§ 53-407. Authority to act as disbursing agent.
§ 53‑407. Authority toact as disbursing agent.
If a purchasing trustinstitution acts under a written agency contract that (i) is approved by theCommissioner; (ii) specifically names each creditor and the amount to be paideach; and (iii) limits the agency to the purely ministerial act of payingcreditors the amounts due them as determined by the selling institution anddoes not involve discretionary duties or authority other than theidentification of the creditors named, then the purchasing trust institution:
(1) May rely on thecontract of agency and the instructions included in it; and
(2) Is not responsiblefor:
a. Any error made bythe selling institution in determining its liabilities, the creditors to whomthe liabilities are due, or the amounts due the creditors; or
b. Any preference thatresults from the payments made under the contract of agency and theinstructions included in it. (2001‑263, s. 1.)