Trust Deed, signed on February 21, 1924, between The General Mortgage Bank of Palestine Limited and two accountants from Cairo: Francis Henry Russell and John Charles Sidley, serving as “Trustees.”
The trust deed was executed between the parties in connection with the bank’s first debenture series issuance in the amount of £100,000. The purpose of the deed was to secure the rights of the bondholders (debenture holders) and to outline the legal obligations between the bank and the trustees. At the time, the bank did not own any real estate (immovable property) that could be mortgaged under the laws of the Mandate in Palestine – only short-term leasehold rights.
The very issuance of bonds through a trust deed at such an early stage reveals the adoption of advanced financial mechanisms in the developing Land of Israel. It marked a breakthrough in the activity of financial institutions during the British Mandate period and was one of the first attempts to establish modern banking in the Land of Israel for purposes of financing and construction. The document contains numerous clauses (51 pages!) detailing the legal rights and obligations arising from the trust agreement.
51 pages. 34 cm. Good condition.
