§ 36C-10-1012. Protection of person dealing with trustee. - North Carolina Statutes

§ 36C‑10‑1012. Protection of person dealing with trustee.

(a)        A person other thana beneficiary who in good faith assists a trustee, or who in good faith and forvalue deals with a trustee, without knowledge that the trustee is exceeding orimproperly exercising the trustee's powers, is protected from liability as ifthe trustee properly exercised the power.

(b)        A person other thana beneficiary who in good faith deals with a trustee is not required to inquireinto the extent of the trustee's powers or the propriety of their exercise.

(c)        A person who ingood faith delivers assets to a trustee need not ensure their properapplication.

(d)        A person other thana beneficiary who in good faith assists a former trustee, or who in good faithand for value deals with a former trustee, without knowledge that thetrusteeship has terminated is protected from liability as if the former trusteewere still a trustee.

(e)        Comparableprotective provisions of other laws relating to commercial transactions ortransfer of securities by fiduciaries prevail over the protection provided bythis section.

(f)         A person is notrequired to obtain a certification under G.S. 36C‑10‑1013 in orderto be entitled to the protections of this section. (2005‑192, s. 2.)