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The Alberta (Canada) D.J., Acton, J., ordered trustees Royal Trust Corporation of Canada and the Royal Bank of Canada to pay funds and letters of credit into court which are subject to future determination by the court as to the validity of trust agreements disputed by George D. Chapel and eight others. The trustees had applied to the court for relief from any liability with respect to the trust property, described by the court as being "of considerable value".

The court stated "Section 40 of the Trustee Act properly provides for trustees to pay money or negotiable instruments such as Letters of Credit into court to be dealt with according to the Orders of the Court."

The respondent executives (Chapel, et al.) argued that "to allow payment in of the Letters of Credit is to, in effect vary the trust without their consent contrary to s. 42(6) of the Trustee Act."

The court noted that the corporate defendant (Manalta) must provide replacement LCs so as to "preserve the status quo of the trusts ... for the claimants. ... until their validity is properly determined by the Court." It was unclear whether there was a proper drawing under the terms of the LCs.

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