Trust Law Article 35

A trustee shall not convert any of the trust property to his own property or create or acquire any right thereto except:（1）the written consent of the beneficiary has been duly obtained and the trust property is acquired by the trustee at the market price;（2）the trust property is acquired by the trustee through bidding process at the centralized market; or（3）the trust property is acquired due to the existence of any inevitable cause and the approval of the court has been duly obtained therefor.The preceding paragraph shall not apply if the trustee, by inheritance, merger or otherwise, assumes all the rights in the trust property. In case of such blanket assumption, the provisions of Article 14 hereof shall apply mutatis mutandis.If the trustee uses or disposes of the trust property in violation of the first paragraph, the provisions of Article 23 hereof shall apply mutatis mutandis; in addition, the settlor, beneficiary or other trustees shall have the right to request the trustee to disgorge the benefit which the latter has acquired for incorporation into the trust property. The interest accrued from the benefit shall also be disgorged and incorporated into the trust property if the trustee is liable mala fide.The right to claim for disgorgement, as provided in the preceding paragraph, shall extinguish within two years from the time when the settlor or beneficiary becomes aware of the acquisition of the benefit, or after five years from the time of the occurrence of the event.