448.3-119. Association as trustee.
Association as trustee.
448.3-119. With respect to a third person dealing with theassociation in the association's capacity as a trustee, theexistence of trust powers and their proper exercise by theassociation may be assumed without inquiry. A third person isnot bound to inquire whether the association has power to act astrustee or is properly exercising trust powers and a thirdperson, without actual knowledge that the association isexceeding or improperly exercising its powers, is fully protectedin dealing with the association as if it possessed and properlyexercised the powers it purports to exercise. A third person isnot bound to assure the proper application of trust assets paidor delivered to the association in its capacity as trustee.
(L. 1983 H.B. 177)