Title 18, Business Structure and Function

A carrier of messages by telegraph or cable must, if it is practicable, transmit every such message immediately upon its receipt. But if this is not practicable, and several messages accumulate upon his hands, he must transmit them in the following order: 1. Messages from public …

A trust is either: (a) Voluntary; or (b) Involuntary. SOURCE: CC § 2215. 2026 NOTE: Subsection designations modified pursuant to authority granted by 1 GCA § 1606.

A “voluntary trust” is an obligation arising out of a personal confidence reposed in, and voluntarily accepted by, one for the benefit of another. SOURCE: CC § 2216.

An “involuntary trust” is one which is created by operation of law. SOURCE: CC § 2217.

The person whose confidence creates a trust is called the trustor; the person in whom the confidence is reposed is called the trustee; and the person for whose benefit the trust is created is called the beneficiary. SOURCE: CC § 2218. COL 2026-04-23

Every one who voluntarily assumes a relation of personal confidence with another is deemed a trustee, within the meaning of this Chapter, not only as to the person who reposes such confidence, but also as to all persons of whose affairs he thus acquires information which was give…

A trust in relation to real and personal property, or either of them, may be created for any purpose or purposes for which a contract may be made. SOURCE: CC § 2220.

Subject to the provisions of 21 GCA § 13101 [Trusts must be in Writing], a voluntary trust is created, as to the trustor and beneficiary, by any words or acts of the trustor, indicating with reasonable certainty: (a) An intention on the part of the trustor to create a trust; and,…

Subject to the provisions of 21 GCA § 13101, a voluntary trust is created, as to the trustee, by any words or acts of his indicating, with reasonable certainty: (a) His acceptance of the trust, or his acknowledgment, made upon sufficient consideration, of its existence; and, (b) …

One who wrongfully detains a thing is an involuntary trustee thereof, for the benefit of the owner. SOURCE: CC § 2223.

One who gains a thing by fraud, accident, mistake, undue influence, the violation of a trust, or other wrongful act is, unless he has some other and better right thereto, an involuntary trustee of the thing gained, for the benefit of the person who would otherwise have had it. SO…

In all matters connected with his trust, a trustee is bound to act in the highest good faith toward his beneficiary, and may not obtain any advantage therein over the latter by the slightest misrepresentation, concealment, threat, or adverse pressure of any kind. SOURCE: CC § 222…

A trustee may not use or deal with the trust property for his own profit, or for any other purpose unconnected with the trust, in any manner. SOURCE: CC § 2229.

Neither a trustee nor any of his agents may take part in any transaction concerning the trust in which he or any one for whom he acts as agent has an interest, present or contingent, adverse to that of his beneficiary, except as follows: (a) When the beneficiary, having capacity …

A trustee may not use the influence which his position gives him to obtain any advantage from his beneficiary. SOURCE: CC § 2231. COL 2026-04-23

No trustee, so long as he remains in the trust, may undertake another trust adverse in it’s nature to the interest of his beneficiary in the subject of the trust, without the consent of the latter. SOURCE: CC § 2232.

If a trustee acquires any interest, or becomes charged with any duty, adverse to the interest of his beneficiary in the subject of the trust, he must immediately inform the latter thereof, and may be at once removed. SOURCE: CC § 2233.

Every violation of the provisions of the preceding sections of this Article is a fraud against the beneficiary of a trust. SOURCE: CC § 2234.

All transactions between a trustee and his beneficiary during the existence of the trust, or while the influence acquired by the trustee remains, by which he obtains any advantage from his beneficiary, are presumed to be entered into by the latter without sufficient consideration…

A trustee who willfully and unnecessarily mingles the trust property with his own, so as to constitute himself in appearance its absolute owner, is liable for its safety in all events, and for the value of its use. SOURCE: CC § 2236.

A trustee who uses or disposes of the trust property, contrary to § 65202 of this Chapter, may, at the option of the beneficiary, be required to account for all profits so made, or to pay the value of its use, and, if he has disposed thereof, to replace it, with its fruits, or to…

A trustee who uses or disposes of the trust property in any manner not authorized by the trust, but in good faith, and with intent to serve the interests of the beneficiary, is liable only to make good whatever is lost to the beneficiary by his error. SOURCE: CC § 2238.

A trustee is responsible for wrongful acts of a co-trustee to which he consented, or which, by his negligence, he enabled the latter to commit, but for no others. SOURCE: CC § 2239. NOTE: No 1970 Civil Code §§ 2240-2242 existed. COL 2026-04-23 ARTICLE 3 LIABILITIES OF THIRD PERSO…

Everyone to whom property is transferred in violation of a trust, holds the same as an involuntary trustee under such trust, unless he purchased it in good faith, and for a valuable consideration. SOURCE:CC § 2243.

One who actually and in good faith transfers any money or other property to a trustee, as such, is not bound to see to the application thereof, and his rights can in no way be prejudiced by a misapplication thereof by the trustee. Other persons must, at their peril, see to the pr…

The provisions of this Chapter apply only to express trusts, created for the benefit of another that the trustor, and in which the title to the trust property is vested in the trustees, not including, however, those of executors, administrators, and guardians, as such. SOURCE: CC…

The mutual consent of a trustor and trustee creates a trust of which the beneficiary may take advantage at any time prior to its rescission. SOURCE: CC § 2251.

When a trustee is appointed by a court or public officer, as such, such court or officer is the trustor, within the meaning of the last section. SOURCE: CC § 2252. COL7222015

The nature, extent, and object of a trust are expressed in the declaration of trust. SOURCE: CC § 2253.

All declarations of a trustor to his trustees, in relation to the trust, before its acceptance by the trustees, or any of them, are to be deemed part of the declaration of the trust, except that when a declaration of trust is made in writing, all previous declarations by the same…

A trustee must fulfill the purpose of the trust, as declared at its creation, and must follow all the directions of the trustor given at that time, except as modified by the consent of all parties interested, in the same manner, and to the same extent, as an employee. SOURCE: CC …

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 diligence to secure the appointment of a trustworthy successor before accepting his own final discharge. COL7222015 SOURCE: CC § 2260.

A trustee must invest money received by him under the trust, as fast as he collects a sufficient amount, in such manner as to afford reasonable security and interest for the same. SOURCE: CC § 2261.

If a trustee omits to invest the trust moneys according to the last section, he must pay simple interest thereon, if such omission is negligent merely, and compound interest if it is willful. SOURCE: CC § 2262.

A trustee cannot enforce any claim against the trust property which he purchases after or in contemplation of his appointment as trustee; but he may be allowed, by any competent court, to charge to the trust property what he has in good faith paid for the claim, upon discharging …

A trustee is a general agent for the trust property. His authority is such as is conferred upon him by the declaration of trust and by this Chapter, and none other. His acts, within the scope of his authority, bind the trust property to the same extent as the acts of an agent bin…

Where there are several co-trustees, all must unite in any act to bind the trust property, unless the declaration of trust otherwise provides. SOURCE: CC § 2268.

A discretionary power conferred upon a trustee is presumed not to be left to his arbitrary discretion, but may be controlled by the proper court if not reasonably exercised, unless an absolute discretion is clearly conferred by the declaration of trust. SOURCE: CC § 2269. NOTE: N…

A trustee is entitled to the repayment, out of the trust property, of all expenses actually and properly incurred by him in the performance of his trust. He is entitled to the repayment of even unlawful expenditures, if they were productive of actual benefit to the estate. SOURCE…

Except as provided in 15 GCA '3313, when a declaration of trust is silent upon the subject of compensation the trustee is entitled to the same compensation as an executor. If it specifies the amount of his compensation, he is entitled to the amount thus specified and no more. If …

An involuntary trustee, who becomes such through his own fault, has none of the rights mentioned in this Article. SOURCE: CC § 2275. NOTE: No 1970 Civil Code '§ 2276-2278 existed. ---------- ARTICLE 5 TERMINATION OF THE TRUST

A trust is extinguished by the entire fulfillment of its object, or by such object becoming impossible or unlawful. SOURCE: CC § 2279.

A trust cannot be revoked by the trustor after its acceptance, actual or presumed, by the trustee and beneficiaries, except by the consent of all the beneficiaries, unless the declaration of trust reserves a power of revocation to the trustor, and in that case the power must be s…

The office of a trustee is vacated: 1. By his death; or, 2. By his discharge. SOURCE: CC § 2281.

A trustee can be discharged from his trust only as follows: 1. By the extinction of the trust; 2. By the completion of his duties under the trust; 3. By such means as may be prescribed by the declaration of trust; 4. By the consent of the beneficiary, if he has capacity to contra…