§ 55-550.12. Protection of person dealing with trustee.
A. A person other than a beneficiary who in good faith assists a trustee, or who in good faith and for value deals with a trustee, without knowledge that the trustee is exceeding or improperly exercising the trustee's powers, is protected from liability as if the trustee properly exercised the power.
B. A person other than a beneficiary who in good faith deals with a trustee is not required to inquire into the extent of the trustee's powers or the propriety of their exercise.
C. A person who in good faith delivers assets to a trustee need not ensure their proper application.
D. A person other than a beneficiary who in good faith assists a former trustee, or who in good faith and for value deals with a former trustee, without knowledge that the trusteeship has terminated is protected from liability as if the former trustee were still a trustee.
E. Comparable protective provisions of other laws relating to commercial transactions or transfer of securities by fiduciaries prevail over the protection provided by this section.
(2005, c. 935.)
Sections: Previous 55-550.04 55-550.05 55-550.06 55-550.07 55-550.08 55-550.09 55-550.10 55-550.11 55-550.12 55-550.13 55-551.01 55-551.02 55-551.03 55-551.04 55-551.06 NextLast modified: April 3, 2009