Nonliability of third persons
Sec. 7. (a) No person who participates in the acquisition,
disposition, assignment or transfer of a security by or to a fiduciary,
including a person who guarantees the signature of the fiduciary, is
liable for participation in any breach of fiduciary duty by reason of
failure to inquire whether the transaction involves such a breach
unless it is shown that he acted with actual knowledge that the
proceeds of the transaction were being or were to be used wrongfully
for the individual benefit of the fiduciary or that the transaction was
otherwise in breach of duty.
(b) If a corporation or transfer agent makes a transfer pursuant to
an assignment by a fiduciary, a person who guaranteed the signature
of the fiduciary is not liable on the guarantee to any person to whom
the corporation or transfer agent by reason of this chapter incurs no
liability.
(c) This section does not impose any liability upon the corporation
or its transfer agent.
(Formerly: Acts 1961, c.124, s.7.) As amended by Acts 1982,
P.L.171, SEC.100.
Last modified: May 27, 2006