633F.11 Exemption of third person from liability. 1. A third person in good faith and without a court order may act on instructions of, or otherwise deal with, a person purporting to make a transfer as, or purporting to act in thecapacity of, a custodial trustee. 2. A third person who receives instructions from the purported custodial trustee may require such custodial trustee to provide proof of their identity and a certification of trust orcopies of those excerpts from the original trust instrument and amendments to the originaltrust instrument which designate the currently acting custodial trustee and confer upon thecustodial trustee the power to act in the pending transaction. 3. If a certification of trust is provided, it must do all of the following:a. State the names of all the currently acting trustees.b. If there is more than one currently acting trustee, state whether the trustees may act individually or must act by majority decision or must act by unanimous decision. c. State that the trust has not been revoked, modified, or amended in any manner that would cause the representations in the certification of trust to be incorrect. d. must act by unanimous decision. c. State that the trust has not been revoked, modified, or amended in any manner that would cause the representations in the certification of trust to be incorrect. d. Be signed by a currently acting trustee or the attorney of a currently acting trustee.e. Be dated and certified under penalty of perjury and pursuant to the laws of the state of Iowa that it is true and correct, or subscribed and sworn to under penalty of perjury before anotary public as provided in chapter 9B. f. A third person who acts in reliance upon the information provided by the custodial trustee, after taking reasonable steps to verify the identity of the custodial trustee and withoutknowledge that the representations contained in the certification are incorrect, is not liable toany person for so acting and may assume without inquiry the existence of the facts containedin the certification. The period of time to verify the identity of the trustee shall not exceed tenbusiness days from the date the third person received the requested information. Knowledgeshall not be inferred solely from the fact that a copy of all or part of the trust instrument isheld by the third person ys from the date the third person received the requested information. Knowledgeshall not be inferred solely from the fact that a copy of all or part of the trust instrument isheld by the third person relying upon the trust certification. A transaction, and a lien createdby a transaction, entered into by the custodial trustee and a person acting in reliance upon acertification of trust is enforceable against the trust assets. 4. A third person who makes a demand for information from the custodial trustee beyond that set forth in subsection 2 shall be liable for damages, including attorney fees, incurredas a result of the refusal to accept the information provided, if the court determines that thethird person acted unreasonably in requesting such additional information. 5. If a custodial trustee has provided the information set forth in subsection 2, and the third person refuses to follow the instructions provided by the custodial trustee within thetime period set forth in subsection 4, the custodial trustee may bring an action under thissubsection and the court may award any or all of the following to the custodial trustee: a. Any damages sustained by the trust.b. in subsection 4, the custodial trustee may bring an action under thissubsection and the court may award any or all of the following to the custodial trustee: a. Any damages sustained by the trust.b. The costs of the action.c. A penalty in an amount of not less than five hundred dollars and not more than ten thousand dollars. d. Reasonable attorney fees, based on the value of the time reasonably expended by the attorney and not on the amount of the recovery on behalf of the custodial trustee. 6. An action shall not be brought under subsection 5 more than one year after the date of the occurrence of the alleged violation. 2021 Acts, ch 8, §11; 2022 Acts, ch 1021, §166 Sat Dec 23 12:17:51 2023 Iowa Code 2024, Section 633F.11 (4, 0)
Iowa Legal Code