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The codes of California as amended and in force at the close of the thirty-eighth session of the Legislature, 1909 (Volume 2 Civil Code) online

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A. S. 623.

§ 2222. HOW CREATED AS TO TRUSTEE. Subject to the
provisions of section eiglit hundred and fifty two, a voluntary
trust is created, as to the trustee, by any words or acts of liis
indicating, witli 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.

History: Enacted March 21, 1872.

See Kerr's Cyc. C. C. for 26 pars, annotation.

77 C. 330, 339, 19 P. 513, 516 (construed and applied with
§2224); 79 C. 613, 625, 22 P. 50, 53 (construed and applied with
§2224); 85 C. 436, 445, 446, 25 P. 22, 24 (construed and applied
with other sections); 95 C. 160, 167, 27 P. 160, 161, 30 P. 196
(construed and applied with §2221); 40 P. 954, 955 (construed
and applied with §2221); 108 C. 627, 656, 49 A. S. 97, 41 P.
772 (construed and applied with other sections); 122 C. 19,
25, 54 P. 370 (construed and applied); 132 C. 21, 27, 63 P. 1071
(construed and applied with §2221); 135 C. 361, 367, 67 P. 333
(construed and applied with §2221); 136 C. 153, 155, 68 P.
579 (construed and applied with other sections); 137 C. 634,
636, 66 P. 369, 70 P. 861 (construed and applied); 148 C. 149, 154,
82 P. 679, 1 L. N. S. 312 (express trust in homestead, in favor of

1170



Tit.VIII,ch.I,art.I.] INVOLUNTARY TRUST. §§2223,2224

third person, can be created only how); 149 C. 24, 29, 84 P. 417
(oral declarations are admissible to establish trust in person-
alty); 152 C. 338, 342, 92 P. 864 (distributee's mere acceptance of
property under decree giving it in trust is acceptance of
trust); 3 C. A. 741, 743, 86 P. 1108 (applied — what acts signify
acceptance of trust).

As to effect of depositing money in bank in trust for third
person, see 32 L. 373.

As to many miscellaneous matters as to trusts and trustees,
see note § 2215, ante.

As to necessity of assent of trustee, see 39 A. D. 187.

§2223. INVOLUNTARY TRUSTEE, WHO IS. One who

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

Hi.story: Enacted March 21, 1872.

See Kerr's Cyc. C. C. for 44 pars, annotation.

58 C. 115, 121, 122 (construed and applied); 85 C. 436. 445. 25
P. 22, 24 (construed and applied with other sections); 107 C.
373, 377, 40 P. 492 (construed and applied with §2224); 118 C.
102, 106, 50 P. 386 (construed and applied with other sections);
148 C. 558, 561, 83 P. 1076 (applied with § 2224 — involuntary
trustee of mistaken deposit in bank).

As to many miscellaneous matters as to trusts and trustees,
see note § 2215, ante.

As to trustee commingling money, see Kerr's Cyc. C. C. § 2236
and note.

As to when a trust ex maleficio arises, see 57 A. S. 203.

§2224. INVOLUNTARY TRUST RESULTING FR03I NEG-
.LIGE\CE, ETC. 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.

History: Knacted March 21, 1872.

See Kerr's Cyc. C. C. for 124 pars, annotation.

55 C. 555, 562 (referred to with other sections in dis. op.);
58 C. 115, 122, 123 (construed and applied with other sections);
67 C. 237, 7 P. 645 (construed and applied); 71 C. 105.
110. 11 P. 853. 855 (construed and applied); 76 C. 469. 471. 9
A. S. 242, 18 P. 429, 430 (construed and applied with §2217);
77 C. 330, 339, 19 P. 513. 516 (construed and applied with § 2222);

1171



§ 2224 CIVIL CODE. [Div.III,Pt.IV.

85 C. 11, 35, 20 A. S. 197, 9 L. 376, 24 P. 707, 712 (construed
and applied); 85 C. 436, 445, 25 P. 22, 24 (construed and applied
with other sections); 86 C. 596, 600, 25 P. 132, 133 (construed
and applied): 98 C. 86, 93, 32 P. 805 (construed and applied);
103 C. 178, 183, 37 P. 216 (referred to); 107 C. 373, 377, 40 P. 492
(construed and applied with §2223); 112 C. 279, 286, 44 P. 565
(construed and applied); 118 C. 102, 106, 50 P. 386 (construed and
applied with other sections); 126 C. 189, 192, 58 P. 543 (con-
strued find applied); 131 C. 73. 74, 63 P. 158 (construed and
applied); 132 C. 1, 5, 63 P. 1022 (construed and applied with other
sections); 133 C. 489, 493, 65 P. 1044 (constructive trust — deeds
procured by fraud and undue influence); 141 C. 56, 60, 62, 74 P.
433 (construed and applied); 142 C. 59, 69, 75 P. 649 (construed
and applied with other sections in dis. op.); 144 C. 305, 312,
77 P. 954 (referred to with other sections); 148 C. 149, 153, 82 P.
679, 1 Li. N. S. 312 (construed and applied — no trust in home-
stead when); 148 C. 558, 561, 83 P. 1076 (applied with §2223—
involuntary trustee of mistaken deposit in bank); 150 C. 785,
788. 90 P. 135 (applied to property gained by violation of
trust); 2 C. A. 479, 483, 84 P. 326 (applied where husband
fraudulently obtained his wife's money and applied it to
purchase of property in dispute); 25 F. 337, 341 (applied — wrong-
fully obtaining title to land — constructive trustee); 35 F. 816,
818 (fraudulent acquisition of title to mining claim).

As to admissibility of parol evidence in cases of trusts in
favor of husband or wife from payment of purchase money,
see Kerr's Cyc. C. C. § 852 note pars. 326, 329, 358, 365; § 853 note
pars. 50-54, 99, 102, 112, 114.

As to application of statute of frauds, see Kerr's Cyc. C. C.
§ 852 note pars. 264-267.

As to application of statute of frauds to trusts arising from
payment of purchase money, see Kerr's Cyc. C. C. § 853 note
par. 107.

As to constructive trusts arising through fraud, undue
influence, etc., see 11 L. 381.

As to evidence and burden of proof to establish resulting,
constructive, or involuntary trusts, see Kerr's Cyc. C. C. § 852
note pars. 395, 411; §853 note pars. 81-118.

As to fraud in devise or bequest impressed with trust, see 2
L. 662.

As to involuntary trusts as between parent and child, see
Kerr's Cyc. C. C. § 852 note pars. 340, 357, 359, 364.

As to many miscellaneous matters as to trusts and trustees,
see note § 2215, ante.

As to promise to leave property by will, see Kerr's Cyc. C. C.
§ 852 note pars. 337, 340, 341, 357.

As to resulting trust from purchase by partner with part-
nership funds, see Kerr's Cyc. C. C. § 853 note pars. 55-57.

1172



i



Tit.VIII.ch.I.art.II.]



OBLIGATION.



§2228



As to resulting trust in favor of wife from husband's purchase
witli her funds, see Kerr's Cyc. C. C. § 853 note pars. 50-54.

As to trusts arising- from mining claims and transactions
in government lands, see Kerr's Cyc. C. C. § 852 note pars.
366-386.

As to trust created by purchase in own name with funds of
another, see Kerr's Cyc. C. C. § 853 and note.

As to when resulting trust does not arise in favor of party
paying purchase money, see Kerr's Cyc. C. C. § 853 note pars.
66-80.

Principal and agent. — As to resulting trvists from trans-
actions between, see Kerr's Cyc. C. C. § 853 note pars. 58-65.



ARTICLE II.



§ 2228,
§ 2229
§ 2230
§ 2231
§ 2232

S 2233
§ 2234
§ 2235
§ 2236
§ 2237
§ 2238

S ooog



OBLIGATIONS OF TRUSTEES.

Trustee's obligation to good faitli.
Trustee not to use property for his own profit.
Certain transactions forbidden.

Trustee's influence not to be used for his advantage.
Trustee not to assume a trust adverse to interest of bene-
ficiary.
To disclose adverse interest.
Trustee guilty of fraud, when.
Presumption against trustees.
Trustee mingling trust property with his own.
Measure of liability for breach of trust.
Same. [For losses only, when.]
Cotrustees, how far liable for each other.



§2228. TRUSTEE'S OBLIGATION TO GOOD FAITH. 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.

History: Enacted March 21, 1872.

See Kerr's Cyc. C. C. for 18 pars, annotation.

82 C. 351, 374, 16 A. S. 137, 23 P. 16, 20 (construed and applied
with other sections); 86 C. 623, 629, 25 P. 135, 137 (construed
and applied); 94 C. 642, 647, 30 P. 4 (construed and applied);
112 C. 53, 61, 44 P. 333, 33 L. 788 (referred to with other sec-
tions); 50 P. 1072, 1073 (construed and applied); 133 C. 489,

1173



§§ 2229, 2230 CIVIL CODE. [Div.III.Pt.IV.

493, 65 P. 1044 (referred to); 136 C. 460, 463, 69 P. 83 (con-
strued and applied with other sections); 142 C. 638, 641, 76 P.
486, 487 (construed and applied); 144 C. 603, 606, 78 P. 9 (con-
strued and applied); 147 C. 725, 732, 82 P. 384 (construed and
applied with other sections — constructive trust in favor of
decedent's estate); 150 C. 785, 787, 90 P. 135 (applied with §2229
to option to purchase land); 4 C. A. 438, 442, 88 P. 510 (applied
to joint business enterprise); 5 C. A. 228, 232, 90 P. 39, 40 (para-
mount and vital principle of all agencies is good faith).

As to many miscellaneous matters as to trusts and trustees,
see note § 2215, ante.

§2229. TRUSTEE IVOT TO USE PROPERTY FOR HIS
OWN PROFIT. A trustee may not use or deal with the trust
property for his own profit, or for any other purpose uncon-
nected with the trust, in any manner.

Hi-story: Enacted March 21, 1872.

See Kerr's Cyc. C. C. for 31 pars, annotation.

82 C. 351, 374, 16 A. S. 137, 23 P. 16, 20 (construed and applied
with other sections); 93 C. 17, 30, 28 P. 788, 790 (construed and
applied); 97 C. 403, 410, 32 P. 441, 443 (construed and applied);
109 C. 170, 177, 41 P. 865 (construed and applied); 112 C; 53, 61,
44 P. 333, 33 L. 788 (construed and applied with other sections);
120 C. 467, 471, 52 P. 822 (construed and applied); 124 C. 175,
181, 56 P. 887 (construed and applied); 130 C. 245, 257, 62 P.
466, 467, 600 (construed and applied with other sections); 131 C.
656, 659, 63 P. 1011 (construed and applied with §2230); 133 C.
634, 639, 85 A. S. 233, 66 P. 12 (referred to); 142 C. 638, 641
(wrongfully cited as § 2239 in construing and applying provi-
sions in §§ 2228, 2322), 76 P. 486, 487 (same error) ; 145 C. 352, 364,
78 P. 550 (construed and applied with other sections); 146 C. 585,
589, 80 P. 1034 (applied to pledge of bonds by bank but secretly
assigned for benefit of its president); 147 C. 725, 732, 82 P. 384
(construed and applied with other sections — constructive trust
in favor of decedent's estate); 150 C. 785, 787, 90 P. 135 (applied
with §2228 to option to purchase land); 97 F. 696, 713 (cited —
resulting trust).

As to many miscellaneous matters as to trusts and trustees,
see note § 2215, ante.

As to right of cestui que trust to follow trust funds, see
Kerr's Cyc. C. C. § 2236 and note.

§ 2230. CERTAIN TRANSACTIONS FORBIDDEN. Neither
a trustee nor any of his agents may take part in any transac-
tion concerning the trust in which he or any one for whom

1174



Tit.VIII,ch.I,art.II.] WHAT FORBIDDEN. § 2230

he acts as agent has an interest, present or contingent, adverse
to that of his beneficiary, except as follows:

1. When the beneficiarJ^ 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 con-
tract, and some not having it, the former grant permission
for themselves, and the proper court for the latter, in the"
manner above prescribed.

History: Enacted March 21, 1872.

See Kerr's Cyc. C. C. for 70 pars, annotation.

54 C. 103, 106 (construed and applied); 22 P. 485, 488 (agent
may purchase corporate stock of his principal, if he deals fairly
and honestly); 81 C. 303, 319, 323, 22 P. 665, 670 (construed and
applied with §2234); 86 C. 623. 629, 25 P. 135, 137 (construed
and applied); 98 C. 171, 177, 32 P. 980, 981 (construed and
applied); 112 C. 53, 61, 44 P. 333, 33 L. 788 (construed and
applied); 113 C. 221, 237, 41 P. 1017, 45 P. 252 (construed and
applied with other sections); 121 (2. 282, 285, 287, 53 P. 699 (con-
strued and applied); 130 C. 245. 257, 62 P. 466, 600 (construed
and applied witii other sections); 130 C. 431, 433, 62 P. 749 (con-
strued and applied with other sections); 131 C. 656, 659, 63 P.
1011 (construed and applied with other sections); 66 P. 175, 177
(construed and applied with other sections); 138 C. 81, 95, 70
P. 1008 (construed and applied); 144 C. 603, 606. 78 P. 9 (con-
strued and applied); 145 C. 352, 363, 365, 78 P. 550 (construed
and applied with §2229); 146 C. 407, 410, 80 P. 511 (applies to
directors of corporation, but transaction between director and
his corporation is not necessarily void when — transaction is to
be regarded how); 147 C. 725, 732, 82 P. 384 (construed and
applied with other sections — constructive trust in favor of
decedent's estate); 45 F. 518, 527 (this section and §2234 are
applicable to directors of corporations in their trust relations);
97 F. 696, 713 (cited — resulting trust).

As to many miscellaneous iiintt<'rs as to trusts ;niil ti-nstees,
see note § 2215, ante.

1175



§§ 2231-2233 CIVIL CODE. [Div.III.Pt.IV.

§ 2231. TRUSTEE'S INFLUENCE NOT TO BE USED FOR
HIS ADVANTAGE. A trustee may not use the influence which
his position gives him to obtain any advantage from his ben-
eficiary.

HLstory: Enacted March 21, 1872.

See Kerr's Cyc. C. C. for 10 pars, annotation.

94 C. 446, 461, 29 P. 957 (construed and applied); 103 C. 97,
101, 3" P. 189 (construed and applied); 113 C. 221, 237, 41 P.
1017, 45 P. 252 (construed and applied with other sections); 138
C. 81, 95, 70 P. 1008 (construed and applied with other sections
in dis. op.); 142 C. 59, 69, 75 P. 649 (construed and applied with
other sections); 142 C. 638, 641, 76 P. 486, 487 (construed and
applied with other sections).

As to many miscellaneous matters as to trusts and trustees,
see note § 2215, ante.

§ 2232. TRUSTEE NOT TO ASSUME A TRUST ADVERSE
TO INTEREST OF BENEFICIARY. 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 tlie trust, without the consent of the latter.
History: Enacted March 21, 1872.

See Kerr's Cyc. C. C. for 3 pars, annotation.

113 C. 221, 237, 41 P. 1017, 45 P. 252 (construed and applied
with other sections); 121 C. 327, 328, 53 P. 702 (construed and
applied with § 2234); 66 P. 175, 177 (construed and applied with
other sections); 138 C. 81, 95, 70 P. 1008 (construed and applied
with other sections); 142 C. 638, 641, 76 P. 48G, 487 (construed
and applied with other sections).

As to many miscellaneous matters as to trusts and trustees,
see note § 2215, ante.

§ 2233. TO DISCLOSE ADVERSE INTEREST. 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.

History: Enacted March 21, 1872.

See Kerr's Cyc. C. C. for 3 pars, annotation.

55 C. 555, 562 (referred to with other sections in dis. op.);
86 C. 623, 629, 25 P. 135, 137 (construed and applied with other

1176



Tit.VITI,ch.T,art.II.] FRAUD— PRBSUMPTIOUS. §§ 2234, 2235

sections); 113 C. 221, 237, 41 P. 1017, 45 P. 252 (construed and
applied with other sections); 66 P. 175, 177 (construed and
applied with otlier sections).

As to many miscellaneous matters as to trusts and trustees,
see note § 2215, ante.

§2234. TRUSTEE GUILTY OF FRAUD, WIIEX. Every
violatiou of the provisions of the preceding sections of this
article is a fraud against the beneficiary of a trust.
HiMtory: Enacted March 21, 1872.

See Kerr's Cyc. C. C. for 11 pars, annotation.

52 C. 403, 406 (construed and applied); 81 C. 303, 319, 22 P.
665, 670 (construed and applied with §2230); 86 C. 623, 629, 25
P. 135, 137 (construed and applied with other sections); 94 C.
446, 461, 29 P. 957 (construed and applied with other sections);-
97 C. 403, 410, 32 P. 441 (construed and applied with §2229);
103 C. 97, 102, 37 P. 189 (construed and applied); 113 C. 221,
231, 237, 41 P. 1017, 45 P. 252 (construed and applied with other
sections); 121 C. 327, 328, 53 P. 702 (construed and applied with
other sections); 130 C. 431, 433, 62 P. 749 (construed and ap-
plied); 131 C. 73, 79, 63 P. 158 (referred to in dis. op.); (C. Sept.
10, 1901), 66 P. 175, 177 (construed and applied with other sec-
tions); 138 C. 81, 95, 70 P. 1008 (referred to with other' sections
in dis. op.); 145 C. 352, 363, 78 P. 550 (construed and applied);
146 C. 585, 589, 80 P. 1034 (applied to pledge of bonds by bank
but secretly assigned for benefit of its president); 45 F. 518,
527 (this section and § 2230 are applicable to directors of cor-
porations in their trust relations); 97 F. 696, 713 (cited — result-
ing trust).

As to many miscellaneous matters as to trusts and trustees,
see note §2215, ante.

§2235. PRESUMPTION AGAINST TRUSTEES. All trans-
actions l)etween 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.
UlNtory: Knacted March 21, 1S72.

See Kerr's Cyc. C. C. for IS pars, annotation.

54 C. 439, 440 (cited by mistake for §2395); 72 C. 556, 559, 1
A. S. 84, 14 P. 306 (construed and applied); 73 C. 157, 161, 14
P. 576, 578 (construed and applied); 75 C. 525, 529. 7 A. S. 189.

1177



§§ 2236, 2237 CIVIL CODE. [Div.III,Pt.IV.

17 P. 689, 691 (construed and applied); 82 C. 351, 374, 16 A. S.
137, 23 P. 16, 20 (construed and applied witli other sections);
94 C. 446, 461, 29 P. 957 (construed and applied witli otlier sec-
tions); 103 C. 97, 100, 101, 37 P. 189 (construed and applied with
other sections); 49 P. 129, 130 (construed and applied); 120 C.
322, 323, 324, 52 P. 723 (construed and applied) ; 130 C. 352, 357, 358,
62 P. 555 (construed and applied); 66 P. 175, 177 (construed
and applied with other sections); 134 C. 170, 172, 173, 66 P. 231
(construed and applied); 136 C. 460, 463, 69 P. 83 (construed
and applied with other sections); 137 C. 176, 183, 69 P. 965
(referred to), 137 C. 685, 693, 695, 697, 70 P. 771 (construed);
142 C. 59, 69, 75 P. 649 (construed and applied with other sec-
tions); 142 C. 638, 641, 76 P. 486, 487 (construed and applied
with other sections); 147 C. 495, 508, 82 P. 57 (circumstances
which, if taken alone, would raise technical implication or pre-
sumption that will was procured by undue influence) ; 2 C. A.
479, 485, 84 P. 326 (applied to fraud by husband upon his wife).
As to many miscellaneous matters as to trusts and trustees,
see note § 2215, ante.

§2236. TRUSTEE 3II>GLI>G TRUST PROPERTY WITH
HIS OWN. A trustee who wilfully 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.

History: Enacted March 21, 1872; amended by Code Com-
mission, Act March 16, 1901, Stats, and Amdts. 1900-1, p. 415,
held unconstitutional, see history, § 4 ante; amendment re-
enacted March 21, 1905, Stats, and Amdts. 1905, p. 615.

See Kerr's Cyc. C. C. for 55 pars, annotation.

97 C. 196, 202, 31 P. 937 (construed and applied); 120 C. 533,
536, 537, 65 A. S. 197, 52 P. 852 (construed and applied); 142
C. 638, 641, 76 P. 486, 487 (construed and applied with other
sections).

As to many miscellaneous matters as to trusts and trustees,
see note § 2215, ante.

As to rig-ht to follow trust funds, see 32 A. S. 125: 46 A. S.
608; 2 L. 480; 7 L. 570.

§2237. MEASURE OF LIABILITY FOR BREACH OF
TRUST. A trustee who uses or disposes of the trust property,
contrary to section twenty-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

1178



Tit.VIII,ch.I,art.II.] LOSSES— COTRUSTEE. §§2238,2239

disposed thereof, to replace it, with its fruits, or to account
for its proceeds, with interest.

History: Enacted March 21, 1872.

See Kerr's Cyc. C. C. for 6 pars, annotation.

55 C. 555, 563 (referred to in dls. op.); 98 C. 472, 478, 33 P.
484 (mineral land may be selected as a homestead); 120 C. 467,
471, 52 P. 822 (construed and applied with §2229); 133 C. 634,
639, 85 A. S. 233, 66 P. 12 (referred to with other sections);
142 C. 638, 641, 76 P. 486, 487 (construed and applied with other
sections); 5 C. A. 228, 235 (applied but erroneously cited as
§ 2237 C. C. P.), 90 P. 39, 42 (correct citation).

As to liability of trustee for compound interest, see Kerr's
Cyc. C. C. § 2262 and note.

As to liability of trustee for non-investment, see Kerr's Cyc.
C. C. § 2262 and note.

As to liability of trustee for use of property for his own
benefit, see Kerr's Cyc. C. C. §§ 2229, 2230 and notes.

As to many iniscellaneous matters as to trusts and trustees,
see note § 2215, ante.

§ 2238. SAME. [FOR LOSSES ONLY, WHEX.] 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.

History: Enacted March 21, 1872.

See Kerr's Cyc. C. C. for 5 pars, annotation.

136 C. 432, 445, 89 A. S. 153, 64 P. 692, 69 P. 77 (construed
and applied); 142 C. 638, 641, 76 P. 486, 487 (construed and
applied with other sections).

As to many miscellaneous matters as to trusts and trustees,
see note § 2215, ante.

§2239. COTRUSTEES, HOW FAR LL4BLE FOR EACH
OTHER. A trustee is responsible for the wrongful acts of a
cotrustee to which he consented, or which, by his negligence,
he enabled the latter to commit, but for no others.

History: Enacted March 21, 1872.

See Kerr's Cyc. C. C. for 22 pars, annotation.
87 C. 1, 6, 25 P. 157, 159, 11 L. 264 (construed and applied);
120 C. 467, 471, 52 P. 822 (construed and applied); 142 C. 638,

1179



§§ 2243, 2244 CIVIL CODE. [Div.III.Pt.IV.

641 (erroneously cited for § 2229 in construing- and applying
provisions in §§ 2228, 2322), 76 P. 486, 487 (same error).

As to liability of trvistees, executors, etc., for acts and defaults
of their cotrustees, see 42 A. D. 288-293; 11 Paige Ch. (N. Y.)
299, 5 L,. ed. 142; 3 Sandf. Ch. (N. Y.) 99, 7 L. ed. 785; 35 U. S.
(10 Pet.) 532, 562, 9 L. ed. 522.

As to many miscellaneous matters as to trusts and trustees,
see note § 2215, ante.



ARTICLE III.

OBLIGATIONS OF THIRD PERSONS.

§ 2243. Third person, when involuntary trustee.

§ 2244. When third person must see to application of trust prop-
erty.

§2243. THIRD PEKSOX, >VHEN INVOLUNTARY TRUS-
TEE. 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 faitli, and for a
valuable consideration.

History: Enacted March 21, 1872.

See Kerr's Cyc. C. C. for 11 pars, annotation.

55 C. 555, 562 (referred to with other sections in dis. op.);
96 C. 298, 307, 31 A. S. 209, 31 P. 166 (construed and applied
with §856); 105 C. 60, 64, 38 P. 519 (construed and applied);
58 P. 298, 301 (construed and applied); 134 C. 641, 657, 60
P. 974, 66 P. 982 (construed and applied with §870); 83 F. 48,
52 (construed with § 869 — corporation stock, issued in excliange
for land, constitutes the corporation a purchaser for value).

As to many miscellaneous matters as to trusts and trustees,
see note § 2215, ante.



§ 2244. WHEN THIRD PERSON MUST SEE TO APPLICA-
TION OF TRUST PROPERTY. 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. Otlier persons must, at their peril, see to the

1180



Tit.VIII.ch.Il,art.I.] NATURE-CREATION. § 2250

proper application of money or other property paid or deliv-
ered by them.

History: Enacted March 21, 1872.

See Kerr's Cyc. C. C. for 5 pars, annotation.

118 C. 102, 106, 50 P. 386 (construed and applied with otn<-i



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