540. Claim by mortgagees as trustees.

540.     Claim by mortgagees as trustees.

Where the mortgagees are trustees, the beneficiaries are not entitled to sue on the covenant for payment unless it appears that the beneficiaries were intended to have the benefit of the contract of mortgage1 or if the trustees fail in their duty to protect the trust estate or the interests of the beneficiaries in the trust estate2. The beneficiaries must call upon the trustees either to sue, or to allow the beneficiaries to sue3. Alternatively, a beneficiary may make an application seeking an order that the trustees bring