§ 47C-3-119. Association as trustee. - North Carolina Statutes

§ 47C‑3‑119. Association as trustee.

With respect to a third person dealing with the association in theassociation's capacity as a trustee under G.S. 47C‑2‑118 followingtermination or G.S. 47C‑3‑113 for insurance proceeds, the existenceof trust powers and their proper exercise by the association may be assumedwithout inquiry. A third person is not bound to inquire whether the associationhas power to act as trustee or is properly exercising trust powers and a thirdperson, without actual knowledge that the association is exceeding orimproperly exercising its powers, is fully protected in dealing with theassociation as if it possessed and properly exercised the powers it purports toexercise. A third person is not bound to assure the proper application of trustassets paid or delivered to the association in its capacity as such trustee. (1985 (Reg. Sess., 1986), c. 877, s. 1.)