Registration or transfer of securities held by fiduciaries
Sec. 3. If an executor, administrator, trustee, guardian or other
fiduciary or the nominee of a fiduciary in whose name are registered
or to be registered any shares of stock, bonds or other securities of
any corporation, public or private, or company or other association,
applies for the registration or transfer of the same, such corporation
or company or other association, or its or their transfer agent, is not
bound to inquire whether the fiduciary or nominee is committing a
breach of his obligation as fiduciary or nominee in making such
registration or transfer, or to see to the performance of the fiduciary
obligation, and is liable for such registration or transfer only where
such registration or transfer is made with actual knowledge that such
fiduciary or nominee is committing a breach of trust in requesting
such registration or transfer, or with knowledge of such facts that its
or their participation in such registration or transfer amounts to bad
faith.
(Formerly: Acts 1927, c.17, s.3; Acts 1947, c.351, s.3.)
Last modified: May 27, 2006