35-15-1012 - Protection of person dealing with trustee. - Tennessee Statutes

35-15-1012. Protection of person dealing with trustee.

(a)  A person other than a beneficiary who in “good faith”, as defined in § 47-1-201, assists a trustee, or who in “good faith” and for value deals with a trustee, without knowledge that the trustee is exceeding or improperly exercising the trustee's powers is protected from liability as if the trustee properly exercised the power.

(b)  A person other than a beneficiary who in “good faith” deals with a trustee is not required to inquire into the extent of the trustee's powers or the propriety of their exercise.

(c)  A person who in “good faith” delivers assets to a trustee need not ensure their proper application.

(d)  A person other than a beneficiary who in “good faith” assists a former trustee, or who in “good faith” and for value deals with a former trustee, without knowledge that the trusteeship has terminated is protected from liability as if the former trustee were still a trustee.

(e)  Comparable protective provisions of other laws, see §§ 47-8-101 47-8-407, relating to commercial transactions or transfer of securities by fiduciaries prevail over the protection provided by this section.

[Acts 2004, ch. 537, § 88.]