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

§47F‑3‑119.  Association as trustee.

With respect to a third persondealing with the association in the association's capacity as a trustee underG.S. 47F‑2‑118 following termination or G.S. 47F‑3‑113for insurance proceeds, the existence of trust powers and their proper exerciseby the association may be assumed without inquiry. A third person is not boundto inquire whether the association has power to act as trustee or is properlyexercising trust powers, and a third person, without actual knowledge that theassociation is exceeding or improperly exercising its powers, is fullyprotected in dealing with the association as if it possessed and properlyexercised the powers it purports to exercise. A third person is not bound toassure the proper application of trust assets paid or delivered to theassociation in its capacity as trustee. (1998‑199, s. 1.)