Section 12-402 - Trustee liability; restrictions on liability expansion or limitations in governing instrument. - Maryland Statutes

§ 12-402. Trustee liability; restrictions on liability expansion or limitations in governing instrument.
 

(a)  Trustee personal liability.- Subject to the provisions of subsections (d) and (e) of this section, and except as provided in the governing instrument of a statutory trust, a trustee, when acting in such capacity, is not personally liable to any person other than the statutory trust or a beneficial owner for any act, omission, or obligation of the statutory trust or any trustee. 

(b)  Standard of performance.- Subject to subsection (c) of this section, a trustee shall perform the trustee's duties as a trustee, including the duties as a member of a committee of the trustees on which the trustee serves: 

(1) In good faith; 

(2) In a manner that the trustee reasonably believes to be in the best interests of the statutory trust; and 

(3) With the care that an ordinarily prudent person in a like position would use under similar circumstances. 

(c)  Standard of performance - Expansion or limitation.- The governing instrument of a statutory trust may include a provision expanding or limiting the duties of a trustee set forth in subsection (b) of this section, provided that the governing instrument may not eliminate the duty to act in good faith. 

(d)  Standard of performance  - Liability.-  

(1) A trustee who performs the duties of a trustee in accordance with the standard provided under subsection (b) of this section, as may be expanded or limited in the governing instrument in accordance with subsection (c) of this section, has no liability by reason of being or having been a trustee of the statutory trust. 

(2) A trustee shall have no duties other than as set forth in subsection (b) of this section, as expanded or limited in the governing instrument in accordance with subsection (c) of this section. 

(3) The governing instrument of a statutory trust may include a provision expanding or limiting the liability of its trustees and officers to the statutory trust or its beneficial owners, provided that the governing instrument may not limit the liability of its trustees and officers to any extent greater than that permitted by Title 2, Subtitle 4 of this article in connection with the limitation of liability of directors and officers of a Maryland corporation. 

(e)  Limitation on creditors of trustees.- No creditor of a trustee shall have any right to obtain possession of, or otherwise exercise any legal or equitable remedy with respect to, any property of the statutory trust with respect to any claim against, or obligation of, the trustee in the trustee's individual capacity. 
 

[1999, ch. 452; 2010, ch. 611, § 1.]