If a third person deals with the association in the capacity of the association as a trustee, the existence of trust powers and their proper exercise by the association may be assumed without inquiry. A third person is not bound to inquire whether the association has power to act as trustee or is properly exercising trust powers. A third person, without actual knowledge that the association is exceeding or improperly exercising its powers, is fully protected in dealing with the association as if it possessed and properly exercised the powers it purports to exercise. A third person is not bound to assure the proper application of trust assets paid or delivered to the association in its capacity as trustee.
Section: Previous 34.08.370 34.08.380 34.08.390 34.08.400 34.08.410 34.08.420 34.08.430 34.08.440 34.08.450 34.08.460 34.08.470 34.08.480 34.08.490 34.08.500Last modified: November 15, 2016