A purchasing trust company may hold the purchase price and any additional money or other assets delivered to it by the selling trust company in trust for the selling trust company and may act as an agent of the selling trust company in disbursing the money or other assets by paying the creditors of the selling trust company. If the purchasing trust company acts under a written contract of agency approved by the department that specifically names each creditor and the amount to be paid each creditor, and if the agency is limited to the purely ministerial act of paying creditors the amounts due them as determined by the selling trust company and reflected in the contract of agency and does not involve discretionary duties or authority other than the identification of the creditors named, the purchasing trust company
(1) may rely on the contract of agency and the instructions included in it; and
(2) is not responsible for
(A) an error made by the selling trust company when determining its liabilities, the creditors to whom the liabilities are due, or the amounts due to the creditors; or
(B) a preference that results from the payments made under the contract of agency and the instructions included in the contract.
Section: Previous 06.26.650 06.26.660 06.26.670 06.26.680 06.26.690 06.26.700 06.26.710 06.26.720 NextLast modified: November 15, 2016