A Trustees Handbook

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Div. 351. INVESTMENTS 117 Where, however, the settlement provided that the trus- tee should not be liable for loss on account of taking insufficient security, he was not excused for making an unauthorized loan to a person unsecured, 1 since the loss was on account of going outside of the class and not because the investment was poor of its kind. Investments allowed in Various States. Alabama. By statute may invest in securities of State or United States. Code (1896), 4174. Constitution forbids ...any law authorizing trustees to invest in bonds or stocks of private corporation. See Randolph v. E. Birmingham Land Co. , 104 Ala. 355. English rule laid down, but statute not alluded to. Alaska. No authorities. Arizona. No authorities. Arkansas. No authorities. California. American rule. Civil Code (1903), 2261; In re Cousins's Estate, 111 Cal. 441. Colorado. English rule. Laws of 1903, ch. 181, 71. Executors, administrators, guardians, and con- servators, in bonds of the United States or Colorado, or mortgages approved by the court.

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