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2222. Subject to the provisions of section eight hundred and fiftytwo, a voluntary trust is created, as to the trustee, by any words or acts of his indicating, with reasonable certainty:

1. His acceptance of the trust, or his acknowledgment, made upon sufficient consideration, of its existence; and,

2. The subject, purpose, and beneficiary of the trust.

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

2224. 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.

ARTICLE II.

Obligations of Trustees.

Section

Section 2228. Obligation to good faith. 2234. When guilty of fraud. 2229. Not to use own profit.

2235. Presumption against 2230. Certain transactions forbid

trustees. den.

2236. Mingling trust property 2231. Trustee's influence, not to prohibited.

be used for his advantage. 2237. Liability for breach. 2232. Adverse interests not al 2238. Same. lowed.

2239. Co-trustees, individually 2233. Same, disclosed.

liable. 2228. 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.

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

2230. 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:

1. When the beneficiary, having capacity to contract, with a full knowledge of the motives of the trustee, and of all other facts concerning the transaction which might affect his own decision, and without the use of any influence on the part of the trustee, permits him to do so;

2. When the beneficiary not having capacity to contract, the proper court, upon the like 'information of the facts, grants the like permission; or,

3. When some of the beneficiaries having capacity to contract, and some not having it, the former grant permission for themselves, and the proper court for the latter, in the manner above prescribed.

2231. A trustee may not use the influence which his position gives him to obtain any advantage from his beneficiary.

2232. No trustee, so long as he remains in the trust, may undertake another trust adverse in its nature to the interest of his beneficiary in the subject of the trust, without the consent of the latter...

2233. 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.

2234. Every violation of the provisions of the preceding sections of this article is a fraud against the beneficiary of a trust.

2235. 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, and under undue influence.

2236. 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. 1905-615.

2237. A trustee who uses or disposes of the trust property, contrary to section two thousand two hundred and twenty-nine, 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 account for its proceeds, with interest.

2238. 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.

2239. A trustee is responsible for the 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.

ARTICLE III.
Obligations of Third Persons.

Section

2243. Involuntary trustees.

Section
2244. Third persons, trust prop-

erty.

2243. Every one 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 considera

tion.

2244. 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 proper application of money or other property paid or delivered by them.

· CHAPTER II.

Trusts for the Benefit of Third Persons.
Article 1. Nature and Creation of the Trust.

II. Obligations of Trustees.
III. Powers of Trustees.
IV. Rights of Trustees.

V. Termination of the Trust.
VI. Succession or Appointment of New Trustees.

ARTICLE I.

Nature and Creation of the Trust.

Section
2250. Who are trustees.
2251. Creation of trust.
2252. Trustees appointed by

court.

Section

2253. Declaration of trust.
2254. Same.

2250. The provisions of this chapter apply only to express trusts, created for the benefit of another than the trustor, and in which the title to the trust property is vested in the trustee; not including, however, those of executors, administrators, and guardians, as such.

2251. 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.

2252. 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.

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

2254. 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 trustor are merged therein.

ARTICLE II.

Obligations of Trustees.

Section

. Section 2258. Trustee must obey trust. 2262. Interest on trust moneys, 2259. Diligent in execution.

omission to invest. 2260. Duty of trustee as to ap- 2263. Purchase by trustee of pointment successor.

claims against trust fund. 2261. Investment of money.

2258. 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.

2259. A trustee, whether he receives any compensation or not, must use at least ordinary care and diligence in the execution of his irust.

2260. 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.

2261. 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.

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 willful.

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.

ARTICLE III.
Powers of Trustees.

Section

2267. Trustee's power as agent. 2268. All must act.

Section
2269. Discretionary powers.

2267. 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 bind his principal.

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

2269. 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.

ARTICLE IV.

Rights of Trustees.

Section

Section 2273. Indemnification of trustee. 2275. Involuntary trustee.. 2274. Compensation of trustee.

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.

2274. Except as provided in section seventeen hundred of the Code of Civil Procedure, when a declaration of trust is silent upon the subject of compensation the trustee is enttiled 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 or amount, he is entitled to such compensation as may be reasonable under the circumstances. If there are two or more trustees the compensation shall be apportioned among the trustees according to the services rendered by them respectively. 1909–252.

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

ARTICLE V.
Termination of the Trust.

Section

Section 2279. Trust, how extinguished. 2282. Trustee, how discharged. 2280. Not revocable.

2283. Removal of trustees by 2881. Trustee's office, how vacated. superior court.

ved.

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

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.

2281. The office of a trustee is vacated: 1. By his death; or, 2. By his discharge. 2282. 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 have 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 superior court. 1883–3.

2283. The superior court may remove any trustee who has violated or is unfifit to execute the trust, or may accept the resignation of a trustee. 1880—8.

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