Sec. 36a-398. (Formerly Sec. 36-252). Powers.
Sec. 36a-398. (Formerly Sec. 36-252). Powers. Each trustee shall have the following powers, whether expressly contained in the terms of the trust or not, unless
expressly forbidden:
(1) Such trustee may accept conveyance of the mortgaged property when it deems
it advisable, instead of obtaining title thereto by foreclosure; provided no right to any
deficiency judgment on the notes, bonds or other evidences of indebtedness secured by
such mortgage shall be affirmatively released by such trustee without the consent of the
owners of such notes, bonds or other evidences of indebtedness.
(2) After acquiring title to such mortgaged property in either manner, or if money
is needed by such trustee to redeem such property from the foreclosure of tax liens or
other liens prior to such trust mortgage and to thus acquire such title, or to purchase
such property at a court sale in any such foreclosure action, such trustee may, directly
or indirectly, mortgage such premises to any Connecticut bank, to obtain the money
necessary to so redeem or purchase such property or to pay any taxes or assessment liens
due on such property. No such bank, accepting such a mortgage, shall be responsible for
the rightful application of the money thus obtained by the trustee. No commission or
bonus shall be paid by such trustee for such loan. All property or money received by
such trustee as provided in this section shall be subject to such trust and shall be held
and disposed of for the benefit of the beneficiaries of such trust, pro rata, or in such
manner as such trust provides.
(1949 Rev., S. 5961; P.A. 92-12, S. 72; P.A. 94-122, S. 183, 340.)
History: P.A. 92-12 redesignated Subdivs. and made technical changes; P.A. 94-122 changed "savings bank in Connecticut, or to any other bank under the supervision of the commissioner" to "Connecticut bank", effective January 1, 1995;
Sec. 36-252 transferred to Sec. 36a-398 in 1995.