Trusts under VARIOUS TYPES OF CUSTOMERS :

A trust is a relationship where a person (trustee) holds property for the benefit of another person (beneficiary) or some object in such a way that the real benefit of the property accrues to the beneficiary or serves the object of the trust. A trust is generally created by a trust deed and all concerned matters are governed by the Indian Trusts Act, 1882.

The trust deed is carefully examined and its relevant provisions, noted. A banker should exercise extreme care while conducting the trust accounts, to avoid committing breach of trust:

– A trustee cannot delegate his powers to other trustees, nor can all trustees by common consent delegate their powers to outsiders.

– The funds in the name of the trust cannot be used for crediting in the trustee’s account, nor for liquidating the debts standing in the name of the trustee.

– The trustee cannot raise loan without the permission of the court, unless permitted by the trust deed.