§ 34-41-3.13 - Authority of trustee. - Rhode Island Statutes

SECTION 34-41-3.13

   § 34-41-3.13  Authority of trustee. –With respect to a third person dealing with a trustee, under § 34-41-2.05or § 34-41-3.08, the existence of trust powers and their proper exerciseby the trustee may be assumed without inquiry. A third person is not bound toinquire whether the trustee has power to act as trustee or is properlyexercising trust powers, and a third person without actual knowledge that thetrustee is exceeding or improperly exercising his or her powers is fullyprotected in dealing with the trustee as if he or she possessed and wereproperly exercising the power he or she purports to exercise. A third person isnot bound to assure the proper application of trust assets paid or delivered tothe trustee in his or her capacity as trustee.