Transfers by the trustee to third persons
Sec. 2. (Transfers by the Trustee to Third Persons)
(a) If, in transferring an interest in trust property to a third party,
the trustee is not committing a breach of trust, the transferee holds
the interest free of the trust and incures no liability to the beneficiary.
(b) A third person, to whom an interest in trust property is
transferred by the trustee in breach of trust, takes his interest free of
the trust if he:
(1) takes for value and without notice of the breach of trust; and
(2) is not taking part in what he knows to be an illegal transaction.
(Formerly: Acts 1971, P.L.416, SEC.5.)
Last modified: May 27, 2006