LD 921
pg. 29
Page 28 of 58 PUBLIC Law Chapter 618 Page 30 of 58
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LR 466
Item 1

 
A.__Expenses that were properly incurred in the
administration of the trust; and

 
B.__To the extent necessary to prevent unjust enrichment of
the trust, expenses that were not properly incurred in the
administration of the trust.

 
2.__Advance by trustee.__An advance by the trustee of money
for the protection of the trust gives rise to a lien against
trust property to secure reimbursement with reasonable interest.

 
CHAPTER 8

 
DUTIES AND POWERS OF TRUSTEE

 
§801.__Duty to administer trust

 
Upon acceptance of a trusteeship, the trustee shall administer
the trust in good faith, in accordance with its terms and
purposes and the interests of the beneficiaries and in accordance
with this Code.

 
§802.__Duty of loyalty

 
1.__Interests of beneficiaries.__A trustee shall administer
the trust solely in the interests of the beneficiaries.

 
2.__Voidable transaction; exceptions.__Subject to the rights
of persons dealing with or assisting the trustee as provided in
section 1012, a sale, encumbrance or other transaction involving
the investment or management of trust property entered into by
the trustee for the trustee's own personal account or that is
otherwise affected by a conflict between the trustee's fiduciary
and personal interests is voidable by a beneficiary affected by
the transaction unless:

 
A.__The transaction was authorized by the terms of the
trust;

 
B.__The transaction was approved by the court;

 
C.__The beneficiary did not commence a judicial proceeding
within the time allowed by section 1005;

 
D.__The beneficiary consented to the trustee's conduct,
ratified the transaction, or released the trustee in
compliance with section 1009; or

 
E.__The transaction involves a contract entered into or
claim acquired by the trustee before the person became or
contemplated becoming trustee.


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