1262 Degree of care and diligence . Ante, p .1269. Duty as to appoint- ment of successor . Post, p .1264. Investment of money by. Trustea'sliabillty for Interest . Ante, p . 1260. Ante, p . 1269. Trustee's powers . As agent. All must act. 72d C ONGR ESS . SESS . II. CH. 123 . FEBRUARY 27, 1933 . Cross REFERENCE Authority of trustee, generally, see section 1021 . SEC . 1016 . DEGREE OF CARE AND DILIGENCE IN E%Et,ulIONT OF TRUST . - A trustee, whether he receives any compensation or not e must use at least ordinary care . and diligence in the execution of his trust . Cros s Rss asurc s Obligations of trustees, see, generally, sections 996 et seq. SEC. 1017. DU TY OF TRUSTEE AS TO APPOINTMENT OF succESSOR.If a trustee procures or assents to his discharge from his office, before his trust is fully executed, he must use at least ordinary care and dil igenc e to secur e the appo intme nt of a tr ustwo rthy succe ssor befor e accepting his own final discharge. Cnoss REFERENCE Succession or appointment of new trustees, see section 1032 et seq . SEC . 1018 . INVESTMENT OF MO NEY BY TRUS TEE .-A trustee must invest mon ey received by him under the trust, as fast as he collects a suf fi cie nt am ou nt, in such manner as to afford reasonable security and interest for the same . Caoss REFESENOE Lia bilit y for inte rest or failure to invest funds, see section 1019 . SEC . 1019 . INTEREST, SIM PLE OR CO MPOU ND, ON O MISS ION TO INVEST TRUST MONEYS .-If a tru st ee om its to invest the tr ust moneys ac co rd- ing to section 101 8, he m ust pay simple int er est thereon, if su ch omi ss ion is negligent merely, and compound interest if it is willful . Cro ss REFERENCE Trustee's liability for interest, compare with section 1005 . ofasim e agb a t 'trot SEC . 1020. PUR CHASE BY TRU STEE OF CLAIMS AGAINST TRUST FUND.-- fund . A trustee can not enforce any claim against the trust property which he pu rchase s aft er or in c ontem plati on of his appoi ntmen t as trust ee
but he may be allowed, by any competent court, to charge to the tru st property wha t he has in goo d fai th pa id for the claim ; upon discharging the same . C aoss REFERENCE Purchasing debits against the trust estate prohibited, see section 998 . POWERS OF TRUSTEES SEC. 1021. TR US TEE POWER AS AGENT .-A trustee is a general agent for the tru st property . His authority is suc h as is conferred up on him by the declaration of trust and by this chapter, and no ne other . His acts, within the sc ope of his authority, bind the trust property to the s ame extent as the ac ts of an agent bin d his principal . Cr oss RE FERE NCES Poet, P . 1267 .
Agent's acts binding principal, see sections 1003 et seq . Ante, p .1258.
For what purposes trusts may be created, see section 991 . Powers to two or more trustees, see section 1022 . SEC. 1022 . ALL MusT ACT.-Where th ere are sev er al cotrustees, all m ust u nite in any act to b ind the tr ust p roper ty, u nless the decla ra- t ion of tru st ot herwi se provides .
