SEC. 2262. 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 wilful.

N. Y. C. C., Sec. 1200.

SEC. 2263. 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 the same.

N. Y. C. C., Sec. 1201.

ARTICLE III

POWERS OF TRUSTEES.

SECTION 2267. Trustee's powers as agent.

2268. All must act.

2269. Discretionary powers.

powers as

SEC. 2267. A trustee is a general.agent for the trust Trustee's property. His authority is such as is conferred upon him agent. 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 bind his principal.

SEC. 2268.

N. Y. C. C., Sec. 1202.

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

N. Y. C. C., Sec. 1203.

SEC. 2269. A discretionary power conferred upon a Discretion. trustee is presumed not to be left to his arbitrary discre- ary powers. tion, but may be controlled by the proper Court if not reaso ably exercised, unless an absolute discretion is clearly conferred by the declaration of trust.

N. Y. C. C., Sec. 1204.

Indemnification of trustee.

Compensation of trus

tee.

Involuntary trustee.

ARTICLE IV.

RIGHTS OF TRUSTEES.

SECTION 2273. Indemnification of trustee.

2274. Compensation of trustee.

2275. Involuntary trustee.

SEC. 2273. 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.

N. Y. C. C., Sec. 1205.

SEC. 2274. 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 it directs that he shall be allowed a compensation, but does not specify the rate be or amount, he is entitled to such compensation as may reasonable under the circumstances.

N. Y. C. C., Sec. 1206.

SEC. 2275. An involuntary trustee, who becomes such through his own fault, has none of the rights mentioned in this article.

N. Y. C. C., Sec. 1207.

ARTICLE V.

Trust, how extinguished

Not revoca

ble.

TERMINATION OF THE TRUST.

SECTION 2279. Trust, how extinguished.

2280. Not revocable.

2281. Trustee's office, how vacated.

2282. Trustee, how discharged.

2283. Removal by District Court.

SEC. 2279. A trust is extinguished by the entire fulfilment of its object, or by such object becoming impossible

or unlawful.

N. Y. C. C., Sec. 1208.

SEC. 2280. 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 strictly pursued.

SEC. 2281. The office of a trustee is vacated

1. By his death; or,

2. By his discharge.

N. Y. C. C., Sec. 1210.

Trustee's office, how vacated.

SEC. 2282. A trustee can be discharged from his trust Trustee, how 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 contract.

5. By the judgment of a competent tribunal, in a direct proceeding for that purpose, that he is of unsound mind,

or,

6. By the District Court.

N. Y. C. C., Sec. 1211.

discharged.

SEC. 2283. The District Court may remove any trus Removal by tee who has violated or is unfit to execute the trust.

N. Y. C. C., Sec. 1212.

District
Court.

ARTICLE VI.

SUCCESSION OR APPOINTMENT OF NEW TRUSTEES.

SECTION 2287. Vacant trusteeship filled by Court. 2288. Survivorship between co-trustees.

2289. District Court as trustee.

SEC. 2287. The District Court may appoint a trustee whenever there is a vacancy, and the declaration of trust does not provide a practicable method of appointment.

N. Y. C. C., Sec. 1213.

SEC. 2288. On the death, renunciation or discharge of Survivorship one of several co-trustees, the trust survives to the others.

between cotrustees.

District Court as trustee.

Lewin on Trustees, 299; Belmont vs. O'Brien, 12 N. Y., 394. Matter of Van Schoonhoven, 5 Paige, 559; De Peyster vs. Clendining, 8 id., 295. Matter of Crossman, 20 How. Pr., 350.

N. Y. C. C., Sec. 1214.

SEC. 2289. When a trust exists without any appointed, trustee, or where all the trustees renounce, die or are discharged, the District Court of the county where the trust property, or some portion thereof is situated, must appoint another trustee and direct the execution of the trust. N. Y. C. C., Sec. 1215; Stats. 1867, 170.

TITLE IX.

AGENCY.

CHAPTER I. AGENCY IN GENERAL.

II. PARTICULAR AGENCIES.

NOTE. Under this head, the representation of one person by another is the only subject treated. The rights acquired by third persons against both the principal and the agent are here stated. The mutual relations of principal and agent are a branch of Service, and are defined in the Title on that subject. So far as these relations create a mutual trust, they are regulated by the Title on Trust.

CHAPTER I.

AGENCY IN GENERAL.

ARTICLE I. DEFINITION OF AGENCY.

II. AUTHORITY OF AGENTS.

III. MUTUAL OBLIGATIONS OF PRINCIPALS AND THIRD PERSONS.
IV. OBLIGATIONS OF AGENTS TO THIRD PERSONS.

V. DELEGATION OF AGENCY.

VI. TERMINATION OF AGENCY.

ARTICLE I.

DEFINITION OF AGENCY.

SECTION 2295. Agency, what.

2296. Who may appoint and who may be an agent.
2297. Agents, general or special.

SECTION 2298. Agency, actual or ostensible.

2299. Actual agency.

2300. Ostensible agency.

what,

SEC. 2295. An agent is one who represents another, Agency, called the principal, in dealings with third persons. Such representation is called agency.

N. Y. C. C., Sec. 1216.

SEC. 2296. Any person, having capacity to contract, may appoint an agent; and any person may be an agent.

N. Y. C. C., Sec. 1217.

SEC. 2297. An agent for a particular act or transac tion is called a special agent. All others are general

agents.

SEC. 2298.

N. Y. C. C., Sec. 1218.

An agency is either actual or ostensible.

N. Y. C. C., Sec. 1219.

Who may who may be

appoint and an agent.

Agents, special.

general or

Agency, actual or ostensible.

agoLcy.

SEC. 2299. An agency is actual when the agent is Actual really employed by the principal.

N. Y. C. C., Sec. 1220.

agency.

SEC. 2300. An agency is ostensible when the principal Ostensible intentionally, or by want of ordinary care, causes a third person to believe another to be his agent who is not really employed by him.

N. Y. C. C., Sec. 1221.

ARTICLE II.

AUTHORITY OF AGENTS.

SECTION 2304. What authority may be conferred.

2305. Agent may perform acts required of principal by Code.

2306. Agent cannot have authority to defraud principal.

2307. Creation of agency.

2308. Consideration unnecessary.

2309. Form of authority.

2310. Ratification of agent's act.

2311. Ratification of part of a transaction.

2312. When ratification void.

2313. Ratification not to work injury to third persons.

2314. Rescission of ratification.

2315. Measure of agent's authority.

2316. Actual authority, what.

2317. Ostensible authority, what.