Presumption of trustee's authority
Sec. 1. (Presumption of Trustee's Authority)
(a) Except as provided in subsection (b) of this section, any third
person dealing with the trustee or assisting him in conducting a
transaction:
(1) may assume without inquiry that the trustee has the powers he
purports to exercise and has exercised them properly; and
(2) shall not be responsible for the application of money or
property paid or delivered to the trustee.
(b) If the third person has actual knowledge that the trustee is
exceeding his powers or is improperly exercising them, that person
will not be protected under subsection (a) of this section.
(c) If a trust which includes real estate is a public record in the
county in which the real estate is situated, a third person dealing with
the trustee with respect to that real estate shall be deemed to have
actual notice of the terms of the trust.
(Formerly: Acts 1971, P.L.416, SEC.5.)
Last modified: May 27, 2006