Bank Trustee of Charitable Trust Breaches Duty of Trust to Beneficiary
Absent evidence to the contrary, commercial loan between trustee and beneficiary of trust was presumptively fraudulent
A commercial loan between a bank trustee of a charitable trust and the charity that is the beneficiary of the trust is presumptively fraudulent without clear and convincing evidence to the contrary, an appellate court in Illinois has ruled. The Court has reversed a trial court decision authorizing the bank to proceed with an action to collect on the note and granted the charity’s motion to rescind the note for breach of fiduciary duty.
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