§ 34-36.1-3.19 - Association as trustee. - Rhode Island Statutes

SECTION 34-36.1-3.19

   § 34-36.1-3.19  Association as trustee.– With respect to a third person dealing with the association in theassociation's capacity as a trustee, the existence of trust powers and theirproper exercise by the association may be assumed without inquiry. A thirdperson is not bound to inquire whether the association has power to act astrustee or is properly exercising trust powers. A third person, without actualknowledge that the association is exceeding or improperly exercising itspowers, is fully protected in dealing with the association as if it possessedand properly exercised the powers it purports to exercise. A third person isnot bound to assure the proper application of trust assets paid or delivered tothe association in its capacity as trustee.