55-475 - Association as trustee. - Virginia Statutes

§ 55-475. 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, withoutactual knowledge that the association is exceeding or improperly exercisingits powers, is fully protected in dealing with the association as if itpossessed and properly exercised the powers it purports to exercise. A thirdperson is not bound to assure the proper application of trust assets paid ordelivered to the association in its capacity as trustee.

(1982, c. 277.)