Assignment by fiduciary
Sec. 3. Except as otherwise provided in this chapter, a corporation
or transfer agent making a transfer of a security pursuant to an
assignment by a fiduciary:
(a) may assume without inquiry that the assignment, even
though to the fiduciary himself or to his nominee, is within his
authority and capacity and is not in breach of his fiduciary
duties;
(b) may assume without inquiry that the fiduciary has complied
with any controlling instrument and with the law of the
jurisdiction governing the fiduciary relationship, including any
law requiring the fiduciary to obtain court approval of the
transfer; and
(c) is not charged with notice of and is not bound to obtain or
examine any court record or any recorded or unrecorded
document relating to the fiduciary relationship or the
assignment, even though the record or document is in its
possession.
(Formerly: Acts 1961, c.124, s.3.) As amended by Acts 1982,
P.L.171, SEC.97.
Last modified: May 27, 2006