633A.4603 Obligations of third parties. 1. With respect to a third party dealing with a trustee or assisting a trustee in the conduct of a transaction, if the third party acts in good faith and for a valuable consideration and withoutknowledge that the trustee is exceeding the trustee’s powers or is improperly exercising them,the following apply: a. A third party is not bound to inquire as to whether a trustee has power to act or is properly exercising a power and may assume without inquiry the existence of a trust powerand its proper exercise. b. A third party is fully protected in dealing with or assisting a trustee, as if the trustee has and is properly exercising the power the trustee purports to exercise. 2. A third party who acts in good faith is not bound to ensure the proper application of trust property paid or delivered to the trustee. 3. If a third party acting in good faith and for a valuable consideration enters into a transaction with a former trustee without knowledge that the person is no longer a trustee,the third party is fully protected as if the former trustee were still a trustee. onsideration enters into a transaction with a former trustee without knowledge that the person is no longer a trustee,the third party is fully protected as if the former trustee were still a trustee. 99 Acts, ch 125, §81, 109C2001, §633.46032005 Acts, ch 38, §54CS2005, §633A.4603Referred to in §633A.4502 Sat Dec 23 12:13:39 2023 Iowa Code 2024, Section 633A.4603 (18, 0)
Iowa Legal Code