§ 18-11-8 - Non-liability of third persons. - Rhode Island Statutes

SECTION 18-11-8

   § 18-11-8  Non-liability of third persons.– (a) No person who participates in the acquisition, disposition, assignment, ortransfer of a security by or to a fiduciary, including a person who guaranteesthe signature of the fiduciary, is liable for participation in any breach offiduciary duty by reason of failure to inquire whether the transaction involvesa breach, unless it is shown that the person acted with actual knowledge thatthe proceeds of the transaction were being or were to be used wrongfully forthe individual benefit of the fiduciary or that the transaction was otherwisein breach of duty.

   (b) If a corporation or transfer agent makes a transferpursuant to an assignment by a fiduciary, a person who guaranteed the signatureof the fiduciary is not liable on the guarantee to any person to whom thecorporation or transfer agent, by reason of this chapter, incurs no liability.

   (c) This section does not impose any liability upon thecorporation or its transfer agent.