SECTIONS 16220-16249 - California Statutes

PROBATE CODE

SECTION 16220-16249

16220. The trustee has the power to collect, hold, and retain trust
property received from a settlor or any other person until, in the
judgment of the trustee, disposition of the property should be made.
The property may be retained even though it includes property in
which the trustee is personally interested.

16221. The trustee has the power to accept additions to the
property of the trust from a settlor or any other person.

16222. (a) Subject to subdivision (b), the trustee has the power to
continue or participate in the operation of any business or other
enterprise that is part of the trust property and may effect
incorporation, dissolution, or other change in the form of the
organization of the business or enterprise.
(b) Except as provided in subdivision (c), the trustee may
continue the operation of a business or other enterprise only as
authorized by the trust instrument or by the court. For the purpose
of this subdivision, the lease of four or fewer residential units is
not considered to be the operation of a business or other enterprise.
(c) The trustee may continue the operation of a business or other
enterprise for a reasonable time pending a court hearing on the
matter or pending a sale of the business or other enterprise.
(d) The limitation provided in subdivision (b) does not affect any
power to continue or participate in the operation of a business or
other enterprise that the trustee has under a trust created by an
instrument executed before July 1, 1987.

16224. (a) In the absence of an express provision to the contrary
in a trust instrument, where the instrument directs or permits
investment in obligations of the United States government, the
trustee has the power to invest in those obligations directly or in
the form of an interest in a money market mutual fund registered
under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a-1 et
seq.) or an investment vehicle authorized for the collective
investment of trust funds pursuant to Section 9.18 of Part 9 of Title
12 of the Code of Federal Regulations, the portfolios of which are
limited to United States government obligations maturing not later
than five years from the date of investment or reinvestment and to
repurchase agreements fully collateralized by United States
government obligations.
(b) This section applies only to trusts created on or after
January 1, 1985.

16225. (a) The trustee has the power to deposit trust funds at
reasonable interest in any of the following accounts:
(1) An insured account in a financial institution.
(2) To the extent that the account is collateralized, an account
in a bank, an account in an insured savings and loan association, or
an account in an insured credit union.
(b) A trustee may deposit trust funds pursuant to subdivision (a)
in a financial institution operated by, or that is an affiliate of,
the trustee. For the purpose of this subdivision, "affiliate" means a
corporation that directly or indirectly through one or more
intermediaries controls, is controlled by, or is under common control
with another domestic or foreign corporation.
(c) This section does not limit the power of a trustee in a proper
case to deposit trust funds in an account described in subdivision
(a) that is subject to notice or other conditions respecting
withdrawal prescribed by law or governmental regulation.
(d) The court may authorize the deposit of trust funds in an
account described in subdivision (a) in an amount greater than the
maximum insured or collateralized amount.
(e) Nothing in this section prevents the trustee from holding an
amount of trust property reasonably necessary for the orderly
administration of the trust in the form of cash or in a checking
account without interest.

16226. The trustee has the power to acquire or dispose of property,
for cash or on credit, at public or private sale, or by exchange.

16227. The trustee has the power to manage, control, divide,
develop, improve, exchange, partition, change the character of, or
abandon trust property or any interest therein.

16228. The trustee has the power to encumber, mortgage, or pledge
trust property for a term within or extending beyond the term of the
trust in connection with the exercise of any power vested in the
trustee.

16229. The trustee has the power to do any of the following:
(a) Make ordinary or extraordinary repairs, alterations, or
improvements in buildings or other trust property.
(b) Demolish any improvements.
(c) Raze existing or erect new party walls or buildings.

16230. The trustee has the power to do any of the following:
(a) Subdivide or develop land.
(b) Dedicate land to public use.
(c) Make or obtain the vacation of plats and adjust boundaries.
(d) Adjust differences in valuation on exchange or partition by
giving or receiving consideration.
(e) Dedicate easements to public use without consideration.

16231. The trustee has the power to enter into a lease for any
purpose as lessor or lessee with or without the option to purchase or
renew and for a term within or extending beyond the term of the
trust.

16232. The trustee has the power to enter into a lease or
arrangement for exploration and removal of gas, oil, or other
minerals or geothermal energy, and to enter into a community oil
lease or a pooling or unitization agreement, and for a term within or
extending beyond the term of the trust.

16233. The trustee has the power to grant an option involving
disposition of trust property or to take an option for the
acquisition of any property, and an option may be granted or taken
that is exercisable beyond the term of the trust.

16234. With respect to any shares of stock of a domestic or foreign
corporation, any membership in a nonprofit corporation, or any other
property, a trustee has the power to do any of the following:
(a) Vote in person, and give proxies to exercise, any voting
rights with respect to the shares, memberships, or property.
(b) Waive notice of a meeting or give consent to the holding of a
meeting.
(c) Authorize, ratify, approve, or confirm any action that could
be taken by shareholders, members, or property owners.

16235. The trustee has the power to pay calls, assessments, and any
other sums chargeable or accruing against or on account of
securities.

16236. The trustee has the power to sell or exercise stock
subscription or conversion rights.

16237. The trustee has the power to consent, directly or through a
committee or other agent, to the reorganization, consolidation,
merger, dissolution, or liquidation of a corporation or other
business enterprise, and to participate in voting trusts, pooling
arrangements, and foreclosures, and in connection therewith, to
deposit securities with and transfer title and delegate discretion to
any protective or other committee as the trustee may deem advisable.

16238. The trustee has the power to hold a security in the name of
a nominee or in other form without disclosure of the trust so that
title to the security may pass by delivery.

16239. The trustee has the power to deposit securities in a
securities depository, as defined in Section 30004 of the Financial
Code, which is licensed under Section 30200 of the Financial Code or
is exempt from licensing by Section 30005 or 30006 of the Financial
Code. The securities may be held by the securities depository in the
manner authorized by Section 775 of the Financial Code.

16240. The trustee has the power to insure the property of the
trust against damage or loss and to insure the trustee against
liability with respect to third persons.

16241. The trustee has the power to borrow money for any trust
purpose to be repaid from trust property. The lender may include, but
is not limited to, a bank holding company, affiliate, or subsidiary
of the trustee.

16242. The trustee has the power to do any of the following:
(a) Pay or contest any claim.
(b) Settle a claim by or against the trust by compromise,
arbitration, or otherwise.
(c) Release, in whole or in part, any claim belonging to the
trust.

16243. The trustee has the power to pay taxes, assessments,
reasonable compensation of the trustee and of employees and agents of
the trust, and other expenses incurred in the collection, care,
administration, and protection of the trust.

16244. The trustee has the following powers:
(a) To make loans out of trust property to the beneficiary on
terms and conditions that the trustee determines are fair and
reasonable under the circumstances.
(b) To guarantee loans to the beneficiary by encumbrances on trust
property.

16245. The trustee has the power to pay any sum of principal or
income distributable to a beneficiary, without regard to whether the
beneficiary is under a legal disability, by paying the sum to the
beneficiary or by paying the sum to another person for the use or
benefit of the beneficiary. Any sum distributable under this section
to a custodian under the California Uniform Transfers to Minors Act
(Part 9 (commencing with Section 3900)) shall be subject to Section
3906.

16246. The trustee has the power to effect distribution of property
and money in divided or undivided interests and to adjust resulting
differences in valuation. A distribution in kind may be made pro rata
or non pro rata, and may be made pursuant to any written agreement
providing for a non pro rata division of the aggregate value of the
community property assets or quasi-community property assets, or
both.

16247. The trustee has the power to hire persons, including
accountants, attorneys, auditors, investment advisers, appraisers
(including probate referees appointed pursuant to Section 400), or
other agents, even if they are associated or affiliated with the
trustee, to advise or assist the trustee in the performance of
administrative duties.

16248. The trustee has the power to execute and deliver all
instruments which are needed to accomplish or facilitate the exercise
of the powers vested in the trustee.

16249. The trustee has the power to prosecute or defend actions,
claims, or proceedings for the protection of trust property and of
the trustee in the performance of the trustee's duties.