's assets superintendent 66. (1) If as the result of the examination as Where comaforesaid of any company the superintendent believes insufficient that the assets of the company are insufficient to to report. justify its continuance in business, he shall make a special report to the Minister on the condition of such company. suspend or (2) If the Minister after a reasonable time has been Minister may given to the company to be heard by him, and upon cancel certsuch further enquiry and investigation as he sees fit to ificate. make, agrees with the opinion of the superintendent, he may suspend or cancel the certificate of the company, and the company shall thereupon cease to transact further business; provided, however, that the Minister may, during such suspension or cancellation, issue such conditional certificate as he may deem to be necessary for the protection of the public. conditional (3) If the Minister deems it advisable, the said con- Provisions of ditional certificate may provide that the company certificate. shall, during the continuance of such conditional certificate, arrange for the sale of its assets and for the transfer of its liabilities to some other company under the provisions of Sections 67 and 68 of this Act. (4) If upon the expiration of the conditional certiIf company's ficate no arrangement satisfactory to the Minister has position unsetisfactory, may been made for such sale and transfer, and if the com- be deemed inpany's condition is not then such as to warrant the restoration of the company's certificate, the company shall be deemed to be insolvent. solvent. |